Page:United States Statutes at Large Volume 123.djvu/486

 123STA T .46 6 PUBLIC LA W 111 –5—FE B.1 7, 2 0 0 9then the t aximpos e dbyc hapte r1 o f s u ch C ode w ith respect to the taxpayer for such taxab l e year shall be increased by the amount of such assistance .(2)PHASE-INOFR E C A PTU RE. — ( A ) I N G ENERA L .—In the case of a taxpayer whose modified ad j usted g ross income for the taxable year does not exceed $ 1 45,0 00 ($2 9 0,000 in the case of a joint return), the increase in the tax imposed under paragraph (1) shall not exceed the phase-in percentage of such increase (deter- mined without regard to this paragraph). ( B ) PHASE-IN PERCENTAGE.— F or purposes of this sub- section, the term ‘ ‘phase-in percentage ’ ’ means the ratio (expressed as a percentage) obtained by di v iding— (i) the excess of described in subparagraph (B) of paragraph (1), by (ii) $20,000 ($40,000 in the case of a joint return). ( 3 ) O PTION FOR HIGH-INCO M EIN D I V IDUALS TO W AIVE ASSIST- ANCE AND AVOID RECAPTURE.— N otwithstanding subsection (a)(3), an individual shall not be treated as an assistance eligible individual for purposes of this section and section 6 432 of the Internal R evenue Code of 19 8 6 if such individual— (A) ma k es a permanent election (at such time and in such form and manner as the S ecretary of the T reasury may prescribe) to waive the right to the premium assistance provided under this section, and (B) notifies the entity to whom premiums are reimbursed under section 6432(a) of such Code of such election. (4) M ODIFIED AD J USTED GROSS INCOME.—For purposes of this subsection, the term ‘‘modified adjusted gross income’’ means the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933 of such Code. (5) CREDITS NOT ALLOWED AGAINST TA X, ETC.—For purposes determining regular tax liability under section 26(b) of such Code, the increase in tax under this subsection shall not be treated as a tax imposed under chapter 1 of such Code. (6) REGULATIONS.—The Secretary of the Treasury shall issue such regulations or other guidance as are necessary or appropriate to carry out this subsection, including re q uirements that the entity to whom premiums are reimbursed under section 6432(a) of the Internal Revenue Code of 1986 report to the Secretary, and to each assistance eligible individual, the amount of premium assistance provided under subsection (a) with respect to each such individual. ( 7 ) E FFECTIVE DATE.—The provisions of this subsection shall apply to taxable years ending after the date of the enact- ment of this Act.