Federal Register / Vol. 79, No. 144 / Monday, July 28, 2014 / Rules and Regulations 43619 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 135 

[Docket No.: FAA–2014–0502; Amdt. No. 

135–131] 

RIN 2120–AK49 

Departing IFR/VFR When Weather 

Reporting Is Not Available 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Direct final rule; request for 

comments. 

SUMMARY: This action will permit the 

pilot in command of a helicopter air 

ambulance to assess the weather at a 

departure point where current weather 

observations are not available and allow 

the pilot to depart if the observed 

ceiling and visibility is greater than 

certain weather minimums. This action 

will allow a pilot to utilize the 

minimum takeoff visibilities depicted in 

a published obstacle departure 

procedure, or in the absence of such a 

procedure, when the pilot observed 

ceiling and visibility is greater than the 

minimum ceiling and visibility 

limitations required by specific 

helicopter air ambulance rules. This 

change to the current regulation will 

permit helicopter air ambulance flights 

to enter the National Airspace System 

under Instrument Flight Rules when 

visibilities and ceilings are below Visual 

Flight Rules, thus increasing the safety 

of the flight. 

DATES: Effective April 22, 2015. 

Submit comments on or before 

September 26, 2014. If we receive an 

adverse comment or notice of intent to 

file an adverse comment, we will advise 

the public by publishing a document in 

the Federal Register withdrawing the 

direct final rule before the effective date 

of the final rule. 

ADDRESSES: You may send comments 

identified by docket number FAA– 

2010–0982 using any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30; U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE., Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE., Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: In accordance with 5 U.S.C. 

553(c), DOT solicits comments from the 

public to better inform its rulemaking 

process. DOT posts these comments, 

without edit, including any personal 

information the commenter provides, to 

www.regulations.gov, as described in 

the system of records notice (DOT/ALL– 

14 FDMS), which can be reviewed at 

www.dot.gov/privacy. 

Docket: Background documents or 

comments received may be read at 

http://www.regulations.gov at any time. 

Follow the online instructions for 

accessing the docket or Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

action, contact Andrew C. Pierce, Air 

Transportation Division, 135 Air Carrier 

Operations Branch, AFS–250, Federal 

Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone 202– 

267–8238; email andy.pierce@faa.gov. 

For legal questions concerning this 

action, contact Nancy Sanchez, AGC– 

220, Federal Aviation Administration, 

800 Independence Avenue SW., 

Washington, DC 20591; telephone 202– 

267–7280 (office); email 

nancy.sanchez@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules on 

aviation safety is found in Title 49 of the 

United States Code. This rulemaking is 

promulgated under the general authority 

described in 49 U.S.C. 106(f) and 

44701(a), and the specific authority set 

forth in section 306, Safety of Air 

Ambulance Operations, of the FAA 

Modernization and Reform Act of 2012 

(Pub. L. 112–95), which is now codified 

at 49 U.S.C. 44730. 

The Direct Final Rule Procedure 

The FAA is adopting this direct final 

rule without prior notice and prior 

public comment as a direct final rule 

because this rule is not controversial, is 

not expected to result in the receipt of 

an adverse comment, and a notice of 

proposed rulemaking is not necessary. 

This change to the regulation provides 

greater opportunity for Helicopter Air 

Ambulance (HAA) operations to enter 

the National Airspace System (NAS) 

under Instrument Flight Rules (IFR) 

than previously permitted. Without this 

amendment, helicopter air ambulances 

will be unable to depart under IFR from 

landing sites lacking weather reporting, 

until Visual Flight Rules (VFR) 

appropriate to the class of airspace 

above prevail. The Regulatory Policies 

and Procedures of the Department of 

Transportation (DOT) (44 FR 1134; 

February 26, 1979) provide that to the 

maximum extent possible, operating 

administrations for the DOT should 

provide an opportunity for public 

comment on regulations issued without 

prior notice. Accordingly, the FAA 

invites interested persons to participate 

in this rulemaking by submitting written 

comments, data, or views. The agency 

also invites comments relating to the 

economic, environmental, energy, or 

federalism impacts that might result 

from adopting this final rule. 

