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Is Berkshire Hathaway (BRK.B) Stock a Buy Now?
Is Berkshire Hathaway (BRK.B) Stock a Buy Now?

Yahoo

time31-07-2025

  • Business
  • Yahoo

Is Berkshire Hathaway (BRK.B) Stock a Buy Now?

Key Points Arguments against buying Berkshire include its valuation and Buffett stepping down as CEO soon. The case for buying the stock includes a highly capable incoming CEO and the conglomerate's diversification. There's also a near-term consideration that could make Berkshire Hathaway more attractive to investors. 10 stocks we like better than Berkshire Hathaway › Most investors will have an easy decision on whether or not to buy Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock -- if we're talking about the company's class A shares. With one share costing nearly $723,000, the answer will be a quick "no." But what about Berkshire's class B shares? Their price is much more affordable (less than $500 as of July 28, 2025). Is Berkshire Hathaway (BRK.B) stock a buy now? The case against buying Berkshire Hathaway Let me first try to talk you out of buying Berkshire Hathaway class B shares. Perhaps the most compelling argument against the stock is that even Warren Buffett isn't buying it these days. Buffett has the authority to initiate stock buybacks at any time he thinks the share price is below Berkshire's intrinsic value. The only caveat is that the conglomerate's cash, cash equivalents, and U.S. Treasury holdings can't fall below $30 billion. That hasn't been a problem in a while, considering Berkshire's cash position has remained above $300 billion throughout the last 12 months. While Berkshire regularly repurchased its shares between late 2018 and early 2024, the buybacks screeched to a halt in the second half of last year. Buffett doesn't seem to view his own stock's valuation as attractive enough to buy. With Berkshire's forward price-to-earnings multiple of nearly 24 higher than the S&P 500's forward earnings multiple of 22.9, I suspect many investors would agree with him. Speaking of Buffett, he's stepping down as CEO at the end of this year. His imminent departure is another reason why some investors might decide against buying the stock. For decades, Buffett and Berkshire have been synonymous. The loss of that connection could cause the stock to lose its mojo and mystique. Last, but not least, we're in an age of rapid technological advances. The stocks of companies pioneering artificial intelligence (AI), quantum computing, and self-driving cars could offer investors much stronger growth prospects over the next decade than Berkshire will. The case for buying Berkshire Hathaway Why consider buying Berkshire Hathaway stock? For one thing, it's not that expensive. Berkshire's shares trade at only 12.8 times trailing 12-month earnings, a level that's well below the average over the last 10 years. The forward earnings multiple relies on the accuracy of analysts' earnings projections, which aren't always right. Keep in mind, too, that Buffett is less likely to repurchase shares now than in the past. The Biden administration's Inflation Reduction Act of 2022 imposes a 1% excise tax on stock buybacks. Also, Buffett's passing the baton to incoming CEO Greg Abel shouldn't be a traumatic event. Abel's investment philosophy is similar to Buffett's. The "Oracle of Omaha" isn't going away, either: He'll continue to serve as chairman of the board. Importantly, Buffett told Berkshire shareholders at their annual meeting in May, "I think the prospects of Berkshire will be better under Greg's management than mine." Investors who buy Berkshire Hathaway shares will still benefit from technological advances. AI should make many of the conglomerate's subsidiaries and equity holdings more profitable. Some of the stocks that Berkshire owns are leaders in several of the hot technologies, including Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and BYD (OTC: BYDD.F) (OTC: BYDDY). Importantly, Berkshire's diversification can help investors over the long run -- just as it has in the past. The stock could provide more reliable returns because of its exposure to multiple sectors. Is Berkshire Hathaway stock a buy? I think Berkshire Hathaway's class B shares are a good pick for investors right now. The arguments for buying the stock outweigh the arguments against it, in my opinion. There's also a near-term consideration. With the stock market valuation at historically high levels and the full impact of tariffs yet to hit the U.S. economy, the possibility of a market downturn could be greater than many investors realize. Berkshire Hathaway could be seen as a safe haven stock if this happens, especially with the conglomerate's massive cash stockpile of nearly $348 billion. Buying Berkshire now could provide an insurance policy of sorts if turbulent times lie ahead. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Keith Speights has positions in Amazon, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Is Berkshire Hathaway (BRK.B) Stock a Buy Now? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

How California can cash in on federal incentives for green power before they disappear
How California can cash in on federal incentives for green power before they disappear

Los Angeles Times

time31-07-2025

  • Business
  • Los Angeles Times

How California can cash in on federal incentives for green power before they disappear

California is often criticized for high electricity costs and slow development timelines. Rightly so: My electricity bill has doubled in a decade, and as a renter I can't buy solar or batteries to cut the costs. But critics confuse the real reasons for this problem. According to California's utility regulators, our power bills are soaring because of drought, wildfires and an antiquated approach to rooftop solar. Clean energy has been the best solution to this problem — solar, wind and batteries simply cost less to power our lives. Unfortunately, the Trump administration's One Big Beautiful Bill Act just put a ticking clock on the most affordable energy sources. The bill repealed tax credits that were created by the Inflation Reduction Act of 2022 and killed federal programs supporting clean energy technological innovation. Utilities and businesses were banking on these policies to build electricity generation, affordably meet soaring power demand and keep the lights on. But instead of a decade of policy certainty as had been expected, federal tax credits for clean energy now are set to abruptly end after 2027. Californians will pay dearly, adding new costs to already high statewide power prices. The new budget law is likely to spike electricity rates 7% to 11% by 2035, forcing households to pay $320 more per year. But we're not powerless: State officials can still help prevent some of these cost increases by buying renewables now while the discount is still available. New projects can qualify for federal incentives if they start construction by July 4, 2026, or complete construction before the end of 2027. More than likely, this means signing contracts by the end of 2025. If utilities and developers can hit this mark, Californians will save 30% to 50% compared with what new renewable power generation will cost after the credits expire. Developer interest is strong. Enough prospective wind, solar and battery projects to power 100% of California's statewide demand have filed requests with our grid operator to plug into the grid. But connecting a new project currently takes five years — too late to hit that narrow window. Getting projects online quickly is critical to cutting our electricity costs. Here's how to do it. UC Berkeley analysis suggests that building clean energy at existing gas-fired power plant sites — an innovative approach called 'surplus interconnection' — could save money immediately and solve our timing problem. Gas plants are running less often as California cuts its planet-warming emissions, leaving their grid-connected transmission wires mostly unused. Building solar and wind projects adjacent to these gas plants could use this existing 'surplus' infrastructure to add massive amounts of clean energy, rather than waiting five years for grid upgrades to unlock the same potential. The UC Berkeley report found surplus interconnection could add 29 gigawatts of solar and wind potential at existing gas plant sites — enough to meet our state's renewable energy targets for 2035, or power more than 60 large artificial intelligence data centers. While using or transferring surplus interconnection is a business decision for existing generation owners or a contractual matter with prospective new generation owners, the electricity utilities that buy power on our behalf significantly influence these decisions. All levels of California's state government can help. The state Legislature is already debating Assembly Bill 1408, which would promote surplus interconnection by directing California agencies to examine and integrate this approach into their planning and procurement processes. Passing the bill will empower agencies and our grid operator, the California Independent System Operator, to accelerate procurement and save money. The California Public Utilities Commission can require utilities to accelerate resource procurement through its proposed Reliable and Clean Power Procurement Program. The commission can also clarify that resources using surplus interconnection qualify for expedited procurement toward meeting California's clean energy goals. Gov. Gavin Newsom can order expedited procurement by the commission, and our executive agencies can prioritize permitting these near-term projects. The governor can require utilities, power plant owners and agencies to identify an action plan for accelerated permitting and procurement and take it to the Legislature. Such recommendations must be swift — we have weeks, not months — to hit the rapidly closing construction window. In the longer term, the California Independent System Operator can incorporate surplus interconnection into its transmission planning processes — one significant way to cut costs on the $45 billion to $63 billion in new transmission infrastructure that the operator says California must build by 2045. With electricity rates surging, California could be a role model for America — and the world — in making the most out of our existing transmission infrastructure with advanced transmission technologies and surplus interconnection. Congress' repealing of federal incentives and policies means we can't afford to wait. Bold action can tap billions in clean energy investment and save consumers hundreds of millions — but only if the state moves quickly. Mike O'Boyle is the acting policy team director at Energy Innovation, an energy and climate policy research firm in San Francisco.

