Bipartisan Premium Tax Credit Extension Act
The Bipartisan Premium Tax Credit Extension Act would extend the enhanced premium tax credits (PTCs) for health insurance purchased through the ACA marketplace. Specifically, it preserves the ARPA-era expansion that made subsidies more generous and allows eligibility for credits for households with income above 400% of the federal poverty line (FPL). The bill lengthens the period during which these enhanced subsidies apply and changes the relevant deadlines so that the extended benefits cover tax years beginning after December 31, 2025 (i.e., starting with the 2026 tax year). In short, more people would continue to receive larger subsidies for marketplace coverage through 2026, including some higher-income households that were previously excluded from the expanded credits.
Key Points
- 1Extends the enhanced premium tax credit through 2026 (instead of ending after 2025).
- 2Maintains eligibility for premium tax credits for households with incomes above 400% of the federal poverty line (the ARPA-era expansion).
- 3Effective for taxable years beginning after December 31, 2025 (starting with 2026 tax year).
- 4Codifies the extension in the Internal Revenue Code, specifically updating sections related to premium tax credits.
- 5Title and sponsors indicate bipartisan introductory action in the House; referred to the Ways and Means Committee for consideration.