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BILL AS INTRODUCED 2007-2008

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S.255

Introduced by Senator Nitka of Windsor District

Referred to Committee on

Date:

Subject:  Taxation; income tax; health insurance tax credit

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:

Sec. 1.  32 V.S.A. § 5830 is added to read:

§ 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.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us