One Big Beautiful Bill Act cuts the power: Phase‑outs, foreign‑entity restrictions, and domestic content in clean‑energy credits
One Big Beautiful Bill Act cuts the power: Phase‑outs, foreign‑entity restrictions, and domestic content in clean‑energy credits

Business Journals

time24-07-2025

  • Business
  • Business Journals

One Big Beautiful Bill Act cuts the power: Phase‑outs, foreign‑entity restrictions, and domestic content in clean‑energy credits

On July 4, 2025, President Trump signed H.R. 1—dubbed the One Big Beautiful Bill Act (OBBBA)—enacting significant modifications to clean energy credits previously enacted under the Inflation Reduction Act of 2022. (Visit the FBT OBBBA content hub for more insights). OBBBA scales back clean energy tax incentives under the Inflation Reduction Act of 2022 (IRA) including speeding up phase outs for certain energy credits, tightening domestic content rules and foreign entity restrictions, and imposing new deadlines for projects to qualify. Below is a summary of these changes along with our insights. Frost Brown Todd will continue to monitor any regulatory guidance or executive orders as they are published. Foreign Entity Definitions At the outset, OBBBA restricts access to certain credits [1] from certain Foreign Entities of Concern (FEOC) and those who receive material assistance from such entities. A Prohibited Foreign Entity (PFE) includes Specified Foreign Entities (SFE) and Foreign Influenced Entities (FIE), each of which are defined below: An SFE includes the following: An entity designated as a foreign terrorist organization by the Secretary of State under Section 219 of the Immigration and Nationality Act (8 U.S.C. 1189); [2] An entity included on the list of specially designated nationals and blocked persons maintained by the Treasury Department's Office of Foreign Assets Control (OFAC); [3] An entity alleged by the Attorney General to have been involved in activities for which a conviction was obtained under certain national security laws; [4] An entity identified as a Chinese military company operating in the United States [5] pursuant to 1260H of the 2021 NDAA; An entity included on the Uyghur Forced Labor Prevention Act list; [6] Certain Chinese battery manufacturers; [7] A foreign controlled entity (FCE). [8] A FIE is an entity, excluding certain public corporations, in which: A SFE has direct or indirect authority to appoint a covered officer (such as a member of the board or an executive officer) of such entity; A single SFE owns at least 25% of such entity; Multiple SFEs combined own at least 40% of such entity; At least 15% or more of the entity's debt is held in aggregate by one or more SFEs; or An 'applicable payment' to an SFE is made pursuant to a contract, agreement, or other arrangement granting the SFE effective control over qualified facility or energy storage technology or production of eligible components. Material assistance from a prohibited foreign entity: Under OBBBA, a project's eligibility for key energy credits turns on whether it receives 'material assistance' of goods or service used within a facility. To measure this, the statute uses the Material Assistance Cost Ratio (MACR), which is calculated by subtracting the cost of PFE sourced goods from the total cost of goods, and then dividing that result by the total. A project must meet or exceed certain MACR thresholds, which vary by technology and construction year, to remain eligible for the credits. [9] The MACR calculation differs by credit type. For the Clean Electricity Production Credit (§ 45Y) and the Clean Electricity Investment Credit (§ 48E), the ratio includes all manufactured products (and their subcomponents) incorporated into a facility. For the Advanced Manufacturing Production Credit (§ 45X), only direct materials used to produce the eligible component are counted. In either case, if any portion of the product or its inputs originates from a PFE, that portion must be removed from the numerator. To help taxpayers navigate this test, the Treasury Department is required to release safe harbor cost tables no later than December 31, 2026. [10] Until then, and for a brief period after the tables are released, taxpayers can rely on existing guidance under IRS Notice 2025-08 to estimate the total cost of eligible components and manufactured products. Taxpayers may also rely on certifications from suppliers confirming that the product or any of its components were not sourced from a PFE. [11] These certifications must include the supplier's EIN, be signed under penalty of perjury, retained for at least six years, and either attest that the property was not manufactured by a PFE (and that the supplier has no reason to believe otherwise), or specify the portion of costs not attributable to PFEs. [12] A separate grandfathering rule, the binding contract exception, applies to any facility using products or components acquired under a written agreement executed before June 16, 2025, provided that the facility begins construction before August 1, 2025, and is placed in service by January 1, 2030 (or, for some solar and wind facilities, January 1, 2028). In those cases, the costs covered by the contract are excluded from the MACR entirely. To enforce these requirements, the statute allows the IRS to assess any deficiency tied to an incorrect MACR calculation for up to six years after a return is filed. If a taxpayer overstates the MACR and receives a disallowed credit, a 20% accuracy-related penalty may apply. In the case of direct pay for applicable entities under § 6417, the disallowed credit triggers an excessive payment penalty of 20%. Suppliers that submit false certifications may also face penalties if the error results in a disallowed credit and the tax understatement exceeds certain thresholds. Accelerated/bonus depreciation Property that qualifies for the Clean Electricity Production Credit (§ 45Y) and the Clean Electricity Investment Credit (§ 48E) will continue to be treated as five year MACRS property under § 168(a). By contrast, any 'energy property' as defined in § 48(a)(3)(A)—including wind, solar, and standalone storage—with construction beginning after December 31, 2024, is removed from the five year class designation. These assets may nonetheless qualify for 100 percent bonus depreciation (restored under OBBBA) if acquired and placed in service after January 19, 2025 (subject to the utility owned property exclusion). In the absence of explicit guidance, taxpayers can rely on Rev. Proc. 87 56 and the general MACRS classification rules to establish an appropriate recovery period, or they may elect the Alternative Depreciation System under § 168(g) for a 12 year straight line schedule. Investment Tax Credits (ITC) Clean Electricity Investment Credit (§ 48E) Overview: Under current law, § 48E provides a base investment tax credit of 6% for expenditures on zero emission electricity or standalone energy storage facilities. If prevailing wage and apprenticeship requirements (or applicable exceptions) are satisfied, the credit rises to 30%. Enacted Changes: OBBBA terminates the eligibility of wind and solar projects placed in service after December 31, 2027, for § 48E credits, with an exception for wind and solar projects that begin construction within twelve months of enactment of the legislation. By contrast, other qualifying facilities, such as nuclear, geothermal, and clean hydrogen projects, remain on the original statutory timeline, phasing down after 2032 at 100% in 2033, 75% in 2034, 50% in 2035, and 0% in 2036. OBBBA also disallows the credit for residential solar water heating or small wind installations leased to third-party customers. Taxpayers who begin construction on qualified facilities after December 31, 2025, are not permitted to receive material assistance from a PFE (as defined above). Taxpayers that are considered a PFE are no longer eligible for § 48E for tax year beginning after enactment. Finally, OBBBA adjusts the domestic content percentages that qualified facilities and energy storage technology must satisfy to qualify for the domestic