SB9 Alabama 2015 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2015

Title

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

Summary

SB9 would exempt health savings account contributions from Alabama state income tax up to the federal limit, starting in 2016.

What This Bill Does

The bill adds an exemption so that money contributed to a health savings account (HSA) is not subject to Alabama state income tax, but only up to the maximum amount allowed under federal law (26 U.S.C. § 223). This applies to contributions made by a taxpayer to their own HSA. The change would take effect on January 1, 2016.

Who It Affects

• Resident individual taxpayers who contribute to a health savings account, as their contributions would be exempt from Alabama state income tax up to the federal limit.
• HSA holders, particularly those with high-deductible health plans, who contribute up to the federal limit, may see reduced state tax liability.

Key Provisions

• Adds a new exemption in Section 40-18-19 allowing health savings account contributions to be exempt from Alabama state income tax up to the maximum annual amount permitted by federal law (26 U.S.C. § 223).
• Exemption becomes effective 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