Editorial Notes
References in TextThe date of the enactment of the Trade Act of 2002, referred to in subsec. (span)(1)(B), is the date of enactment of Puspan. L. 107–210, which was approved Aug. 6, 2002.
The Trade Act of 1974, referred to in subsec. (c)(2), (3), is Puspan. L. 93–618, Jan. 3, 1975, 88 Stat. 1978. Chapter 2 of title II of the Act is classified generally to part 2 (§ 2271 et seq.) of subchapter II of chapter 12 of Title 19, Customs Duties. Sections 231, 233, 236, and 246 of the Act are classified to sections 2291, 2293, 2296, and 2318 of Title 19, respectively. For complete classification of this Act to the Code, see section 2101 of Title 19 and Tables.
The date of the enactment of this paragraph, referred to in subsec. (c)(2)(B), probably means the date of enactment of Puspan. L. 111–5, which amended par. (2) generally and which was approved Fespan. 17, 2009.
The Employee Retirement Income Security Act of 1974, referred to in subsecs. (c)(4)(B) and (e)(1)(F)(i), is Puspan. L. 93–406, Sept. 2, 1974, 88 Stat. 829. Title IV of the Act is classified principally to subchapter III (§ 1301 et seq.) of chapter 18 of Title 29, Labor. Section 3(37) of the Act is classified to section 1002(37) of Title 29. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables.
Section 2744(c)(2) of the Public Health Service Act, referred to in subsec. (e)(1)(C), is classified to section 300gg–44(c)(2) of Title 42, The Public Health and Welfare.
The Patient Protection and Affordable Care Act, referred to in subsecs. (e)(1)(J) and (g)(12)(B)(i)(I), is Puspan. L. 111–148, Mar. 23, 2010, 124 Stat. 119. Section 1412 of the Act is classified to section 18082 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 18001 of Title 42 and Tables.
The Social Security Act, referred to in subsec. (f)(2), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Parts A and B of title XVIII of the Act are classified generally to parts A (§ 1395c et seq.) and B (§ 1395j et seq.), respectively, of subchapter XVIII of chapter 7 of Title 42, The Public Health and Welfare. Titles XIX and XXI of the Act are classified generally to subchapters XIX (§ 1396 et seq.) and XXI (§ 1397aa et seq.), respectively, of chapter 7 of Title 42. Section 1928 of the Act is classified to section 1396s of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
Section 9501(a)(1) of the American Rescue Plan Act of 2021, referred to in subsec. (g)(9), is section 9501(a)(1) of Puspan. L. 117–2, which is set out in a note under section 4980B of this title.
Prior ProvisionsA prior section 35 was renumbered section 37 of this title.
Another prior section 35, acts Aug. 16, 1954, ch. 736, 68A Stat. 14; Sept. 2, 1958, Puspan. L. 85–866, title I, § 41(span), 72 Stat. 1639; Fespan. 26, 1964, Puspan. L. 88–272, title II, § 201(d)(2), 78 Stat. 32, related to partially tax-exempt interest received by individuals, prior to repeal by Puspan. L. 94–455, title XIX, § 1901(a)(2), Oct. 4, 1976, 90 Stat. 1764, effective with respect to taxable years beginning after Dec. 31, 1976.
Amendments2021—Subsec. (g)(9). Puspan. L. 117–2 amended par. (9) generally. Prior to amendment, par. (9) related to COBRA premium assistance.
2020—Subsec. (span)(1)(B). Puspan. L. 116–260 substituted “January 1, 2022” for “January 1, 2021”.
2019—Subsec. (span)(1)(B). Puspan. L. 116–94 substituted “January 1, 2021” for “January 1, 2020”.
2015—Subsec. (span)(1)(B). Puspan. L. 114–27, § 407(a), substituted “before January 1, 2020” for “before January 1, 2014”.
Subsec. (e)(1)(J). Puspan. L. 114–27, § 407(d)(2), inserted “(other than coverage enrolled in through an Exchange established under the Patient Protection and Affordable Care Act)” after “under individual health insurance”
Puspan. L. 114–27, § 407(d)(1), substituted “under individual health insurance. For purposes of” for “under individual health insurance if the eligible individual was covered under individual health insurance during the entire 30-day period that ends on the date that such individual became separated from the employment which qualified such individual for—
“(i) in the case of an eligible TAA recipient, the allowance described in subsection (c)(2),
“(ii) in the case of an eligible alternative TAA recipient, the benefit described in subsection (c)(3)(B), or
“(iii) in the case of any eligible PBGC pension recipient, the benefit described in subsection (c)(4)(B).
