Alabama 2023 Regular Session

Alabama House Bill HB273 Compare Versions

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1	1	HB273INTRODUCED
2	2	Page 0
3	3	KH19AA-1
4	4	By Representatives Kiel, Garrett, Paschal, Almond, Lee,
5	5	Pringle, Baker, Ellis, Collins, Hulsey, Estes, Chestnut,
6	6	Lawrence, Woods, Marques, Colvin, Stubbs, Mooney, Robertson,
7	7	Kitchens, Faulkner, Wood (D), Daniels
8	8	RFD: Ways and Means Education
9	9	First Read: 06-Apr-23
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17	17	8 KH19AA-1 01/19/2023 KHF (F) KHF 2023-166
18	18	Page 1
19	19	SYNOPSIS: Under existing law, an Alabama income tax
20	20	deduction is allowed for health insurance premiums
21	21	paid by qualifying employees and employers equal to
22	22	100 percent of the amounts paid.
23	23	This bill would revise the qualifications for
24	24	an employee and employer to receive the income tax
25	25	deduction for health insurance premiums paid.
26	26	A BILL
27	27	TO BE ENTITLED
28	28	AN ACT
29	29	Relating to income taxes; to amend Section 40-18-15.3,
30	30	Code of Alabama 1975, to revise the qualifications for
31	31	employees and employers to receive the income tax deduction
32	32	for health insurance premiums paid.
33	33	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
34	34	Section 1. Section 40-18-15.3, Code of Alabama 1975, is
35	35	amended to read as follows:
36	36	"§40-18-15.3
37	37	(a) As used in this section, the following terms shall
38	38	have the following meanings:
39	39	(1) QUALIFYING EMPLOYEES. Alabama resident employees
40	40	who are employed by qualifying employers , earn no more than
41	41	$50,000 of wages in the applicable tax year, and report no
42	42	more than $75,000 of adjusted gross income on their Alabama
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69	69	27 HB273 INTRODUCEDHB273 INTRODUCED
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71	71	individual income tax return ($150,000 if married filing
72	72	jointly) for the applicable year.
73	73	(2) QUALIFYING EMPLOYERS. Employers with less than 2550
74	74	employees.
75	75	(b) For tax years beginning after December 31,
76	76	20102023, in addition to any other Alabama income tax
77	77	deduction that a qualifying employee may be entitled to with
78	78	respect to the payment of health insurance premiums,
79	79	qualifying employees shall be allowed to deduct from Alabama
80	80	gross income 100 percent of the amounts they pay as health
81	81	insurance premiums as part of an employer provided health
82	82	insurance plan provided by a qualifying employer.
83	83	(c) In addition to any other Alabama income tax
84	84	deduction that a qualifying employer may be entitled to with
85	85	respect to the payment of health insurance premiums paid on
86	86	behalf of qualifying employees, the qualifying employer shall
87	87	be allowed as a deduction in the computation of Alabama
88	88	taxable income 100 percent of the amounts they pay as health
89	89	insurance premiums in connection with an employer provided
90	90	health insurance plan on behalf of qualifying employees making
91	91	less than $75,000 annually in wages from the qualifying
92	92	employerin connection with an employer provided health
93	93	insurance plan."
94	94	Section 2. This act shall become effective on the first
95	95	day of the third month following its passage and approval by
96	96	the Governor, or its otherwise becoming law.
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