HB 1311 Summary

• Establishes the Indiana Education Savings Account (ESA) program administered by the State Treasurer, allowing parents of eligible students to establish accounts to fund education at accredited nonpublic schools and related expenses.

• Eligible students include those with disabilities requiring special education, students from households at or below 400% of federal poverty level in K-12, and students whose parents previously established ESA accounts; annual grant amounts range from 70-100% of the school corporation's foundation amount based on household income.

• Funds in accounts can be used for qualified expenses including tuition, curricular materials, standardized exams, contributions to 529 college savings plans, special education services, postsecondary education, and occupational therapy; at least 25% of annual grants must be used in the same school year.

• Participating entities (qualified schools, tutoring services, postsecondary institutions, and disability service providers) must meet state standards and provide receipts; schools must administer ISTEP testing and report aggregated results by grade, gender, race, and income level.

• Provides state income tax deduction for grant amounts distributed from ESA accounts used for qualified expenses and clarifies that money contributed from the program to 529 plans does not count toward the college savings plan income tax credit.