26 U.S.C. § 7527 — Advance payment of credit for health in-

Page 3966 TITLE 26—INTERNAL REVENUE CODE § 7527 (i) is an eligible organization, (ii) is in compliance with Federal tax fil- ing and payment requirements, (iii) is not debarred or suspended from Federal contracts, grants, or cooperative agreements, and (iv) agrees to provide documentation to substantiate any matching funds provided pursuant to the grant program under this section. (B) Eligible organization The term ‘‘eligible organization’’ means— (i) an institution of higher education which is described in section 102 (other than subsection (a)(1)(C) thereof) of the Higher Education Act of 1965 (20 U.S.C. 1002), as in effect on the date of the enact- ment of this section, and which has not been disqualified from participating in a program under title IV of such Act, (ii) an organization described in section 501(c) and exempt from tax under section 501(a), (iii) a local government agency, includ- ing— (I) a county or municipal government agency, and (II) an Indian tribe, as defined in sec- tion 4(13) of the Native American Hous- ing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(13)), including any tribally designated housing entity (as defined in section 4(22) of such Act (25 U.S.C. 4103(22))), tribal subsidiary, sub- division, or other wholly owned tribal entity, (iv) a local, State, regional, or national coalition (with one lead organization which meets the eligibility requirements of clause (i), (ii), or (iii) acting as the ap- plicant organization), or (v) in the case of applicable taxpayers and members of underserved populations with respect to which no organizations de- scribed in the preceding clauses are avail- able— (I) a State government agency, or (II) an office providing Cooperative Ex- tension services (as established at the land-grant colleges and universities under the Smith-Lever Act of May 8, 1914). (3) Applicable taxpayers The term ‘‘applicable taxpayer’’ means a taxpayer whose income for the taxable year does not exceed an amount equal to the com- pleted phaseout amount under section 32(b) for a married couple filing a joint return with three or more qualifying children, as deter- mined in a revenue procedure or other pub- lished guidance. (4) Underserved population The term ‘‘underserved population’’ includes populations of persons with disabilities, per- sons with limited English proficiency, Native Americans, individuals living in rural areas, members of the Armed Forces and their spouses, and the elderly. (f) Special rules and limitations (1) Duration of grants Upon application of a qualified return prepa- ration program, the Secretary is authorized to award a multi-year grant not to exceed 3 years. (2) Aggregate limitation Unless otherwise provided by specific appro- priation, the Secretary shall not allocate more than $30 million per fiscal year (exclusive of costs of administering the program) to grants under this section. (g) Promotion of programs (1) In general The Secretary shall promote tax preparation through qualified return preparation programs through the use of mass communications and other means. (2) Provision of information regarding quali- fied return preparation programs The Secretary may provide taxpayers infor- mation regarding qualified return preparation programs receiving grants under this section. (3) Referrals to low-income taxpayer clinics Qualified return preparation programs re- ceiving a grant under this section are encour- aged, in appropriate cases, to— (A) advise taxpayers of the availability of, and eligibility requirements for receiving, advice and assistance from qualified low-in- come taxpayer clinics receiving funding under section 7526, and (B) provide information regarding the lo- cation of, and contact information for, such clinics. (Added Pub. L. 116–25, title I, § 1401(a), July 1, 2019, 133 Stat. 993.) Editorial Notes REFERENCES IN TEXT The Higher Education Act of 1965 and such Act, re- ferred to in subsec. (e)(2)(B)(i), are Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Title IV of the Act is classified generally to subchapter IV (§ 1070 et seq.) of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see section 1 of Pub. L. 89–329, set out as a Short Title note under section 1001 of Title 20 and Tables. The date of the enactment of this section, referred to in subsec. (e)(2)(B)(i), is the date of enactment