HB 1282 Summary

• Requires the Indiana education savings authority to establish and administer a lifelong learning account pilot program for individuals with annual household income not exceeding 300% of the federal poverty level.

• Allows participating individuals to deposit earned income into accounts at financial institutions, with matching contributions from employers, financial institutions, the state, or other entities for postsecondary education, vocational school, or training program costs.

• Withdrawals from lifelong learning accounts are exempt from state income taxation when used for qualified education and training expenses, and contributions receive a 50% state tax credit (up to $2,000 per year).

• Money in lifelong learning accounts is excluded from asset calculations for Temporary Assistance for Needy Families eligibility and township assistance purposes.

• The pilot program expires January 1, 2016, with annual reporting requirements to the governor and general assembly beginning in 2011.