The Health Coverage Tax Credit (HCTC) provided a credit to certain eligible individuals and their families to pay for qualified health insurance premiums. The HCTC was in effect from 2002 through 2013 and covered up to 72.5% of eligible healthcare costs for individuals whose jobs were eliminated due to foreign competition.
Since it is a personal tax credit, many employers were not familiar with HCTC. However, COBRA coverage was eligible for HCTC assistance. A new trade law passed earlier this month reinstates the HCTC through 2019 and provides for retroactive certifications back to the expiration of the program in 2014. The following changes to the credit were also added:
Employers with a workforce that might be subject to reduction due to foreign competition should pay attention to the re-enacted HCTC.