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A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 58.1 an article numbered 3.1, consisting of sections numbered
58.1-339.15
,
58.1-339.16
, and
58.1-339.17
, relating to Health Insurance Premium Stabilization Tax Credit Act.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Chapter 3 of Title 58.1 an article numbered 3.1, consisting of sections numbered
58.1-339.15
,
58.1-339.16
, and
58.1-339.17
, as follows:
Article
3.1
.
Health Insurance Premium Stabilization
Tax
Credit Act
.
§
58.1-339.15
.
Definitions.
As used in
this article
, unless the context requires a different meaning
:
"Certifiable premium" means the amount certified by the Division
pursuant to §
58.1-339.16
,
for which a qualified taxpayer
is allowed to claim
a tax credit pursuant to
§
58.1-339.17
for the taxable year
.
"Commission" means the State Corporation Commission.
"Coverage month" means a month during which a qualified taxpayer is enrolled in a qualified health plan.
"Division" means the Hea
lth Benefit Exchange, a division within the Commission through which it administers the Exchange.
"Exchange" means, as the context requires, either (i)
the Division or (ii) the Virginia Health Benefit Exchange established pursuant to the provisions of
C
hapter 65 (§
38.2-6500
et seq.) of Title 38.2
and in accordance with § 1311(b) of the Federal Act, through which qualified health plans and qualified dental plans are made available to qualified individuals through the American Health Benefit Exchange and to qualified employers through the
Small Business He
alth Options Program
(
SHOP
)
E
xchange. "Exchange
," when referring to the Virginia Health Benefit Exchange, collectively refers to both the American Health Benefit Exchange and the SHOP
E
xchange.
"Federal Act" means the federal Patient Protection and Affordable Care Act, P.L. 111
-148, as amended by the
federal
Health Care and Education Reconciliation Act of 2010, P.L.
111-152
, and as it may further be amended, and regulations issued thereunder.
"Poverty guidelines" means the poverty guidelines of the 48 contiguous states and the District of Columbia updated annually in the
Federal Register by the U.S. Department of Health and Human Services under the authority of § 673(2) of the
federal
Omnibus Budget Reconciliation Act of 1981
, P.L.
97-35
.
"Qualified
h
ealth
p
lan" means
a health benefit plan that has in effect a certification that the plan meets the criteria for certification described in
§ 1311(c) of the Federal Act and §
38.2-6506
.
"Qualified taxpayer" means
a taxpayer that during the taxable year
(i) was enrolled in a
q
ualified
h
ealth
p
lan through
the Exchange
and
(ii) had a Virginia adjusted gros
s income in excess of 400 percent of the poverty guidelines
.
"Rating area" means
the rating area established in accordance with §
300gg of the Federal Act.
"Silver plan" means
a qualified hea
lth plan that is identified as a silver-level plan as described in subdivision 4 of §
38.2-6505
, is
offered through the Exchange
,
and provides
self-coverage
and family coverage options.
§
58.1-339.16
.
State Corporation Commission
to certify
credit amounts.
A. The
Division
shall
determine
each qualifying taxpayer's certifiable premium for each taxable year in which such taxpayer may claim a tax credit pursuant to §
58.1-339.17
.
B.
A qualifying taxpayer's certifiable premium
, with respect to any taxable year,
shall be
the su
m of
each coverage month's premium balance
across all
coverage months
for such taxable year.
C. A qualifying taxpayer's
coverage month premium balance
, with respect to any coverage month, shall be equal to the lesser of:
1.
The monthly premium for a qualified health plan in which such
qualifying
taxpayer
and any covered spouse or
dependent
is enrolled
through the Exchange; or
2. The difference, if any, between
(
i
) the monthly premium that would apply if each individual covered under the qualified health plan as described in subdivision 1 were covered by the second lowest cost silver plan of the individual market in the rating area in which such taxpayer
resides and (
ii
) an amount equal to 8.5 percent of such taxpayer's Virginia adjusted gross income divided by 12.
D
. The Division shall annually report to
the Department each qualifying taxpayer's certifiable premium for each taxable year.
§
58.1-339.17
.
Health
i
nsurance
p
remium
s
tab
ilization
t
ax
c
redit.
A. For taxable years beginning on and after January 1, 2026, but before January 1, 2031, a qualified taxpayer shall be allowed
a refundable credit against the tax levied pursuant to §
58.1-320
in an amount equal to
such taxpayer's
certifiable premium.
Any qualified taxpayer that is married and
enrolled in the same qualified health plan
as his spouse
, if
filing separately
, may only be allowed to claim
50 percent of such certifiable premium.
B.
If the amount of the credit exceeds the
taxpayer's liability for such taxable year, the excess shall be refunded by the Tax Commissioner on behalf of the Commonwealth for 100 per
cent of face value within 90 days after the filing date of the income tax return on which the individual applies for the refund.
C
. The Tax Commissioner
, in consultation with the Division,
shall develop guidelines for claiming the credit provided by this
article
. Such guideli
nes shall be exempt from the provisions of the Administrative Process Act (§
2.2-4000
et seq.).