Second Regular Session 112th General Assembly (2002)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE ENROLLED ACT No. 1273
AN ACT to amend the Indiana Code concerning higher education.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-28-16; (02)HE1273.1.1. -->
SECTION 1. IC 4-4-28-16, AS AMENDED BY P.L.289-2001,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 16. (a) Money withdrawn from an individual's
account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
money is used for at least one (1) of the following:
(1) To pay for costs (including tuition, laboratory costs, books,
computer costs, and other costs) at an accredited institution of
higher education or a vocational school for the individual or for
a dependent of the individual.
(2) To pay for the costs (including tuition, laboratory costs, books,
computer costs, and other costs) associated with an accredited or
a licensed training program that may lead to employment for the
individual or for a dependent of the individual.
(3) To purchase a primary residence for the individual or for a
dependent of the individual or to reduce the principal amount
owed on a primary residence that was purchased by the individual
or a dependent of the individual with money from an individual
development account.
(4) To begin or to purchase part or all of a business or to expand
an existing small business.
(5) To roll over the account under subsection (c) into a family
college savings account program established under IC 21-9-3.
(b) At the time of requesting authorization under section 15 of this
chapter to withdraw money from an individual's account under
subsection (a)(4), the individual must provide the community
development corporation with a business plan that:
(1) is approved by:
(A) a financial institution; or
(B) a nonprofit loan fund that has demonstrated fiduciary
stability;
(2) includes a description of services or goods to be sold, a
marketing plan, and projected financial statements; and
(3) may require the individual to obtain the assistance of an
experienced business advisor.
(c) Upon the expiration of the term of the individual's account under
this chapter, an individual may elect to roll over the money from the
individual's account directly into a family college savings account
program established under IC 21-9-3.
SOURCE: IC 21-9-1-1; (02)HE1273.1.2. -->
SECTION 2. IC 21-9-1-1, AS AMENDED BY P.L.85-2000,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. The following are the purposes of this
article:
(1) To encourage elementary and secondary students in Indiana
to achieve high standards of performance and establish lifelong
habits of fiscal responsibility through savings.
(2) (1) To encourage education and the means of education.
(3) (2) To encourage attendance at higher education institutions.
(4) (3) To provide families additional means of striving for higher
education through the Indiana family college savings programs an
education savings program that may be established under this
article.
(5) (4) To help provide the benefits of higher education to the
people of Indiana.
(6) (5) To promote the economic development of the state by
creating opportunities for a more highly educated workforce.
(7) (6) To increase employment opportunities in Indiana.
(8) (7) To encourage a working partnership among the people of
Indiana, including Indiana families, and elementary and
secondary schools, higher education institutions, financial
institutions, and state government in furthering a greater rate of
savings and greater participation in higher education.
SOURCE: IC 21-9-2-2; (02)HE1273.1.3. -->
SECTION 3. IC 21-9-2-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. "Account" or "individual
account" means an individual a trust account or a savings any other
account of an education savings program.
SOURCE: IC 21-9-2-4; (02)HE1273.1.4. -->
SECTION 4. IC 21-9-2-4, AS AMENDED BY P.L.25-1999,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. "Account owner" means the individual, (or
individuals) an emancipated minor, a trust, an estate, a partnership,
an association, a company, a corporation, or a qualified custodian
under the Uniform Transfers to Minors act (IC 30-2-8.5) that is
designated at the time an account is opened as having the right to do
the following:
(1) Select or change the designated beneficiary of an account.
(2) Designate a person other than the designated beneficiary as a
person to whom funds may be paid from the account.
(3) Receive distributions from the account if no other person is
designated.
SOURCE: IC 21-9-2-9.5; (02)HE1273.1.5. -->
SECTION 5. IC 21-9-2-9.5, AS ADDED BY P.L.25-1999,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9.5. "Contribution" means a payment directly
allocated to an account for the benefit of an account beneficiary or used
to pay late fees or administrative fees associated with the account.
SOURCE: IC 21-9-2-10; (02)HE1273.1.6. -->
SECTION 6. IC 21-9-2-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. "Contributor"
means any individual, corporation, association, trust, limited liability
company, or partnership emancipated minor, trust, estate,
partnership, association, company, corporation, or qualified
custodian under the Uniform Transfers to Minors act (IC 30-2-8.5)
that makes a deposit for the benefit of an account beneficiary.
SOURCE: IC 21-9-2-11; (02)HE1273.1.7. -->
SECTION 7. IC 21-9-2-11, AS AMENDED BY P.L.85-2000,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. "Education savings program" means: an
education savings
(1) a trust program; or
(2) any other program established under IC 21-9-3 that
qualifies as a qualified state tuition program under Section
529 of the Internal Revenue Code.
