RD5 - Report on Tax Incentives for Health Savings Accounts in Virginia - January 3, 2013

Executive Summary:
The 2005 Acts of Assembly, Chapter 572, amended Va. Code § 38.2-5601 through 5602.1 to direct the Department of Taxation (“the Department”) and the State Corporation Commission ("SCC”) to present the Virginia Health Savings Account Plan to the chairs of the House Appropriations, Finance, Health, Welfare and Institutions, and Commerce and Labor Committees, by January 1, 2006, and to update the report annually thereafter.

The Department is required to update the report annually to cover the following:

• A system for providing income tax deductions or refundable tax credits for the working poor.

• A system for allowing voluntary employer contributions to the health savings accounts and tax deductions for such contributions.

• A system for allowing tax credits for health care practitioners providing services to holders of health savings accounts at reduced cost or without compensation.

This report on Tax Incentives for Health Savings Accounts (“HSAs”) is a supplement to the report of the SCC on High-Deductible Health Plans.