content bonus as follows: 40% (20% for an offshore wind facility) if construction began before June 16, 2025; 45% (27.5% for an offshore wind facility) if construction begins on or after June 16, 2025, and before January 1, 2026; 50% (35% for an offshore wind facility) if construction begins during the calendar year of 2026; and 55% if construction begins after December 31, 2026. These percentages are consistent with the current domestic content requirements under current § 45Y. Guidance: Wind and solar developments face a compressed window to secure § 48E credits where projects may want to target commencing construction within the next 12 months to satisfy the start of construction exception due to the general uncertainty of when a project may be placed in service to avoid the risk of becoming ineligible for the credits in their entirety. Developers should confirm prevailing wage compliance early to maximize the 30% rate and evaluate transferability as a tool to monetize credits if they lack sufficient tax liability. Those working on other advanced technologies can rely on the later 2032 timeline but must track domestic emissions metrics in case the alternative threshold date applies. Finally, all sponsors should undertake due diligence on their supply chains and ownership structures to screen for any prohibited foreign entity implicatures that would irrevocably disqualify § 48E benefits. Qualifying Advanced Energy Project Credit (§ 48C) Overview: Under § 48C as previously enacted, taxpayers may claim a 30% investment credit for certified 'advanced energy' projects. Congress capped total allocations at $10 billion, including $4 billion reserved for projects in low income or disadvantaged areas, and required applicants to secure Treasury certification within two years and place their project in service within two years thereafter. Enacted Changes: OBBBA stipulates that any § 48C allocation withdrawn for missing the two year in service deadline will be permanently retired from the $10 billion pool, rather than reissued to another project. Guidance: Awardees of the credit should treat their in service deadlines as non negotiable since missing the window forfeits their credit and reduces the total program capacity. Sponsors should consider frontloading project planning by securing permits, equipment, and financing early to ensure timely completion. Production Tax Credits Clean Electricity Production Credit (§ 45Y) Overview: 45Y provides a production tax credit of 0.3 ¢ per kWh for electricity generated by zero emitting facilities for ten years after they're placed in service. Meeting prevailing wage and apprenticeship rules raises the rate to 1.5 ¢ per kWh. Enacted Changes: Wind and solar projects that begin construction more than one year after enactment must be placed in service by December 31, 2027, to claim any § 45Y credit. Accordingly, those wind and solar facilities that start construction within the first post enactment year do not face a placed in-service deadline. Wind and solar projects starting on January 1, 2025, until July 4, 2025, (i.e., the date of enactment) will receive credits at the full rate. Non wind/solar facilities follow the existing post 2033 phase out: 100% credit for 2033 starts, 75% for 2034, 50% for 2035, and zero thereafter. The credit no longer applies to residential solar water heating or small wind installations leased to third parties. Additionally, new measurement methods for capacity additions grant developers greater flexibility in calculating eligible output. Taxpayers who begin construction on qualified facilities after December 31, 2025, are not permitted to receive material assistance from a PFE (as defined above). Taxpayers that are considered a PFE are no longer eligible for 45Y for tax years beginning after enactment. Guidance: Developers of wind and solar may want to consider prioritizing meeting the start of construction exception to the December 31, 2027, placed in service deadline given the general uncertainty of construction timelines, accelerating procurement and construction schedules to secure full benefits. Those working on geothermal, nuclear, hydrogen, or other zero emission projects can rely on the extended timeline through 2033 but should monitor Treasury's forthcoming capacity addition guidance to optimize credit calculations. All sponsors must perform rigorous foreign entity due diligence, including supplier certifications and ownership reviews, to avoid inadvertent disqualification under the material assistance and prohibited entity rules. Advanced Manufacturing Production Credit (§ 45X) Overview: 45X offers a production tax credit for manufacturing certain eligible components and critical minerals within the United States. Credit amounts differ by component type. Under current law, component credits phase down after 2029 on a five year schedule (100% for sales before 2030; 75% in 2030; 50% in 2031; 25% in 2032; and 0% thereafter), while credits for critical mineral extraction remain available indefinitely. Enacted Changes: Critical Mineral Phase Out: The permanent credit for critical minerals (other than metallurgical coal) would instead taper off beginning in 2030 as follows: 2030, 100%; 2031, 75%, 2032, 50%; 2033, 25%; 2034, 0%. Wind Component Sunset: All wind related component credits would be eliminated for items produced and sold in 2028 and beyond. Metallurgical Coal: OBBBA treats metallurgical coal as an eligible component under §45X. However, metallurgical coal produced after December 31, 2029, would not be eligible for the credit. Integration Rule Repeal: The option to claim a credit on components incorporated into a larger eligible product sold to an unrelated buyer would be removed. Foreign Entity Exclusions: Any component made with material assistance from a prohibited foreign entity after December 31, 2025 is ineligible, and taxpayers classified as specified foreign entities or foreign influenced entities lose § 45X eligibility for tax years beginning after enactment. Guidance: Manufacturers should accelerate production of wind components before the end of 2027 to capture remaining credits and reassess assembly strategies that rely on integration elections. Firms in the critical minerals sector must plan extraction or processing activities to occur before 2034 or qualify projects ahead of accelerated phase outs. Given the new foreign entity bar, clients need to strengthen supplier due diligence processes—tracking key inputs to ensure no impermissible material assistance—and maintain documentation proving domestic origin. Finally, companies should evaluate whether credit transfers remain the optimal monetization route or if reshaping operations to fully absorb credits in house yields better after tax returns. Clean Hydrogen Production Credit (§ 45V) Overview: Qualified clean hydrogen produced by the taxpayer is eligible for a per kilogram credit percentage of $0.60 that ranges from 20% to 100% depending on the lifecycle greenhouse gas emissions rate that occurs in the process. The credit applies to the hydrogen produced during the ten-year period that the facility is placed in service. Enacted Changes: Facilities that commence construction after December 31, 2027, would no longer be eligible for any § 45V credit. No new FEOC rules would apply to § 45V. Guidance: Project developers should prioritize breaking ground on or before December 31, 2027, to preserve § 45V eligibility and avoid forfeiting the credit entirely. They must also optimize production processes and feedstock choices to qualify for the lowest emission tier and secure the maximum per kilogram rate. Early planning for credit transfers will help monetize benefits if on site tax capacity is insufficient. Because § 45V is not subject to foreign entity restrictions, sponsors can concentrate their due diligence on operational execution and offtake agreements rather than supply chain or ownership concerns. Zero-Emission Nuclear Power Production Credit (§ 45U) Overview: Electricity produced by existing nuclear power plants is eligible for a credit equal to 0.3¢ per kWh or, if