Wisconsin Governor Vetoes HSA Tax Break Bill

July 28, 2005 (PLANSPONSOR.com) - Wisconsin Governor Jim Doyle vetoed provisions included in a budget measure that would have given tax breaks to health savings accounts (HSAs) linked to high-deductible health plans.

According to a Business Insurance report, the provisions would have made individual’s contributions to their HSAs tax deductible and employer contributions exempt from state taxable income.

The Wisconsin Department of Revenue in December of 2004 issued an announcement that federal tax breaks offered for HSAs in the Medicare Prescription Drug Improvement and Modernization Act of 2003 would not apply to Wisconsin state taxes (See  Wisconsin Says HSA Tax-Breaks Don’t Apply to State Taxes ).

Earlier this month, a provision in a bill signed into law by Pennsylvania’s governor that would have excluded employee and employer contributions from Pennsylvania state taxable income was also cut from the bill (See  PA Clears Way for High Deductible Health Plans Linked to HSAs ).