I 
119TH CONGRESS 
1ST SESSION H. R. 3769 
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 HOUSE OF REPRESENTATIVES 
JUNE 5, 2025 
Mr. HORSFORD (for himself and Ms. MOORE of Wisconsin) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
certain dependent income when calculating modified ad-
justed gross income for the purposes of eligibility for 
premium tax credits. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Dependent Income Ex-
clusion Act of 2025’’. 
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SEC. 2. EXCLUSION OF CERTAIN DEPENDENT INCOME FOR 
PURPOSES OF PREMIUM TAX CREDIT. 
(a) IN GENERAL.—Paragraph (2) of section 36B(d) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new subparagraph: 
‘‘(C) EXCEPTION FOR CERTAIN DEPEND-
ENT INCOME.— 
‘‘(i) IN GENERAL.—There shall not be 
taken into account under subparagraph 
(A)(ii) any wages (determined under sec-
tion 3401(a)) or net earnings from self-em-
ployment (as defined in section 1402(a)) of 
any dependent of the taxpayer who— 
‘‘(I) has not attained age 18 as 
of the last day of the calendar year in 
which the taxable year of the taxpayer 
begins, or 
‘‘(II) has not attained age 24 as 
of the last day of such calendar year 
and, during each of 5 calendar 
months during such calendar year, is 
described in subparagraph (A) or (B) 
of section 152(f)(2) (applied by sub-
stituting ‘part-time or full-time’ for 
‘full-time’ each place it appears, and 
by deeming any for-profit educational 
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institution not to be an educational 
organization 
described 
in 
section 
170(b)(1)(A)(ii)), is participating in a 
qualified job-training program, or is 
participating in an apprenticeship pro-
gram registered under the Act of Au-
gust 16, 1937 (commonly known as 
the ‘National Apprenticeship Act’; 50 
Stat. 664, chapter 663; 29 U.S.C. 50 
et seq.). 
‘‘(ii) QUALIFIED JOB-TRAINING PRO-
GRAM.—For purposes of this subpara-
graph, the term ‘qualified job-training pro-
gram’ means any program of training serv-
ices described in section 134(c)(3) of the 
Workforce Innovation and Opportunity Act 
(29 U.S.C. 3174(c)(3)). 
‘‘(iii) LIMITATION.—Clause (i) shall 
not apply to so much of the aggregate in-
come of all dependents of the taxpayer as 
exceeds an amount equal to 15 percent of 
the modified adjusted gross income of the 
taxpayer. 
‘‘(iv) TAXPAYERS RESIDING IN MED-
ICAID
NON-EXPANSION
STATES.—In the 
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case of a taxpayer residing in a State 
which (as of the first day of the taxable 
year) does not provide for eligibility under 
clause (i)(VIII) or (ii)(XX) of section 
1902(a)(10)(A) of the Social Security Act 
for medical assistance under title XIX of 
such Act (or a waiver of the State plan ap-
proved under section 1115 of the Social 
Security Act), clause (i) shall apply to any 
dependent of such taxpayer only to the ex-
tent that the application of such clause 
would not reduce the household income 
below 100 percent of the amount equal to 
the poverty line for a family of the size in-
volved.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Clause (ii) of section 36B(d)(2)(A) of the 
Internal Revenue Code of 1986 is amended by in-
serting ‘‘, except as provided in subparagraph (C),’’ 
after ‘‘individuals’’. 
(2) Paragraph (3) of section 1411(b) of the Pa-
tient Protection and Affordable Care Act (42 U.S.C. 
18081) is amended by adding at the end the fol-
lowing new subparagraph: 
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‘‘(D) INFORMATION REGARDING CERTAIN 
DEPENDENTS.—Information regarding whether 
section 36B(d)(2)(C) will apply to any individ-
uals taken into account as members of the 
household of the enrollee, and the amount of in-
come from employment of each such individual 
for the taxable year described in subparagraph 
(A).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to credits allowed under section 
36B of the Internal Revenue Code of 1986 for, and ad-
vance payments of credits under section 1412 of the Pa-
tient Protection and Affordable Care Act with respect to, 
taxable years beginning after the date of the enactment 
of this Act. 
Æ 
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