AMERICAN RECOVERY and REINVESTMENT ACT of 2009
Office of Worforce Services
Health Coverage Tax Credit (HCTC) Summary
FAST FACTS
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Background:
The Trade Adjustment Act of 2002 created the Health Coverage Tax Credit (HCTC) for TAA eligible workers or retirees covered by pension plans taken over by the Pension Benefit Guaranty Corporation (PBGC) who have lost their employer-sponsored coverage. This is a tax credit that pays a portion of the cost of health insurance. The ARRA of 2009 includes language which changes some of the requirements for the HCTC. HCTC is a refundable tax credit and is paid no matter how much federal income tax an eligible individual owes, and is available on a monthly or annual basis. The new law, including the changes to the HCTC, expires on December 31, 2010.
Stimulus Changes:
Changes include an increase (from 65 to 80%) in the percentage portion of the health insurance costs paid by the tax credit. The HCTC also will be available to eligible family members for a longer period of time. Beginning in January 2010, qualified family members may continue receiving the HCTC for up to 24 months after the primary eligible individual is no longer receiving the HCTC due to certain life events, including enrollment in Medicare, divorce and death.
Agency Plans
The Agency is consulting with Workforce Florida, Inc., the Regional Workforce Boards and other partners to establish experienced teams to develop and implement plans to include all activities associated with the requirements of the ARRA for this program area. Some of the major initiatives include identifying employers and workers who are affected by changes to the HCTC, developing a marketing campaign, offering public information sessions, and other outreach activities to help inform the public of these changes.
If you have questions or want additional information please send an e-mail to: ARRA.WS@flaawi.com