2 of the Worker Health Coverage Protection Act), gross income does not include any premium reduction provided under subsection (a)(1) of such section. . (B) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139H the following new item: Sec. 139I. Continuation coverage premium assistance. . (C) Effective date The amendments made by this paragraph shall apply to taxable years ending after the date of the enactment of this Act. (b) Elimination of Premium Subsidy for High-Income Individuals (1) Recapture of subsidy for high-income individuals If— (A) premium assistance is provided under this section with respect to any continuation coverage which covers the taxpayer, the taxpayer’s spouse, or any dependent (within the meaning of section 152 of the Internal Revenue Code of 1986, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of the taxpayer during any portion of the taxable year, and (B) the taxpayer’s modified adjusted gross income for such taxable year exceeds $125,000 ($250,000 in the case of a joint return), then the tax imposed by chapter 1 of such Code with respect to the taxpayer for such taxable year shall be increased by the amount of such assistance. (2) Phase-in of recapture (A) In general In the case of a taxpayer whose modified adjusted gross income for the taxable year does not exceed $145,000 ($290,000 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 (determined without regard to this paragraph). (B) Phase-in percentage For purposes of this subsection, the term phase-in percentage means the ratio (expressed as a percentage) obtained by dividing— (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) Option for high-income individuals to waive assistance and avoid recapture Notwithstanding subsection