the calendar year in which the taxable year begins 
(for the type of coverage involved) for plans in the 
AHBP region involved, as determined by the Com-
missioner of Health Benefits. 
‘‘(2) REDUCTION BASED ON FAMILY INCOME.—
The amount otherwise determined under paragraph 
(1) shall be reduced (but not below zero) by an 
amount which bears the same ratio to the amount 
so determined as—
‘‘(A) the amount (if any) by which the tax-
payer’s family income for the taxable year ex-
ceeds the lowest income threshold, bears to 
‘‘(B) the lowest income threshold. 
‘‘(c) PREMIUM SUBSIDY-ELIGIBLE INDIVIDUAL.—
For purposes of this section, the term ‘premium subsidy-
eligible individual’ means an individual—
‘‘(1) who is enrolled, and required to be en-
rolled, in a qualified health plan under title XXII of 
the Social Security Act, 
‘‘(2) whose family income does not exceed twice 
the lowest income threshold, and 
‘‘(3) who does not have in effect (and, in the 
case of family coverage, each other individual cov-
ered under such coverage does not have in effect), 
in a form and manner specified by the Secretary of
the Treasury in consultation with the Commissioner 
of Health Benefits, for any portion of the taxable 
year of such individual an objection to the release of 
information under section 6103(k)(10)). 
‘‘(d) LOWEST INCOME THRESHOLD.—For purposes 
of this section, the term ‘lowest income threshold’ means, 
with respect to coverage consisting of—
‘‘(1) only an individual, 125 percent of the pov-
erty line (as defined in section 673(2) of the Com-
munity Services Block Grant Act (42 U.S.C. 
9902(2)), including any revision required by such 
section) for a single individual for the calendar year 
which includes the close of the taxable year, or 
‘‘(2) a family of two or more individuals, 150 
percent of the poverty line (as so defined) for a fam-
ily of the size involved for the calendar year which 
includes the close of the taxable year. 
‘‘(e) FAMILY INCOME.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘family income’ 
means, with respect to a specified individual (as de-
fined in section 59B(b)) covered under coverage con-
sisting of—
‘‘(A) only such individual, the modified ad-
justed gross income of such individual, or
‘‘(B) two or more individuals, the sum of 
the modified adjusted gross income of the speci-
fied individual and the modified adjusted gross 
income of each other individual covered under 
the plan for the taxable year that ends in or 
with the taxable year of the specified individual. 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.—
The term ‘modified adjusted gross income’ means 
adjusted gross income—
‘‘(A) determined without regard to sections 
135, 911, 931, and 933, and 
‘‘(B) increased by the amount of interest 
received or accrued during the taxable year 
which is exempt from tax under this title. 
‘‘(f) REGULATIONS.—The Secretary may prescribe 
such regulations as are necessary or appropriate to carry 
out this section, including regulations which provide for 
not taking into account individuals with de minimis in-
come for purposes of determining family income for pur-
poses of this section.’’. 
(2) CONFORMING AMENDMENTS.—
(A) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘or 36’’ after ‘‘section 35’’.