SOURCE: IC 21-9-2-14; (02)HE1273.1.8. -->
SECTION 8. IC 21-9-2-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. "Financial
institution" means a bank, a commercial bank, a national bank, a
savings bank, a savings and loan, a thrift, a credit union, an insurance
company, a trust company, an investment company, a mutual fund, or
similar entity that
(1) meets the qualifying requirements established by the authority.
and
(2) if applicable, agrees to abide by the qualifying requirements
for a savings account under IC 21-9-9.
SOURCE: IC 21-9-2-16; (02)HE1273.1.9. -->
SECTION 9. IC 21-9-2-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) "Higher
education institution" means a postsecondary educational institution.
(b) Notwithstanding subsection (a), For purposes of the family
college savings programs an education savings program established
under this article, "higher education institution" means a postsecondary
educational institution that meets the following requirements:
(1) Is authorized by law to provide a program of education beyond
the high school level.
(2) Admits as regular students only individuals having a
certificate of graduation from a high school or the recognized
equivalent of such a certificate.
(3) Provides an educational program:
(A) for which the higher education institution awards a
baccalaureate or an associate degree;
(B) in which admission is contingent upon the prior attainment
of a baccalaureate degree or the equivalent, for which the
higher education institution:
(i) awards a postgraduate degree; or
(ii) provides not less than a two (2) year program that is
acceptable for full credit toward a postgraduate degree; or
(C) of a two (2) year duration in engineering, mathematics, or
the physical or biological sciences, that is designed to prepare
the student to work as a technician and in a semiprofessional
level in an engineering, a scientific, or other technological
field that requires the understanding and application of basic
engineering, scientific, or mathematical principles or
knowledge.
(4) Is accredited by a regional accrediting agency or association
or by an organization recognized by the United States Department
of Education, or, if not so accredited is an institution whose
credits are accepted on transfer by not less than three (3)
institutions that are accredited by a regional accrediting agency or
association or by an organization recognized by the United States
Department of Education, with the credits accepted on the same
basis as if the credits were transferred from an accredited
institution.
SOURCE: IC 21-9-2-16.5; (02)HE1273.1.10. -->
SECTION 10. IC 21-9-2-16.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 16.5. "Internal Revenue
Code" means the Internal Revenue Code of 1986 of the United
States as amended from time to time.
SOURCE: IC 21-9-2-17.5; (02)HE1273.1.11. -->
SECTION 11. IC 21-9-2-17.5, AS ADDED BY P.L.25-1999,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 17.5. (a) "Member of the family" means an
individual who is one (1) of the following relatives of a designated
beneficiary:
(1) A lineal descendant of the designated beneficiary.
(2) A lineal ancestor of the designated beneficiary.
(3) A brother, sister, stepbrother, or stepsister of the designated
beneficiary.
(4) A stepparent of the designated beneficiary.
(5) A stepchild of the designated beneficiary.
(6) A niece or nephew of the designated beneficiary.
(7) An aunt or uncle of the designated beneficiary.
(8) An individual related to the designated beneficiary as follows:
(A) A daughter-in-law.
(B) A son-in-law.
(C) A mother-in-law.
(D) A father-in-law.
(E) A sister-in-law.
(F) A brother-in-law.
(G) A first cousin.
(9) The spouse of the designated beneficiary or the spouse of an
individual described in subdivisions (1) through (8).
(b) For purposes of this section, an adopted child of an individual is
treated as a natural child of the individual.
(c) For purposes of this section, the terms brother and sister include
a brother or sister by the half blood.
SOURCE: IC 21-9-2-18; (02)HE1273.1.12. -->
SECTION 12. IC 21-9-2-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18. "Program
account" means the program account of the trust fund established under
IC 21-9-5. A program account is comprised of:
(1) individual trust accounts; and
(2) other contributions or money received in trust by the authority
together with allocable earnings (whether interest, gains, or
dividends) and other contributions appropriately made or money
properly allocable to the program account.
SOURCE: IC 21-9-2-19.5; (02)HE1273.1.13. -->
SECTION 13. IC 21-9-2-19.5, AS ADDED BY P.L.25-1999,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 19.5.
(a) "Qualified higher education
expenses" means the following expenses required for the enrollment or
attendance of a designated beneficiary at a higher education institution:
(1) Tuition.
(2) Fees.
(3) Costs of books, supplies, and equipment.
(4) Room and board.
