Health Coverage Tax Credit Reauthorization Act of 2026

Bill Number

H.R. 8242

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-04-09: Referred to the House Committee on Ways and Means.

Last Updated

2026-04-16T08:07:09Z

AI-Generated Summary

Health Coverage Tax Credit Reauthorization Act of 2026 (H.R. 8242)

Purpose

This bill aims to extend the Health Coverage Tax Credit (HCTC), a tax benefit that helps certain individuals pay for health insurance premiums. The HCTC covers 72.5% of qualified health plan costs for eligible people, such as those who lost jobs due to international trade agreements or certain pension recipients.

Key Provisions

• Amends Section 35(b)(1)(B) of the Internal Revenue Code of 1986.
• Extends HCTC eligibility to health coverage obtained before January 1, 2030.
• Applies changes to months beginning after December 31, 2021 (retroactive extension).

Significant Changes to Existing Law

• Previously, the HCTC expired for coverage obtained before January 1, 2022.
• This bill pushes the expiration date forward by 8 years, reviving and prolonging the credit retroactively from 2022 onward.

Potential Impacts

• Citizens: Provides continued financial relief for health insurance to thousands of eligible workers and pensioners, potentially improving access to coverage and reducing out-of-pocket costs.
• Government agencies: Increases costs to the U.S. Treasury (via forgone tax revenue); requires the IRS to process claims through 2029.
• No direct impact on international relations.

Main Stakeholders Affected

• Eligible individuals: Trade-affected workers (e.g., those certified under Trade Adjustment Assistance), Pension Benefit Guaranty Corporation (PBGC) pension recipients, and their families.
• Taxpayers: Indirectly, through higher federal spending.
• Government: IRS (administration), Treasury Department (funding), and Department of Labor (trade program ties).

Notable Legal, Constitutional, or Political Implications

• Fiscal: Extends a tax expenditure with estimated multi-year costs, requiring future budget considerations or offsets.
• Legal: Straightforward amendment to tax code; no major constitutional issues, as it builds on existing authority under trade and pension laws.
• Political: Bipartisan support (introduced by Republicans and Democrats); reinforces worker support in trade-impacted areas without new entitlements.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Turner, Michael R. [R-OH-10]

Cosponsors (4)

Rep. McDonald Rivet, Kristen [D-MI-8], Rep. Tenney, Claudia [R-NY-24], Rep. Stevens, Haley M. [D-MI-11], Rep. Golden, Jared F. [D-ME-2]

Recent Actions

• 2026-04-09: Referred to the House Committee on Ways and Means.
• 2026-04-09: Introduced in House
• 2026-04-09: Introduced in House

Bill Versions

• Health Coverage Tax Credit Reauthorization Act of 2026 — issued 2026-04-09 — PDF (2 pages)