Health Coverage Tax Credit (HCTC)

§ 35. Health insurance costs of eligible individuals(a) In generalIn the case of an individual, there shall be allowed as a credit against the tax imposed by subtitle A an amount equal to 72.5 percent of the amount paid by the taxpayer for coverage of the taxpayer and qualifying family members under qualified health insurance for eligible coverage months beginning in the taxable year. (b) Eligible coverage monthFor purposes of this section—(1) In generalThe term “eligible coverage month” means any month if—(A) as of the first day of such month, the taxpayer—(i) is an eligible individual, (ii) is covered by qualified health insurance, the premium for which is paid by the taxpayer, (iii) does not have other specified coverage, and (iv) is not imprisoned under Federal, State, or local authority, and (B) such month begins more than 90 days after the date of the enactment of the Trade Act of 2002, and before January 1, 2022. (2) Joint returnsIn the case of a joint return, the requirements of paragraph (1)(A) shall be treated as met with respect to any month if at least 1 spouse satisfies such requirements. (c) Eligible individualFor purposes of this section—(1) In generalThe term “eligible individual” means—(A) an eligible TAA recipient, (B) an eligible alternative TAA recipient, and (C) an eligible PBGC pension recipient. (2) Eligible TAA recipient(A) In generalExcept as provided in subparagraph (B), the term “eligible TAA recipient” means, with respect to any month, any individual who is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974 or who would be eligible to receive such allowance if section 231 of such Act were applied without regard to subsection (a)(3)(B) of such section. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence. (B) Special ruleIn the case of any eligible coverage month beginning after the date of the enactment of this paragraph, the term “eligible TAA recipient” means, with respect to any month, any individual who—(i) is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974, (ii) would be eligible to receive such allowance except that such individual is in a break in training provided under a training program approved under section 236 of such Act that exceeds the period specified in section 233(e) of such Act, but is within the period for receiving such allowances provided under section 233(a) of such Act, or (iii) is receiving unemployment compensation (as defined in section 85(b)) for any day of such month and who would be eligible to receive such allowance for such month if section 231 of such Act were applied without regard to subsections (a)(3)(B) and (a)(5) thereof.