II 

116TH CONGRESS 

1ST SESSION S. 2497 

To amend the Internal Revenue Code of 1986 to exclude certain dependent 

income when calculating modified adjusted gross income for the purposes 

of eligibility for premium tax credits. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 18, 2019 

Ms. CORTEZ MASTO (for herself, Mr. BROWN, and Ms. ROSEN) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

certain dependent income when calculating modified adjusted gross income for the purposes of eligibility for 

premium tax credits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Dependent Income Ex5 clusion Act of 2019’’. 


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•S 2497 IS

1 SEC. 2. EXCLUSION OF CERTAIN DEPENDENT INCOME FOR 

2 PURPOSES OF PREMIUM TAX CREDIT. 

3 (a) IN GENERAL.—Paragraph (2) of section 36B(d) 

4 of the Internal Revenue Code of 1986 is amended by add5 ing at the end the following new subparagraph: 

6 ‘‘(C) EXCEPTION FOR CERTAIN DEPEND7 ENT INCOME.— 

8 ‘‘(i) IN GENERAL.—There shall not be 

9 taken into account under subparagraph 

10 (A)(ii) any wages (determined under sec11 tion 3401(a)) or net earnings from self-em12 ployment (as defined in section 1402(a)) of 

13 any dependent of the taxpayer who— 

14 ‘‘(I) has not attained age 18 as 

15 of the last day of the calendar year in 

16 which the taxable year of the taxpayer 

17 begins, or 

18 ‘‘(II) has not attained age 24 as 

19 of the last day of such calendar year 

20 and, during each of 5 calendar 

21 months during such calendar year, is 

22 described in subparagraph (A) or (B) 

23 of section 152(f)(2) (applied by sub24 stituting ‘part-time or full-time’ for 

25 ‘full-time’ each place it appears, and 

26 by deeming any for-profit educational 


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1 institution not to be an educational 

2 organization described in section 

3 170(b)(1)(A)(ii)), is participating in a 

4 qualified job-training program, or is 

5 participating in an apprenticeship pro6 gram registered under the Act of Au7 gust 16, 1937 (commonly known as 

8 the ‘National Apprenticeship Act’; 50 

9 Stat. 664, chapter 663; 29 U.S.C. 50 

10 et seq.). 

11 ‘‘(ii) QUALIFIED JOB-TRAINING PRO12 GRAM.—For purposes of this subpara13 graph, the term ‘qualified job-training pro14 gram’ means any program of training serv15 ices described in section 134(c)(3) of the 

16 Workforce Innovation and Opportunity Act 

17 (29 U.S.C. 3174(c)(3)). 

18 ‘‘(iii) LIMITATION.—Clause (i) shall 

19 not apply to so much of the aggregate in20 come of all dependents of the taxpayer as 

21 exceeds an amount equal to 15 percent of 

22 the modified adjusted gross income of the 

23 taxpayer. 

24 ‘‘(iv) TAXPAYERS RESIDING IN MED25 ICAID NON-EXPANSION STATES.—In the 


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1 case of a taxpayer residing in a State 

2 which (as of the first day of the taxable 

3 year) does not provide for eligibility under 

4 clause (i)(VIII) or (ii)(XX) of section 

5 1902(a)(10)(A) of the Social Security Act 

6 for medical assistance under title XIX of 

7 such Act (or a waiver of the State plan ap8 proved under section 1115 of the Social 

9 Security Act), clause (i) shall apply to any 

10 dependent of such taxpayer only to the ex11 tent that the application of such clause 

12 would not reduce the household income 

13 below 100 percent of the amount equal to 

14 the poverty line for a family of the size in15 volved.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Clause (ii) of section 36B(d)(2)(A) of the 

18 Internal Revenue Code of 1986 is amended by in19 serting ‘‘, except as provided in subparagraph (C),’’ 

20 after ‘‘individuals’’. 

21 (2) Paragraph (3) of section 1411(b) of the Pa22 tient Protection and Affordable Care Act (42 U.S.C. 

23 18081) is amended by adding at the end the fol24 lowing new subparagraph: 


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1 ‘‘(D) INFORMATION REGARDING CERTAIN

2 DEPENDENTS.—Information regarding whether 

3 section 36B(d)(2)(C) will apply to any individ4 uals taken into account as members of the 

5 household of the enrollee, and the amount of in6 come from employment of each such individual 

7 for the taxable year described in subparagraph 

8 (A).’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to credits allowed under section 

11 36B of the Internal Revenue Code of 1986 for, and ad12 vance payments of credits under section 1412 of the Pa13 tient Protection and Affordable Care Act with respect to, 

14 taxable years beginning after the date of the enactment 

15 of this Act. 

Æ 


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