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1999 SESSION

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HB 1600 Savings trust accounts for higher education; income tax deduction.

Introduced by: Vincent F. Callahan, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Savings trust accounts; income tax deduction. Authorizes the Board of the Higher Education Tuition Trust Fund to create a savings trust account program pursuant to § 529 of the Internal Revenue Code. Savings trust accounts will be offered in addition to the existing prepaid tuition contracts. The measure also establishes an individual income tax deduction for amounts contributed to a savings trust account. The amount of the deduction shall not exceed $2,000 per savings trust account in any taxable year. Unused portions of the deduction may be carried forward until the contribution has been fully deducted. The tax deduction is effective for taxable years beginning on and after January 1, 1999. The existing Freedom of Information Act exemptions for the prepaid tuition contract program are extended to apply to savings trust accounts.

SUMMARY AS PASSED HOUSE:

Savings trust accounts; income tax deduction. Authorizes the Board of the Higher Education Tuition Trust Fund to create a savings trust account program pursuant to § 529 of the Internal Revenue Code. Savings trust accounts will be offered in addition to the existing prepaid tuition contracts. The measure also establishes an individual income tax deduction for amounts contributed to a savings trust account. The amount of the deduction shall not exceed $2,000 per savings trust account in any taxable year. Unused portions of the deduction may be carried forward until the contribution has been fully deducted. The tax deduction is effective for taxable years beginning on and after January 1, 1999. The existing Freedom of Information Act exemptions for the prepaid tuition contract program are extended to apply to savings trust accounts.

SUMMARY AS INTRODUCED:

Savings trust accounts; income tax deduction. Authorizes the Board of the Higher Education Tuition Trust Fund to create a savings trust account program pursuant to § 529 of the Internal Revenue Code. Savings trust accounts will be offered in addition to the existing prepaid tuition contracts. The measure also establishes an individual income tax deduction for amounts contributed to a savings trust account. The amount of the deduction shall not exceed $2,000 per savings trust account in any taxable year. Unused portions of the deduction may be carried forward until the contribution has been fully deducted. The tax deduction is effective for taxable years beginning on and after January 1, 1999. The estimated decrease of revenue attributable to this act shall be considered as receipts or amounts actually collected for purposes of the calculations required by the Personal Property tax Relief Act of 1998. The existing Freedom of Information Act exemptions for the prepaid tuition contract program are extended to apply to savings trust accounts.