Extension and modification of enhanced premium tax credit

(a) Extension and modification of rules To increase premium assistance amounts Section 36B(b)(3)(A)(iii) of the Internal Revenue Code of 1986 is amended— (1) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and adjusting the margins accordingly, (2) by striking Temporary percentages for 2021 through 2025.—In the case of and inserting Temporary percentages for certain years.— (I) Before 2026 In the case of, and (3) by adding at the end the following: (II) After 2025 In the case of a taxable year beginning after December 31, 2025, and before January 1, 2028— (aa) clause (ii) shall not apply for purposes of adjusting premium percentages under this subparagraph, and (bb) the following table shall be applied in lieu of the table contained in clause (i): In the case of household income (expressed as a percent of poverty line) within the following income tier: The initial premium percentage is- The final premium percentage is- Up to 150% 0.0% 0.0% 150% up to 200% 0.0% 2.0% 200% up to 250% 2.0% 4.0% 250% up to 300% 4.0% 6.0% 300% up to 400% 6.0% 8.5% 400% up to 600% 8.5% 8.5% 600% up to 800% 8.5% 9.0% 800% up to 935% 9.0% 9.35%. (b) Extension and modification of rule To allow credit to taxpayers whose household income exceeds 400 percent of poverty line Section 36B(c)(1)(E) of such Code is amended— (1) by striking Temporary rule for 2021 through 2025.—In the case of and inserting Temporary rule for certain years.— (i) Before 2026 In the case of, and (2) by adding at the end the following: (ii) After 2025 In the case of a taxable year beginning after December 31, 2025, and before January 1, 2028, subparagraph (A) shall be applied by substituting but does not exceed 935 percent for but does not exceed 400 percent.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.