17052.10.
(a) (1) For each taxable year beginning on or after January 1, 2019, and before January 1, 2026, there shall be allowed to a qualified individual a health insurance premium credit against the “net tax,” as defined by Section 17039, in an amount determined pursuant to paragraph (2).(2) The credit shall be equal to the cost of health insurance premiums of the lowest cost bronze plan for the qualified individual or the qualified individual’s dependent that exceeds 8 percent of the qualified individual’s modified adjusted gross income.
(3) The credit shall be claimed on a return filed for the taxable year in which the health insurance premium was purchased, regardless of the year in which the health insurance plan is operative.
(4) The credit authorized by this subdivision shall only be operative for taxable years for which resources are authorized in the annual Budget Act for the Franchise Tax Board to oversee and audit returns associated with the credit.
(b) For purposes of this section:
(1) “Bronze plan” has the same meaning as “bronze level,” as defined in Section 1367.008 of the Health and Safety Code.
(2) “Individual market” means an individual market described in either Article 11.8 (commencing with Section 1399.845) of Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code or Chapter 9.9 (commencing with Section 10965) of Part 2 of Division 2 of the Insurance Code.
(3) “Lowest cost bronze plan” means the lowest cost bronze plan available to the qualified individual or the qualified individual’s dependent, given the age and geographic region of the individual covered by the health care coverage.
(4) “Modified adjusted gross income” has the same meaning as in Section 36B(d)(2)(B) of the Internal Revenue Code, relating to modified adjusted gross income.
(5) (A) “Qualified individual” means a person who purchased health care coverage in the individual market for himself or herself or for a dependent, if that coverage is a standardized benefit design approved by Covered California pursuant to subdivision (c) of Section 100504 of the Government Code, whose household income equals or exceeds 400 percent is 400 percent to 600 percent, inclusive, of the federal poverty level, and who is not an applicable taxpayer under Section 36B(c)(1) of the Internal Revenue Code, relating to an applicable taxpayer.
(B) A “qualified individual” does not include an
individual who, or whose dependent for which the credit is claimed, is otherwise eligible for minimum essential coverage through employment, Medicare, Medicaid, or other public programs. For purposes of this subparagraph, “minimum essential coverage through employment” means affordable employer coverage of minimum value, as provided in the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any rules and regulations promulgated thereunder.
(C) “Public programs” has the same meaning as an applicable state health subsidy program in Section 1413(e) of the federal Patient Protection and Affordable Care Act (Public Law 111-148).
(D) “Standardized benefit
design” has the same meaning as a standardized product described in subdivision (e) of Section 1366.6 of the Health and Safety Code.
(E) “Dependent” has the same meaning as in subdivision (b) of Section 1399.845 of the Health and Safety Code.
(c) If the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall, upon appropriation by the Legislature, be refunded to the qualified individual.
(d) The California Health Benefit Exchange, known as Covered California, pursuant to Title 22 (commencing with Section 100500) of the Government Code, shall be the certifying
agency of the provisions of this section.
(e) Nothing in this section shall be construed to prohibit a qualified individual who purchases a health insurance premium other than the lowest cost bronze plan from receiving the credit.
(f) Section 41 does not apply to the credit allowed by this section.
(g) Notwithstanding Section 10231.5 of the Government Code, on or before January 1, 2024, the Legislative Analyst’s Office shall submit a report to the Legislature, in accordance with Section 9795 of the Government Code, on the number of qualified individuals who claimed the credit, the average and median credit amounts claimed, and the effectiveness of the credit in reducing health care
costs.
(h) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.