House Bill 1014

Chair's Name: Larry O’Neal

Committee: Ways & Means

House Sponsor: Richard Royal

Chairman O’Neal’s opinion of this legislation:

HB 1014 is a clean-up bill for legislation passed last year removing the means test for taking income tax deductions for contributions to college savings plans and permitting grandparents to contribute and deduct contributions.  This bill clarifies provisions distinguishing between the program and the plan (the state entity that administers the program), provisions that allow for marketing of the savings plan program, and provisions relating to eligible tax years.

This Legislation:

• Strengthens our Traditional Family Structure by clarifying a plan offering a tax advantage for parental and grand-parental investment in higher education.

• Reduces the Tax Burden on our Citizens by clarifying the savings plan and its tax benefits so that parents and grandparents may contribute to such higher education plans and receive substantial tax savings.  It lowers the cost of compliance by providing technical corrections and clarifications.

This bill comes to the House Floor under the Structured Rule.