IN HB1067

Increases the maximum income tax credit for contributions to a college choice 529 education savings plan from $1,000 to $1,500 per taxable year.

Credit equals the lesser of: 20% of total contributions made to a 529 plan during the taxable year, $1,500, or the taxpayer's adjusted gross income tax liability.

Account owners must repay credits (20% of nonqualified withdrawals or cumulative credits claimed, whichever is less) if they make nonqualified withdrawals from their 529 accounts.

Contributions that qualify for the credit are limited to direct deposits by the taxpayer and exclude bonus points, transfers from other 529 plans, or money from similar qualified tuition programs.

Effective July 1, 2016, and amends IC 6-3-3-12 governing Indiana education savings accounts.