Permitting Premium Tax Credit Only for Certain Individuals
Section 71301 · Sec. 71301 ·
What this chapter is about
This part limits the premium tax credit to certain lawfully present aliens. Only three statuses count. Exchanges must check that status. It starts with tax years after December 31, 2026.
“Section 36B(e)(1) is amended by inserting "or, in the case of aliens who are lawfully present, are not eligible aliens" after "individuals who are not lawfully present".”
The section inserts words into section 36B(e)(1) of the Internal Revenue Code of 1986 so that the bar reaches a lawfully present alien who is not an eligible alien.
What the document actually says
“Section 36B(e)(1) is amended by inserting "or, in the case of aliens who are lawfully present, are not eligible aliens" after "individuals who are not lawfully present".”
That sentence, in plain words
New words are added to a tax rule. They reach a lawfully present alien who is not an eligible alien.
What this is about
The rule already barred people not lawfully here. It now also bars some who are. The next rule says who still counts.
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“An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed--”
The section adds a new subparagraph (B) to section 36B(e)(2) of the Internal Revenue Code of 1986 treating a lawfully present alien as an eligible alien where they are, and are reasonably expected to stay for the whole enrollment period, an alien lawfully admitted for permanent residence, an alien granted the status of Cuban and Haitian entrant, or someone lawfully residing under a Compact of Free Association.
What the document actually says
“An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed--”
That sentence, in plain words
A lawfully present alien may count as eligible. They must hold that status for the whole time the credit is claimed. The list that follows says which statuses count.
What this is about
One is a person with a green card. One is a Cuban or Haitian entrant. One is a person here under a pact.
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“in the case such individual is an alien lawfully present in the United States, whether such individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code);”
The section amends section 1411 of the Patient Protection and Affordable Care Act so that the Exchange checks whether a lawfully present alien is an eligible alien, adds an attestation of that status where eligibility rests on immigration status, and adds the same attestation to the verification procedure. It also amends section 1412(d) so that advance payments are not made for aliens who are not eligible aliens. Those changes apply to plan years beginning on or after January 1, 2027.
What the document actually says
“in the case such individual is an alien lawfully present in the United States, whether such individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code);”
That sentence, in plain words
The exchange must check one more thing. For a lawfully present alien it must ask whether they are an eligible alien.
What this is about
That term is set by the tax code. An attestation may be used. Advance payments are barred for those who do not qualify.
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The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 71301 in the PDF
What the document says
“The amendments made by this section (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026.”
The section applies its amendments, other than the verification changes, to taxable years beginning after December 31, 2026, and also changes section 5000A(d)(3) of the Internal Revenue Code of 1986 to name an eligible alien in place of an alien lawfully present.
What the document actually says
“The amendments made by this section (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026.”
That sentence, in plain words
The changes start with tax years that begin after December 31, 2026. One part is treated apart.
What this is about
That part is the checking rule. It starts with plan years from January 1, 2027. Both dates are fixed in the law.
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Each distinct thing the section does: bar the credit for a lawfully present alien who is not an eligible alien, define an eligible alien, require the Exchange to verify that status through attestation and advance determination rules, change the minimum essential coverage rule, and fix the two effective dates.
The lettering edits that make room for the new subparagraph.
The section works by amending sections 36B and 5000A of the Internal Revenue Code of 1986 and sections 1411 and 1412 of the Patient Protection and Affordable Care Act, none of which is indexed here.