of Pub. L. 116–25, which was approved July 1, 2019. The Smith-Lever Act, referred to in subsec. (e)(2)(B)(v)(II), is act May 8, 1914, ch. 79, 38 Stat. 372, which is classified generally to subchapter IV (§ 341 et seq.) of chapter 13 of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 341 of Title 7 and Tables. § 7527. Advance payment of credit for health in- surance costs of eligible individuals (a) General rule Not later than the date that is 1 year after the date of the enactment of the Trade Adjustment Assistance Reauthorization Act of 2015, the Sec- retary shall establish a program for making payments on behalf of certified individuals to providers of qualified health insurance (as de- fined in section 35(e)) for such individuals. Page 3967 TITLE 26—INTERNAL REVENUE CODE § 7527 (b) Limitation on advance payments during any taxable year The Secretary may make payments under sub- section (a) only to the extent that the total amount of such payments made on behalf of any individual during the taxable year does not ex- ceed 72.5 percent of the amount paid by the tax- payer for coverage of the taxpayer and quali- fying family members under qualified health in- surance for eligible coverage months beginning in the taxable year. (c) Certified individual For purposes of this section, the term ‘‘cer- tified individual’’ means any individual for whom a qualified health insurance costs credit eligibility certificate is in effect. (d) Qualified health insurance costs eligibility certificate (1) In general For purposes of this section, the term ‘‘qualified health insurance costs eligibility certificate’’ means any written statement that an individual is an eligible individual (as de- fined in section 35(c)) if such statement pro- vides such information as the Secretary may require for purposes of this section and— (A) in the case of an eligible TAA recipient (as defined in section 35(c)(2)) or an eligible alternative TAA recipient (as defined in sec- tion 35(c)(3)), is certified by the Secretary of Labor (or by any other person or entity des- ignated by the Secretary), or (B) in the case of an eligible PBGC pension recipient (as defined in section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any other person or enti- ty designated by the Secretary). (2) Inclusion of certain information In the case of any statement described in paragraph (1), such statement shall not be treated as a qualified health insurance costs credit eligibility certificate unless such state- ment includes— (A) the name, address, and telephone num- ber of the State office or offices responsible for providing the individual with assistance with enrollment in qualified health insur- ance (as defined in section 35(e)), (B) a list of the coverage options that are treated as qualified health insurance (as so defined) by the State in which the individual resides, and (C) in the case of a TAA-eligible individual (as defined in section 4980B(f)(5)(C)(iv)(II)), a statement informing the individual that the individual has 63 days from the date that is 7 days after the date of the issuance of such certificate to enroll in such insurance with- out a lapse in creditable coverage (as defined in section 9801(c)). (e) Payment for premiums due prior to com- mencement of advance payments (1) In general The program established under subsection (a) shall provide that the Secretary shall make 1 or more retroactive payments on be- half of a certified individual in an aggregate amount equal to 72.5 percent of the premiums for coverage of the taxpayer and qualifying family members under qualified health insur- ance for eligible coverage months (as defined in section 35(b)) occurring— (A) after the date that is 1 year after the date of the enactment of the Trade Adjust- ment Assistance Reauthorization Act of 2015; and (B) prior to the first month for which an advance payment is made on behalf of such individual under subsection (a). (2) Reduction of payment for amounts received under national emergency grants The amount of any payment determined under paragraph (1) shall be reduced by the amount of any payment made to the taxpayer for the purchase of qualified health insurance under a national emergency grant pursuant to section 173(f) of the Workforce Investment Act of 1998 (as in effect on the day before the date of enactment of the Workforce Innovation and Opportunity Act) for a taxable