A direct final rule will take effect on 

a specified date unless the FAA receives 

an adverse comment or notice of intent 

to file an adverse comment within the 

comment period. An adverse comment 

explains why a rule would be 

inappropriate, or would be ineffective or 

unacceptable without a change. It may 

challenge the rule’s underlying premise 

or approach. Under the direct final rule 

process, we do not consider the 

following types of comments to be 

adverse: 

(1) A comment recommending 

another rule change, in addition to the 

change in the direct final rule at issue. 

We consider the comment adverse, 

however, if the commenter states why 

the direct final rule would be ineffective 

without the change. 

(2) A frivolous or insubstantial 

comment. 

If we receive an adverse comment or 

notice of intent to file an adverse 

comment, we will advise the public by 

publishing a document in the Federal 

Register before the effective date of the 

final rule. This document may withdraw 

the direct final rule in whole or in part. 

If we withdraw a direct final rule 

because of an adverse comment, we may 

incorporate the commenter’s 

recommendation into another direct 

final rule or may publish a notice of 

proposed rulemaking. 

If we do not receive an adverse 

comment or notice of intent to file an 

adverse comment, we will publish a 

confirmation document in the Federal 

Register, generally within 15 days after 

the comment period closes. The 

confirmation document tells the public 

the effective date of the rule. 

See the ‘‘Additional Information’’ 

section for information on how to 

comment on this direct final rule and 


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43620 Federal Register / Vol. 79, No. 144 / Monday, July 28, 2014 / Rules and Regulations 

how the FAA will handle comments 

received. The ‘‘Additional Information’’ 

section also contains related 

information about the docket, privacy, 

the handling of proprietary or 

confidential business information. In 

addition, there is information on 

obtaining copies of related rulemaking 

documents. 

I. Overview of the Direct Final Rule 

This direct final rule will permit the 

pilot in command of a helicopter air 

ambulance to assess the weather at a 

departure point where current weather 

observations are not available and to 

depart if the pilot’s observed ceiling and 

visibility is greater than certain weather 

minimums. Applicable weather 

minimums include minimums found in 

a published Obstacle Departure 

Procedure (ODP), or in the absence of 

such a procedure, when the pilot 

observed ceiling and visibility is greater 

than the minimum ceiling and visibility 

limitations required by specific HAA 

rules. This change to the current 

regulation will permit helicopter air 

ambulance flights to enter the NAS 

under IFR when visibilities and ceilings 

are below VFR based on pilot weather 

observations, thus increasing the safety 

of the flight. Without this action, 

helicopter air ambulances will be 

unable to depart under IFR from landing 

sites lacking weather reporting, until 

VFR appropriate to the class of airspace 

above prevail. 

II. Discussion of the Direct Final Rule 

A. Background 

On February 21, 2014, the FAA 

published a final rule on Helicopter Air 

Ambulance, Commercial Helicopter, 

and Part 91 Helicopter Operations. 79 

FR 9932 (Feb. 21, 2014). It contained a 

new provision, § 135.611, that allows 

HAA operators to conduct IFR 

operations at airports and heliports 

without a weather reporting facility if 

they can obtain weather reports from an 

approved weather reporting facility 

located within 15 nautical miles of the 

destination landing area and meet other 

pilot and equipment requirements. 

B. Statement of the Problem 

The recently published final rule did 

not provide a means for HAA flights 

with IFR clearances to depart from 

airports not served with current weather 

observation reports. The current 

language in the rule would not allow a 

pilot to utilize the minimum takeoff 

visibilities depicted in published ODP 

when these are available. As a result, 

IFR capable departing flights are not 

able to gain direct access into the IFR 

system when weather conditions are 

worse than the Class G VFR minimums 

published in § 135.609, but are better 

than or equal to the published ODP 

takeoff minimums when the ODP 

depicts a ‘‘proceed visually’’ transition 

to the Initial Departure Fix (IDF). 

