Health Care—Final Regulations on Premium Tax Credit

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Posted by Kim Chen on February 4th, 2017

The IRS has issued final regulations regarding the premium tax credit that finalizes portions of proposed regulations issued in July 2016 with minor modifications. These final regulations include provisions on eligibility for the premium tax credit, computing the premium assistance amount, and the applicable benchmark plan premium. The regulations do not cover provisions on the treatment of “opt-out” payment arrangements, which are expected to be finalized at a later time. In general, the final regulations apply for tax years beginning after 12/31/16. The provisions regarding the benchmark plan premium apply for tax years beginning after 12/31/18. Regs. 1.36B-1 through-3; 1.36B-5; and 1.6011-8.