prevailing wage and apprenticeship requirements or exceptions in constructing, repairing, or altering the facility are met, 1.5¢ per kWh with the credit being reduced as power prices rise above $25 per MWh. Enacted Changes: Beginning in 2028, taxpayers must certify that any nuclear fuel they use was not sourced from 'covered nations' or covered entities—unless acquired under a binding contract in force prior to January 1, 2023. In addition, OBBBA bars SFEs from claiming § 45U for tax years beginning after enactment and disqualifies FIEs from claiming § 45U for tax years beginning two years after enactment. Client Guidance: Operators should inventory their fuel supply chains now and secure certifications to demonstrate compliance or rely on pre 2023 contracts to grandfather existing arrangements. Nuclear plant owners must implement robust tracking and documentation systems for fuel procurement to satisfy new certification requirements. Foreign owned or -affiliated operators should evaluate their corporate structures immediately to determine whether they face outright ineligibility under the SFE/FIE bans and, if so, explore alternative credit monetization strategies before the two year FIE cutoff. Finally, continuing to meet wage and apprenticeship rules remains the fastest route to the enhanced 1.5 ¢ rate, so workforce compliance programs should be maintained without interruption. Clean Production Fuel Credit (§ 45Z) Overview: Certain transportation fuel is eligible for a credit equal to the applicable amount multiplied by an emissions factor. The applicable amount for transportation fuel is $0.20 per gallon, and the applicable amount for sustainable aviation fuel is $0.35 per gallon. If prevailing wage and apprenticeship requirements or exceptions are met, the credit is increased by a factor of five ($1 per gallon for transportation fuel and $1.75 per gallon for sustainable aviation fuel). The credit applies to fuel sold before 2028. Enacted Changes: The proposed legislation extends the availability of the § 45Z credit through the end of 2029 but introduces a suite of significant eligibility and calculation changes starting in 2026. Most notably, the credit would no longer be available for fuel derived from feedstocks sourced outside of the United States, Mexico, or Canada, narrowing the geographic scope of eligible inputs. Additionally, the credit value for fuels derived from foreign feedstocks would be reduced by 20% beginning in 2026. The enhanced rates for sustainable aviation fuel are eliminated for fuel sold after December 31, 2025. In a move to standardize emissions accounting, the proposal bars the use of negative lifecycle emissions rates for most fuels starting in 2026, except in the case of animal-manure-based fuels. For those fuels, the Treasury Department is directed to issue specific lifecycle greenhouse gas emissions rates tailored to the type of manure feedstock (e.g., dairy, swine, or poultry). Further, lifecycle emissions calculations would be required to exclude emissions attributable to indirect land use changes, thereby aligning more closely with international sustainability standards. To prevent double-dipping, the credit is reduced by the amount of any excise tax credit under § 6426(k)(1) for fuel sold after 2024, and the § 6426(k)(1) credit itself would sunset on September 30, 2025. OBBBA also directs Treasury to issue guidance clarifying how related-party sales of qualifying fuel should be treated under § 45Z. Finally, the credit would no longer be available to SFEs for tax years beginning after the date of enactment. FIEs would lose eligibility for § 45Z in tax years beginning two years after enactment. These changes reinforce broader FEOC compliance themes present throughout the legislation and could significantly affect multinational producers and joint ventures operating in the biofuels space. Guidance: Producers should ensure compliance with prevailing wage and apprenticeship requirements in order to maximize the available credit rate. Given the restrictions on foreign entities, clients need to strengthen supplier due diligence processes, tracking key inputs to ensure feed stocks are of a domestic origin and maintaining documentation proving domestic origin. Clients that produce fuel made from foreign feedstocks should evaluate costs and look to potential domestic feedstocks as a cost-alternative option in production. Carbon Oxide Sequestration Credit (§ 45Q) Overview: 45Q provides a federal tax incentive for projects that capture carbon dioxide or carbon monoxide emissions and either permanently store them in secure geological formations or utilize them in specific commercial applications such as enhanced oil recovery or chemical production. The credit is designed to encourage decarbonization across heavy industry and power generation by reducing the effective cost of deploying carbon capture, utilization, and storage technology. Eligibility generally hinges on placing qualified capture equipment in service and beginning construction by a statutory deadline. Once in operation, eligible facilities can claim the credit for a 12-year period. The amount of the credit per metric ton varies depending on whether the carbon is permanently sequestered or utilized and can be significantly increased for projects that comply with prevailing wage and apprenticeship standards. Enacted Changes: OBBBA simplifies the credit structure by equalizing the rates for sequestration and utilization for qualified facilities placed in service after a certain date, with the base and enhanced rates fixed across project types. The base rate is now $17 per metric ton of carbon and the rate for qualified facilities placed in service after 2022 is $36. Additionally, the legislation imposes foreign-entity restrictions to prevent credits from flowing to entities tied to certain adversarial governments. Specifically, SFEs become ineligible for the credit in tax years beginning after OBBBA's enactment. Foreign-influenced entities FIEs, including those with material ownership or control links to SFEs, lose eligibility two years later. These restrictions apply regardless of whether the foreign involvement is direct or contractual and are aligned with similar limitations adopted for other clean energy incentives. Guidance: Developers and investors should carefully evaluate their ownership structures and supply chains in light of the new foreign-entity prohibitions. Companies with any degree of foreign participation should review whether their arrangements could compromise eligibility. While transferability remains available under § 6418, taxpayers may not transfer § 45Q credits to SFEs, which could reduce the pool of eligible transferees and impact monetization strategies. As a result, sponsors should consider whether capturing the credit directly, or using partnerships or tax equity structures, better suits their project economics. Finally, sponsors pursuing carbon utilization strategies should review updated credit amounts and ensure that lifecycle emissions reporting, measurement, and verification procedures comply with evolving federal guidance. Robust documentation, early engagement with qualified independent engineers, and conservative tax position reviews will be critical to protecting the credit over the full claim period. Clean Vehicle Credits Overview: Taxpayers may claim a credit for previously owned clean vehicles (§25E), new clean vehicles (§30D), and qualified commercial clean vehicles (§45W). Enacted Changes: OBBBA eliminates these clean-vehicle credits for vehicles acquired after September 30, 2025, and taxpayers may only claim them for purchases completed by that date. Guidance: Businesses should expeditiously evaluate future vehicle needs to take advantage of the clean vehicle credits during the brief window they remain available. Residential Energy Credits Overview: Taxpayers may claim several credits or a deduction related to residential clean energy expenditures. The currently available tax incentives are the Energy Efficient Home Improvement Credit (§25C), the Residential Clean Energy Credit (§25D), the Energy Efficient Commercial Buildings Deduction (§179D), and the New Energy Efficient Home Credit (§45L). Enacted Changes: The §25C and §25D credits terminate for property placed in service or cost paid after December 31, 2025. The §179D deduction now terminates for property the construction of which begins after June 30, 2026. The §45L credit terminates for qualified property acquired after June 30, 2026. Guidance: Homeowners planning efficiency upgrades or renewable installations should consider starting work well before late 2025. Contractors or builders of energy-efficient homes should time construction and sales to meet eligibility. With respect to the §45L credit, it may be difficult for contractors or builders (especially with respect to multifamily developments) to meet the June 30, 2026, requirement to sell or lease the qualified property. Taxpayers should maintain documentation and ensure equipment meets quality standards (Energy Star, etc.). Transferability Section 6418 preserves the ability to transfer credits, including those under §§ 45Q, 45U, 45X, 45Y, 45Z, and 48E, without imposing a new sunset on transfer elections, but it explicitly prohibits any transfer of these credits to an SPE. Under OBBBA, taxpayers would still be free to sell their credits broadly—subject only to the FEOC's prohibitions on certain purchasers—without any added constraints. In addition, the measure introduces a twelfth sellable credit: the biodiesel incentive under section 40A for small agricultural producers, which had lapsed after 2024. OBBBA would resurrect that incentive through the end of 2026 and increase the subsidy from ten cents to twenty cents per gallon. While this maintains transferability in principle, clients should note that the overall value of these elections may be diminished by the accelerated phase outs and placed in service deadlines embedded elsewhere in OBBBA. Moreover, OBBBA additional foreign entity restrictions onto §§ 45Y, 48E, and 45X, rules that do not extend to credits under §§ 45U, 45Q, 45Z, or the broader § 48 investment credits, further complicating structuring for affected taxpayers. Penalties Taxpayers who choose to avail themselves of the energy tax credits must be diligent in ensuring compliance with the requirements and restrictions of the sought-after credits. Noncompliance may be accompanied by strict penalties. Taxpayers who understate income by 1% or more due to disallowed energy credits (§§45X, 45Y, or 48E) are hit with a penalty equal to 20% of the understatement under a change to § 6662. Credits disallowed due to FEOC or foreign-sourcing restrictions may contribute to a taxpayer's understatement, so it is critical that clients are diligent in ensuring compliance through their supply chains. Misstatements on certifications made by suppliers regarding domestic content or foreign sourcing after 2025 will be subject to a penalty that is the greater of $5,000 or 10% of credit amount claimed by the taxpayer relying on the misstated certification. Questions? Let's talk If you have questions about how OBBBA may impact your renewable energy projects, tax credit eligibility, or compliance obligations, please don't hesitate to reach out. Frost Brown Todd's Renewable Energy Team is here to help you navigate the new landscape. Contact Brian Zoeller Greg Dutton Raghav Agnihotri Chris Coffman Brian Masterson We're closely monitoring Treasury Department guidance and executive orders relevant to renewable energy tax projects and can assist you with structuring, due diligence, and credit monetization strategies tailored to your needs. Frost Brown Todd is a national law firm serving some of America's top corporations and emerging companies. With attorneys regularly identified by clients, peers and industry organizations as leaders in their practice areas, the firm advises and protects clients in business transactions and litigation in many industries, including insurance, financial services, manufacturing, real estate, construction, technology, energy and health care. The firm's more than 600 attorneys in offices across California, Colorado, Indiana, Kentucky, Ohio, Pennsylvania, Tennessee, Texas, Washington, D.C., and West Virginia provide unparalleled service to meet clients' needs; deliver the insights and solutions available only from a diverse group of professionals; and support the communities in which they operate. [1] The following credits are subject to varying foreign entity restrictions: the Zero-Emission Nuclear Power Production Credit (§45U), the Clean Electricity Production Credit (§45Y), the Clean Electricity Investment Credit (§48E), the Advanced Manufacturing Production Credit (§45X), the Clean Fuel Production Credit (§45Z), and the Carbon Oxide Sequestration Credit (§45Q). [2] Foreign Terrorist Organizations, U.S. Dep't of State, Foreign Terrorist Organizations – United States Department of State, (last visited July 3, 2025 [3] Specially Designated Nationals List, OFAC Sanctions List Service, OFAC Specially Designated Nationals List – Sanctions List Service, (last visited July 3, 2025). [4] E.g., Espionage Act, 18 U.S.C. §§ 792–799; Agents of Foreign Governments, 18 U.S.C. § 951; Major Fraud Against the United States, 18 U.S.C. § 1031. For a complete list, see 15 U.S.C. § 4651(8)(D). [5] William M (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, Pub. L. No. 116–283 § 1260H, 134 Stat. 3388. For a list of entities identified as Chinese military companies operating in the United States, see Entities Identified as Chinese Military Companies Operating in the United States. [6] Pub. L. No. 117–78 § 2(d)(2)(B)(i), (ii), (iv), or (v), 135 Stat. 1527. [7] Listed in the National Defense Authorization Act for Fiscal Year 2024 § 154(b)(1) – (7) on page 47. E.g., CATL, BYD Company, Envision Energy. [8] A foreign controlled entity includes the government of a covered nation (North Korea, China, Russia, and Iran), an agency or instrumentality of a covered nation, a person who is a citizen or national of a covered nation, an entity or business unit incorporated or organized or having its principal place of business in a covered nation, or any entity 'controlled' by those described in this parenthetical) (where 'control' = 50 percent vote or value of stock of corporation or 50 percent capital interest or beneficial interests). Publicly traded entities are excluded from this restriction except to the extent that (i) any exchange or market which is incorporated or organized under the laws of a covered nation or has its principal place of business in a covered nation, or (ii) 1 or more specified foreign entities or foreign-controlled entities controls more than 50%. [9] The MACR thresholds vary by technology and start‐of‐construction date. For example, qualified facilities under §§ 45Y & 48E must meet 40 percent in 2026, rising to 60 percent for projects starting after 2029; energy storage thresholds begin at 55 percent in 2026 and climb to 75 percent post 2029; solar component sales require 50 percent in 2026 up to 85 percent after 2029; and similar step ups apply to wind, inverters, batteries, and critical minerals. [10] Until the tables are issued, taxpayers may use the domestic content cost tables in IRS Notice 2025-08 and rely on supplier certifications. Projects beginning within 60 days of the tables' release may also use this transitional approach. [11] Certifications must: (i) include the supplier's EIN; (ii) be signed under penalty of perjury; (iii) be kept for at least six years; and (iv) state either that no PFEs were involved and that the supplier has no contrary knowledge, or disclose the cost share not linked to PFEs. [12] However, if a taxpayer has actual knowledge, or reason to know, that a product or component was manufactured by a PFE, then the taxpayer must treat all associated costs as PFE-sourced and may not rely on the supplier's certification. Treasury is also directed to issue regulations aimed at preventing abuse of these rules, such as through misleading licensing arrangements or attempts to stockpile materials under the binding contract exception.

