HB215 Alabama 2015 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2015

Title

Revenue and taxation, deductions, contributions made by taxpayer to his or her health savings account up to max. amount allowed by federal law are deductible on the Alabama Individual Income Tax Return, Sec. 40-18-15.6 added

Summary

HB215 would let Alabama residents deduct Health Savings Account contributions on their state income tax return, up to federal limits, starting with tax year 2017.

What This Bill Does

It creates a state tax deduction for Health Savings Account contributions that mirrors the federal deduction. The deduction applies to contributions made on or after January 1, 2017 up to the federal limit under 26 USC §223. Employer contributions would not be deductible for Alabama tax purposes and would not be counted as the employee's income. The act repeals conflicting laws and becomes effective for taxable years beginning after December 31, 2016.

Who It Affects

• Alabama residents who contribute to their Health Savings Accounts or have contributions made on their behalf, who could claim a deduction on their Alabama individual income tax return up to the federal limit.
• Employers who contribute to employees' Health Savings Accounts: such contributions would not be deductible for Alabama tax purposes and would not be included as employee income.

Key Provisions

• Adds Section 40-18-15.6 to create a Health Savings Account deduction on the Alabama Individual Income Tax Return.
• Defines Health Savings Account Contributions as contributions to a taxpayer's HSA up to the federal maximum allowed by 26 USC §223.
• Allows the deduction for contributions made on or after January 1, 2017, by or on behalf of the individual; employer contributions are not includible in income and are not deductible.
• Repeals any laws in conflict with this act.
• Effective for taxable years beginning after December 31, 2016.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation