End of Health Coverage Tax Credit data submissions

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                UI – TRA/TAA
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DUIO
             Washington, D.C. 20210                      DATE
                                                         September 18, 2024

ADVISORY:       TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 04-24

TO:             STATE WORKFORCE AGENCIES
                STATE WORKFORCE LIAISONS
                TRADE ADJUSTMENT ASSISTANCE LEADS

FROM:           JOSÉ JAVIER RODRÍGUEZ
                Assistant Secretary

SUBJECT:        Discontinuation of Internal Revenue Service (IRS) Data Submissions for the
                Health Coverage Tax Credit (HCTC) for Eligible Trade Adjustment Assistance
                (TAA) Recipients and Alternative TAA (ATAA) and Reemployment TAA
                (RTAA) Recipients

1. Purpose. To advise states about their responsibilities related to the HCTC program.

2. Action Requested. The U.S. Department of Labor’s (Department) Employment and Training
   Administration (ETA) requests that State Workforce Agency (SWA) Administrators share
   information contained in this Training and Employment Guidance Letter (TEGL) with
   appropriate staff. States must cease submitting HCTC data to the Unemployment Insurance
   Interstate Connection Network (ICON) system, operated by National Association of State
   Workforce Agencies (NASWA), as soon as possible.

3. Summary and Background.

   a. Summary – The HCTC program expired on December 31, 2021. Since then, many states
      have continued to submit HCTC data via ICON. The IRS has informed ETA that it is
      officially closing HCTC operations and will no longer be able to receive files pertaining
      to HCTC. Attachment I to this TEGL identifies the applicable ETA Advisories that are
      canceled as a result of this change.

   b. Background – Title II of the TAA Reform Act of 2002 (Public Law (Pub L.) 107-210)
      created the initial HCTC Federal income tax credit, which subsidizes certain health
      insurance coverage for eligible Pension Benefit Guaranty Corporation (PBGC) recipients
      as well as certain individuals in the TAA Program. The Consolidated Appropriations Act,
      2021, (Pub. L. 116-260), enacted on December 27, 2020, extended the HCTC Program
      through December 31, 2021. Congress did not extend the program and it is now expired.
      Before the expiration of the HCTC on December 31, 2021, states transmitted the records
      of eligible TAA and ATAA/RTAA recipients to the IRS via ICON. Upon receipt of the

   RESCISSIONS                                            EXPIRATION DATE
   See Attachment I                                       Ongoing

       file from the states, the IRS determined whether the eligible TAA and ATAA/RTAA
       recipients were eligible for HCTC.

4. Cessation of HCTC data transmission via ICON and cancellation of related advisories.

   a. Effective immediately, states must cease transmission of the HCTC files via ICON.

   b. States must inform the appropriate ETA Regional Office when the transmissions have
      ceased or will cease.

   c. Due to the cessation of the HCTC program, the Department is cancelling multiple
      Training and Employment Notices (TENs) and Unemployment Insurance Program
      Letters (UIPLs) relating to the program. (See Attachment I).

5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.

6. References.
   • Consolidated Appropriations Act, 2021, Pub. L. No. 116-260, enacted December 27,
      2020; https://www.congress.gov/bill/116th-congress/house-bill/133/text.
   • The Trade Adjustment Assistance Reform Act of 2002 (TAA Reform Act), Pub. L. No.
      107-210, enacted August 6, 2002; https://www.congress.gov/bill/107th-congress/house-
      bill/3009/text.

7. Attachment(s).
   • Attachment I - List of Advisories Canceled by this Guidance.

                                                                        ATTACHMENT I

        List of Advisories Cancelled by UIPL No. 20-24 and TEGL No. 04-24

•   TEN No. 10-20, Change 1, Extension of the Health Coverage Tax Credit (HCTC)
    Program for Eligible Trade Adjustment Assistance (TAA) Recipients and Eligible
    Alternative TAA and Reemployment TAA (ATAA/RTAA) Recipients or Eligible Pension
    Benefit Guaranty Corporation (PBGC) Recipients, issued on January 7, 2021,
    https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-10-20-
    change-1;

•   TEN No. 10-20, Expiration of the Health Coverage Tax Credit (HCTC) Program for
    Eligible Trade Adjustment Assistance (TAA) Recipients and Eligible Alternative TAA and
    Reemployment TAA (ATAA/RTAA) Recipients or Eligible Pension Benefit Guaranty
    Corporation (PBGC) Recipients, issued on December 23, 2020,
    https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-10-20;

•   TEN No. 10-19, Change 1, Extension of the Health Coverage Tax Credit (HCTC)
    Program for Eligible Trade Adjustment Assistance (TAA) Recipients and Eligible
    Alternative TAA and Reemployment TAA (ATAA/RTAA) Recipients or Eligible Pension
    Benefit Guaranty Corporation (PBGC) Recipients, issued on December 31, 2019, https://
    www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-10-19-
    change-1;

•   TEN No. 42-08, COBRA Premium Reduction and Extended Eligibility Provisions in the
    American Recovery and Reinvestment Act of 2009, issued on May 1, 2009,
    https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-42-08;

•   UIPL No. 01-17, Health Coverage Tax Credit (HCTC) for Eligible Trade Adjustment
    Assistance (TAA) Recipients and Alternative TAA (ATAA) and Reemployment TAA (RTAA)
    Recipients, issued on October 25, 2016,
    https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
     1-17;

•   UIPL No. 7-14, Expiration of the Health Coverage Tax Credit (HCTC) for Eligible Trade
    Adjustment Assistance (TAA) Recipients, issued February 5, 2014,
    https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
    7-14;

•   UIPL No. 33-03, Questions and Answers About Implementation of the Advance Health
    Coverage Tax Credit, issued on August 18, 2003,
    https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
    33-03; and

                                                                      ATTACHMENT I

•   UIPL No. 24-03, Implementation of the Advance Health Coverage Tax Credit (HCTC)
    for Eligible Trade Adjustment Assistance/Trade Readjustment Allowances (TAA/TRA)
    Recipients, issued on April 14, 2003,
    https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-
    24-03.