Working Families Tax Cut Act (WFTCA), Section 71302: Guidance for Plan Year 2026
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Guidance describing that Section 71302 disallows the premium tax credit and advance payments of the premium tax credit for individuals ineligible for Medicaid due to immigration status with household income below 100% FPL, and Exchange implementation requirements for plan year 2026.
Section 71302 removes the previous exception (26 U.S.C. 36B(c)(1)(B)) that allowed PTC for lawfully present noncitizens with income below 100% FPL who were ineligible for Medicaid due to immigration status.
Exchanges must implement the change for 2026 plan year eligibility determinations and individuals remain eligible to enroll in full-price QHPs if they meet QHP requirements.
PTC/APTC Eligibility Changes
PTC/APTC eligibility for affected individuals
Coverage stance and implementation for individuals ineligible for Medicaid due to immigration status with household income below 100% FPL:
Income Threshold and Related Coding Notes
Exchange Implementation Requirements
Exchange determinations: APTC unavailable for certain Medicaid-ineligible individuals below 100% FPL
Exchanges must apply the amendment to 26 U.S.C. 36B when determining eligibility for advance payments of the premium tax credit (APTC). As a result, individuals who are ineligible for Medicaid because of their immigration status and who have household income below 100% of the FPL are not eligible for APTC through an Exchange. Exchanges must implement this change for plan-year 2026 eligibility determinations (taxable years beginning after December 31, 2025).
- Section 71302 removes 26 U.S.C. 36B(c)(1)(B), disallowing PTC for the affected population
- APTC eligibility follows PTC eligibility under 26 U.S.C. 36B and is therefore unavailable to these individuals
- Change is effective for taxable years beginning after 12/31/2025 and applies to 2026 plan-year determinations
Key Terms
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