Assembly Bill 1130 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 cannot claim this credit for taxable years after 2025 if they are eligible for federal premium assistance credits.

The bill creates new statutory provisions, specifically sections 20.835 (2) (fg) and 71.07 (12), which outline the definitions, filing claims, limitations, and administration of the premium assistance credit. Notably, part-year residents and nonresidents are excluded from eligibility, and the credit must be claimed within a specified time frame. Additionally, the existing statute at 71.10 (4) (i) is amended to include the new premium assistance credit among other tax credits.