For purposes of”.
Subsec. (g)(11) to (13). Puspan. L. 114–27, § 407(span), added pars. (11) and (12) and redesignated former par. (11) as (13).
2014—Subsec. (g)(9) to (11). Puspan. L. 113–295, § 209(j)(3), amended directory language of Puspan. L. 111–5, § 3001(a)(14)(A). See 2009 Amendment notes below.
2011—Subsec. (a). Puspan. L. 112–40, § 241(span)(1), substituted “72.5 percent” for “65 percent (80 percent in the case of eligible coverage months beginning before February 13, 2011)”.
Subsec. (span)(1)(B). Puspan. L. 112–40, § 241(a), inserted “, and before January 1, 2014” after “2002”.
Subsec. (c)(2)(B). Puspan. L. 112–40, § 241(span)(3)(A), struck out “and before February 13, 2011” after “paragraph” in introductory provisions.
Subsec. (e)(1)(K). Puspan. L. 112–40, § 241(span)(3)(B), substituted “Coverage” for “In the case of eligible coverage months beginning before February 13, 2012, coverage”.
Subsec. (g)(10). Puspan. L. 112–40, § 241(span)(3)(C), which directed amendment of par. (9) relating to continued qualification of family members after certain events by striking out “In the case of eligible coverage months beginning before February 13, 2011—”, was executed by striking out such introductory provisions in par. (10) to reflect the probable intent of Congress and the redesignation of par. (9) as (10) by Puspan. L. 111–5, § 3001(a)(14)(A), as amended by Puspan. L. 113–295, § 209(j)(3). See 2009 Amendment and Effective Date of 2014 Amendment notes below.
2010—Subsec. (a). Puspan. L. 111–344, § 111(a), substituted “February 13, 2011” for “January 1, 2011”.
Subsec. (c)(2)(B). Puspan. L. 111–344, § 113(a), substituted “February 13, 2011” for “January 1, 2011” in introductory provisions.
Subsec. (e)(1)(K). Puspan. L. 111–344, § 117(a), substituted “February 13, 2012” for “January 1, 2011”.
Subsec. (g)(9). Puspan. L. 111–144 substituted “section 3001(a) of title III of division B of the American Recovery and Reinvestment Act of 2009” for “section 3002(a) of the Health Insurance Assistance for the Unemployed Act of 2009”.
Subsec. (g)(10). Puspan. L. 111–344, § 115(a), which directed amendment of par. (9) relating to continued qualification of family members after certain events by substituting “February 13, 2011” for “January 1, 2011”, was executed by making the substitution in introductory provisions of par. (10) to reflect the probable intent of Congress and the redesignation of par. (9) as (10) by Puspan. L. 111–5, § 3001(a)(14)(A), as amended by Puspan. L. 113–295, § 209(j)(3). See 2009 Amendment and Effective Date of 2014 Amendment notes below.
2009—Subsec. (a). Puspan. L. 111–5, § 1899A(a)(1), inserted “(80 percent in the case of eligible coverage months beginning before January 1, 2011)” after “65 percent”.
Subsec. (c)(2). Puspan. L. 111–5, § 1899C(a), amended par. (2) generally. Prior to amendment, text read as follows: “The term ‘eligible TAA recipient’ means, with respect to any month, any individual who is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974 or who would be eligible to receive such allowance if section 231 of such Act were applied without regard to subsection (a)(3)(B) of such section. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence.”
Subsec. (e)(1)(K). Puspan. L. 111–5, § 1899G(a), added subpar. (K).
Subsec. (g)(9), (10). Puspan. L. 111–5, § 3001(a)(14)(A), as amended by Puspan. L. 113–295, § 209(j)(3), added par. (9) relating to COBRA premium assistance and redesignated former par. (9) relating to continued qualification of family members after certain events as (10). Former par. (10) relating to regulations redesignated (11).
Puspan. L. 111–5, § 1899E(a), added par. (9) relating to continued qualification of family members after certain events and redesignated former par. (9) relating to regulations as (10).
Subsec. (g)(11). Puspan. L. 111–5, § 3001(a)(14)(A), as amended by Puspan. L. 113–295, § 209(j)(3), redesignated par. (10) relating to regulations as (11).
2007—Subsec. (d)(2). Puspan. L. 110–172 struck out “paragraph (2) or (4) of” before “section 152(e)” and substituted “(as defined in section 152(e)(4)(A))” for “(within the meaning of section 152(e)(1))”.
