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 (a)(3), an individual shall not be treated as an assistance eligible individual for purposes of this section and section 6431 of the Internal Revenue Code of 1986 if such individual— (A) makes a permanent election (at such time and in such form and manner as the Secretary of the Treasury 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 6431(a) of such Code of such election. (4) Modified adjusted 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 tax, 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 requirements that the entity to whom premiums are reimbursed under section 6431(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) Effective date The provisions of this subsection shall apply to taxable years ending after the date of the enactment of this Act.