An Act to amend 71.10 (4) (i); to create 20.835 (2) (fg) and 71.07 (12) of the statutes; Relating to: a premium assistance individual income tax credit and making an appropriation. (FE)
Impact
The proposed changes could significantly affect state tax laws by introducing a new credit mechanism tied to federal guidelines, thus creating a state-level remedy for residents struggling with health insurance costs. Since the credit is refundable, individuals who owe little or no state income tax may still benefit financially from it, further expanding access to healthcare coverage through financial support.
Summary
Assembly Bill 1130 introduces a premium assistance individual income tax credit aimed at supporting residents who pay premiums for qualified health plans under the federal Affordable Care Act (ACA). Beginning in 2026, eligible individuals will be able to claim a refundable tax credit based on the premium assistance they would have been eligible for under federal law for prior taxable years. The intention behind this bill is to alleviate the financial burden of healthcare premiums for individuals who might not qualify for federal assistance but still face high costs.
Contention
While proponents argue that this bill promotes healthcare access and aids citizens in managing their healthcare costs, there could be points of contention regarding its long-term fiscal impact on state revenues. Some lawmakers may raise concerns about the sustainability of funding this tax credit and whether it diverts resources from other essential state services. Additionally, any limitations on eligibility, such as restrictions for part-year residents and nonresidents, might be debated as potentially excluding some groups who could benefit from this support.
Crossfiled
An Act to amend 71.10 (4) (i); to create 20.835 (2) (fg) and 71.07 (12) of the statutes; Relating to: a premium assistance individual income tax credit and making an appropriation. (FE)
A bill for an act relating to the elimination of the individual income tax and alternate income tax by creating the taxpayer relief trust fund and income tax elimination board and fund, and making appropriations.
A bill for an act creating a Caitlin Clark and Lisa Bluder monument tax credit and fund available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.
A bill for an act relating to the historic preservation tax credit available against the individual and corporate income taxes, the franchise tax, and the insurance premiums tax.(Formerly HSB 270.)
An Act Making Appropriations For Certain Grants-in-aid For The Fiscal Year Ending June 30, 2026; Specifying Certain Procedures, Conditions And Limitations For The Expenditure Of Such Funds; Amending The Fiscal Year 2026 Appropriations Act; Amending The Fiscal Year 2026 One-time Supplemental Appropriations Act; And Amending Certain Statutory Provisions.