2004—Subsec. (g)(3). Puspan. L. 108–311 amended span and text of par. (3) generally. Prior to amendment, text read as follows: “Amounts distributed from an Archer MSA (as defined in section 220(d)) shall not be taken into account under subsection (a).”
Statutory Notes and Related Subsidiaries
Effective Date of 2021 AmendmentPuspan. L. 117–2, title IX, § 9501(span)(3)(B), Mar. 11, 2021, 135 Stat. 137, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [Mar. 11, 2021].”
Effective Date of 2020 AmendmentPuspan. L. 116–260, div. EE, title I, § 134(span), Dec. 27, 2020, 134 Stat. 3053, provided that: “The amendment made by this section [amending this section] shall apply to months beginning after December 31, 2020.”
Effective Date of 2019 AmendmentPuspan. L. 116–94, div. Q, title I, § 146(span), Dec. 20, 2019, 133 Stat. 3236, provided that: “The amendment made by this section [amending this section] shall apply to months beginning after December 31, 2019.”
Effective Date of 2015 AmendmentPuspan. L. 114–27, title IV, § 407(f), June 29, 2015, 129 Stat. 382, provided that:“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 6501 and 7527 of this title] shall apply to coverage months in taxable years beginning after December 31, 2013.
“(2)Plans available on individual market for use of tax credit.—The amendment made by subsection (d)(2) [amending this section] shall apply to coverage months in taxable years beginning after December 31, 2015.
“(3)Transition rule.—Notwithstanding section 35(g)(11)(B)(i) of the Internal Revenue Code of 1986 (as added by this title), an election to apply section 35 of such Code to an eligible coverage month (as defined in section 35(span) of such Code) (and not to claim the credit under section 36B of such Code with respect to such month) in a taxable year beginning after December 31, 2013, and before the date of the enactment of this Act [June 29, 2015]—“(A) may be made at any time on or after such date of enactment and before the expiration of the 3-year period of limitation prescribed in section 6511(a) with respect to such taxable year; and
“(B) may be made on an amended return.”
Effective Date of 2014 AmendmentAmendment by Puspan. L. 113–295 effective as if included in the provisions of the American Recovery and Reinvestment Tax Act of 2009, Puspan. L. 111–5, div. B, title I, to which such amendment relates, see section 209(k) of Puspan. L. 113–295, set out as a note under section 24 of this title.
Effective Date of 2011 AmendmentPuspan. L. 112–40, title II, § 241(c), Oct. 21, 2011, 125 Stat. 419, provided that:“(1)In general.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section, section 7527 of this title, and former section 2918 of Title 29, Labor] shall apply to coverage months beginning after February 12, 2011.
“(2)Advance payment provisions.—“(A) The amendment made by subsection (span)(2)(B) [amending section 7527 of this title] shall apply to certificates issued after the date which is 30 days after the date of the enactment of this Act [Oct. 21, 2011].
“(B) The amendment made by subsection (span)(2)(D) [amending section 7527 of this title] shall apply to coverage months beginning after the date which is 30 days after the date of the enactment of this Act.”
Effective Date of 2010 AmendmentPuspan. L. 111–344, title I, § 111(c), Dec. 29, 2010, 124 Stat. 3615, provided that: “The amendments made by this section [amending this section and section 7527 of this title] shall apply to coverage months beginning after December 31, 2010.”
Puspan. L. 111–344, title I, § 113(span), Dec. 29, 2010, 124 Stat. 3615, provided that: “The amendment made by this section [amending this section] shall apply to coverage months beginning after December 31, 2010.”
Puspan. L. 111–344, title I, § 115(c), Dec. 29, 2010, 124 Stat. 3615, provided that: “The amendments made by this section [amending this section and former section 2918 of Title 29, Labor] shall apply to months beginning after December 31, 2010.”
Puspan. L. 111–344, title I, § 117(span), Dec. 29, 2010, 124 Stat. 3616, provided that: “The amendment made by this section [amending this section] shall apply to coverage months beginning after December 31, 2010.”
