Health Coverage Tax Credit (hctc) (17.276)

Program

17.276 Health Coverage Tax Credit (hctc)

Federal Agency

Agency: Department of Labor
Office: Employment Training Administration

Authorization

American Recovery and Reinvestment Act of 2009, Public Law 111-5; Trade Act of 1974 (Public Law 93-618), as amended; Trade Adjustment Assistance (TAA) Reform Act of 2002 (Public Law 107-210); Trade and Globalization Assistance Act of 2009 (Public Law 111-5), Workforce Investment Act Section 173(g)(29 U.S.C. 2918), Public Law 111-5.

Program Number

17.276

Last Known Status

Active

Objectives

To provide health insurance coverage assistance and support related services to eligible TAA-impacted workers and other eligible individuals, as authorized under the Trade Adjustment Assistance Reform Act of 2002 and the expansion of the program in the Trade and Globalization Assistance Act of 2009.

Types of Assistance

Project Grants

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

None

Beneficiary Eligibility

None

Credentials/Documentation

TAA certification. This program is excluded from coverage under OMB Circular No. A-87.

Application 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 Procedure

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 Procedure

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.

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. Method of awarding/releasing assistance: by letter of credit.

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.

Records

State requirements are to be in conformity with Federal statutes.

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

Financial Information

Account Identification

16-0184-0-1-504 - ARRA.

Obligations

(Project Grants) FY 08 $0; FY 09 est $15,000,000; FY 10 est $100,000,000

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).�

Related Programs

17.245 Trade Adjustment Assistance; 17.260 WIA Dislocated Workers

Information Contacts

Regional or Local Office

See Regional Agency Offices. Employment and Training Administration regional offices.

Headquarters Office

Erica R. Cantor, Francis Perkins Building, Room C-5321, Washington, District of Columbia 20210 Email: cantor.erica@dol.gov Phone: (202) 693-3500. Fax: (202) 693-3149

Web Site Address

http://www.doleta.gov/neg/

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

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.