119-hr3769

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3769 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3769

To amend the Internal Revenue Code of 1986 to exclude certain dependent 
income when calculating modified adjusted gross income for the purposes 
 of eligibility for premium tax credits.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 5, 2025

 Mr. Horsford (for himself and Ms. Moore of Wisconsin) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

To amend the Internal Revenue Code of 1986 to exclude certain dependent 
income when calculating modified adjusted gross income for the purposes 
 of eligibility for premium tax credits.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Dependent Income Exclusion Act of 
2025''.

SEC. 2. EXCLUSION OF CERTAIN DEPENDENT INCOME FOR PURPOSES OF PREMIUM 
 TAX CREDIT.

    (a) In General.--Paragraph

    (2) of 

section 36B
            (d) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
 ``
            (C) Exception for certain dependent income.--
 ``
            (i) In general.--There shall not be taken 
 into account under subparagraph
        (A)
            (ii) any 
 wages (determined under 

section 3401

    (a) ) or net 
 earnings from self-employment (as defined in 
 

section 1402

    (a) ) of any dependent of the 
 taxpayer who--
 ``
            (I) has not attained age 18 as of 
 the last day of the calendar year in 
 which the taxable year of the taxpayer 
 begins, or
 ``
            (II) has not attained age 24 as 
 of the last day of such calendar year 
 and, during each of 5 calendar months 
 during such calendar year, is described 
 in subparagraph
        (A) or
        (B) of 

section 152

    (f)

    (2) (applied by substituting 
 `part-time or full-time' for `full-
 time' each place it appears, and by 
 deeming any for-profit educational 
 institution not to be an educational 
 organization described in 

section 170

    (b)

    (1)
        (A)
            (ii) ), is participating in 
 a qualified job-training program, or is 
 participating in an apprenticeship 
 program registered under the Act of 
 August 16, 1937 (commonly known as the 
 `National Apprenticeship Act'; 50 Stat. 
 664, chapter 663; 29 U.S.C. 50 et 
 seq.).
 ``
            (ii) Qualified job-training program.--For 
 purposes of this subparagraph, the term 
 `qualified job-training program' means any 
 program of training services described in 
 

section 134
            (c) (3) of the Workforce Innovation 
 and Opportunity Act (29 U.S.C. 3174
            (c) (3) ).
 ``
            (iii) Limitation.--Clause
            (i) shall not 
 apply to so much of the aggregate income of all 
 dependents of the taxpayer as exceeds an amount 
 equal to 15 percent of the modified adjusted 
 gross income of the taxpayer.
 ``
            (iv) Taxpayers residing in medicaid non-
 expansion states.--In the case of a taxpayer 
 residing in a State which (as of the first day 
 of the taxable year) does not provide for 
 eligibility under clause
            (i) 
            (VIII) or
            (ii) 
            (XX) of 

section 1902

    (a)

    (10)
        (A) of the Social 
 Security Act for medical assistance under title 
 XIX of such Act (or a waiver of the State plan 
 approved under 

section 1115 of the Social 
 Security Act), clause
            (i) shall apply to any 
 dependent of such taxpayer only to the extent 
 that the application of such clause would not 
 reduce the household income below 100 percent 
 of the amount equal to the poverty line for a 
 family of the size involved.''.

    (b) Conforming Amendments.--

    (1) Clause
            (ii) of 

section 36B
            (d) (2)
        (A) of the Internal 
 Revenue Code of 1986 is amended by inserting ``, except as 
 provided in subparagraph
            (C) ,'' after ``individuals''.

    (2) Paragraph

    (3) of 

section 1411

    (b) of the Patient 
 Protection and Affordable Care Act (42 U.S.C. 18081) is amended 
 by adding at the end the following new subparagraph:
 ``
            (D) Information regarding certain dependents.--
 Information regarding whether 

section 36B
            (d) (2)
            (C) will 
 apply to any individuals taken into account as members 
 of the household of the enrollee, and the amount of 
 income from employment of each such individual for the 
 taxable year described in subparagraph
        (A) .''.
            (c) Effective Date.--The amendments made by this section shall 
apply to credits allowed under 

section 36B of the Internal Revenue Code 
of 1986 for, and advance payments of credits under 

section 1412 of the 
Patient Protection and Affordable Care Act with respect to, taxable 
years beginning after the date of the enactment of this Act.
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