Advertise
Resources
Member, Beacon International Group, Ltd.
WASHINGTON—President Barack Obama has signed into law legislation that extends by six weeks a federal tax credit for health insurance premiums, such as COBRA coverage, for workers who lose their jobs due to foreign competition and older retirees in failed pension plans.
Under H.R. 6517, which the president signed into law on Wednesday, eligible beneficiaries will continue to receive an 80% tax credit to partially offset the cost of health insurance coverage they purchase through Feb. 12, 2011.
Under a previous version of the legislation, the 80% tax credit would have been extended through June 30, 2012. The extension was cut to six weeks on the Senate floor, and the House concurred with the change.
A 2002 law created the subsidy, known as the Health Coverage Tax Credit, and set the tax credit at 65%. The 2009 economic stimulus law raised the tax credit to 80%. Without an extension, the 80% tax credit would have been cut back to 65% as of Jan. 1, 2011.
Aside from those who lose their jobs due to foreign competition, the tax credit is available to participants at least age 55 whose pension plans have been taken over by the Pension Benefit Guaranty Corp.