(b) The amount of room and board treated as a qualified higher
education expense may not exceed the amount set forth in the
applicable federal regulations. has the meaning set forth in Section
529 of the Internal Revenue Code.
SOURCE: IC 21-9-2-19.7; (02)HE1273.1.14. -->
SECTION 14. IC 21-9-2-19.7, AS ADDED BY P.L.25-1999,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 19.7. "Rollover distribution" means a
distribution or transfer from an account of a designated beneficiary that
is transferred to or deposited within sixty (60) days of the distribution
or transfer into an account of another individual who is a member of
the family of the designated beneficiary. A distribution is not a rollover
distribution unless there is a change in the beneficiary. rollover as
defined in Section 529 of the Internal Revenue Code.
SOURCE: IC 21-9-2-22.1; (02)HE1273.1.15. -->
SECTION 15. IC 21-9-2-22.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 22.1. "Trust account" means
a trust account established by a contributor in the trust program
by or for the benefit of an account beneficiary.
SOURCE: IC 21-9-2-23; (02)HE1273.1.16. -->
SECTION 16. IC 21-9-2-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 23. "Trust fund"
means the Indiana family college savings trust fund created under
IC 21-9-5 for purposes of the Indiana family college savings any trust
program under IC 21-9-7 and IC 21-9-8.
SOURCE: IC 21-9-3-3; (02)HE1273.1.17. -->
SECTION 17. IC 21-9-3-3, AS AMENDED BY P.L.85-2000,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. The authority may establish the following
any number of education savings programs.
(1) The family college savings programs, including the following:
(A) The trust program.
(B) The account program.
(2) Other savings programs and services consistent with the
purposes and objectives of this article.
SOURCE: IC 21-9-4-7; (02)HE1273.1.18. -->
SECTION 18. IC 21-9-4-7, AS AMENDED BY P.L.25-1999,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. In addition to any power granted by this
article, the board has all powers necessary or convenient to carry out
and effectuate the purposes and objectives of this article, the purposes
and objectives of the education savings programs, and the powers
delegated by law or executive order, including the following powers:
(1) To develop and implement the education savings programs
and, notwithstanding any provision in this article to the contrary,
other savings programs and services consistent with the purposes
and objectives of this article, through:
(A) rules or emergency rules adopted under IC 4-22-2; or
(B) rules, guidelines, procedures, or policies established by the
board and approved by the higher education commission.
(2) To conform the education savings programs and,
notwithstanding any provision in this article to the contrary, other
savings programs and services consistent with the purposes and
objectives of this article, to the requirements of a qualified state
tuition program set forth in Section 529 of the Internal Revenue
Code and all applicable federal regulations, through:
(A) rules or emergency rules adopted under IC 4-22-2; or
(B) guidelines, procedures, or policies established by the
board.
(3) To retain professional services, including the following:
(A) Financial advisers and managers.
(B) Custodians and other fiduciaries.
(C) Investment advisers and managers.
(D) Accountants and auditors.
(E) Consultants or other experts.
(F) Actuarial services providers.
(G) Attorneys.
(4) To establish minimum account deposit amounts (both initial
and periodic).
(5) To employ persons, if the board chooses, and as may be
necessary, and to fix the terms of their employment.
(6) To recommend legislation to the governor and general
assembly.
(7) To apply for designation as a tax exempt entity under the
Internal Revenue Code.
(8) To adopt such rules, bylaws, procedures, guidelines, and
policies as are necessary to carry out the education savings
programs and other savings programs and services and the
authority's management and operations.
(9) To sue and be sued.
(10) To provide or facilitate provision of benefits and incentives
for the benefit of qualified beneficiaries, account owners,
contributors, or account beneficiaries as the board's resources
allow or as are directed or provided for by the general assembly.
(11) To conform the education savings programs and other
savings programs to federal tax advantages or incentives, as in
existence periodically, to the extent consistent with the purposes
and objectives of this article.
(12) To interpret, in rules, policies, guidelines, and procedures,
the provisions of this article broadly in light of the purposes and
objectives of this article.
(13) To charge, impose, and collect administrative fees and
service charges in connection with any agreement, contract, or
transaction under an education savings program or other savings
program or services.
(14) To have perpetual succession.
SOURCE: IC 21-9-4-8; (02)HE1273.1.19. -->
SECTION 19. IC 21-9-4-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. The authority
shall prepare an annual report for the education savings programs and
other savings programs and services and promptly transmit the annual
report to the governor and the general assembly. The authority shall
make available, upon request, copies of the annual report to qualified
beneficiaries, account owners, and the public.
