HB70 Alabama 2015 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2015

Title

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

Summary

HB70 would exempt health savings account contributions from Alabama state income tax starting in 2016 by adding HSAs to the exemptions list in 40-18-19.

What This Bill Does

It adds a new exemption for health savings account contributions to Alabama's state income tax law (40-18-19(a)). Starting January 1, 2016, individuals who contribute to HSAs would not owe state income tax on those contributions. The exemption applies to resident individual taxpayers; nonresident taxpayers follow the existing proportional exemption rules.

Who It Affects

• Resident individual taxpayers who contribute to health savings accounts (their HSA contributions would be exempt from Alabama state income tax).
• Nonresident individual taxpayers, whose exemption would be governed by the existing prorated rules rather than a full HSA exemption.

Key Provisions

• Adds a new exemption: beginning January 1, 2016, health savings account contributions are exempt from Alabama state income tax (40-18-19(a)(11)).
• The exemption is included in the list of personal exemptions for resident taxpayers under Section 40-18-19(a).
• Effective date: the act specifies when it becomes law; the HSA exemption is intended to take effect January 1, 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