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  • TRA: 608-267-7772
    Fax 414-393-6825
    Email tra@dwd.wi.gov
  • TAA: 888-258-9966


Trade Adjustment Assistance (TAA) and Trade Readjustment Allowance (TRA)

Health Coverage Tax Credit (HCTC)

What is it?

A Federal tax credit program administered by the IRS for individuals participating in the Trade Adjustment Assistance (TAA) Program. The purpose of the HCTC is to help workers who have lost their jobs due to foreign competition cover the cost of health insurance for a limited time. This is NOT an insurance plan. It is a tax credit that will help make your health insurance payments more affordable.

How does it work?

The HCTC cannot be applied to separate dental / vision plans.

What are the General Eligibility Requirements?

Eligible for TRA payments, participating in TAA reemployment activities, and receiving one TRA or UI payment each calendar month OR receiving the Reemployment Trade Adjustment Assistance (RTAA) wage subsidy. The HCTC benefit can be applied for and begin only after being determined eligible for TRA or RTAA and receipt of a payment. To maintain ongoing HCTC eligibility, you must receive one UI, TRA or RTAA payment per calendar month.

HCTC eligibility ends when the claimant no longer receives UI / TRA or RTAA payments, or when the TRA eligibility period expires (even if still receiving UI).

*You may be able to change plans in order to receive the HCTC

Is this available to my family members?

Yes, if family members meet general eligibility requirements & are claimed as dependents on your federal tax return or you file your federal income taxes jointly with your spouse.

What types of health insurance plans are approved for this tax credit?

How do I participate in the HCTC program?

  1. Apply for benefits and services through the Trade Act Program
  2. The State will then make an initial eligibility determination & send notice to the HCTC Program if you are eligible
  3. If you choose to receive the annual tax credit, pay 100% of your monthly health insurance and then file IRS Form 8885 when you file your annual federal income taxes
  4. Timely pay your monthly premiums

For More Information

Questions about the program and eligibility requirements can be directed to the HCTC website at http://www.irs.gov (key word HCTC).

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