The Trusted Professional

IRS Updates Premium Tax Credit FAQs

The IRS on Dec. 23 updated the FAQs in Fact Sheet 2025-10 regarding changes to the Premium Tax Credit under the One Big, Beautiful Bill Act (OBBBA) and to related provisions that no longer apply.

According to an IRS release, the Premium Tax Credit is a refundable tax credit that assists eligible individuals and families with low or moderate income with the cost of their health insurance bought via the Health Insurance Marketplace or the Exchange.

OBBBA made some changes to the Premium Tax Credit such as taking out the limitations on repayment of excess advance payments of the premium tax credit for tax years starting after Dec. 31, 2025.

The FAQs have been updated to remove the questions on certain Premium Tax Credit rules that don't apply after tax years 2020 and 2021.

In similar news, the IRS on Dec. 23 also updated FAQs in Fact Sheet 2025-09 regarding changes to the limitation on the deduction for business interest expense (Section 163(j)) under the OBBBA, according to another IRS release.

For tax years starting after Dec. 31, 2024, OBBBA amended Section 163(j) by:

 • Letting taxpayers to add back deductions for depreciation, amortization, or depletion in calculating Adjusted Taxable Income.

 • Expanding the definition of floor plan financing interest to treat, as a motor vehicle, any trailer or camper made to offer temporary living quarters for recreational, camping or seasonal utilization, and made to be towed by, or affixed to, a motor vehicle. 

For tax years beginning after Dec. 31, 2025, OBBB amended Section 163(j) by:

 • Clarifying that business interest expense subject to Section 163(j) includes any interest incurred and capitalized in the tax year, except for interest capitalized under Sections 263(g) and 263A(f).

Excluding a US shareholder’s controlled foreign corporation income inclusion items under Sections 951(a), 951A(a) and 78, and associated deductions, from the computation of Adjusted Taxable Income.