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Legislative Year: 2021 Change
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Bill Detail: HB21-1210

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Title Modifications To Qualified State Tuition Programs
Status House Committee on Education Postpone Indefinitely (04/07/2021)
Bill Subjects
  • Fiscal Policy & Taxes
House Sponsors C. Larson (R)
Senate Sponsors B. Rankin (R)
House Committee Education
Senate Committee
Date Introduced 03/05/2021
Summary

The federal Tax Cuts and Jobs Act, which became law in
December 2017, added distributions for elementary or secondary tuition
expenses as qualified distributions from a qualified state tuition program

(529 account), thereby allowing, on the federal level, income tax-free
distributions for elementary and secondary tuition expenses in addition to
already authorized income tax-free distributions for higher education
expenses. Similarly, the federal Setting Every Community Up for
Retirement Enhancement Act of 2019, which became law in December
2019, expands the qualified distributions from a 529 account to include
repayment of qualified education loans and payments for registered
apprenticeships.
The bill creates the foundational learning experience savings
program (FLEX savings program).
The bill also specifies that distributions from FLEX savings
program accounts are not counted as federal or state taxable income and
that contributions to FLEX savings program accounts for qualified
elementary or secondary tuition expenses may not be deducted from state
taxable income.
The accounts created under the FLEX savings program are defined
by the following characteristics:
  • Account owners may only use distributions from the
accounts for qualified elementary or secondary tuition
expenses;
  • Anyone may contribute to the account, irrespective of their
relationship to the account's designated beneficiary;
  • An account owner may transfer money to the FLEX
savings program accounts from a 529 account, if the total
of all amounts transferred does not exceed $10,000 and is
less than or equal to the lowest balance in the 529 account
at any point during the previous 2 years; and
  • Money in the account can be transferred to a different 529
account.
The bill also allows for expenses for fees, books, supplies, and
equipment required for the participation of a designated beneficiary in
certain apprenticeship programs to be treated as qualified higher
education expenses and subtracted from federal taxable income. The bill
clarifies that qualified higher education expenses does not include
repayment of qualified education loans.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (07/06/2021) (most recent)  
Additional Bill Documents Bill Documents
Including:
  • Past bill versions
  • Past fiscal notes
  • Committee activity and documents
  • Bill History
 
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