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 implementation of this bill will have a significant effect on state tax law, particularly in terms of how health care premiums are treated for tax purposes. It expands the range of assistance available to individuals and can potentially increase the number of people who are able to afford health coverage. The provision for the credit being refundable means that if individuals do not owe enough tax to benefit from the credit fully, they can still receive it as a cash refund, allowing more flexibility and support for low-income taxpayers who are facing high healthcare costs.
Summary
Senate Bill 1091 introduces a premium assistance individual income tax credit for individuals paying premiums for qualified health plans under the federal Affordable Care Act. This bill allows eligible individuals to claim a refundable tax credit for the premium assistance amount they would have been entitled to under federal law for the years prior to 2026. By making this credit available, SB1091 aims to alleviate some financial burdens associated with health insurance costs for individuals and families.
Contention
However, there are notable points of contention surrounding SB1091. Detractors might argue that the state should not supplant federal credits with state programs that could lead to administrative complexities and confusion. Additionally, there may be concerns regarding the budgetary implications of creating such a credit and the long-term sustainability of funding the initiative. Given that the bill specifies exclusions for individuals who regain federal premium assistance eligibility post-2025, these limitations could also spark debate about the adequacy of support for certain populations.
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.
Insurer claims denial practices and auditing, creating the Office of the Public Intervenor, granting rule-making authority, and making an appropriation. (FE)