The departing flight must be on an 

IFR Air Traffic Control (ATC) Clearance, 

which in accordance with the published 

ODP, contains takeoff minimums, and 

has a ‘‘proceed visually’’ segment 

between the takeoff location and the 

initial departure fix. When an ODP is 

not available or is not contained in the 

clearance, or the ODP depicts a 

‘‘proceed VFR’’ segment instead of a 

‘‘proceed visually’’ segment, the 

minimum visibility and ceiling reverts 

to that which is appropriate for the class 

of airspace involved. This revision to 

the rule text recognizes the improved 

safety margins and technologies 

available with ODPs and is consistent 

with the original intent of the rule, 

which is to encourage safe entry into the 

IFR System. 

III. Regulatory Notices and Analyses 

A. Regulatory Evaluation 

Changes to Federal regulations must 

undergo several economic analyses. 

First, Executive Order 12866 and 

Executive Order 13563 direct that each 

Federal agency shall propose or adopt a 

regulation only upon a reasoned 

determination that the benefits of the 

intended regulation justify its costs. 

Second, the Regulatory Flexibility Act 

of 1980 (Pub. L. 96–354) requires 

agencies to analyze the economic 

impact of regulatory changes on small 

entities. Third, the Trade Agreements 

Act (Pub. L. 96–39) prohibits agencies 

from setting standards that create 

unnecessary obstacles to the foreign 

commerce of the United States. In 

developing U.S. standards, the Trade 

Act requires agencies to consider 

international standards and, where 

appropriate, that they be the basis of 

U.S. standards. Fourth, the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4) requires agencies to prepare a 

written assessment of the costs, benefits, 

and other effects of proposed or final 

rules that include a Federal mandate 

likely to result in the expenditure by 

State, local, or tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more annually (adjusted 

for inflation with base year of 1995). 

This portion of the preamble 

summarizes the FAA’s analysis of the 

economic impacts of this final rule. 

Department of Transportation Order 

DOT 2100.5 prescribes policies and 

procedures for simplification, analysis, 

and review of regulations. If the 

expected cost impact is so minimal that 

a proposed or final rule does not 

warrant a full evaluation, this order 

permits that a statement to that effect 

and the basis for it to be included in the 

preamble if a full regulatory evaluation 

of the cost and benefits is not prepared. 

Such a determination has been made for 

this final rule. The reasoning for this 

determination follows: 

The FAA is amending IFR operations 

at locations without weather reporting, 

in order to permit the pilot in command 

of a helicopter air ambulance to assess 

the weather at a departure point where 

current weather observations are not 

available and allow the pilot to depart 

if the observed ceiling and visibility is 

greater than certain weather minimums. 

This change to the regulation provides 

greater opportunity for HAA operations 

to enter the NAS under IFR than 

previously permitted. Without this 

action, helicopter air ambulances will 

be unable to depart under IFR from 

landing sites lacking weather reporting, 

until VFR minimums appropriate to the 

class of airspace above prevail. 

This requirement will increase the use 

of IFR flight by HAA operators, which 

will result in more aircraft operating in 

a positively controlled environment and 

within the existing infrastructure 

resulting in unquantified net benefit 

gains, and a full regulatory evaluation 

was not prepared 

The FAA has, therefore, determined 

that this direct final rule is not a 

‘‘significant regulatory action’’ as 

defined in section 3(f) of Executive 

Order 12866, and is not ‘‘significant’’ as 

defined in DOT’s Regulatory Policies 

and Procedures. 

B. Regulatory Flexibility Determination 

The Regulatory Flexibility Act of 1980 

(Pub. L. 96–354) (RFA) establishes ‘‘as a 

principle of regulatory issuance that 

agencies shall endeavor, consistent with 

the objectives of the rule and of 

applicable statutes, to fit regulatory and 

informational requirements to the scale 

of the businesses, organizations, and 

governmental jurisdictions subject to 

regulation.’’ To achieve this principle, 

agencies are required to solicit and 

consider flexible regulatory proposals 

and to explain the rationale for their 

actions to assure that such proposals are 

given serious consideration.’’ The RFA 

covers a wide-range of small entities, 

including small businesses, not-forprofit organizations, and small 

governmental jurisdictions. 

