Details of Public Law 119-21, section 71301 , One Big Beautiful Bill Act

The provision adds and limits a lawfully present individual’s eligibility for the premium tax credit to an “eligible alien.” “Eligible alien” means a lawfully present individual who is an alien who has been granted the status of Cuban and Haitian entrant; or an individual who is lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau.

The provision provides conforming amendments relating to information verification, requiring the Secretary to establish a program for verifying whether an individual is an eligible alien. The provision provides conforming amendments relating to advance determinations prohibiting the premium tax credit to aliens that are not eligible aliens.

California does not conform to IRC section 36B, relating to refundable credits for qualified health plan under the Affordable Care Act, nor to Subtitle K, Group Health Plan Requirements, of the IRC.

California has a standalone program providing a California Premium Assistance Subsidy (PAS) to applicable return filers that use the IRC section 36B eligibility requirements, with modifications. California PAS provides financial assistance to pay the premiums for a qualified health plan through the California health insurance marketplace, which are reconciled through the California Personal Income Tax Return, if required. For California purposes, eligibility for premium assistance subsidy is dependent on the Program Design adopted each year by Covered California that references IRC section 36B.