Individuals in Alabama who have experienced difficulties in the past in obtaining individual health insurance can now breathe a sigh of relief. The Health Coverage Tax Credit (HCTC), which was created by the Trade Act in 2002, now rewards people that are eligible under the scheme with a tax credit of 65 percent. These credits can then be used to pay the premiums on insurance plans such as individual health insurance. The HCTC scheme allows an individual to claim their tax credits when they file their annual tax returns, or alternatively, to apply for the credit in advance if they can pay 65 percent of their individual health insurance plan premiums upfront.