24 Aug Tax Credits Extended Through 2025
Enhanced Affordable Care Act (ACA) Tax Credits Extended Through 2025
On August 17, the Inflation Reduction Act was signed into law, providing a three-year extension of the enhanced Affordable Care Act tax credits. These additional credits were approved by Congress in 2021 as part of the American Rescue Plan Act (ARPA), intended to provide relief from the financial impacts of COVID-19. These enhanced tax credits have helped most of our members see significant savings off their health insurance bills. The new law ensures ARPA tax credits will be available to consumers through 2025.
How do these enhanced tax credits work?
The tax credits are automatically triggered when you:
The government then sends the tax credits directly to health plans on behalf of consumers to pay for part of their coverage. As a result, the tax credits lower the share of monthly premium our members are responsible for paying.
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