Introduction
Certain workers who have experienced job loss and retirees whose private pension plans were taken over by the Pension Benefit Guaranty Corporation (PBGC) may be eligible for the Health Coverage Tax Credit (HCTC). The HCTC has a sunset date of January 1, 2020. The HCTC is refundable, so taxpayers may claim the full credit amount even if they have little or no federal income tax liability. The credit also is advanceable, so taxpayers may receive the credit on a monthly basis to coincide with the payment of premiums. Eligibility

To claim the HCTC, taxpayers must be in one of two eligibility groups and not enrolled in (or sometimes even eligible for) certain types of health insurance. Alternative Trade Adjustment Assistance (ATAA) . Qualified Health Insurance

An eligible taxpayer is only allowed to claim the HCTC to cover part of the premium for qualified health insurance. The other seven categories of coverage are known as state-qualified health plans . Receiving the HCTC

Eligible taxpayers with qualified health insurance may claim the tax credit when they file their tax returns for the year, or they may receive advance payments for the credit, on a monthly basis, throughout the year.
The Health Coverage Tax Credit (HCTC) subsidizes most of the cost of qualified health insurance for eligible taxpayers and their family members. Potential eligibility for the HCTC is limited to two groups of taxpayers. One group is comprised of individuals eligible for Trade Adjustment Assistance (TAA) allowances because they experienced qualifying job losses. The other group consists of individuals whose defined-benefit pension plans were taken over by the Pension Benefit Guaranty Corporation (PBGC) because of financial difficulties. HCTC-eligible individuals are allowed to receive the tax credit only if they either could not enroll in certain other health coverage (e.g., Medicaid) or are not eligible for other specified coverage (e.g., Medicare Part A).
To claim the HCTC, eligible taxpayers must have qualified health insurance (specific categories of coverage, as specified in statute). Several of those categories, known as state-qualified health plans, are available only after being established by state action.
The HCTC is refundable, so eligible taxpayers may receive the full credit amount even if they had little or no federal income tax liability. The credit is also advanceable, so taxpayers may receive the credit on a monthly basis to coincide with the payment of premiums.
The HCTC has a sunset date of January 1, 2020.