Senate Bill 1091 introduces a new refundable individual income tax credit for individuals who pay monthly premiums for qualified health plans under the Affordable Care Act (ACA). Starting in 2026, eligible individuals can claim a premium assistance amount that they would have qualified for under federal law for taxable years between December 31, 2020, and January 1, 2026. If the credit exceeds the individual's tax liability, they will receive the excess as a refund. However, individuals will not be able to claim this credit for taxable years beginning after 2025 if they are eligible for federal premium assistance credits.

The bill creates new statutory sections, specifically 20.835 (2) (fg) and 71.07 (12), which outline the premium assistance credit and its administration. It also amends section 71.10 (4) (i) to include the premium assistance credit among other tax credits. The new provisions include definitions, filing requirements, and limitations on eligibility, such as excluding part-year residents and nonresidents from claiming the credit. Additionally, the bill specifies that any excess credit not used to offset tax due will be certified for payment from the state’s appropriation account.