HB21-1210 Summary

• Creates the Foundational Learning Experience (FLEX) savings program to allow account owners to save for qualified elementary or secondary tuition expenses while maintaining federal tax benefits under Internal Revenue Code Section 529.

• FLEX savings program account distributions for qualified elementary or secondary tuition expenses are excluded from both federal and state taxable income; contributions to FLEX accounts are not deductible from state taxable income.

• Account owners may transfer up to $10,000 from a college savings program (529) account to a FLEX account if the transfer amount does not exceed the lowest balance in the 529 account during the previous 2 years; money in FLEX accounts can be transferred back to any college savings program account at any time.

• Modifies the definition of "qualified higher education expenses" to exclude repayment of qualified education loans and allows fees, books, supplies, and equipment for certain apprenticeship program participation to be treated as qualified higher education expenses.

• Effective date is January 1, 2022, subject to potential referendum petition within 90 days after final adjournment of the general assembly; if petitioned, becomes effective only upon voter approval in the November 2022 general election.