Lower Health Care Costs Act
Officially: “Lower Health Care Costs Act” Read the full text
What it does
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1Short title
This section gives the Act its official short name, the Lower Health Care Costs Act, for use when referring to it in other documents.
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1. Short title This Act may be cited as the Lower Health Care Costs Act .
2Extension of enhancement of health care premium tax credit
This section would extend two temporary rules affecting the health care premium tax credit under the Internal Revenue Code, both of which were set to stop applying for taxable years starting in 2026. First, it would extend the rule that increases the amount of premium assistance a taxpayer can receive under the credit, so that rule would keep applying to taxable years before January 1, 2029, instead of ending before January 1, 2026. Second, it would extend the rule that lets taxpayers whose household income is above 400 percent of the federal poverty line still qualify for the premium tax credit, moving that rule's cutoff from before January 1, 2026 to before January 1, 2029. Both extensions would apply to taxable years beginning after December 31, 2025.
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2. Extension of enhancement of health care premium tax credit (a) Extension of rules to increase premium assistance amounts Clause (iii) of section 36B(b)(3)(A) of the Internal Revenue Code of 1986 is amended— (1) in the heading, by striking through 2025 and inserting through 2028 , and (2) in the matter preceding subclause (I), by striking before January 1, 2026 and inserting before January 1, 2029 . (b) Extension of rule to allow credit to taxpayers whose household income exceeds 400 percent of poverty line Subparagraph (E) of section 36B(c)(1) of the Internal Revenue Code of 1986 is amended— (1) in the heading, by striking through 2025 and inserting through 2028 , and (2) by striking before January 1, 2026 and inserting before January 1, 2029 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025. December 8. 2025 Read the second time and placed on the calendar
Where it is
In the Senate.