House Bill 22-1019 Summary

• Creates the Foundational Learning Experience (FLEX) savings program to allow Colorado residents to save for qualified elementary and secondary tuition expenses with federal tax benefits under Section 529 of the Internal Revenue Code.

• Establishes that distributions from FLEX accounts are excluded from both federal and state taxable income, but contributions to FLEX accounts cannot be deducted from state taxable income.

• Limits FLEX account distributions to qualified elementary or secondary tuition expenses only, with payments directed to schools rather than account owners; allows anyone to contribute regardless of relationship to the designated beneficiary.

• Clarifies that "qualified higher education expenses" does not include repayment of qualified education loans, and allows apprenticeship program fees, books, supplies, and equipment to be treated as qualified higher education expenses.

• Effective date is January 1, 2023, subject to referendum petition approval if filed within 90 days after the general assembly adjourns.