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IN SB0559
Bill
Status
1/14/2019
Primary Sponsor
Erin Houchin
Click for details
AI Summary
- Creates a state income tax credit equal to 20% of contributions to Indiana ABLE 529A savings plan accounts, capped at $1,000 per year, effective January 1, 2020
- ABLE accounts allow individuals with disabilities to save for qualified disability expenses without jeopardizing eligibility for public benefits
- Unused credits cannot be carried back, carried forward, refunded, or transferred to another taxpayer
- Account owners must repay credits if nonqualified withdrawals are made, with repayment equal to 20% of the nonqualified withdrawal amount
- Rollovers or transfers from college choice 529 education savings plans to Indiana ABLE 529A accounts qualify as qualified withdrawals under the existing 529 plan rules
Legislative Description
ABLE account tax credit. Creates a stand-alone credit for contributions to Indiana ABLE accounts. Provides that a taxpayer is entitled to a credit against adjusted gross income tax equal to the least of: (1) 20% of the amount of the total contributions made by the taxpayer to an account or accounts of an Indiana ABLE 529A savings plan during the taxable year; (2) $1,000; or (3) the amount of the taxpayer's adjusted gross income tax for the taxable year, reduced by the sum of all allowable credits. Provides that a taxpayer is not entitled to a carryback, carryover, or refund of an unused credit. Provides that a taxpayer may not sell, assign, convey, or otherwise transfer the tax credit. Provides that an account owner of an Indiana ABLE 529A savings plan must repay all or a part of the credit in a taxable year in which any nonqualified withdrawal is made. Provides that a rollover of assets or transfer of assets to an Indiana ABLE 529A account is a qualified withdrawal from a college choice 529 education savings plan.
Last Action
Senators Bassler, Ford Jon, Melton added as coauthors
2/4/2019