Extension and modification of credit

(a) In general Subparagraph (E) of section 36B(c)(1) of the Internal Revenue Code of 1986 is amended— (1) by striking 2025 in the heading and inserting 2027, (2) by striking January 1, 2026, subparagraph (A) and inserting “January 1, 2028— (i) except as provided in clause (ii), subparagraph (A), (3) by striking the period at the end and inserting, and, and (4) by adding at the end the following new clause: (ii) in the case of such a year beginning after December 31, 2026, subparagraph (A) shall be applied by substituting 600 percent for 400 percent.. (b) Applicable percentages Clause (iii) of section 36B(b)(3)(A) of the Internal Revenue Code of 1986 is amended— (1) by striking 2025 in the heading and inserting 2027, (2) by striking January 1, 2026 and inserting January 1, 2028, and (3) by striking the last row of the table contained in subclause (II) thereof and inserting the following new rows: in the case of taxable years beginning before January 1, 2026, 400.0 percent and higher 8.5 8.5 400.0 percent up to 450.0 percent 8.5 8.5 450.0 percent up to 500.0 percent 10.5 10.5. 500.0 percent up to 550.0 percent 12.5 12.5 550.0 percent up to 600.0 percent 14.5 10.5. 600.0 percent 16.5 16.5.. (c) Minimum monthly payment Subparagraph (A) of section 36B(b)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause: (iv) Minimum monthly payment In the case of taxable years beginning after December 31, 2025, the initial and final premium percentages under clause (iii)(II) shall be adjusted such that in no case is the premium assistance amount greater than an amount equal to the monthly premiums described in paragraph (2)(A) with respect to the taxpayer, reduced by $5.. (d) Rules relating to citizenship Subsection (e) of section 36B of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (4) Rules for taxable years after 2025 In the case of a taxable year beginning after December 31, 2025, paragraph (1) shall be applied by substituting are not citizens of the United States for are individuals who are not lawfully present or, in the case of aliens who are lawfully present, are not eligible aliens.. (e) Rules relating to coverage of abortion Paragraph (3) of section 36B(c) is amended by adding at the end the following new subparagraph: (C) Rules relating to coverage of abortion (i) In general A plan which provides any benefits or coverage for abortions shall not be treated as a qualified health plan. (ii) Exceptions Clause (i) shall not apply with respect to benefits or coverage of abortions where the life of the mother would be endangered if the fetus were carried to term, or the pregnancy is the result of an act of rape or incest.. (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.