Puspan. L. 111–144, § 3(c), Mar. 2, 2010, 124 Stat. 45, provided that: “The amendments made by this section [amending this section, sections 139C, 6432, and 6720C of this title, and provisions set out as a note under section 6432 of this title] shall take effect as if included in the provisions of section 3001 of division B of the American Recovery and Reinvestment Act of 2009 [Puspan. L. 111–5, set out below] to which they relate, except that—“(1) the amendments made by subsection (span)(1) [amending provisions set out as a note under section 6432 of this title] shall apply to periods of coverage beginning after the date of the enactment of this Act [Mar. 2, 2010];
“(2) the amendments made by subsection (span)(2) [amending provisions set out as a note under section 6432 of this title] shall take effect as if included in the amendments made by section 1010 of division B of the Department of Defense Appropriations Act, 2010 [Puspan. L. 111–118, amending provisions set out a note under this section]; and
“(3) the amendments made by subsections (span)(3) and (span)(4) [amending provisions set out as a note under section 6432 of this title] shall take effect on the date of the enactment of this Act [Mar. 2, 2010].”
Effective Date of 2009 AmendmentExcept as otherwise provided and subject to certain applicability provisions, amendment by sections 1899A(a)(1), 1899C(a), 1899E(a), and 1899G(a) of Puspan. L. 111–5 effective upon the expiration of the 90-day period beginning on Fespan. 17, 2009, see section 1891 of Puspan. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 2271 of Title 19, Customs Duties.
Puspan. L. 111–5, div. B, title I, § 1899A(span), Fespan. 17, 2009, 123 Stat. 424, provided that: “The amendments made by this section [amending this section and section 7527 of this title] shall apply to coverage months beginning on or after the first day of the first month beginning 60 days after the date of the enactment of this Act [Fespan. 17, 2009].”
Puspan. L. 111–5, div. B, title I, § 1899C(span), Fespan. 17, 2009, 123 Stat. 425, provided that: “The amendment made by this section [amending this section] shall apply to coverage months beginning after the date of the enactment of this Act [Fespan. 17, 2009].”
Puspan. L. 111–5, div. B, title I, § 1899E(c), Fespan. 17, 2009, 123 Stat. 428, provided that: “The amendments made by this section [amending this section and former section 2918 of Title 29, Labor] shall apply to months beginning after December 31, 2009.”
Puspan. L. 111–5, div. B, title I, § 1899G(span), Fespan. 17, 2009, 123 Stat. 430, provided that: “The amendments made by this section [amending this section] shall apply to coverage months beginning after the date of the enactment of this Act [Fespan. 17, 2009].”
Puspan. L. 111–5, div. B, title III, § 3001(a)(14)(B), Fespan. 17, 2009, 123 Stat. 465, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [Fespan. 17, 2009].”
Effective Date of 2004 AmendmentAmendment by Puspan. L. 108–311 effective as if included in section 1201 of Puspan. L. 108–173, see section 401(span) of Puspan. L. 108–311, set out as a note under section 26 of this title.
Effective DatePuspan. L. 107–210, div. A, title II, § 201(d), Aug. 6, 2002, 116 Stat. 960, provided that:“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [enacting this section and section 300gg–45 of Title 42, The Public Health and Welfare, amending section 1324 of Title 31, Money and Finance, and renumbering former section 35 of this title as section 36 of this title] shall apply to taxable years beginning after December 31, 2001.
“(2)State high risk pools.—The amendment made by subsection (span) [enacting section 300gg–45 of Title 42] shall take effect on the date of the enactment of this Act [Aug. 6, 2002].”
ConstructionPuspan. L. 107–210, div. A, title II, § 203(f), Aug. 6, 2002, 116 Stat. 972, provided that: “Nothing in this title [enacting this section and sections 6050T and 7527 of this title, and section 300gg–45 of Title 42, The Public Health and Welfare, amending sections 4980B, 6103, 6724, and 7213A of this title, sections 1165, 2862, 2918, and 2919 of Title 29, Labor, section 1324 of Title 31, Money and Finance, and section 300bspan–5 of Title 42, renumbering former section 35 of this title as section 36 of this title, and enacting provisions set out as notes under this section and section 6050T of this title] (or the amendments made by this title), other than provisions relating to COBRA continuation coverage and reporting requirements, shall be construed as creating any new mandate on any party regarding health insurance coverage.”
Agency OutreachPuspan. L. 114–27, title IV, § 407(g), June 29, 2015, 129 Stat. 383, provided that: “As soon as possible after the date of the enactment of this Act [June 29, 2015], the Secretaries of the Treasury, Health and Human Services, and Labor (or such Secretaries’ delegates) and the Director of the Pension Benefit Guaranty Corporation (or the Director’s delegate) shall carry out programs of public outreach, including on the Internet, to inform potential eligible individuals (as defined in section 35(c)(1) of the Internal Revenue Code of 1986) of the extension of the credit under section 35 of the Internal Revenue Code of 1986 and the availability of the election to claim such credit retroactively for coverage months beginning after December 31, 2013.”
