Premium tax credits have been available to consumers enrolled in Affordable Care Act (ACA) health insurance plans since the ACA went into effect in 2014. The premium tax credits were available on a sliding scale based on the consumer’s income as long as the consumer enrolled through the ACA’s Marketplace or through one of the state-based marketplaces.
Before 2021, those early premium tax credits were flawed in that they were available only to consumers whose annual income was between 100% of the federal poverty level (FPL, or $12,880 for an individual in 2021) and 400% ($51,520 for an individual in 2021). In 2021, Congress improved the premium tax credits that became what is known as enhanced premium tax credits. (See Enhanced premium tax credits.)