[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6316 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 6316

 To amend the Internal Revenue Code of 1986 to extend the premium tax 
credit and provide for advance payment of the credit to taxpayers, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 25, 2025

 Mr. Van Drew introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Energy 
    and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to extend the premium tax 
credit and provide for advance payment of the credit to taxpayers, and 
                          for other purposes.

    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 ``Tax Credit Extension Act''.

SEC. 2. EXTENSION AND MODIFICATION OF INCREASED PREMIUM TAX CREDIT.

    (a) Extension.--Section 36B(b)(3)(A)(iii) of the Internal Revenue 
Code of 1986 is amended--
            (1) by striking ``January 1, 2026'' and inserting ``January 
        1, 2028'',
            (2) by striking ``through 2025'' in the heading thereof and 
        inserting ``through 2027''.
    (b) Household Income Cap.--
            (1) In general.--The table in section 36B(b)(A)(3)(iii) of 
        such Code is amended by striking ``and higher'' and inserting 
        ``up to 700.0 percent''.
            (2) Conforming amendment.--Section 36B(c)(1)(E) of such 
        Code is amended--
                    (A) by striking ``shall be applied without regard 
                to'' and inserting ``shall be applied by substituting 
                `but does not exceed 700 percent' for'', and
                    (B) by striking ``through 2025'' in the heading and 
                inserting ``through 2027''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.

SEC. 3. ADVANCE PAYMENT OF PREMIUM TAX CREDIT MADE DIRECTLY TO 
              INDIVIDUALS OR TO PERSONAL HSA.

    (a) In General.--Section 1412(a)(3) of the Patient Protection and 
Affordable Care Act is amended--
            (1) by striking ``credit or reductions to the issuers'' and 
        inserting the following: ``credit or reductions--
                    ``(A) on the election of the individual, to the 
                issuer'',
            (2) by striking the period at the end and inserting ``, 
        and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(B) in the case of an individual who is covered 
                under a plan in the bronze level, or a catastrophic 
                plan, and who so elects, to the personal HSA (as 
                defined in section 223(h) of the Internal Revenue Code 
                of 1986) of the individual,
                    ``(C) in the absence of either such election, to 
                individuals.''.
    (b) Personal HSAs.--Section 223 of the Internal Revenue Code of 
1986 is amended by redesignating subsection (h) as subsection (i) and 
by inserting after subsection (g) the following new subsection:
    ``(h) Personal HSAs.--
            ``(1) In general.--An individual may elect to designate a 
        health savings account as, or establish in a health savings 
        account a separate account to be treated as, a Personal HSA.
            ``(2) Personal hsa.--A personal HSA shall be treated for 
        purposes of this section in the same manner as a health savings 
        account, except that--
                    ``(A) no contributions may be made to a personal 
                HSA other than advance payments made by the Secretary 
                under section 1412(a)(3)(B) of the Patient Protection 
                and Affordable Care Act or amounts rolled over from 
                another personal HSA of the account beneficiary,
                    ``(B) such contributions shall not be taken into 
                account under subsection (a), and
                    ``(C) subsection (d) shall be applied without 
                regard to paragraph (2)(B).''.
    (c) Effective Date.--
            (1) Subsection (a).--The amendments made by subsection (a) 
        shall apply to determinations made after December 31, 2025.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall apply to taxable years ending after December 31, 2025.

SEC. 4. MINIMUM PREMIUM RESPONSIBILITY.

    (a) In General.--Section 36B(b)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new flush matter:
        ``The premium assistance amount for any coverage month shall 
        not exceed an amount equal to the excess of the monthly premium 
        amount determined for such month under subparagraph (A), 
        reduced by such uniform minimum premium responsibility amount 
        as the Secretary, in consultation with the Secretary of Health 
        and Human Services, may prescribe for coverage months beginning 
        during a year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS FOR COST-SHARING REDUCTION 
              PAYMENTS.

    There are authorized to be appropriated to carry out the payment of 
cost-sharing reductions under section 1412 of the Patient Protection 
and Affordable Care Act such amounts as the Secretary of the Treasury, 
in consultation with the Secretary of Health and Human Services, 
determines are necessary.

SEC. 6. DETERMINATION OF IMMIGRATION STATUS FOR PREMIUM TAX CREDIT.

    (a) In General.--Section 35B(c)(5) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(G) Determination of legal status.--The Secretary 
                and the Secretary of Health and Human Services shall, 
                in consultation with the Secretary of Homeland 
                Security, assist Exchanges with determining whether 
                alien individuals are lawfully present in the United 
                States, and, in the case of taxable years beginning 
                after December 31, 2026, whether alien individuals are 
                eligible aliens.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.

SEC. 7. SENSE OF CONGRESS REGARDING ALIENS.

    It is the sense of Congress that no credit shall be allowed under 
section 36B of the Internal Revenue Code of 1986 with respect to any 
individual who is an alien not lawfully present in the United States, 
and in the case of taxable years beginning after December 31, 2026, 
with respect to any individual who is an alien not lawfully present or, 
in the case of an alien lawfully present, an individual who is not an 
eligible alien.
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