SOURCE: IC 21-9-4-9; (02)HE1273.1.20. -->
SECTION 20. IC 21-9-4-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) The authority
may accept gifts, bequests, donations, and devises of personal and real
property:
(1) as trustees for the maintenance, use, or benefit of the
authority, the education savings programs, or the endowment
fund; or
(2) to be administered for other public or charitable purposes for
the benefit or use of
qualified beneficiaries, account owners or
account beneficiaries.
(b) The authority may receive, accept, hold, administer, and use any
property transferred to the authority by gift, bequest, donation, or
devise in accordance with the terms, conditions, obligations, liabilities,
and burdens imposed on the gift, bequest, donation, or devise if, in the
judgment of the board, the action is in the best interest of the authority,
the education savings programs, the endowment fund,
qualified
beneficiaries, account owners, contributors, or account beneficiaries,
as applicable.
(c) The authority may accept a gift, devise, donation, or bequest
made for the purpose of providing an annuity on conditions consistent
with the conditions set forth in IC 20-12-4-2 (relating to boards of
trustees of state educational institutions).
(d) The authority may, if not inconsistent with the terms and
conditions of a gift of real property:
(1) sell, convey, or otherwise dispose of the real property; and
(2) invest, reinvest, or use the proceeds as, in the judgment of the
board, is of the greatest benefit to the authority, the education
savings programs, the endowment fund, qualified beneficiaries,
account beneficiaries, and account owners.
(e) When acting under the powers granted by this article and also
with respect to the money in the endowment fund and the program
account as provided in IC 21-9-5 and IC 21-9-7, the members serve as
trustees of private trusts, subject to the terms and conditions of the trust
program or the gift, bequest, donation, or devise and law applicable to
private trusts.
SOURCE: IC 21-9-7-1; (02)HE1273.1.21. -->
SECTION 21. IC 21-9-7-1, AS AMENDED BY P.L.25-1999,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. In addition to any other powers granted by
this article, the board has all powers necessary or convenient to carry
out and effectuate the purposes and objectives of this chapter
and
IC 21-9-8,
and IC 21-9-9, the purposes and objectives of
the family
college savings programs an education savings program that may be
established under this article, and the powers delegated by other laws
or executive orders, including the following:
(1) To establish policies and procedures to govern distributions
from accounts that are not:
(A) made on account of the death or disability of an account
beneficiary;
(B) made on account of the receipt of a scholarship (or
allowance or payment described in Section 135(d)(1)(B) or (C)
of the Internal Revenue Code) by the account beneficiary to
the extent the amount of the distribution does not exceed the
amount of the scholarship, allowance, or payment; or
(C)
rollover distributions. rollovers.
(2) To establish penalties for withdrawals of money from accounts
that are not used exclusively for the qualified higher education
expenses of an account beneficiary unless a circumstance
described in subdivision (1) applies.
(3) To establish policies and procedures regarding the transfer of
individual accounts and the designation of substitute account
beneficiaries.
(4) To establish policies and procedures for withdrawal of money
from accounts for, or in reimbursement of, qualified higher
education expenses.
(5) To establish policies and procedures regarding recapture of all
or a part of prior or current benefits or incentives allocated or
allocable to accounts, including, in appropriate circumstances in
the board's judgment, recapture as a precondition to withdrawal.
(6) (5) To enter into agreements with account owners, account
beneficiaries, and contributors, with the agreements naming:
(A) the account owner; who must be an adult or emancipated
minor; and
(B) the account beneficiary. who may also be the account
owner, if qualified.
(7) (6) To establish accounts for account beneficiaries. However:
(A) the authority shall establish a separate account for each
account beneficiary; and
(B) an individual may be the beneficiary of more than one (1)
account.
(8) (7) To enter into agreements with financial institutions
relating to accounts as well as deposits, withdrawals, penalties,
recaptures of benefits or incentives, allocation of benefits or
incentives, and transfers of accounts, account owners, and
account beneficiaries.
(9) (8) To conform the trust program and the account education
savings program to federal tax advantages or incentives, as the
advantages or incentives may exist periodically, to the extent
consistent with the purposes and objectives of this article.
(10) (9) To interpret, in rules, policies, guidelines, and
procedures, the provisions of this article broadly considering the
purposes and objectives of this article.
SOURCE: IC 21-9-7-2; (02)HE1273.1.22. -->
SECTION 22. IC 21-9-7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. The amount of
money available in an individual account and the proposed use of
money in an individual account on behalf of an account beneficiary
may not be considered by the state student assistance commission
under IC 20-12-21 or IC 20-12-21.7 when determining award amounts
under a program administered by the state student assistance
commission.
