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ARTICLE · 26 JUNE 2015

Supreme Court Decision Alert - June 25, 2015

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Today, the Supreme Court issued two decisions, described below, of interest to the business community: Affordable Care Act—Availability of Tax Credits; Fair Housing Act—Disparate-Impact Claims

United StatesLitigation, Mediation & Arbitration

Today, the Supreme Court issued two decisions, described below, of interest to the business community.

  • Affordable Care Act—Availability of Tax Credits
  • Fair Housing Act—Disparate-Impact Claims

Affordable Care Act—Availability of Tax Credits

King v. Burwell, No. 14-114 (previously described in the November 7, 2014, Docket Report)

The Patient Protection and Affordable Care Act (ACA) created statewide health insurance exchanges. Individuals who don't have employer-provided insurance are now generally required to obtain qualifying health insurance coverage or to pay a tax penalty. Low-income individuals who do not qualify for Medicaid are entitled to tax credits to subsidize the purchase of health insurance when they acquire that insurance through an exchange "established by the State" under 42 U.S.C. § 18031. 26 U.S.C. § 36B(c)(2)(A)(i) ("Section 36B"). After the Internal Revenue Service (IRS) issued a rule interpreting Section 36B's reference to an

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