Credit for employee insurance expenses of small employers in waiver State

(a) In general Subsection (g) of section 45R of the Internal Revenue Code of 1986 is amended to read as follows: (g) Credit for small employers in waiver State For purposes of this section— (1) In general In the case of an eligible small employer (determined with the modifications provided in this subsection) located in a State for which a waiver under section 1335 of the Patient Protection and Affordable Care Act is in effect, this section shall be applied as provided in paragraphs (2) through (7). (2) Health insurance credit amount Subsection (b) shall be applied by substituting 50 percent for 50 percent (35 percent in the case of a tax-exempt eligible small employer). (3) Qualified plans Subsections (b) and (d)(4) shall be applied by treating any health plan authorized to be made available on an Exchange in such State by section 1335(d) of such Act as a qualified health plan offered through an Exchange. (4) Phaseout not to apply Subsection (c) shall not apply. (5) Eligible small employer Subsection (d) shall be applied— (A) by substituting 50 for 25 in paragraph (1)(A) thereof, and (B) without regard to subparagraph (B) of paragraph (1) thereof. (6) Employee Subsection (e)(1)(A) shall be applied without regard to clause (i) thereof. (7) Credit period Subsection (e)(2) shall not apply, and the credit period with respect to any such employer shall be the period consisting of the 1st taxable year in which the employer (or any predecessor) offers 1 or more qualified health plans to its employees, and any subsequent taxable year. (8) Tax-exempt rules not to apply Subsection (f) shall not apply.. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.