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STANDARDS TRACKER |
STANDARDS TRACKER
IRS proposed regulations: Section 36B premium tax credit changes under OBBBA
IRS proposed regs (REG-101576-26) implement OBBBA changes to Sec. 36B: no more repayment caps, tighter eligibility, revised Form 1095-A reporting.
Treasury and IRS released proposed regulations REG-101576-26 on October 14, 2026, implementing Section 36B changes made by the One Big Beautiful Bill Act (H.R. 1, P.L. 119-21). The Journal of Accountancy reports the proposal covers new eligibility and verification requirements, reporting changes, and rules governing repayment of excess advance premium tax credits.
BY THE NUMBERS
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See below EFFECTIVE |
1 SOURCE TRACKED |
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Oct 16 LAST UPDATED |
IRS ISSUER |
The most immediate change, per the Journal of Accountancy, is that the repayment limitation on excess advance PTC payments does not apply for taxable years beginning after December 31, 2025 - meaning taxpayers reconciling 2026 returns will face full repayment of any excess APTC with no cap. The Journal of Accountancy also reports that separate provisions affecting eligibility for certain lawfully present aliens and exchange compliance requirements carry later effective dates; the precise years are not stated in the listed source.
For the close team, the clearest near-term impact is on payroll and benefits accounting. Employers who subsidize individual-market premiums through HRAs or similar arrangements should confirm how the revised Section 36B rules interact with employee benefit accruals. Changes to Form 1095-A reporting requirements for certain households may also affect tax provision work where employee benefit costs feed into deferred tax calculations.
The Journal of Accountancy reports the regulations are proposed; no final rule has been issued. Comment deadlines and any hearing dates are not stated in the listed source. Teams should monitor the Federal Register and IRS.gov for further details.
WHAT TO DO IN THE CLOSE
| Flag the repayment cap repeal to payroll and benefits leads: full APTC excess repayment applies starting with 2026 tax year returns. | |
| Review any HRA or individual-coverage arrangements for interactions with the revised Sec. 36B eligibility rules. | |
| Assess whether mixed-status household enrollments affect Form 1095-A amounts that feed into tax provision or benefit expense accruals. | |
| Monitor IRS.gov and the Federal Register for comment deadlines, hearing dates, and any final rule publication. | |
| Hold open any applicability date assumptions in tax provision models until regulations are finalized. |
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QUESTIONS THIS ANSWERS
What does the OBBBA do to excess advance premium tax credit repayment caps?
The Journal of Accountancy reports the repayment limitation under Sec. 36B is repealed for taxable years beginning after December 31, 2025. Taxpayers who received excess advance PTC in 2026 onward must repay the full amount with no cap.
When are comments due on IRS proposed regulations REG-101576-26?
Comment deadlines and hearing dates are not stated in the listed source. Monitor IRS.gov and the Federal Register for the official comment window.
Which employers or plan types are affected by the revised Sec. 36B rules?
Per the Journal of Accountancy, the rules affect taxpayers enrolled in qualified health plans through a Health Insurance Exchange who receive advance payment of a premium tax credit - relevant to employers offering individual-coverage HRAs.
SOURCES
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Previously: FASB ASU 2024-03: disaggregation of income statement expenses (DISE)
A living page: it is re-read and updated as coverage arrives; last updated Friday October 16. Facts come from the linked sources; confirm against the issuer's own text before relying on it.
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