Posted: | April 26, 2017 02:50 PM |
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From: | Representative Jim Marshall |
To: | All House members |
Subject: | ABLE Program Tax Deduction |
In the near future I plan to introduce legislation to establish a tax deduction for Pennsylvanian families participating in the state’s “Achieving a Better Life Experience” (ABLE) savings program. The ABLE program encourages families to set aside funds for costs related to the disability of a family member, giving families saving for disability expenses a state income tax benefit that is similar to the benefits provided by through our 529 college savings accounts. Specifically, this proposal provides a tax deduction for contributions made to a PA ABLE account up to the maximum of the annual federal gift tax exclusion (currently $14,000) per beneficiary. Additionally, it provides that any distributions from or changes to a PA ABLE account that are not subject to federal income tax will not be subject to Pennsylvania state income tax. As means of background, ABLE accounts are modeled on 529 college savings accounts and have similar federal income tax benefits. Federal law, passed in December 2014, authorized states to establish an ABLE program through which people with disabilities and their families and friends can save to cover a wide-range of disability-related expenses. Please join me in co-sponsoring this legislation to assist individuals with disabilities and their families. |
Introduced as HB1445