Bipartisan Premium Tax Credit Extension Act
Summary
What This Bill Does
The Bipartisan Premium Tax Credit Extension Act makes a one-year tax-code extension for Affordable Care Act marketplace subsidies. It changes Internal Revenue Code section 36B so the enhanced premium tax credit percentage table and the related eligibility rule continue through 2026 instead of expiring before January 1, 2026. The amendments apply to taxable years beginning after December 31, 2025. In practical terms, marketplace households keep the larger subsidy structure for plan year 2026, insurers and exchanges avoid a cliff in subsidized enrollment, and the Treasury and IRS must administer one more year of enhanced credits.
Who Benefits and How
ACA marketplace enrollees benefit because enhanced premium tax credits would continue for one more taxable year. Lower-income households buying exchange coverage benefit from smaller net premiums than they would face after expiration. Health insurance marketplaces benefit because extending subsidies can reduce plan-year 2026 enrollment disruption. Marketplace insurers benefit if subsidized enrollment remains more stable through 2026.
Who Bears the Burden and How
Federal taxpayers bear the cost of continuing the enhanced premium tax credit schedule for another year. Treasury Department tax staff must administer the extended section 36B subsidy rules. IRS systems teams must update forms, guidance, and reconciliation processes for taxable years beginning after December 31, 2025. Budget committees must account for the revenue loss and outlay effects of the extended refundable credits.
Key Provisions
- Extends the enhanced premium tax credit table from through 2025 to through 2026.
- Extends the related section 36B eligibility rule by changing the expiration date to January 1, 2027.
- Applies the extension to taxable years beginning after December 31, 2025.
- Protects ACA marketplace households from a one-year subsidy cliff.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Extends the enhanced Affordable Care Act premium tax credit schedule and related eligibility rule by one year, through taxable years beginning before January 1, 2027.
Key Policy Areas
Tax, Health Insurance, Affordable Care Act
Primary Purpose
Extends the enhanced Affordable Care Act premium tax credit schedule and related eligibility rule by one year, through taxable years beginning before January 1, 2027.
Policy Domains
Resolution provisions
Identified Gains
- ACA marketplace enrollees
- Lower-income households buying exchange coverage
- Health insurance marketplaces
- Marketplace insurers
Identified Costs
- Federal taxpayers
- Treasury Department tax staff
- IRS systems teams
- Budget committees
Sponsors
Legislative Progress
In CommitteeMrs. Kiggans of Virginia (for herself, Mr. Suozzi, Mr. Fitzpatrick, …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
ACA marketplace enrollees, Marketplace insurers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology