MO HB2696

Creates the Missouri K-12 Education Savings Program allowing participants to establish savings accounts for beneficiaries' kindergarten through 12th grade education expenses

Qualified expenses include public or private school tuition, homeschool curriculum, tutoring, books and supplies, online classes, computer equipment, internet access, and special education therapies

Establishes a seven-member board chaired by the State Treasurer to administer the program, with appointed members serving four-year terms and required to meet at least quarterly

Contributions and earnings are exempt from state income tax when used for qualified K-12 expenses; annual contributions are deductible from Missouri adjusted gross income beginning January 1, 2017

Imposes a penalty of at least 10% of earnings for withdrawals not used for qualified education expenses, death/disability of beneficiary, scholarship receipt, or minimum holding period violations