Trump's spending bill brings changes to student loans, taxes and Medicaid—here's when they go into effect
Trump's spending bill brings changes to student loans, taxes and Medicaid—here's when they go into effect

CNBC

time11-07-2025

  • Automotive
  • CNBC

Trump's spending bill brings changes to student loans, taxes and Medicaid—here's when they go into effect

President Donald Trump's "big beautiful" bill became law when he signed the policy on July 4. But Americans likely won't feel the impact of all of the bill's provisions immediately. Some of the provisions are already in force, which taxpayers will notice when they file their 2025 taxes in 2026. Other provisions, including changes to Medicaid, won't take effect until the end of next year. Here's what to expect going forward. Many taxpayers will be able to claim new or updated credits and deductions when they file their 2025 tax return. For tax year 2025, filers earning up to $500,000 a year can claim up to $40,000 in state and local tax deductions on their federal tax returns, up from the previous $10,000 limit put in place by the Tax Cuts and Jobs Act. Both the SALT limit and the income threshold will increase by 1% annually through 2029, and the maximum will revert to $10,000 in 2030. The maximum child tax credit will rise to $2,200 for tax year 2025 with the refundable portion of the credit remaining at $1,700. Starting in 2026, both figures will be indexed for inflation. Taxpayers ages 65 and older can claim a "bonus" deduction worth up to $6,000 for tax years 2025 through 2028. Single filers earning up to $75,000 a year and married filers earning up to $150,000 can claim the full deduction. Individuals earning up to $100,000 a year or married couples earning up to $200,000 can deduct up to $10,000 of annual interest on new auto loans for tax years 2025 through 2028. The loan must be for cars assembled in the U.S. Workers who earn tips will be able to deduct up to $25,000 of their qualified tip income for tax years 2025 through 2028. The deduction phases out for individual filers earning more than $150,000 a year and joint filers earning more than $300,000. Taxpayers can get a maximum $12,500 above-the-line deduction — meaning those who don't itemize their deductions can still claim it — on overtime earnings for tax years 2025 through 2028. The deduction phases out for individual filers earning more than $150,000 a year and joint filers earning more than $300,000. Beginning in tax year 2027, taxpayers can claim a credit worth up to $1,700 for qualified donations to nonprofit organizations that support scholarships for K-12 private school education. While the legislation adds a number of new credits, it will also sunset a couple of tax credits enacted by former President Joe Biden. After Sept. 30, 2025, taxpayers will no longer be able to claim a tax credit worth up to $7,500 for purchasing a new electric vehicle, or up to $4,000 for a used EV. Since 2024, car buyers have been able to claim this credit at the point of sale, rather than later when they file their taxes. The credit was introduced as part of the Inflation Reduction Act of 2022 and was slated to be in effect through 2032. Since 2023, homeowners have been able to claim a tax credit worth up to $3,200 for making energy efficient improvements to their homes, such as installing solar panels. Though initially set to expire after 2032, taxpayers will no longer be able to claim the credit after Dec. 31, 2025. Along with changes to federal tax policies, Trump's legislation includes a few provisions that will change who can claim benefits like Medicaid and food stamps. Medicaid, which provides health insurance to those with low incomes, will introduce new work requirement rules effective Dec. 31, 2026. Beneficiaries ages 19 to 64 who apply for Medicaid or coverage through an Affordable Care Act expansion group will have to work at least 80 hours a month to be eligible for benefits. Qualifying circumstances, such as certain medical conditions or dependent children ages 14 and under, may exempt beneficiaries from the work requirement. States will also need to recertify beneficiaries' eligibility every six months, rather than the current annual review policy. Americans who receive SNAP benefits, previously known as food stamps, will have expanded work requirements. Beneficiaries ages 18 to 54 without dependents currently need to work at least 80 hours a month to receive SNAP for more than three months in three years, unless certain factors apply, such as physical or mental limitations. The new work requirements will apply to beneficiaries ages 18 to 65 and those with children ages 14 and older under the new legislation. Recipients will also need to be a citizen or permanent resident of the U.S. to receive benefits. It's not clear exactly when the new requirements will go into effect, but the U.S. Department of Agriculture will notify states when and how to implement the new regulations, according to a department spokesperson. The legislation introduces a new program known as "Trump accounts" that lets parents open a tax-advantaged investment account for children born between Jan. 1, 2025 through 2028. The government will deposit an initial $1,000 into the accounts and parents can contribute to $5,000 a year in post-tax dollars. The money grows tax-free and beneficiaries can access the funds once they turn 18. There will be a 10% penalty and income tax on withdrawals taken before age 59½ unless the funds are used for higher education, disability or natural disaster-related costs. Beneficiaries can also withdraw up to $10,000 for a new home purchase and $5,000 for a baby of their own. Withdrawals for qualified expenses are taxed at the long-term capital gains rate. The legislation also introduces a number of changes to the federal student loan system, including updates for new and future borrowers and those currently in repayment. Borrowers who take out loans on or after July 1, 2026 will only have two repayment plan options: a new standard repayment plan and a new income-driven plan known as the Repayment Assistance Plan. Current borrowers enrolled in the Saving on a Valuable Education, income-contingent or Pay as You Earn repayment plans will no longer have access to those plans. Those borrowers will also be limited to the two new repayment plan options after July 1, 2026. At that point, they will need to select the repayment plan of their choice or be automatically enrolled in RAP after July 1, 2028. Beginning July 1, 2026, graduate students and parents will have new or lower borrowing limits for federal student loans. The annual limit for graduate student loans will drop to $20,500, or $50,000 for professional programs like medical or law school. Grad students will have a lifetime limit of $100,000 on federal loans, or $200,000 for professional programs. Parents will be able to borrow up to $20,000 per year per dependent through Parent PLUS loans, with a lifetime limit of $65,000 per student, beginning in July 2026. Students currently in school will be able to complete their studies with the current, larger loan limits as well as access to graduate PLUS loans, which will not be available to new borrowers after July 1, 2026. Students enrolled in qualifying short-term vocational training programs will be eligible to receive Workforce Pell Grants beginning July 1, 2026. Eligible programs have between 150 and 600 hours of instruction or equivalent credit hours and last between eight and 15 weeks, among other requirements.

