The
Wisconsin Farm Bureau Federation is giving their
blessing toward a bill that would give a state tax
credit for individuals who make contributions to
health savings accounts. On Tuesday, the Joint
Finance Committee voted 12-4 to provide the tax
deduction. The Farm Bureau said health savings
accounts are especially useful for farmers who have
high deductible health insurance policies and have
to cover uncovered costs.
“Health
savings accounts are just another tool for small
businesses like farmers to get a tax benefit for
putting money aside to cover out-of-pocket expenses,”
said Sabrina Gentile, director of Governmental Relations
with the Wisconsin Farm Bureau.
Under
current federal law, individuals may make tax-deductible
contributions to health savings accounts and withdraw
the money tax-free when needed to cover routine
and preventive medical care.
The
bill would allow those contributing to health savings
accounts to claim a 6.5 percent state tax deduction
on what they contribute to the account.
