HB4751 Summary

• Establishes the College Savings Pool as a qualified tuition program under Section 529 of the Internal Revenue Code, administered by the State Treasurer with one or more financial institutions as program managers.

• Defines key terms including "account owner," "designated beneficiary," "donor," and "qualified expenses" (tuition, fees, books, supplies, equipment, room and board, and certain technology purchases for eligible educational institutions).

• Permits both in-state and out-of-state individuals and legal entities to establish accounts; designates beneficiaries must have valid social security or taxpayer identification numbers.

• Allows contributions to be invested and distributed for qualified education expenses, with nonqualified withdrawals subject to federal income tax and penalty on earnings; funds may also roll over to ABLE accounts under certain conditions.

• Increases State Treasurer's bond requirement from $1,000,000 to $10,000,000 and modifies Illinois Income Tax Act to allow deduction of up to $10,000 in annual College Savings Pool contributions and up to $10,000 in qualified ABLE program contributions (2018-2023).