7 ways to get free or low-cost health insurance
7 ways to get free or low-cost health insurance

Miami Herald

time01-07-2025

  • Health
  • Miami Herald

7 ways to get free or low-cost health insurance

7 ways to get free or low-cost health insurance Health insurance can be costly. First, you pay premiums for coverage for medical care and prescription medication. Then you often face out-of-pocket costs when you access care. These expenses may include deductibles, copays, and coinsurance. But having health insurance can reduce what you pay when you need care because of cost sharing and negotiated rates for services. If you qualify for certain government health insurance programs, an Affordable Care Act (ACA) plan with a premium subsidy, or certain alternative health plans, you can reduce the up-front cost of your health insurance. GoodRx, a platform for medication savings, shares seven places to look for free or low-cost health insurance. Key takeaways: Low-cost health insurance is comprehensive coverage with affordable premiums. Through the Affordable Care Act marketplace, you may qualify for premium subsidies. These are income-based tax credits that reduce the monthly cost of health 2025, about 4 out of 5 ACA enrollees found a plan for $10 or less per month after premium health insurance for people with low incomes includes Medicaid and the Children's Health Insurance Program. These offer coverage with no or low premiums and affordable out-of-pocket you don't have access to affordable health insurance, you may be able to find free or low-cost options for medical care and prescription medications. 1. Affordable Care Act marketplace The ACA makes affordable health insurance available through federal and state marketplaces. ACA plans offer premium tax credits, also known as premium subsidies. Your potential savings with premium subsidies depend on your income and household size. In the 2025 coverage year, enrollment in ACA plans reached a record 24 million people. This is, in part, because of generous subsidies from the Inflation Reduction Act of 2022. With these subsidies, about 4 out of 5 consumers found plans for $10 or less a month in 2025. It's important to note that the ACA also has insurance options for young adults. Also, Medicaid now covers some people with higher incomes. This will be discussed later. 2. Medicaid Depending on your income, Medicaid is one of the best ways to access free or low-cost health insurance coverage. As of December 2024, Medicaid and the Children's Health Insurance Program (CHIP) covered nearly 79 million people nationwide. Medicaid is the largest source of health insurance in the U.S. Medicaid is a state-federal program administered by all states, Washington, D.C., and five U.S. territories. You can apply for Medicaid through the agency in your state or territory. If anyone in your household qualifies for Medicaid, your ACA application will be forwarded to your state's Medicaid agency. Medicaid provides health coverage to pregnant people and parents, older adults, children, and individuals with disabilities. Medicaid eligibility is determined by income and family size, among other factors. Emergency Medicaid, which offers ER coverage, is one of the only federal health insurance programs available to undocumented immigrants. 3. Children's Health Insurance Program As of December 2024, more than 7 million people were enrolled in CHIP. This program covers children whose families earn too much to qualify for traditional Medicaid but can't afford to buy a private health insurance plan. People who are pregnant or have recently given birth also qualify for CHIP coverage in some states. 4. High-deductible health plan A high-deductible health plan (HDHP) is a health insurance policy that typically pairs lower monthly premiums with a high deductible. Some employer-sponsored and ACA plans are HDHPs. Before you meet your deductible, an HDHP may cover all of your in-network preventive care. This includes annual exams, certain vaccines, and screenings. But many people with HDHPs aren't aware of this and don't take advantage of covered services. In 2025, HDHPs have a minimum deductible of $1,650 for an individual and $3,300 for a family. But the maximum out-of-pocket costs (excluding premiums) are $8,300 for an individual and $16,600 for a family. Having an HDHP also gives you the option to enroll in a health savings account (HSA). You can deposit pretax money in an HSA and use it to pay medical costs. In some cases, employers set up HSAs and manage contributions for employees, but you can also set up one on your own. It's important to note that catastrophic health plans are considered HDHPs. Catastrophic plans are designed to protect you from incurring costs related to worst-case scenarios, such as serious injury or prolonged illness. Only two groups qualify for catastrophic plans: Adults under 30Adults 30 and older who have been granted an affordability or hardship exemption 5. Medicare with Extra Help If you have Medicare, you may qualify for a Part D low-income subsidy known as Extra Help. This subsidy helps people with limited income pay for their Medicare Part D costs. In 2025, most people with Extra Help will pay: No monthly premiums for their Part D prescription medication coverageNo Part D deductibleNo more than $12.15 for brand-name medicationsNo more than $4.90 for generic medications People who live in the 50 states and Washington, D.C., can apply for Extra Help. In American Samoa, the Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands, there are other programs that help Medicare enrollees with limited income pay for prescription medications. Some people automatically qualify for Extra Help, including: People with dual eligibility, meaning they are enrolled in Medicare and full MedicaidThose who receive Supplemental Security Income (SSI)Those who qualify for one of four Medicare Savings Programs, which are run by Medicaid programs If you believe you qualify for Extra Help but have not been enrolled automatically, you can apply through the U.S. Social Security Administration. This application is for Extra Help only and doesn't enroll you in a Part D plan. 6. Medicare special needs plans Medicare enrollees can choose between original Medicare (Part A and/or Part B) and private alternatives, known as Medicare Advantage. A Medicare special needs plan (SNP) is a Medicare Advantage plan for people who have certain conditions and meet other requirements. SNPs cover some out-of-pocket costs and provide care coordination, among other benefits. There are three kinds of SNPs: Chronic condition SNP: This plan type is for people with diabetes, dementia, or another qualifying chronic health SNP: This plan type is for people living in a nursing home or an inpatient care center, or who receive a high level of nursing care at SNP: This plan is for people who qualify for Medicare and full Medicaid. 