What is the Health Coverage Tax Credit (HCTC)?
A. The Trade Adjustment Assistance (TAA) Reform Act of 2002 created a tax credit for the purchase of health insurance for TAA and Pension Benefit Guaranty Corporation (PBGC) candidates. The Internal Revenue Service (IRS) is responsible for implementing this credit under the HCTC program. For detailed information on HCTC, and a list of state-qualified health plans, visit the Internal Revenue Service’s Web site. HCTC reimburses 80 percent of the healthcare premiums paid by eligible individuals for qualified health insurance. The remaining 20 percent of the premium is paid by the eligible individual. HCTC is available only for qualified health insurance.
