Tax Credit Extension Act

Section 36B(b)(3)(A)(iii) of the Internal Revenue Code of 1986 is amended—

(1) by striking January 1, 2026 and inserting January 1, 2028,

(2) by striking through 2025 in the heading thereof and inserting through 2027.

The table in section 36B(b)(A)(3)(iii) of such Code is amended by striking and higher and inserting up to 700.0 percent.

Section 36B(c)(1)(E) of such Code is amended—

(A) by striking shall be applied without regard to and inserting shall be applied by substituting but does not exceed 700 percent for, and

(B) by striking through 2025 in the heading and inserting through 2027.

The amendment made by this section shall apply to taxable years beginning after December 31, 2025.

Section 1412(a)(3) of the Patient Protection and Affordable Care Act is amended—

(1) by striking credit or reductions to the issuers and inserting the following: credit or reductions—,

(A) on the election of the individual, to the issuer

(2) by striking the period at the end and inserting, and, and

(3) by adding at the end the following new subparagraph:

(B) in the case of an individual who is covered under a plan in the bronze level, or a catastrophic plan, and who so elects, to the personal HSA (as defined in section 223(h) of the Internal Revenue Code of 1986) of the individual,

(C) in the absence of either such election, to individuals.

Section 223 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

An individual may elect to designate a health savings account as, or establish in a health savings account a separate account to be treated as, a Personal HSA.

A personal HSA shall be treated for purposes of this section in the same manner as a health savings account, except that—

(A) no contributions may be made to a personal HSA other than advance payments made by the Secretary under section 1412(a)(3)(B) of the Patient Protection and Affordable Care Act or amounts rolled over from another personal HSA of the account beneficiary,

(B) such contributions shall not be taken into account under subsection (a), and

(C) subsection (d) shall be applied without regard to paragraph (2)(B).

The amendments made by subsection (a) shall apply to determinations made after December 31, 2025.

The amendments made by subsection (b) shall apply to taxable years ending after December 31, 2025.

Section 36B(b)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new flush matter: The premium assistance amount for any coverage month shall not exceed an amount equal to the excess of the monthly premium amount determined for such month under subparagraph (A), reduced by such uniform minimum premium responsibility amount as the Secretary, in consultation with the Secretary of Health and Human Services, may prescribe for coverage months beginning during a year.

The amendment made by this section shall apply to taxable years beginning after December 31, 2025.

Section 35B(c)(5) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

The Secretary and the Secretary of Health and Human Services shall, in consultation with the Secretary of Homeland Security, assist Exchanges with determining whether alien individuals are lawfully present in the United States, and, in the case of taxable years beginning after December 31, 2026, whether alien individuals are eligible aliens.

The amendment made by this section shall apply to taxable years beginning after December 31, 2025.