described in paragraph (2)(A)(i) for any month 
in the taxable year, and if— 
‘‘(i) the taxpayer has modified ad-
justed gross income in excess of $15,000 
for the taxable year but not in excess of 
$20,000, the 90 percent in paragraph (3) 
shall be reduced by the number of percent-
age points which bears the same ratio to 
40 percentage points as— 
‘‘(I) the excess of modified ad-
justed gross income in excess of 
$15,000, bears to 
‘‘(II) $5,000, or 
‘‘(ii) the taxpayer has modified ad-
justed gross income in excess of $20,000 
for the taxable year, the 90 percent in 
paragraph (3) shall be reduced by the sum 
of 40 percentage points plus the number of 
percentage points which bears the same 
ratio to 50 percentage points as— 
‘‘(I) the excess of modified ad-
justed gross income in excess of 
$20,000, bears to 
‘‘(II) $10,000. 
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‘‘(5) PHASEOUT OF CREDIT PERCENTAGE FOR 
COVERAGE
OF
OR
MORE
ADULTS
AND
CHIL-
DREN.— 
‘‘(A) IN GENERAL.—If— 
‘‘(i) coverage described in clause (ii) 
or (iii) of paragraph (2)(A) is provided 
under qualified health insurance for any 
month in the taxable year, and 
‘‘(ii) the taxpayer has modified ad-
justed gross income in excess of $25,000 
for the taxable year, 
the 90 percent in paragraph (3) shall be re-
duced by the number of percentage points 
which bears the same ratio to 90 percentage 
points as such excess bears to $35,000. 
‘‘(B) SPECIAL RULE FOR MARRIED FILING 
SEPARATE RETURN.—In the case of a married 
individual filing a separate return, subpara-
graph (A) shall be applied by substituting for 
each dollar amount therein one-half of such dol-
lar amount. 
‘‘(6) ROUNDING.—Any percentage resulting 
from a reduction under paragraphs (4) and (5) shall 
be rounded to the nearest one-tenth of a percent. 
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‘‘(7) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this subsection, the term ‘modified 
adjusted gross income’ means adjusted gross income 
determined— 
‘‘(A) without regard to this section and 
sections 911, 931, and 933, and 
‘‘(B) after application of sections 86, 135, 
137, 219, 221, and 469. 
‘‘(8) ADULT.—For purposes of this subsection, 
the term ‘adult’ means an individual who is the tax-
payer, the taxpayer’s spouse, or a dependent of the 
taxpayer who has attained age 24 as of the close of 
the taxable year. 
‘‘(9) CHILD.—For purposes of this subsection, 
the term ‘child’ means a dependent of the taxpayer 
who has not attained age 24 as of the close of the 
taxable year. 
‘‘(c) QUALIFIED COVERAGE UNDER
A HIGH DE-
DUCTIBLE HEALTH PLAN.—For purposes of this section, 
the term ‘qualified coverage under a high deductible health 
plan’ means coverage under a high deductible health plan 
(as defined in section 223(c)(2)) for any month for which 
each individual covered under such plan is an eligible indi-
vidual. 
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