Agencies must perform a review to 

determine whether a rule will have a 

significant economic impact on a 

substantial number of small entities. If 


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Federal Register / Vol. 79, No. 144 / Monday, July 28, 2014 / Rules and Regulations 43621 

the agency determines that it will, the 

agency must prepare a regulatory 

flexibility analysis as described in the 

RFA. 

However, if an agency determines that 

a rule is not expected to have a 

significant economic impact on a 

substantial number of small entities, 

section 605(b) of the RFA provides that 

the head of the agency may so certify 

and a regulatory flexibility analysis is 

not required. The certification must 

include a statement providing the 

factual basis for this determination, and 

the reasoning should be clear. 

This direct final rule does not impose 

any additional costs on helicopter air 

ambulance operators. Therefore, as 

provided in section 605(b), the head of 

the FAA certifies that this rulemaking 

will not result in a significant economic 

impact on a substantial number of small 

entities. 

C. International Trade Impact 

Assessment 

The Trade Agreements Act of 1979 

(Pub. L. 96–39), as amended by the 

Uruguay Round Agreements Act (Pub. 

L. 103–465), prohibits Federal agencies 

from establishing standards or engaging 

in related activities that create 

unnecessary obstacles to the foreign 

commerce of the United States. 

Pursuant to these Acts, the 

establishment of standards is not 

considered an unnecessary obstacle to 

the foreign commerce of the United 

States, so long as the standard has a 

legitimate domestic objective, such as 

the protection of safety, and does not 

operate in a manner that excludes 

imports that meet this objective. The 

statute also requires consideration of 

international standards and, where 

appropriate, that they be the basis for 

U.S. standards. The FAA has assessed 

the potential effect of this direct final 

rule and determined that it will have 

only a domestic impact and therefore no 

effect on international trade. 

D. Unfunded Mandates Assessment 

Title II of the Unfunded Mandates 

Reform Act of 1995 (Pub. L. 104–4) 

requires each Federal agency to prepare 

a written statement assessing the effects 

of any Federal mandate in a proposed or 

final agency rule that may result in an 

expenditure of $100 million or more (in 

1995 dollars) in any one year by State, 

local, and tribal governments, in the 

aggregate, or by the private sector; such 

a mandate is deemed to be a ‘‘significant 

regulatory action.’’ The FAA currently 

uses an inflation-adjusted value of $151 

million in lieu of $100 million. This 

direct final rule does not contain such 

a mandate; therefore, the requirements 

of Title II of the Act do not apply. 

E. International Compatibility and 

Cooperation 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, it is FAA policy to 

conform to International Civil Aviation 

Organization (ICAO) Standards and 

Recommended Practices to the 

maximum extent practicable. The FAA 

has determined that there are no ICAO 

Standards and Recommended Practices 

that correspond to these proposed 

regulations. 

Executive Order 13609, Promoting 

International Regulatory Cooperation, 

promotes international regulatory 

cooperation to meet shared challenges 

involving health, safety, labor, security, 

environmental, and other issues and to 

reduce, eliminate, or prevent 

unnecessary differences in regulatory 

requirements. The FAA has analyzed 

this action under the policies and 

agency responsibilities of Executive 

Order 13609, and has determined that 

this action would have no effect on 

international regulatory cooperation. 

F. Environmental Analysis 

FAA Order 1050.1E identifies FAA 

actions that are categorically excluded 

from preparation of an environmental 

assessment or environmental impact 

statement under the National 

Environmental Policy Act in the 

absence of extraordinary circumstances. 

The FAA has determined this 

rulemaking action qualifies for the 

categorical exclusion identified in 

paragraph 312f and involves no 

extraordinary circumstances. 

IV. Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this final rule 

under the principles and criteria of 

Executive Order 13132, Federalism. The 

agency determined that this action will 

not have a substantial direct effect on 

the States, or the relationship between 

the Federal Government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government, and, therefore, 

does not have Federalism implications. 

B. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this final rule 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

Distribution, or Use (May 18, 2001). The 

agency has determined that it is not a 

‘‘significant energy action’’ under the 

executive order and it is not likely to 

have a significant adverse effect on the 

supply, distribution, or use of energy. 

