SB71 Alabama 2014 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Co-Sponsor

Scott Beason

Session

Regular Session 2014

Title

Taxation, exempt health savings account contributions from income tax, Sec. 40-18-19 am'd.

Summary

SB71 would exempt health savings account contributions from Alabama state income tax, up to the federal limit.

What This Bill Does

It adds health savings account (HSA) contributions to the list of items that are exempt from Alabama’s state income tax. The exemption applies to resident individual taxpayers for contributions up to the maximum amount allowed by federal law (26 U.S.C. § 223). The exemption for HSAs takes effect for contributions made on or after January 1, 2015, while the act itself becomes law on the first day of the third month after passage/approval.

Who It Affects

• Alabama resident individual taxpayers who contribute to health savings accounts (HSAs), who would have HSA contributions exempt from state income tax up to the federal limit.
• People who contribute to HSAs in Alabama (existing or future) up to the federal limit, who may see a reduction in their Alabama state income tax liability for those contributions.

Key Provisions

• Amends Section 40-18-19 to add HSA contributions as exempt from Alabama state income tax.
• Beginning January 1, 2015, HSA contributions up to the maximum annual amount allowed by federal law (26 U.S.C. § 223) are exempt from Alabama state income tax.
• The act becomes effective on the first day of the third month after passage/approval; the HSA exemption applies to 2015 contributions.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation