H.R. 5145 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Sep 4, 2025
What this bill does
In plain words · AI-written from the official summaryExtends health insurance tax credit boost
Right now, people buying health insurance on their own can claim a tax credit to help pay their premiums. Recent laws made this credit bigger and easier to qualify for by lifting income limits and lowering the percentage of income people have to contribute. This bill keeps those improvements going for one more year, through 2026.
How it affects you
If you buy health insurance through the marketplace and use the premium tax credit to help pay for it, this bill means you'll keep getting that extra help in 2026. Without this extension, the credit would shrink and more people might become ineligible based on higher income limits starting in 2027.
Read the official summary (Introduced in House, Sep 4, 2025)
Bipartisan Premium Tax Credit Extension Act
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.
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.
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.
The bill extends for one year, through 2026, the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 5145
A BILL
Bipartisan Premium Tax Credit Extension Act
Sponsor: Rep. Jennifer A. Kiggans (R-VA-2) · Introduced Sep 4, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Sep 4, 2025: “Referred to the House Committee on Ways and Means.”