In a summertime review of tax credits on the books, one in particular really stood out. Medical Care Savings Accounts (MSAs) are a tool used to save for medical emergencies. The state provided a tax credit for individuals who used these in order to create an incentive for people to prepare for such an occasion.
However, implementation of the Affordable Care Act has had a significant impact on the use of MSA's. The chart below demonstrates:
As you can see, use of the tax credit has fallen precipitously. Data from 2015 shows only about a dozen people claimed the the tax credit. (Note: Health Savings Accounts are still being used and are a separate thing from MSAs.)
So, with this tax credit becoming totally obsolescent. It's time to repeal and clean up our books.
Here is a draft of the bill:
If you have any questions or concerns, don't hesitate to give me a call.