Bipartisan Premium Tax Credit Extension Act

Bill: 119-hr-5145
Sponsor: full_name: Rep. Kiggans, Jennifer A. [R-VA-2]
Introduced: 2025-09-04
Policy area: Taxation
Latest action: action_date: 2025-09-04
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2025-09-04
action_desc: Introduced in House
text: <p><strong>Bipartisan Premium Tax Credit Extension Act</strong></p><p>This bill extends for one year, through 2026, temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit.&nbsp;</p><p>Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit.</p><p>Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit.</p><p>The bill extends for one year, through 2026, the elimination of the 400% maximum income limit, the&nbsp;lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages. </p>

tv_txt: I 119th CONGRESS 1st Session H. R. 5145 IN THE HOUSE OF REPRESENTATIVES September 4, 2025 Mrs. Kiggans of Virginia (for herself, Mr. Suozzi , Mr. Fitzpatrick , Mr. Ciscomani , Mr. Bresnahan , Mr. Gimenez , Mr. Valadao , Mrs. Kim , Mr. Hurd of Colorado , Mr. Kean , Mr. Golden of Maine , Mr. Lawler , Mr. Davis of North Carolina , Ms. Perez , and Ms. Salazar ) 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 extend the enhanced premium tax credit, and for other purposes.

1. Short title This Act may be cited as the Bipartisan Premium Tax Credit Extension Act . 2. Extension of enhanced premium tax credit (a) Extension of rules To increase premium assistance amounts Clause (iii) of section 36B(b)(3)(A) of the Internal Revenue Code of 1986 is amended— (1) in the heading, by striking through 2025 and inserting through 2026 , and (2) in the matter preceding subclause (I), by striking before January 1, 2026 and inserting before January 1, 2027 . (b) Extension of rule To allow credit to taxpayers whose household income exceeds 400 percent of poverty line Subparagraph (E) of section 36B(c)(1) of such Code is amended— (1) in the heading, by striking through 2025 and inserting through 2026 , and (2) by striking before January 1, 2026 and inserting before January 1, 2027 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.