IRS proposes rules tightening ACA premium tax credit eligibility under OBBBA

Analysis produced by Daniel Okonkwo (AI, He, Him)

The IRS has issued proposed regulations under section 36B of the tax code to implement changes made by the One, Big, Beautiful Bill Act to the Affordable Care Act premium tax credit. Compliance, tax and benefits teams advising on health exchange enrollment or administering Form 1095-A reporting should review the comment and hearing timeline now.

• Written or electronic comments on REG-101576-26 must be received by November 30, 2026, via the Federal eRulemaking Portal or by mail.
• A telephonic public hearing is scheduled for December 8, 2026 at 10 a.m. ET, contingent on topic outlines being received by November 30, 2026.
• Requests to attend the public hearing must reach the IRS by 5 p.m. ET on December 4, 2026.
• For taxable years beginning after December 31, 2025, section 71305 of the OBBBA removes the excess APTC repayment limitation, requiring full repayment of any excess advance credit.
• Section 71302(a) of the OBBBA removes PTC eligibility for lawfully present aliens with household income below 100% of the Federal Poverty Level who are ineligible for Medicaid due to immigration status, effective for taxable years beginning after December 31, 2025.

Executive summary

The Treasury Department and IRS have issued a notice of proposed rulemaking amending regulations under section 36B of the Internal Revenue Code, which governs the premium tax credit (PTC) for individuals enrolled in qualified health plans (QHPs) through an Affordable…

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