HCTC: Latest News and Background
On June 29, 2015, H.R. 1295, the Trade Preferences Extension Act of 2015, extended and modified the expired Health Coverage Tax Credit. HCTC expired in 2013, but the act retroactively extends the credit through 2019.
The IRS is currently reviewing the recently passed legislation and expects to provide guidance shortly. Check this page for updates.
Background of the HCTC
The Health Coverage Tax Credit is a federally funded tax credit that allows individuals to pay only a portion of their qualified health insurance. The HCTC helps make health coverage more affordable for eligible individuals and their families by paying a significant portion of qualified health insurance premiums.
Certain displaced workers are certified by the Department of Labor as eligible to receive Trade Readjustment Allowances under the Trade Adjustment Assistance program. Others may be eligible because they receive benefits from the Pension Benefit Guaranty Corporation and are 55 years old or older.
HCTC Program Timeline
2002: HCTC began as a ground breaking tax credit program.
August 2003: HCTC was first made available on a monthly basis.
May 2009: benefits expanded under American Recovery and Reinvestment Act. These benefits were set to expire on December 31, 2010.
December 2010: Congress passed a short term extension of the changes made to the HCTC by the ARRA. These provisions expired on February 13, 2011.
- October 2011: benefits again expanded by the Trade Adjustment Assistance Act of 2011.
- January 1, 2014: the legislation that authorized the HCTC expired. This expiration date was set by Congress when the Trade Adjustment Assistance Extension Act of 2011 was passed.
- June 29, 2015: H.R. 1295, the Trade Preferences Extension Act of 2015 extended and modified HCTC through 2019.