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IN SB0245
Bill
AI Summary
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Establishes a state income tax credit for employers contributing to employees' 529 education savings accounts, limited to $100 per employee and equal to 50% of aggregate contributions made during the taxable year.
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Allows individual taxpayers to designate all or part of their income tax refund to be deposited into a 529 education savings account owned by the taxpayer.
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Requires the Indiana education savings authority to make annual matching contributions to 529 accounts of account owners with annual income not exceeding 250% of the federal poverty level, in an amount not to exceed the lesser of: (1) the owner's net contributions in the prior calendar year, or (2) $250.
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Provides annual appropriation from the state general fund to reimburse the Indiana education savings authority for all contributions made under the program.
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Provisions become effective July 1, 2018, and apply to taxable years beginning after December 31, 2018, with the tax credit and refund designation provisions expiring June 30, 2020.
Legislative Description
College savings program. Establishes a state income tax credit for employers who contribute to employees' 529 education savings accounts. Limits the credit to $100 per employee. Allows taxpayers to designate an income tax refund to a 529 education savings account. Requires the Indiana education savings authority to make a contribution to 529 education savings accounts of lower income account owners in the amount of the lesser of: (1) the amount the account owner contributed minus the amount the account owner withdrew from the account in the previous calendar year; or (2) $250. Makes an annual appropriation from the state general
Last Action
First reading: referred to Committee on Tax and Fiscal Policy
1/3/2018