SOURCE: IC 21-9-7-3; (02)HE1273.1.23. -->
SECTION 23. IC 21-9-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. An individual
account is not an asset for the purposes of IC 6-4.1-2.
SOURCE: IC 21-9-7-7; (02)HE1273.1.24. -->
SECTION 24. IC 21-9-7-7, AS ADDED BY P.L.25-1999,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. Funds held in
the family college savings
trust program or the family college savings account program an
account of an education savings program that may be established
under this article may not be used by an account owner or account
beneficiary as security for a loan.
SOURCE: IC 21-9-7-8; (02)HE1273.1.25. -->
SECTION 25. IC 21-9-7-8, AS ADDED BY P.L.25-1999,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) Contributions to an individual account
may not exceed the amount necessary to provide for the qualified
higher education expenses of the account beneficiary.
(b) The authority shall adopt rules or emergency rules under
IC 4-22-2 to determine the maximum account balance applicable to all
accounts of account beneficiaries with the same expected year of
enrollment. The maximum account balance may not exceed the amount
determined by actuarial estimates that is necessary to pay the account
beneficiary's qualified higher education expenses for five (5) years of
enrollment at the highest cost institution identified by the authority.
SOURCE: IC 21-9-7-9; (02)HE1273.1.26. -->
SECTION 26. IC 21-9-7-9, AS ADDED BY P.L.25-1999,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. (a) The authority shall may adopt rules or
emergency rules under IC 4-22-2 to establish a penalty for a
distribution that is not used exclusively for the qualified higher
education expenses of an account beneficiary. However, the authority
may not establish a penalty for distributions described in
IC 21-9-7-1(1).
(b) The penalty imposed under this section must equal at least ten
percent (10%) of the earnings portion of the distribution.
SOURCE: IC 21-9-8-1; (02)HE1273.1.27. -->
SECTION 27. IC 21-9-8-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) The board
shall establish a trust program known as the college choice plan.
(b) The board shall administer the any trust fund established under
this article, including the college choice plan, in a manner designed
to be actuarially sound, so that the assets of the trust fund are sufficient
to defray the obligations of the trust fund, including the program
account.
SOURCE: IC 21-9-8-2; (02)HE1273.1.28. -->
SECTION 28. IC 21-9-8-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The money
received under the trust program , including the college choice plan,
by the authority from account owners and contributors for the benefit
of account beneficiaries shall be deposited in the program account.
(b) Any appropriations made by the general assembly for:
(1) operating, administrative, and capital expenses;
(2) benefits and incentives; or
(3) any other purpose related to the trust program or the trust
fund;
shall be deposited in the administrative account.
(c) The money received under the trust program by the authority by
gift, bequest, donation, or devise or from a source that is not described
in subsection (a) or (b) shall be deposited:
(1) in the endowment fund for the benefit of the trust program; or
(2) to individual accounts as determined by the board to be
appropriate.
(d) The board may divide the trust fund into further separate
accounts. The accounts of the trust fund may be divided into separate
subaccounts as the board may determine periodically.
SOURCE: IC 21-9-10-2; (02)HE1273.1.29. -->
SECTION 29. IC 21-9-10-2, AS AMENDED BY P.L.15-2001,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) Individual Accounts and all earnings or
interest on accounts are exempt from taxation in Indiana to the extent
that those accounts, earnings, and interest are exempt from federal
taxation under federal law, the Internal Revenue Code, subject to any
penalties that are established for education savings programs under this
article.
(b) Distributions under IC 6-3-2-19 from an individual account used
to pay qualified higher education expenses are exempt from the
adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7.
SOURCE: IC 21-9-2-5; IC 21-9-2-7; IC 21-9-2-10.5; IC 21-9-2-13;
IC 21-9-2-17; IC 21-9-2-19; IC 21-9-2-22; IC 21-9-5-6; IC 21-9-7-5;
IC 21-9-7-6; IC 21-9-9.
; (02)HE1273.1.30. -->
SECTION 30. THE FOLLOWING ARE REPEALED [EFFECTIVE
UPON PASSAGE]: IC 21-9-2-5; IC 21-9-2-7; IC 21-9-2-10.5;
IC 21-9-2-13; IC 21-9-2-17; IC 21-9-2-19; IC 21-9-2-22; IC 21-9-5-6;
IC 21-9-7-5; IC 21-9-7-6; IC 21-9-9.
SOURCE: ; (02)HE1273.1.31. -->
SECTION 31.
An emergency is declared for this act.
HEA 1273 _ Concur
Figure
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