AL HB70

Amends Section 40-18-19 of the Code of Alabama 1975 to add health savings account contributions to the list of income tax exemptions for individual resident taxpayers.

Provides that beginning January 1, 2016, contributions made by a taxpayer to his or her health savings account are exempt from Alabama state income tax.

Applies the exemption to both resident and nonresident taxpayers, with nonresidents receiving a proportional exemption based on income from Alabama sources.

Becomes effective on the first day of the third month following passage and approval by the Governor, or upon otherwise becoming law.