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January 2011 Special Session
2011 - 2012 LEGISLATURE
January 5, 2011 - Introduced by Committee on Senate Organization, by request
of Governor Scott Walker, Senator Darling, and Representative Kaufert.
Referred to Committee on Health.
SB2,1,4 1An Act to create 71.07 (6f) and 71.10 (4) (cf) of the statutes; relating to: creating
2a nonrefundable individual income tax credit for certain amounts relating to
3health savings accounts that may be deducted from, or are exempt from, federal
4income taxes.
Analysis by the Legislative Reference Bureau
Under current federal law, certain individuals may make tax-deductible
contributions to health savings accounts (HSAs) and withdraw the money tax-free
when needed to cover routine and preventive medical care.
Under this bill, an individual who makes contributions to such an HSA may
claim a nonrefundable income tax credit for 6.5 percent of the allowable amount that
the individual claims as a federal tax deduction for a contribution to an HSA or 6.5
percent of the federal tax-exempt earnings relating to an HSA, or both.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB2, s. 1 5Section 1. 71.07 (6f) of the statutes is created to read:
SB2,2,2
171.07 (6f) Health savings account tax credit. (a) Definitions. In this
2subsection:
SB2,2,53 1. "Claimant" means an individual who claims a deduction for a contribution
4to, or who claims federal tax-exempt earnings relating to, a health savings account
5under section 223 of the Internal Revenue Code.
SB2,2,96 2. "Deduction amount" means the allowable amount of a deduction claimed on
7a claimant's federal income tax return for a contribution to a health savings account
8under section 223 of the Internal Revenue Code, or federal tax-exempt earnings
9relating to a health savings account under section 223 of the Internal Revenue Code.
SB2,2,1310 (b) Filing claims. Subject to the limitations provided in this subsection, a
11claimant may claim as a credit against the tax imposed under s. 71.02, up to the
12amount of those taxes, 6.5 percent of the deduction amount claimed in the taxable
13year to which the claim under this subsection relates.
SB2,2,1514 (c) Limitations. 1. No credit may be allowed under this subsection unless it
15is claimed within the time period under s. 71.75 (2).
SB2,2,2516 2. For a claimant who is a nonresident or part-year resident of this state and
17who is a single person or a married person filing a separate return, multiply the
18credit for which the claimant is eligible under par. (b) by a fraction the numerator of
19which is the individual's Wisconsin adjusted gross income and the denominator of
20which is the individual's federal adjusted gross income. If a claimant is married and
21files a joint return, and if the claimant or the claimant's spouse, or both, are
22nonresidents or part-year residents of this state, multiply the credit for which the
23claimant is eligible under par. (b) by a fraction the numerator of which is the couple's
24joint Wisconsin adjusted gross income and the denominator of which is the couple's
25joint federal adjusted gross income.
SB2,3,2
1(d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
2under that subsection, applies to the credit under this subsection.
SB2, s. 2 3Section 2. 71.10 (4) (cf) of the statutes is created to read:
SB2,3,44 71.10 (4) (cf) The health savings account tax credit under s. 71.07 (6f).
SB2, s. 3 5Section 3. Nonstatutory provisions.
SB2,3,7 6(1) Required general fund balance. Section 20.003 (4) of the statutes does not
7apply to the action of the legislature in enacting this act.
SB2, s. 4 8Section 4. Initial applicability.
SB2,3,129 (1) This act first applies to taxable years beginning on January 1 of the year
10in which this subsection takes effect, except that if this subsection takes effect after
11July 31 this act first applies to taxable years beginning on January 1 of the year
12following the year in which this subsection takes effect.
SB2,3,1313 (End)
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