[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3769 Introduced in House (IH)]
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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 adjusted gross income for the purposes
of eligibility for premium tax credits.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Dependent Income Exclusion Act of
2025''.
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 adding at the end the following new
subparagraph:
``(C) Exception for certain dependent income.--
``(i) In general.--There shall not be taken
into account under subparagraph (A)(ii) any
wages (determined under section 3401(a)) or net
earnings from self-employment (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 substituting
`part-time or full-time' for `full-
time' each place it appears, and by
deeming any for-profit educational
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
program registered under the Act of
August 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 program.--For
purposes of this subparagraph, the term
`qualified job-training program' means any
program of training services 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 income 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 medicaid non-
expansion states.--In the 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
approved under section 1115 of the Social
Security Act), clause (i) shall apply to any
dependent of such taxpayer only to the extent
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 involved.''.
(b) Conforming Amendments.--
(1) Clause (ii) of section 36B(d)(2)(A) of the Internal
Revenue Code of 1986 is amended by inserting ``, except as
provided in subparagraph (C),'' after ``individuals''.
(2) Paragraph (3) of section 1411(b) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18081) is amended
by adding at the end the following new subparagraph:
``(D) Information regarding certain dependents.--
Information regarding whether section 36B(d)(2)(C) will
apply to any individuals taken into account as members
of the household of the enrollee, and the amount of
income 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 advance payments of credits under section 1412 of the
Patient Protection and Affordable Care Act with respect to, taxable
years beginning after the date of the enactment of this Act.
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