7. A parent's plan If you're younger than age 26, you can get coverage through an insured parent's health plan. You qualify even if you're married, you're a parent, you're not claimed as a dependent, or you don't live at home. The maximum age is higher in some states if you meet certain requirements. This coverage rule applies if your parent has job-based insurance or an ACA plan. Any extra cost of covering you under one of these plans is typically much lower than buying a separate plan. Beware of low-cost healthcare offers that aren't insurance If you're not getting a health plan through your employer, the ACA marketplace, or an insurance company, you might not be buying insurance. That's because not all products that offer help covering medical costs are insurance. Beware of healthcare sharing ministries (known as medical cost-sharing programs) and nonlicensed risk-sharing plans. These arrangements don't have the same consumer protections, insurance department regulation, or claims payment guarantees as health insurance plans. Where can I go for free or low-cost medical care without insurance? Hospitals, clinics, and other organizations may offer free or low-cost healthcare services. These include medical care and prescription medications. They're available to people who don't have health insurance. Here are some places you might be able to find affordable care. Federally qualified health centers Federally qualified health centers, or FQHCs, are community-based facilities that offer primary care services. FQHCs are funded by the federal government. They provide care to people in underserved populations. Also known as community health centers, FQHCs charge patients based on a sliding scale. This means services are typically not free. According to the Health Resources & Services Administration (HRSA), FQHCs serve millions of uninsured people in the U.S. Use your ZIP code to find an FQHC using HRSA's search tool. Safety net hospitals and clinics Safety net hospitals and clinics are comprehensive health centers that provide services to people regardless of whether they have health insurance. They are also known as county hospitals, public hospitals, or essential hospitals. These facilities provide billions of dollars in uncompensated care to the uninsured. Search this list to find a safety net hospital, county hospital, public hospital, or essential hospital near you. Free and charitable clinics Free and charitable clinics are designed for "medically underserved" people. This includes people without access to insurance. Typically, there is no charge for care. If there is an on-site pharmacy, medications are provided at no cost. The National Association of Free & Charitable Clinics maintains a list of more than 1,400 locations. You can search for a facility near you using the organization's Find a Clinic tool. Rural health clinics Rural health clinics provide primary and preventive care for people covered by Medicare and Medicaid - and may serve people with commercial plans and those who are uninsured. There are more than 4,500 rural health clinics nationwide. Hospitals with financial assistance programs Typically, hospitals offer financial assistance programs. They may cover all or part of your medical bills if you qualify. Income-based indigent care and charity care are types of financial assistance programs offered by hospitals. Some hospitals may also offer an uninsured patient discount. Patient assistance programs Pharmaceutical companies, nonprofits, and government agencies offer patient assistance programs. These provide free or discounted prescription medications. Typically, you must be uninsured or underinsured to qualify for these programs. There are also programs for conditions and circumstances, such as for people who have a cancer diagnosis and don't have insurance. Nonprofit organizations There are nonprofit groups that help people pay their medical bills. For instance, the Patient Access Network (PAN) Foundation and the HealthWell Foundation offer condition-based funds to qualifying people. These can be used to help with copays, transportation costs, and medications. Frequently asked questions What are affordable alternatives to health insurance plans? Healthcare cost-sharing ministries are programs that let people pool their money to pay the medical bills of individuals. These are not considered insurance, so they are not regulated like insurance plans. They do not guarantee full financial help, and individuals remain responsible for their medical debt. Even without insurance, you may have free and low-cost healthcare options in your area. These include charitable clinics, FQHCs, and safety net hospitals that offer indigent (charity) care. What are my options for insurance if I make too much for Medicaid? Some people who have household incomes higher than Medicaid's limits may have trouble finding affordable health insurance. If you make too much for Medicaid, your options for health coverage may include coverage from your employer, your parent's health plan, your spouse's or partner's health insurance, or Medicare. The bottom line Free or low-cost health insurance is comprehensive coverage with affordable monthly premiums. Your options include Affordable Care Act marketplace plans with premium subsidies, high-deductible health plans, low-cost government health insurance - such as Medicaid, the Children's Health Insurance Program, and Medicare special needs plans - and coverage through a parent's plan (depending on your age). If you can't find affordable health insurance, free or low-cost healthcare services may be available at federally qualified health centers, safety net hospitals, free clinics, and rural health clinics. And you may be able to get help paying for your prescription medications through patient assistance programs. Nonprofit organizations and hospital financial assistance programs may offer help with medical bills. This story was produced by GoodRx and reviewed and distributed by Stacker. © Stacker Media, LLC.

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