08 LC 28
3994
House
Bill 1210
By:
Representatives Channell of the
116th,
Sheldon of the
105th,
Golick of the
34th,
Cooper of the
41st,
and Cole of the
125th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
a amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to income taxes, so as to provide for an income tax deduction for high
deductible health plans established and used with a health savings account; to
provide for an income tax credit for certain employers who provide high
deductible health plans established and used with a health savings account; to
provide for procedures, conditions, and limitations; to provide for powers,
duties, and authority of the state revenue commissioner with respect to the
foregoing; to provide for related matters; to provide for applicability and
effective dates; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by adding a new paragraph in subsection (a) of Code Section 48-7-27,
relating to computation of taxable net income, to read as follows:
"(13.1)
An amount equal to 100 percent of the premium paid by the taxpayer during the
taxable year for high deductible health plans established and used with a health
savings account under the applicable provisions of Section 223 of the Internal
Revenue Code to the extent the deduction has not been included in federal
adjusted gross income, as defined under the Internal Revenue Code of 1986, and
the expenses have not been provided from a health reimbursement arrangement and
have not been included in itemized nonbusiness deductions;".
SECTION
2.
Said
title is further amended by adding a new Code section to read as
follows:
"48-7-29.13.
(a)
As used in this Code section, the term:
(1)
'Qualified health insurance' means a high deductible health plan that includes,
at a minimum, catastrophic health care coverage which is established and used
with a health savings account under the applicable provisions of Section 223 of
the Internal Revenue Code.
(2)
'Qualified health insurance expense' means the expenditure of funds of at least
$250.00 annually for health insurance premiums for qualified health insurance.
(3)
'Taxpayer' means an employer who employs directly, or who pays compensation to
individuals whose compensation is reported on Form 1099, 50 or fewer persons and
for whom the taxpayer provides high deductible health plans that include, at a
minimum, catastrophic health care coverage which are established and used with a
health savings account under the applicable provisions of Section 223 of the
Internal Revenue Code and in which such employees are enrolled.
(b)
A taxpayer shall be allowed a credit against the tax imposed by Code Section
48-7-20 or 48-7-21, as applicable, for qualified health insurance expenses in an
amount of $250.00 for each employee enrolled for twelve consecutive months in a
qualified health insurance plan if such qualified health insurance is made
available to all of the employees and compensated individuals of the employer
pursuant to the applicable provisions of Section 125 of the Internal Revenue
Code.
(c)
In no event shall the total amount of the tax credit under this Code section for
a taxable year exceed the taxpayer´s income tax liability. Any unused tax
credit shall be allowed the taxpayer against succeeding years´ tax
liability. No such credit shall be allowed the taxpayer against prior
years´ tax liability.
(d)
The commissioner shall be authorized to promulgate any rules and regulations
necessary to implement and administer the provisions of this Code
section.
(e)
The credit allowed by this Code section shall apply only with regard to
qualified health insurance expenses."
SECTION
3.
Sections
1 and 2 of this Act shall become effective on January 1, 2009, and shall be
applicable to all taxable years beginning on or after January 1, 2009. The
remaining sections of this Act shall become effective upon its approval by the
Governor or upon its becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.