Thursday, January 21, 2016

HB170: Repealing Obsolescent Tax Credits

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.

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