HB 22-1320 Summary

• Allows persons other than the account owner to establish and control ABLE savings program accounts on behalf of account owners, in accordance with Section 529A of the Internal Revenue Code.

• Prohibits Colorado from filing claims against deceased designated beneficiaries' ABLE accounts unless required to maintain qualified ABLE program status under federal law.

• Allows deductions from federal taxable income for ABLE program contributions and qualified disability expense withdrawals before January 1, 2026, with the deduction added back to income when non-qualified distributions are made.

• Appropriates $44,517 to the Department of Revenue for 2022-23 fiscal year to implement the act, including personal services and tax administration system support.

• Takes effect January 1, 2023, subject to voter approval if a referendum petition is filed within ninety days of legislative adjournment.