text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Obamacare Marriage Penalty 
  Elimination Act''.
  
  SEC. 2. ELIMINATION OF MARRIAGE PENALTY IN HEALTH INSURANCE PREMIUM TAX 
                CREDIT.
  
      (a) In General.--Section 36B(d) of the Internal Revenue Code of 
  1986 is amended by adding at the end the following new paragraph:
              ``(4) Elimination of marriage penalty.--In the case of a 
          joint return--
                      ``(A) Credit determined separately with respect to 
                  each spouse.--The credit allowed under this section 
                  shall be sum of the two credits determined under this 
                  section separately with respect to each spouse (as 
                  provided under this subparagraph).
                      ``(B) Treatment of income of spouses.--
                              ``(i) In general.--Except as provided in 
                          clause (ii), each spouse shall take into 
                          account the income of such spouse for purposes 
                          of this section.
                              ``(ii) Income split not to result in 
                          ineligibility for credit for either spouse.--
                          If--
                                      ``(I) the poverty line with respect 
                                  to a spouse (determined after 
                                  application of this paragraph but 
                                  without regard to this clause) exceeds 
                                  the income taken into account by such 
                                  spouse for purposes of this section (as 
                                  so determined), and
                                      ``(II) the income taken into 
                                  account by the other spouse for 
                                  purposes of this section (as so 
                                  determined) exceeds the sum of the 
                                  poverty line with respect to such other 
                                  spouse (as so determined) plus the 
                                  excess described in subclause (I),
                          the excess described in subclause (I) shall be 
                          taken into account as income of the spouse 
                          referred to in subclause (I) and not as income 
                          of the spouse referred to in subclause (II).
                      ``(C) Treatment of dependents.--
                              ``(i) In general.--Except as provided in 
                          clause (ii), dependents of the taxpayer shall 
                          be allocated between the two spouses at the 
                          election of the taxpayer. For purposes of 
                          determining the family size involved and 
                          household income with respect to each spouse, 
                          only such spouse and the dependents allocated 
                          to such spouse under this subparagraph shall be 
                          taken into account
                              ``(ii) Limitation on taxpayer allocation.--
                          The number of dependents allocated to a spouse 
                          under clause (i) cannot exceed the number of 
                          dependents allocated to the other spouse by 
                          more than 1 dependent.
                      ``(D) Treatment of premiums.--To the extent that 
                  the amount of any monthly premium is determined 
                  separately with respect to either spouse or any 
                  dependent of the taxpayer, such premium shall be taken 
                  into account by such spouse or the spouse to which such 
                  dependent is allocated under subparagraph (C). In the 
                  case of any monthly premium which is not so separately 
                  determined, such premium may be allocated between the 
                  two spouses at the election of the taxpayer.''.
      (b) Effective Date.--The amendment made by this section shall apply 
  to taxable years beginning after the date of the enactment of this Act.
  
  SEC. 3. REDUCTION IN POVERTY LINE ELIGIBILITY LIMITATION FOR HEALTH 
                INSURANCE PREMIUM TAX CREDIT.
  
      (a) Amendments to the Internal Revenue Code of 1986.--
              (1) In general.--Section 36B(c)(1)(A) of the Internal 
          Revenue Code of 1986 is amended by striking ``400 percent'' and 
          inserting ``the applicable percentage''.
              (2) Applicable percentage.--Section 36B(c)(1) of such Code 
          is amended by redesignating subparagraphs (B), (C), and (D) as 
          subparagraphs (C), (D), and (E), respectively, and by inserting 
          after subparagraph (A) the following new subparagraph:
                      ``(B) Applicable percentage.--The term `applicable 
                  percentage' means such percentage as the Secretary, 
                  after consultation with the Secretary of Health and 
                  Human Services, determines will result in a combination 
                  of increased Federal revenues and reduced Federal 
                  outlays which is equal to the combination of reduced 
                  Federal revenues and increased Federal outlays as a 
                  result of the amendments made by section 2 of the 
                  Obamacare Marriage Penalty Elimination Act.''.
              (3) Conforming amendments.--
                      (A) Section 36B(b)(3)(A)(i) of such Code is amended 
                  by inserting ``and subsection (c)(1)(A)'' after 
                  ``Except as provided in clause (ii)''.
                      (B) Section 36B(f)(2)(B)(i) of such Code is amended 
                  by striking ``400 percent'' and inserting ``the 
                  applicable percentage (as defined in subsection 
                  (c)(1)(B))''.
              (4) Effective date.--The amendments made by this subsection 
          shall apply to taxable years beginning after December 31, 2015.
      (b) Amendments to the Patient Protection and Affordable Care Act.--
              (1) In general.--Section 1402(b)(2) of the Patient 
          Protection and Affordable Care Act is amended by striking ``400 
          percent'' and inserting ``the applicable percentage (as defined 
          in section 36B(c)(1)(B) of the Internal Revenue Code of 
          1986)''.
              (2) Conforming amendments.--
                      (A) Section 1402(c)(1)(A) of such Act is amended by 
                  striking ``The reduction'' and inserting ``Except as 
                  provided in subsection (b)(2), the reduction''.
                      (B) Section 1402(c)(1)(B)(i) of such Act is amended 
                  by striking ``The Secretary'' and inserting ``Except as 
                  provided in subsection (b)(2), the Secretary''.
              (3) Effective date.--The amendments made by this subsection 
          shall apply to months beginning after December 31, 2015.
target: Obamacare Marriage Penalty Elimination Act This bill amends the Internal Revenue Code, with respect to the tax credit for health care insurance premium assistance, to: (1) calculate the amount of such credit in the case of a joint tax return as the sum of each credit amount allowed to each spouse, thus&nbsp;preventing the tax effect known as the marriage penalty; and (2) replace the 400% poverty line eligibility limit for such credit with an applicable percentage based on a calculation of the combination of increased tax revenues and decreased outlays resulting from this Act. 
feat_title: Obamacare Marriage Penalty Elimination Act