Introduced Version
SENATE BILL No. 131
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-18; IC 21-9-9.5.
Synopsis: Lifelong learning account pilot program. Requires the
Indiana education savings authority (authority) to establish and
administer a lifelong learning account pilot program. Specifies that a
lifelong learning account established for a participating individual
must: (1) be an account in a financial institution; and (2) allow a
participating individual to deposit, from the individual's earned income,
money that may be matched by the participating individual's employer,
a financial institution, the state, or any other entity, and that will be
used by the participating individual for education and training costs at
a postsecondary educational institution, a vocational school, or a
training program that may lead to employment for the individual.
Requires the authority to seek grants and other funding for the pilot
program from public and private entities. Provides that money
withdrawn from a participating individual's lifelong learning account
is not subject to state income taxation if the money is used by the
participating individual for specified education and training costs.
Provides a state tax credit for contributions to a lifelong learning
account. Specifies that money in a participating individual's lifelong
learning account may not be considered: (1) an asset of the
participating individual when determining the individual's eligibility
for the Temporary Assistance for Needy Families program; or (2) a
countable asset for purposes of township assistance. (The introduced
version of this bill was prepared by the interim study committee on
adult education issues.)
Effective: July 1, 2009.
Errington
January 7, 2009, read first time and referred to Committee on Appropriations.
Introduced
First Regular Session 116th General Assembly (2009)
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SENATE BILL No. 131
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3.1-18-6; (09)IN0131.1.1. -->
SECTION 1. IC 6-3.1-18-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 6. (a) Subject to the
limitations provided in subsection (b) and sections 7, 8, 9, 10, and 11
of this chapter, the department shall grant a tax credit against any state
tax liability due equal to
the following:
(1) Fifty percent (50%) of the amount contributed by a person or
an individual to a fund if the contribution is not less than one
hundred dollars ($100) and not more than fifty thousand dollars
($50,000).
(2) Fifty percent (50%) of the amount contributed by a person
or an individual to a lifelong learning account established
under IC 21-9-9.5, if the contribution is not less than one
hundred dollars ($100) and not more than fifty thousand
dollars ($50,000).
(b) The credit provided by this chapter shall only be applied against
any state tax liability owed by the taxpayer after the application of any
credits that under IC 6-3.1-1-2 must be applied before the credit
provided by this chapter.
SOURCE: IC 6-3.1-18-10; (09)IN0131.1.2. -->
SECTION 2. IC 6-3.1-18-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 10. (a) The amount of
tax credits allowed under this chapter may not exceed:
(1) two hundred thousand dollars ($200,000) for contributions
to a fund; and
(2) two hundred thousand dollars ($200,000) for contributions
to a lifelong learning account established under IC 21-9-9.5;
in any state fiscal year.
(b) The department shall:
(1) record the time of filing of each application for allowance of
a credit required under section 9 of this chapter; and
(2) approve the applications, if they otherwise qualify for a tax
credit under this chapter, in the chronological order in which the
applications are filed in the state fiscal year.
(c) When the total credits approved under this section equal the
maximum amount allowable in any state fiscal year, an application
filed after that time for the same fiscal year may not be approved.
However, if an applicant for whom a credit has been approved fails to
file the statement of proof of payment required under section 9 of this
chapter, an amount equal to the credit previously allowed or set aside
for the applicant may be allowed to any subsequent applicant in the
year. In addition, the department may, if the applicant so requests,
approve a credit application, in whole or in part, with respect to the
next succeeding state fiscal year.
SOURCE: IC 21-9-9.5; (09)IN0131.1.3. -->
SECTION 3. IC 21-9-9.5 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]:
Chapter 9.5. Lifelong Learning Account Pilot Program
Sec. 1. As used in this chapter, "lifelong learning account"
means an account established under section 5 of this chapter.
Sec. 2. As used in this chapter, "participating individual" means
an individual who is participating in the pilot program under
guidelines established by the authority.
Sec. 3. As used in this chapter, "pilot program" refers to the
pilot program established under section 4 of this chapter.
Sec. 4. (a) The authority shall establish and administer a lifelong
learning account pilot program.
(b) The authority shall establish written guidelines for
administration of the pilot program, including written guidelines
concerning:
(1) the eligibility of individuals and financial institutions to
participate in the pilot program; and
(2) the permissible uses of money in a lifelong learning
account.
Sec. 5. (a) The pilot program shall be implemented to encourage
the establishment of lifelong learning accounts for participating
individuals. A lifelong learning account established for a
participating individual must:
(1) be an account in a financial institution participating in the
pilot program; and
(2) allow a participating individual to deposit, from the
individual's earned income, money:
(A) that may be matched by the participating individual's
employer, a financial institution, the state, or any other
entity; and
(B) that will be used by the participating individual for any
tuition, laboratory costs, books, computer costs, and other
fees that are incurred at a postsecondary educational
institution, a vocational school, or a training program that
may lead to employment for the individual.
(b) Money withdrawn from a participating individual's lifelong
learning account is not subject to taxation under IC 6-3-1 through
IC 6-3-7 if the money is used by the participating individual for the
purposes described in subsection (a)(2)(B).
Sec. 6. Money in a participating individual's lifelong learning
account may not be considered:
(1) an asset of the participating individual when determining
the individual's eligibility for assistance under IC 12-14; or
(2) a countable asset (as defined in IC 12-7-2-44.6) for
purposes of IC 12-20.
Sec. 7. The authority shall seek grants and other funding for the
pilot program from public and private entities.
Sec. 8. The pilot program shall be administered separately from
the college choice 529 investment plan or any other education
savings plan administered by the authority.
Sec. 9. (a) Before November 1 of each year after 2009, the
authority shall submit a report to the governor and the general
assembly on the pilot program. The report submitted in 2014 must
include the following:
(1) Any conclusions and recommendations made by the
authority concerning the pilot program.
(2) Information concerning the cost and feasibility of
expanding the pilot program.
(b) A report submitted to the general assembly under this
section must be in an electronic format under IC 5-14-6.
Sec. 10. This chapter expires January 1, 2015.
SOURCE: ; (09)IN0131.1.4. -->
SECTION 4. [EFFECTIVE JULY 1, 2009]
IC 6-3.1-18-6 and
IC 6-3.1-18-10, both as amended by this act, apply to taxable years
beginning after December 31, 2008.