SB 18 Text

COMMITTEE SUBSTITUTE
FOR

Senate Bill No. 18
(By Senator Deem)
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[Originating in the Committee on Health and Human Resources;
reported February 5, 2010.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-21-12j, relating to allowing a decreasing modification from federal adjusted gross income in determining West Virginia taxable income for personal income tax purposes for the amount spent by the taxpayer on specified health insurance; specifying effective date; providing limitations and exclusions; specifying no carryforward or carryback; and defining terms.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-21-12j, to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.

§11-21-12j. Additional modification reducing federal adjusted gross income; health insurance.

(a) For tax years beginning after December 31, 2009, in addition to amounts authorized to be subtracted from federal adjusted gross income pursuant to section twelve-c of this article, there shall be allowed a decreasing modification from federal adjusted gross income of up to $15,000 for the purpose of determining taxable income under this article for amounts paid by the taxpayer during the tax year for qualified health insurance: Provided, That no amount may be used or applied as a reducing modification in determining West Virginia taxable income if that amount was used or applied as a reduction, deduction, decreasing adjustment or decreasing modification that was taken by the taxpayer in determining the federal adjusted gross income of the taxpayer for federal income tax purposes for the tax year, and no amount may be used or applied as a reducing modification in determining West Virginia taxable income for any expenditure paid or incurred by any employer, governmental agency, person, organization or entity other than the taxpayer.
(b) For purposes of this section, the amount paid for qualified health insurance includes any amount paid by the taxpayer during the tax year for qualified health insurance coverage, including premiums, co-payments and deductibles.
(c) Qualified health insurance means health insurance regulated by the Insurance Commissioner pursuant to chapter thirty- three of this code and includes Public Employees Insurance Agency health insurance, established in article sixteen of chapter five of this code. However, qualified health insurance does not include any excluded policy enumerated in section two-g, article fifteen, chapter thirty-three of this code or any rule issued pursuant thereto, or any excluded policy enumerated in section one-b, article sixteen, chapter thirty-three of this code or any rule issued pursuant thereto.
(d) No decreasing modification otherwise allowable under this section may be used to decrease taxable income below zero in any tax year, and no amount in excess of the decreasing modification allowed under this section in a tax year may carry back to any prior tax year, or carry forward to any succeeding tax year.

NOTE: The purpose of this bill is to allow a deduction from federal adjusted gross income in determining West Virginia taxable income for personal income tax purposes of up to $15,000 for amounts spent by a taxpayer in the tax year on specified health insurance costs.

This section is new; therefore, strike-throughs and underscoring have been omitted.

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