ARIZONA HOUSE OF REPRESENTATIVES
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SB 1349 : family college savings program |
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PRIME SPONSOR: Senator Livingston, LD 22 BILL STATUS: Caucus & Cow |
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Modifies definitions of qualified higher
education expenses and qualified withdrawals to conform with federal
standards of the federal Internal Revenue Service code (IRC) section 529
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History
Federal law defines a qualified tuition program as a program established and maintained by a state or agency under which a person may make contributions to an account which is established for the purpose of meeting the qualified higher education expenses of the designated beneficiary of an account (26 U.S.C. § 529).
The Arizona Family College Savings Plan (Plan) is a college savings plan sponsored by the State of Arizona and is administered by the Commission for Postsecondary Education. The Plan is designed to provide a parent, grandparent or anyone else an opportunity to save for a child's educational expenses within a tax deferred savings vehicle and allows anyone to make contributions (A.R.S. § 15-187(B)).
Presently, qualified higher education expenses are defined as tuition, fees, books, supplies, room and board and equipment for enrollment or attendance of a designated beneficiary at an eligible educational institution but does not specifically mention computers or computer related equipment. Likewise, qualified withdrawal means a withdrawal from an account to pay for qualified higher education expenses of a designated beneficiary of the account (A.R.S. § 15-1871).
In 2017, the Federal Tax Cuts and Jobs Act expanded the federal definition of qualified higher expenses to include not more than $10,000 in expenses incurred during the taxable year used for tuition of enrollment or attendance at an elementary or secondary public, private or religious school (H.R. 1, 115th Congress, 2017).
Achieving a Better Life Experience (ABLE) account programs are investment programs that offer persons with disabilities, their families and friends the option to contribute to a tax-exempt savings account for disability-related expenses (Public Law 113-295).
Provisions
1. Changes the heading of Title 15, Ch. 14, Article 7, from College Savings Plan to Family College Savings Plan. (Sec. 1)
2. Expands the definition of qualified higher education expenses to include:
a. Expenses to purchase a computer, computer related services and equipment that are used by the beneficiary during the years the individual is enrolled at an eligible educational institution and allowable if expenses meet the definition of qualified higher education expenses in accordance with section 529 of the IRS code; and
b. Tuition to attend an elementary or secondary public, private or religious school pursuant to section 529. (Sec. 2)
3. Modifies the definition of qualified withdrawal to include tuition less than $10,000 to attend an elementary or secondary public, private or religious school. (Sec. 2)
4. Allows an account owner to roll over $15,000 to an Achieving a Better Life Experience Act Account through December 31, 2025. (Sec. 3)
5. Makes technical and conforming changes. (Sec. 2 and 3)
Amendment:
Committee on Education
1. Makes technical changes.
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Fifty-Fourth Legislature SB1 349
First Regular Session Version 2: Caucus & Cow
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