VI. Additional Information 

A. Comments Invited 

The FAA invites interested persons to 

participate in this rulemaking by 

submitting written comments, data, or 

views. The agency also invites 

comments relating to the economic, 

environmental, energy, or federalism 

impacts that might result from adopting 

the rulemaking action in this document. 

The most helpful comments reference a 

specific portion of the rulemaking 

action, explain the reason for any 

recommended change, and include 

supporting data. To ensure the docket 

does not contain duplicate comments, 

commenters should send only one copy 

of written comments, or if comments are 

filed electronically, commenters should 

submit only one time. 

The FAA will file in the docket all 

comments it receives, as well as a report 

summarizing each substantive public 

contact with FAA personnel concerning 

this rulemaking. Before acting on this 

rulemaking action, the FAA will 

consider all comments it receives on or 

before the closing date for comments. 

The FAA will consider comments filed 

after the comment period has closed if 

it is possible to do so without incurring 

expense or delay. The agency may 

change this rulemaking action in light of 

the comments it receives. 

B. Availability of Rulemaking 

Documents 

An electronic copy of rulemaking 

documents may be obtained from the 

Internet by— 

1. Searching the Federal eRulemaking 

Portal (http://www.regulations.gov); 

2. Visiting the FAA’s Regulations and 

Policies Web page at http://

www.faa.gov/regulations_policies or 

3. Accessing the Government Printing 

Office’s Web page at http://

www.gpo.gov/fdsys/. 

Copies may also be obtained by 

sending a request to the Federal 

Aviation Administration, Office of 

Rulemaking, ARM–1, 800 Independence 

Avenue SW., Washington, DC 20591, or 

by calling (202) 267–9680. Commenters 

must identify the docket or amendment 

number of this rulemaking. 

All documents the FAA considered in 

developing this rulemaking action, 

including economic analyses and 

technical reports, may be accessed from 

the Internet through the Federal 

eRulemaking Portal referenced in item 

(1) above. 


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43622 Federal Register / Vol. 79, No. 144 / Monday, July 28, 2014 / Rules and Regulations 

List of Subjects in 14 CFR Part 135 

Air transportation, Aircraft, and 

Aviation safety. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations as follows: 

PART 135—OPERATING 

REQUIREMENTS: COMMUTER AND 

ON DEMAND OPERATIONS AND 

RULES GOVERNING PERSONS ON 

BOARD SUCH AIRCRAFT 

■ 1. The authority citation for part 135 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 41706, 

40113, 44701–44702, 44705, 44709, 44711– 

44713, 44715–44717, 44722, 44730, 45101– 

45105; Pub. L. 112–95, 126 Stat. 58 (49 U.S.C. 

44730). 

■ 2. Revise § 135.611(a)(3) to read as 

follows: 

§ 135.611 IFR operations at locations 

without weather reporting. 

(a) * * * 

(3) In Class G airspace, IFR departures 

with visual transitions are authorized 

only after the pilot in command 

determines that the weather conditions 

at the departure point are at or above 

takeoff minimums depicted in the 

published Obstacle Departure Procedure 

or VFR minimum ceilings and 

visibilities in accordance with 

§ 135.609. 

* * * * * 

Issued under authority provided by 49 

U.S.C. 106(f), 44701(a), and 44730 in 

Washington, DC, on July 17, 2014. 

Michael P. Huerta, 

Administrator. 

[FR Doc. 2014–17729 Filed 7–25–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9683] 

RIN 1545–BM23 

Rules Regarding the Health Insurance 

Premium Tax Credit 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations relating to 

the health insurance premium tax credit 

enacted by the Patient Protection and 

Affordable Care Act and the Health Care 

and Education Reconciliation Act of 

2010, as amended by the Medicare and 

Medicaid Extenders Act of 2010, the 

Comprehensive 1099 Taxpayer 

Protection and Repayment of Exchange 

Subsidy Overpayments Act of 2011, and 

the Department of Defense and FullYear Continuing Appropriations Act of 

2011 and the 3% Withholding Repeal 

and Job Creation Act. These regulations 

affect individuals who enroll in 

qualified health plans through 

Affordable Insurance Exchanges 

(Exchanges) and claim the premium tax 

credit, and Exchanges that make 

qualified health plans available to 

individuals. The text of the temporary 

regulations in this document also serves 

as the text of proposed regulations set 

forth in a notice of proposed rulemaking 

(REG–104579–13) on this subject in the 

Proposed Rules section in this issue of 

the Federal Register. 

