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Committee moves bill to equalize ABLE-account income-tax deduction with 529s

2995131 ยท April 15, 2025
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Summary

Senate Bill 118, which would add an income-tax deduction for contributions to ABLE accounts at the same level as 529 college-savings deductions, was moved favorable by the committee. Sponsor said the change is a fairness issue with low estimated fiscal cost.

Senate Bill 118, presented by Chairman Fall and considered April 15, was moved favorable by the Senate Committee on Revenue and Fiscal Affairs. The bill would add an income-tax deduction for contributions to ABLE accounts (Achieving a Better Life Experience) at the same level currently available for 529 college-savings accounts.

Chairman Fall said ABLE accounts are intended for families saving for the lifetime needs of people with disabilities and that providing the same modest state income-tax deduction as 529 accounts (cited in testimony as $2,400 per individual and $4,800 for married couples at the federal/state program levels) is a fairness issue. He told the committee the expected fiscal impact was "de minimis," under $100,000 in lost revenue according to the fiscal note he cited.

No public opposition or questions were recorded in the transcript; the senator moved the bill favorable and the committee accepted the motion by voice.