year including the eligible coverage months described in paragraph (1). (Added Pub. L. 107–210, div. A, title II, § 202(a), Aug. 6, 2002, 116 Stat. 960; amended Pub. L. 111–5, div. B, title I, §§ 1899A(a)(2), 1899B(a), 1899H(a), Feb. 17, 2009, 123 Stat. 424, 430; Pub. L. 111–344, title I, §§ 111(b), 112(a), 118(a), Dec. 29, 2010, 124 Stat. 3615, 3616; Pub. L. 112–40, title II, § 241(b)(2), Oct. 21, 2011, 125 Stat. 418; Pub. L. 113–128, title V, § 512(r), July 22, 2014, 128 Stat. 1712; Pub. L. 114–27, title IV, § 407(c), June 29, 2015, 129 Stat. 382.) Editorial Notes REFERENCES IN TEXT The date of the enactment of the Trade Adjustment Assistance Reauthorization Act of 2015, referred to in subsecs. (a) and (e)(1)(A), is the date of enactment of title IV of Pub. L. 114–27, which was approved June 29, 2015. Section 173(f) of the Workforce Investment Act of 1998, referred to in subsec. (e)(2), was classified to former section 2918(f) of Title 29, Labor, prior to repeal by Pub. L. 113–128, title V, §§ 506, 511(a), July 22, 2014, 128 Stat. 1703, 1705, effective July 1, 2015. The date of enactment of the Workforce Innovation and Opportunity Act, referred to in subsec. (e)(2), is the date of enactment of Pub. L. 113–128, which was ap- proved July 22, 2014. AMENDMENTS 2015—Subsec. (a). Pub. L. 114–27, § 407(c)(1), sub- stituted ‘‘the date that is 1 year after the date of the enactment of the Trade Adjustment Assistance Reau- thorization Act of 2015’’ for ‘‘August 1, 2003’’. Subsec. (e)(1). Pub. L. 114–27, § 407(c)(2), substituted ‘‘occurring—’’ for ‘‘occurring prior to the first month for which an advance payment is made on behalf of such individual under subsection (a).’’ and added sub- pars. (A) and (B). 2014—Subsec. (e)(2). Pub. L. 113–128 inserted ‘‘(as in ef- fect on the day before the date of enactment of the Workforce Innovation and Opportunity Act)’’ after ‘‘of 1998’’. 2011—Subsec. (b). Pub. L. 112–40, § 241(b)(2)(A), sub- stituted ‘‘72.5 percent’’ for ‘‘65 percent (80 percent in the case of eligible coverage months beginning before February 13, 2011)’’. Subsec. (d)(2). Pub. L. 112–40, § 241(b)(2)(B), struck out ‘‘which is issued before February 13, 2011’’ after ‘‘in paragraph (1)’’ in introductory provisions. Page 3968 TITLE 26—INTERNAL REVENUE CODE § 7527A Subsec. (e). Pub. L. 112–40, § 241(b)(2)(D), struck out introductory provisions which read as follows: ‘‘In the case of eligible coverage months beginning before Feb- ruary 13, 2011—’’. Subsec. (e)(1). Pub. L. 112–40, § 241(b)(2)(C), substituted ‘‘72.5 percent’’ for ‘‘80 percent’’. 2010—Subsec. (b). Pub. L. 111–344, § 111(b), substituted ‘‘February 13, 2011’’ for ‘‘January 1, 2011’’. Subsec. (d)(2). Pub. L. 111–344, § 118(a), substituted ‘‘February 13, 2011’’ for ‘‘January 1, 2011’’ in introduc- tory provisions. Subsec. (e). Pub. L. 111–344, § 112(a), substituted ‘‘Feb- ruary 13, 2011’’ for ‘‘January 1, 2011’’ in introductory provisions. 2009—Subsec. (b). Pub. L. 111–5, § 1899A(a)(2), inserted ‘‘(80 percent in the case of eligible coverage months be- ginning before January 1, 2011)’’ after ‘‘65 percent’’. Subsec. (d). Pub. L. 111–5, § 1899H(a), amended subsec. (d) generally. Prior to amendment, text read as follows: ‘‘For purposes of this section, the term ‘qualified health insurance costs credit eligibility certificate’ means any written statement that an individual is an eligible individual (as defined in section 35(c)) if such statement provides such information as the Secretary may require for purposes of this section and— ‘‘(1) in the case of an eligible TAA recipient (as de- fined in section 35(c)(2)) or an eligible alternative TAA recipient (as defined in section 35(c)(3)), is cer- tified by the Secretary of Labor (or by any other per- son or entity designated by the Secretary), or ‘‘(2) in the case of an eligible PBGC pension recipi- ent (as defined in section 35(c)(4)), is certified by the Pension Benefit Guaranty Corporation (or by any other person or entity designated by the Secretary).’’ Subsec. (e). Pub. L. 111–5, § 1899B(a), added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–27 applicable to coverage months in taxable years beginning after Dec. 31, 2013, see section 407(f) of Pub. L. 114–27, set out as a note under section 35 of this title. EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–128 effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as an Effective Date note under section 3101 of Title 29, Labor. EFFECTIVE DATE OF 2011 AMENDMENT Amendment by Pub. L. 112–40 applicable to coverage months beginning after Feb. 12, 2011, except that amendment by section 241(b)(2)(B) of Pub. L. 112–40 ap- plicable to certificates issued after the date which is 30 days after Oct. 21, 2011, and amendment by section 241(b)(2)(D) of Pub. L. 112–40 applicable to coverage months beginning after the date which is 30 days after Oct. 21, 2011, see section 241(c) of Pub. L. 112–40, set out as a note under section 35 of this title. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 111(b) of Pub. L. 111–344 appli- cable to coverage months beginning after Dec. 31, 2010, see section 111(c) of Pub. L. 111–344, set out as a note under section 35 of this title. Pub. L. 111–344, title I, § 112(b), Dec. 29, 2010, 124 Stat. 3615, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall apply to coverage months beginning after December 31, 2010.’’ Pub. L. 111–344, title I, § 118(b), Dec. 29, 2010, 124 Stat. 3616, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall apply to certificates issued after December 31, 2010.’’ EFFECTIVE DATE OF 2009 AMENDMENT Except as otherwise provided and subject to certain applicability provisions, amendment by Pub. L. 111–5 effective upon the expiration of the 90-day period begin- ning on Feb. 17, 2009, see section 1891 of Pub. L. 111–5, set out as an Effective and Termination Dates of 2009 Amendment note under section 2271 of Title 19, Cus- toms Duties. Amendment by section 1899A(a)(2) of Pub. L. 111–5 ap- plicable to coverage months beginning on or after the first day of the first month beginning 60 days after Feb. 17, 2009, see section 1899A(b) of Pub. L. 111–5, set out as a note under section 35 of this title. Pub. L. 111–5, div. B, title I, § 1899B(b), Feb. 17, 2009, 123 Stat. 424, provided that: ‘‘The amendments made by this section [amending this section] shall apply to cov- erage months beginning after December 31, 2008.’’ Pub. L. 111–5, div. B, title I, § 1899H(b), Feb. 17, 2009, 123 Stat. 431, provided that: ‘‘The amendment made by this section [amending this section] shall apply to cer- tificates issued after the date that is 6 months after the date of the enactment of this Act [Feb. 17, 2009].’’ CONSTRUCTION Nothing in the amendments made by title II of Pub. L. 107–210, other than provisions relating to COBRA continuation coverage and reporting requirements, to be construed as creating a new mandate on any party regarding health insurance coverage, see section 203(f) of Pub. L. 107–210, set out as a note under section 35 of this title. TRANSITIONAL RULE Pub. L. 111–5, div. B, title I, § 1899B(c), Feb. 17, 2009, 123 Stat. 424, provided that: ‘‘The Secretary of the Treasury shall not be required to make any payments under section 7527(e) of the Internal Revenue Code of 1986, as added by this section, until after the date that is 6 months after the date of the enactment of this Act [Feb. 17, 2009].’’ § 7527A. Advance payment of child tax credit (a) In general The Secretary shall establish a program for making periodic payments to taxpayers which, in the aggregate during any calendar year, equal the annual advance amount determined with re- spect to such taxpayer for such calendar year. Except as provided in subsection (b)(3)(B), the periodic payments made to any taxpayer for any calendar year shall be in equal amounts. (b) Annual advance amount For purposes of this section— (1) In general Except as otherwise provided in this sub- section, the term ‘‘annual advance amount’’ means, with respect to any taxpayer for any calendar year, the amount (if any) which is es- timated by the Secretary as being equal to 50 percent of the amount which would be treated as allowed under subpart C of part IV of sub- chapter A of chapter 1 by reason of section 24(i)(1) for the taxpayer’s taxable year begin- ning in such calendar year if— (A) the status of the taxpayer as a tax- payer described in section 24(i)(1) is deter- mined with respect to the reference taxable year, (B) the taxpayer’s modified adjusted gross income for such taxable year is equal to the taxpayer’s modified adjusted gross income for the reference taxable year, (C) the only children of such taxpayer for such taxable year are qualifying children properly claimed on the taxpayer’s return of tax for the reference taxable year, and