Survey and Report on Enhanced Health Coverage Tax Credit ProgramPuspan. L. 111–5, div. B, title I, § 1899I, Fespan. 17, 2009, 123 Stat. 431, provided that:“(a)Survey.—“(1)In general.—The Secretary of the Treasury shall conduct a biennial survey of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) relating to the health coverage tax credit under section 35 of the Internal Revenue Code of 1986 (hereinafter in this section referred to as the ‘health coverage tax credit’).
“(2)Information obtained.—The survey conducted under subsection (a) shall obtain the following information:“(A) HCTC participants.—In the case of eligible individuals receiving the health coverage tax credit (including individuals participating in the health coverage tax credit program under section 7527 of such Code, hereinafter in this section referred to as the ‘HCTC program’)—“(i) demographic information of such individuals, including income and education levels,
“(ii) satisfaction of such individuals with the enrollment process in the HCTC program,
“(iii) satisfaction of such individuals with available health coverage options under the credit, including level of premiums, benefits, deductibles, cost-sharing requirements, and the adequacy of provider networks, and
“(iv) any other information that the Secretary determines is appropriate.
“(B)Non-HCTC participants.—In the case of eligible individuals not receiving the health coverage tax credit—“(i) demographic information of each individual, including income and education levels,
“(ii) whether the individual was aware of the health coverage tax credit or the HCTC program,
“(iii) the reasons the individual has not enrolled in the HCTC program, including whether such reasons include the burden of the process of enrollment and the affordability of coverage,
“(iv) whether the individual has health insurance coverage, and, if so, the source of such coverage, and
“(v) any other information that the Secretary determines is appropriate.
“(3)Report.—Not later than December 31 of each year in which a survey is conducted under paragraph (1) (beginning in 2010), the Secretary of the Treasury shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor [now Committee on Education and the Workforce], and the Committee on Energy and Commerce of the House of Representatives the findings of the most recent survey conducted under paragraph (1).
“(span)Report.—Not later than October 1 of each year (beginning in 2010), the Secretary of the Treasury (after consultation with the Secretary of Health and Human Services, and, in the case of the information required under paragraph (7), the Secretary of Labor) shall report to the Committee on Finance and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Ways and Means, the Committee on Education and Labor [now Committee on Education and the Workforce], and the Committee on Energy and Commerce of the House of Representatives the following information with respect to the most recent taxable year ending before such date:“(1) In each State and nationally—“(A) the total number of eligible individuals (as defined in section 35(c) of the Internal Revenue Code of 1986) and the number of eligible individuals receiving the health coverage tax credit,
“(B) the total number of such eligible individuals who receive an advance payment of the health coverage tax credit through the HCTC program,
“(C) the average length of the time period of the participation of eligible individuals in the HCTC program, and
“(D) the total number of participating eligible individuals in the HCTC program who are enrolled in each category of coverage as described in section 35(e)(1) of such Code,
with respect to each category of eligible individuals described in section 35(c)(1) of such Code.
“(2) In each State and nationally, an analysis of—“(A) the range of monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit, and
“(B) the average and median monthly health insurance premiums, for self-only coverage and for family coverage, for individuals receiving the health coverage tax credit,
with respect to each category of coverage as described in section 35(e)(1) of such Code.
“(3) In each State and nationally, an analysis of the following information with respect to the health insurance coverage of individuals receiving the health coverage tax credit who are enrolled in coverage described in subparagraphs (B) through (H) of section 35(e)(1) of such Code:“(A) Deductible amounts.
“(B) Other out-of-pocket cost-sharing amounts.
“(C) A description of any annual or lifetime limits on coverage or any other significant limits on coverage services, or benefits.
The information required under this paragraph shall be reported with respect to each category of coverage described in such subparagraphs.
“(4) In each State and nationally, the gender and average age of eligible individuals (as defined in section 35(c) of such Code) who receive the health coverage tax credit, in each category of coverage described in section 35(e)(1) of such Code, with respect to each category of eligible individuals described in such section.
“(5) The steps taken by the Secretary of the Treasury to increase the participation rates in the HCTC program among eligible individuals, including outreach and enrollment activities.
“(6) The cost of administering the HCTC program by function, including the cost of subcontractors, and recommendations on ways to reduce administrative costs, including recommended statutory changes.
“(7) The number of States applying for and receiving national emergency grants under [former] section 173(f) of the Workforce Investment Act of 1998 ([former] 29 U.S.C. 2918(f)), the activities funded by such grants on a State-by-State basis, and the time necessary for application approval of such grants.”
