|BILL AS INTRODUCED||2007-2008|
Introduced by Senator Nitka of Windsor District
Statement of purpose: This bill proposes to provide an income tax credit for the cost of health insurance premiums.
AN ACT RELATING TO HEALTH INSURANCE TAX CREDIT
It is hereby enacted by the General Assembly of the State of Vermont:
§ 5830. CREDIT FOR HEALTH INSURANCE
(a) Credit. A taxpayer of this state shall be eligible for a nonrefundable credit against the tax imposed under section 5822 of this title of five percent of the premiums paid during the taxable year for health insurance for the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent, as defined under the Internal Revenue Code, which would be deductible by the taxpayer under Section 213 of the Internal Revenue Code (without regard to any dollar limitation or the 7.5 percent of adjusted gross income limitation), but which expenses are not deducted by the taxpayer for federal income tax purposes.
(b) Limitations. The credit of a nonresident or part-year resident shall be limited to the same percentage as the portion of Vermont income as determined under section 5823 of this title. No credit shall be allowed for premiums for which the taxpayer has claimed a deduction for health insurance costs of self-employed individuals under Section 162 of the Internal Revenue Code.
Sec. 2. EFFECTIVE DATE
This act shall apply to taxable years beginning on and after January 1, 2008.
The Vermont General Assembly
115 State Street