While workers who have been affected by the idling or closure of steel plants are eligible for a health care tax credit through Trade Adjustment Assistance, they cannot take full advantage of this tax credit until the Treasury Department publishes related regulations
In a letter to the Treasury Department, Klobuchar urged the department to issue these regulations as soon as possible so that eligible workers can access these vital benefits
WASHINGTON, DC – U.S. Senator Amy Klobuchar is fighting to help workers on the Range who have been affected by the idling or closure of steel plants maintain affordable health care. While these workers are eligible for a health care tax credit through Trade Adjustment Assistance (TAA), they cannot take full advantage of this tax credit until the Treasury Department publishes related regulations. In a letter to the Treasury Department, Klobuchar urged the department to issue these regulations as soon as possible so that eligible workers on the Range can fully access this vital health care tax credit.
“I am deeply concerned about the health of the American steel industry and our steelworkers,” Klobuchar wrote. “I supported the Trade Adjustment Assistance Reauthorization of 2015, which provides critical workforce training, income assistance, and health care tax credit benefits. In order for the eligible steelworkers in Minnesota and around the country to be able to take full advantage of this extremely valuable tax credit, the U.S. Treasury Department and the Internal Revenue Service need to publish the required guidance and regulations. I ask that you issue these regulations or guidance as soon as possible.”
Since February, six mining operations have idled or closed, resulting in a wave of layoffs for Minnesota steel workers. Nearly one thousand Iron Range workers are now eligible for the TAA program, which also provides training and education benefits and services to these workers. Klobuchar has been working closely with state officials to ensure that immediate funding for job retraining and educational opportunities is secured. Klobuchar recently led a letter along with Senator Al Franken and Representative Rick Nolan to successfully urge the U.S. Department of Labor to expedite approval of the three TAA petitions submitted by workers from the affected mining operations. She also has pressed the U.S. Department of Labor to honor its commitment to Minnesota workers and their families.
A full text of the letter is available below:
Dear Secretary Lew:
I am deeply concerned about the health of the American steel industry and our steelworkers. Too many Americans are losing their jobs due to the unfair trade practices.
Steelworkers in Minnesota and across the country are being harmed by foreign dumping and overproduction. The U.S. steel industry has faced plant idlings that have resulted in thousands of layoffs or furloughs this year. In Minnesota, about 200 workers at Mesabi Nugget lost their jobs in May when Steel Dynamics Inc. decided to idle operations for at least two years. In February, Magnetation LLC filed for bankruptcy protection. In May, it announced the layoffs of 40 employees in Minnesota. In July, Cliffs Natural Resources United Taconite announced the idling of a mine and plant resulting in 375 layoffs.
I supported the Trade Adjustment Assistance Reauthorization of 2015 (Public Law 114-27), which provides critical workforce training, income assistance and health care tax credit benefits. These benefits are vital to help trade-affected workers. The Health Care Tax Credit (HCTC) provides a 72.5 percent tax credit against the cost of their health care premiums for TAA-certified trade-affected workers and retirees over 55 years old whose pension plan has been taken over by the Pension Benefit Guarantee Corporation. The HCTC was allowed to expire at the end of 2013. Public Law 114-27 reinstated the HCTC through 2019 and made it retroactive for 2014.
In order for the trade-affected steelworkers in Minnesota and around the country to be able to take advantage of this extremely valuable tax credit, the U.S. Treasury Department and the Internal Revenue Service need to publish the required guidance and regulations as soon as possible. These taxpayers need to know if they are eligible for an advance payment that lowers the cost of their out-of-pocket monthly health care premium payments. The retroactive refund for the HCTC for 2014 would come as needed relief for families struggling to make ends meet as a result of a layoff.
Additionally, the Trade Adjustment Assistance Reauthorization Act of 2015 (Public Law 114-27) calls for the U.S. Departments of the Treasury, Health and Human Services and Labor and the Pension Benefit Guarantee Corporation to conduct a program of public outreach regarding the health care tax credit. I strongly support this effort and want to help work towards its success. Please provide my office with information on what steps you are taking to make sure that those who are eligible for this important benefit know how to apply for it.
I understand that the Treasury Department is currently drafting implementing regulations. I ask that you issue these regulations or guidance as soon as possible.
Thank you for your consideration.
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