SB71 Summary

• Amends Section 40-18-19 of the Alabama Code to add health savings account (HSA) contributions as a state income tax exemption.

• Effective January 1, 2015, allows taxpayers to exclude contributions to their HSA from state income taxation up to the maximum annual amount permitted under 26 U.S.C. § 223.

• Exemption applies to contributions up to the federal limit established by Internal Revenue Code Section 223 and any regulations issued thereunder.

• The act became effective on the first day of the third month following passage and approval by the Governor.

• Passed the Alabama Senate on March 19, 2014, with a vote of 27 Yeas, 0 Nays, and 1 Abstaining.