Restoration of allowance of premium tax credit during periods of Medicaid ineligibility due to alien status

(a) In general Section 36B(c)(1) of the Internal Revenue Code of 1986, as amended by section 71302 of Public Law 119–21, is amended by inserting after subparagraph (A) the following new subparagraph: (B) Special rule for certain individuals lawfully present in the United States If— (i) a taxpayer has a household income which is not greater than 100 percent of an amount equal to the poverty line for a family of the size involved, and (ii) the taxpayer is an alien lawfully present in the United States, but is not eligible for the Medicaid program under title XIX of the Social Security Act by reason of such alien status, the taxpayer shall, for purposes of the credit under this section, be treated as an applicable taxpayer with a household income which is equal to 100 percent of the poverty line for a family of the size involved.. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.