DATES: Effective Date: These regulations 

are effective on July 28, 2014. 

Applicability Date: For applicability 

dates, see §§ 1.36B–2T(d), 1.36B–3T(m), 

1.36B–4T(c), and 1.162(l)–1T(c). 

FOR FURTHER INFORMATION CONTACT: 

Arvind Ravichandran or Shareen Pflanz, 

(202) 317–4718 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final and 

temporary regulations that amend the 

Income Tax Regulations (26 CFR part 1) 

under section 36B relating to the 

premium tax credit and under section 

162(l) relating to the deduction for 

health insurance costs for self-employed 

individuals. Section 36B was enacted by 

the Patient Protection and Affordable 

Care Act, Public Law 111–148 (124 Stat. 

119 (2010)), and the Health Care and 

Education Reconciliation Act of 2010, 

Public Law 111–152 (124 Stat. 1029 

(2010)) (collectively, the Affordable Care 

Act). Section 36B provides a refundable 

premium tax credit to help individuals 

and families afford health insurance 

purchased through an Exchange. 

To be eligible for a premium tax credit 

under section 36B, an individual must 

be an applicable taxpayer. Section 

36B(c)(1) provides that an applicable 

taxpayer is a taxpayer (1) with 

household income for the taxable year 

between 100 percent and 400 percent of 

the federal poverty line for the 

taxpayer’s family size, (2) who may not 

be claimed as a dependent by another 

taxpayer, and (3) who files a joint return 

if married (within the meaning of 

section 7703). 

Section 7703(b) allows certain 

married individuals to be considered 

not married for purposes of the Internal 

Revenue Code. Under section 7703(b), a 

married taxpayer who lives apart from 

the taxpayer’s spouse for the last six 

months of the taxable year is considered 

unmarried if he or she files a separate 

return, maintains as the taxpayer’s home 

a household that is also the principal 

place of abode of a dependent child for 

more than half the year, and furnishes 

over half the cost of the household 

during the taxable year. 

Section 36B(b)(2) provides that a 

taxpayer’s premium tax credit is the 

lesser of the premiums for the plan or 

plans in which the taxpayer and the 

taxpayer’s family enroll or the excess of 

the premiums for the second lowest cost 

silver plan covering the taxpayer’s 

family (the benchmark plan) over the 

taxpayer’s contribution amount. A 

taxpayer’s contribution amount is the 

product of the taxpayer’s household 

income and an applicable percentage 

that increases as the taxpayer’s 

household income increases. 

Under section 1412 of the Affordable 

Care Act, eligible taxpayers may receive 

advance payments of the premium tax 

credit (advance credit payments). 

Section 36B(f) provides that taxpayers 

must reconcile any differences between 

the taxpayer’s advance credit payments 

for a taxable year and the taxpayer’s 

premium tax credit for the year. If the 

taxpayer’s advance credit payments 

exceed the allowed premium tax credit, 

the taxpayer owes the excess as a tax 

liability, subject to a repayment 

limitation in section 36B(f)(2)(B). 

Under section 162(l), a taxpayer who 

is an employee within the meaning of 

section 401(c)(1)—generally, a selfemployed individual—is allowed a 

deduction for all or a portion of the 

taxpayer’s premiums paid during the 

taxable year for health insurance for the 

taxpayer, the taxpayer’s spouse, the 

taxpayer’s dependents, and any child of 

the taxpayer under the age of 27. The 

deduction allowed under section 162(l) 

is limited to the taxpayer’s earned 

income from the trade or business with 

respect to which the health insurance 

plan is established. In addition, section 

280C(g) provides that no deduction is 

allowed under section 162(l) for the 

portion of premiums for a qualified 

health plan equal to the amount of the 

premium tax credit determined under 

section 36B(a) with respect to those 

premiums. 


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