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IN HB1194

Bill

Status

Introduced

1/7/2016

Primary Sponsor

Randy Truitt

Click for details

Origin

House of Representatives

2016 Regular Session

AI Summary

  • Establishes the Indiana prepaid college program administered by the Indiana education savings authority, allowing families to prepay tuition at guaranteed rates before enrollment at state universities or community colleges.

  • Creates two independent tuition plans: one for state universities (based on highest tuition costs) and one for community colleges (based on average community college system costs), with pricing increased by 1% annual inflation adjustment.

  • Qualifies all beneficiaries as Indiana residents for tuition calculation purposes, allows contract conversion between plans, and permits use of benefits at out-of-state institutions with transfer fees.

  • Includes tax credit provisions allowing taxpayers to claim 20% of contributions (up to $1,000 annually) to 529 education savings plans, including prepaid college program contributions, with repayment requirements for nonqualified withdrawals.

  • Protects prepaid college fund assets from creditor claims, permits payroll deduction options for state employees, and requires annual independent audits with reports to the governor and general assembly.

Legislative Description

Prepaid college tuition. Establishes the Indiana prepaid college program. Requires the Indiana education savings authority to administer the program. Provides for the advance payment of tuition (including registration fees) at a community college or state university. Provides that the tax credit for 529 education savings plans includes money contributed to the prepaid college program.

Last Action

Representatives Goodin and Dermody added as coauthors

1/11/2016

Committee Referrals

Education1/7/2016

Full Bill Text

No bill text available