Bill > S1667

This bill clarifies special rules for accident and health plans offered by certain governmental entities, specifically amending the Internal Revenue Code of 1986 to ensure that payments from such plans are excluded from taxable income. It expands the types of beneficiaries who can receive these tax-free payments, making it applicable to plans established by or on behalf of a state or its political subdivisions, not just public retirement systems. Furthermore, the bill defines a "qualified taxpayer" for the purpose of this exclusion, which now includes an employee, or their spouse, dependent, or child under the age of 27, ensuring that these individuals can also benefit from the tax exclusion on payments received from these governmental accident and health plans.