2009 - 2010 LEGISLATURE
February 5, 2009 - Introduced by Senators Darling, S. Fitzgerald, Olsen, Lazich,
Kedzie, A. Lasee, Grothman, Hopper and Schultz, cosponsored by
Representatives Kaufert, J. Fitzgerald, Murtha, Nygren, Ziegelbauer,
Tauchen, Kerkman, Montgomery, Huebsch, Van Roy, Petersen, Newcomer,
Ballweg, Meyer, LeMahieu, Kestell, Roth, Nerison, Davis, Ripp, Spanbauer,
Honadel, Fields, A. Ott, Knodl, Petrowski, Lothian, Strachota, Gottlieb,
Townsend, Mursau, Stone, Gunderson, J. Ott, Brooks, Friske, Vos and Bies.
Referred to Committee on Health, Health Insurance, Privacy, Property Tax
Relief, and Revenue.
1An Act to create
71.07 (6f) and 71.10 (4) (ce) 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
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:
SB45, s. 1
71.07 (6f) of the statutes is created to read:
71.07 (6f) Health savings account tax credit.
In this 2
1. "Claimant" means an individual who claims a deduction for a contribution 4
to, or who claims federal tax-exempt earnings relating to, a health savings account 5
under section 223
of the Internal Revenue Code.
2. "Deduction amount" means the allowable amount of a deduction claimed on 7
a claimant's federal income tax return for a contribution to a health savings account 8
under section 223
of the Internal Revenue Code, or federal tax-exempt earnings 9
relating to a health savings account under section 223
of the Internal Revenue Code, 10
(b) Filing claims.
Subject to the limitations provided in this subsection, a 12
claimant may claim as a credit against the tax imposed under s. 71.02, up to the 13
amount of those taxes, 6.5 percent of the deduction amount claimed in the taxable 14
year to which the claim under this subsection relates.
1. No credit may be allowed under this subsection unless it 16
is claimed within the time period under s. 71.75 (2).
2. For a claimant who is a nonresident or part-year resident of this state and 18
who is a single person or a married person filing a separate return, multiply the 19
credit for which the claimant is eligible under par. (b) by a fraction the numerator of 20
which is the individual's Wisconsin adjusted gross income and the denominator of 21
which is the individual's federal adjusted gross income. If a claimant is married and 22
files a joint return, and if the claimant or the claimant's spouse, or both, are 23
nonresidents or part-year residents of this state, multiply the credit for which the 24
claimant is eligible under par. (b) by a fraction the numerator of which is the couple's
joint Wisconsin adjusted gross income and the denominator of which is the couple's 2
joint federal adjusted gross income.
Subsection (9e) (d), to the extent that it applies to the credit 4
under that subsection, applies to the credit under this subsection.
SB45, s. 2
71.10 (4) (ce) of the statutes is created to read:
(ce) The health savings account tax credit under s. 71.07 (6f).
(1) This act first applies to taxable years beginning on January 1 of the year 9
in which this subsection takes effect, except that if this subsection takes effect after 10
July 31 this act first applies to taxable years beginning on January 1 of the year 11
following the year in which this subsection takes effect.