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IN HB1675
Bill
Status
1/24/2019
Primary Sponsor
Ryan Lauer
Click for details
AI Summary
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Establishes the Indiana Education Savings Account program allowing parents or emancipated students to create accounts for students ages 5-21 attending accredited nonpublic schools, with annual grants funded from state tuition support appropriations
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Grant amounts range from 75% to 100% of basic tuition support based on household income level, with full funding for students with disabilities, military families, foster children, and those eligible for free/reduced lunch
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Individual taxpayers may claim either a deduction up to $5,000 or a credit of $1,000 per account for contributions to education savings accounts; corporate taxpayers receive a 50% tax credit on contributions, capped at $12 million annually statewide
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Qualified expenses include tuition, curricular materials, standardized testing fees, special education services, postsecondary tuition, computer hardware (every 3 years), and up to $750 annually for transportation
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Treasurer of state administers the program through contracted financial institutions, with accounts subject to annual audit; unused funds carry over annually but revert to the state general fund upon account termination
Legislative Description
Education savings accounts. Establishes the Indiana education savings account program (program). Provides that a parent of an eligible student or an emancipated eligible student may establish an account in the program. Provides that an eligible student who has an account and attends a qualified school is eligible to receive an annual grant amount that may be used to pay for tuition at an accredited nonpublic school or education related expenses. Provides that the treasurer of state shall administer the program. Provides a deduction from Indiana adjusted gross income for a grant amount that is distributed to a taxpayer's Indiana education savings account and used for a qualified expense, to the extent the distribution is included in the taxpayer's federal adjusted gross income. Provides a tax deduction or tax credit for an individual taxpayer's contributions to an eligible student's program account. Provides a tax credit equal to 50% of a corporate taxpayer's contributions to: (1) an eligible student's program account; and (2) a nonprofit organization that exists primarily for the purpose of making contributions to program accounts.
Last Action
First reading: referred to Committee on Education
1/24/2019