Details of Public Law 119-21, section 71305 , One Big Beautiful Bill Act

Current law limits the recapture of advance payments of the federal premium tax credit for individuals whose income is below 400 percent of the federal poverty line. This provision removes the limitation on the recapture of the advance payment of the premium tax credit.

"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.

Additionally, Covered California’s Program Design provides limitations on the recapture of California premium assistance subsidies.