Health Coverage Tax Credit (HCTC)
Examples of Funded Projects
Fiscal Year 2008: Awards are made to states for HCTC program and system development (infrastructure) and gap filler health care premium payments (up to 3 months.).
Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available
The Department of Labor fosters and promotes the welfare of job seekers, wage earners and retirees by improving their working conditions, advancing their opportunities, protecting their retirement and health benefits and generally protecting worker rights and monitoring national economic measures.
Employment and Training Administration regional offices.
Program Accomplishments
Fiscal Year 2008: States pay healthcare premiums for up to three months for eligible participants. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available
Uses and Use Restrictions
HCTC is a tax credit administered by the Internal Revenue Service.
The tax credit is equal to 80 percent of the amount paid by an eligible individual for qualified health coverage as specified in section 35 of the Internal Revenue Code.
Monthly payments are made directly to a health plan administrator on behalf of participants, allowing them to receive the benefit on the tax credit at the time of need.
Eligibility Requirements
Applicant Eligibility
State (includes District of Columbia, public institutions of higher education and hospitals): Health/Medical
Beneficiary Eligibility
Specialized group (e.g. health professionals, students, veterans)
Credentials/Documentation
TAA certification. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Preapplication Coordination
Preapplication coordination is not applicable.
Environmental impact information is not required for this program.
This program is excluded from coverage under E.O.
12372.
Application Procedures
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. HCTC applications are submitted electronically through the National Emergency Grant Electronic Application system. States are required to complete and submit the following OMB approved forms:
Completed and signed SF 424 Application for Federal Assistance. This form is the required application for requesting federal funds.
Project Synopsis (ETA 9106) - This form summarizes key aspects of the proposed project such as project type, planned number of participants and contact information.
Planning Form (ETA 9103) - This form provides cumulative quarterly estimates on project scope (e.g. number of participants, exits), designs (e.g. mix of services), and budget (e.g., cost by type of activity, administrative costs)
Narrative Statement - Explanation must be provided in cases where one or more of the following are reflected in the project plan:
• Indirect costs are included in the budget, which requires identifying the following: cognizant approval agency, approved cost rate and base, and date of approval.
• "Other" costs are included in the budget, which requires identifying the specific cost items and amounts
• Administrative costs related to processing payments for qualified health insurance coverage and/or income support are included in the budget, which requires explaining how the administrative cost estimate was derived (i.e. based on the number of check payments and check processing costs)
Award Procedures
The Grant Officer issues a Notice of Obligation to the grantee providing the dollar amount, purpose of the funds and the terms and conditions of the grant, based on the information provided in the application.
Deadlines
Not Applicable.
Authorization
American Recovery and Reinvestment Act of 2009, P.L. 111-5; Trade Act of 1974 (P.L. 93-618), as amended; Trade Adjustment Assistance (TAA) Reform Act of 2002 (P.L. 107-210); Trade and Globalization Assistance Act of 2009 (P.L. 111-5), Workforce Investment.
Range of Approval/Disapproval Time
Not Applicable.
Appeals
Not Applicable.
Renewals
Not Applicable.
Assistance Considerations
Formula and Matching Requirements
Statutory formulas are not applicable to this program.Matching requirements are not applicable to this program. MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
HCTC grants are awarded on a rolling basis. See the following for information on how assistance is awarded/released: No information provided.
Post Assistance Requirements
Reports
Program reports are not applicable.
Cash reports are not applicable.
Progress reports are not applicable.
HCTC Infrastructure reports outline the administrative costs of and the premium payments processed.
HCTC "gap filler" reports outline the number of participants receiving payments and the amount of payments issued.
A separate quarterly financial report (9130) is also submitted.
NEG Quarterly Performance report (ETA 9104) is submitted through the NEG Electronic System on actual performance to date.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Subject to audits by the Department of Labor or other authorized Government Agencies. In accordance with the provision of OMB Circular No. A-133 (Revised, June 27, 2003), Audits of States, Local Governments, and Nonprofit Organizations, nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.
Records
State requirements are to be in conformity with Federal statutes.
Financial Information
Account Identification
16-0184-0-1-504 - TAFS: 16 X 0184.
Obigations
(Project Grants) FY 08 not reported.; FY 09 est $150,000,000; FY 10 est $0
Range and Average of Financial Assistance
$12,702 to $12,566,852. Average: $823,438.
Regulations, Guidelines, and Literature
Training and Employment Guidance Letter (TEGL) 20-02 "Use of National Emergency Grant (NEG) Funds under the Workforce Investment Act (WIA), as amended, to Support Health Insurance Coverage Assistance for Trade-Impacted Workers." TEGL 20-02, Change 1 "Policy Guidance for Use of National Emergency Grant (NEG) Funds under Workforce Investment Act (WIA), as amended, to Support "Gap-Filler" Payments for Individuals Eligible for Health Coverage Tax Credit (HCTC)."
Information Contacts
Regional or Local Office
See Regional Agency Offices. Employment and Training Administration regional offices.
Headquarters Office
Erica Cantor Administrator, Office of National Response, Employment and Training Administration, Department of Labor, 200 Constitution Avenue, N.W., Washington 20210 Phone: (202) 693-3500
Criteria for Selecting Proposals
The criteria for approving applications are based on applicant and beneficiary eligibility as follows:
Eligible Applicants: State Workforce Agencies, including those in the District of Columbia, Puerto Rico and the Virgin Islands
Beneficiary Eligibility: individuals must meet one of the criteria:
• Eligible TAA recipient, which is defined as an individual who is receiving a trade readjustment allowance (TRA) under the TAA program, or would be eligible for TRA except that he/she has not exhausted unemployment benefits;
• Eligible alternative TAA recipient, which is defined as an individual who is receiving benefits under a demonstration program of alternative trade adjustment assistance for older workers under Section 246 of the Trade Act of 1974 (as amended by the Act)
• Eligible Pension Benefit Guaranty Corporation (PBGC) pension recipient, which is defined as an individual who is 55 years of age or older and is receiving a pension benefit paid in whole or part by the PBGC.
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