H1745B2749A04747 NAD:JMT 06/04/24 #90 A04747
AMENDMENTS TO HOUSE BILL NO. 1745
Sponsor: SENATOR HUTCHINSON
Printer's No. 2749
Amend Bill, page 1, line 12, by inserting after "employer"
matching
Amend Bill, page 1, line 12, by inserting after "credit"
and tuition account programs
Amend Bill, page 1, lines 15 through 17, by striking out all
of said lines and inserting
Section 1. Section 303(a.7)(2)(i)(B) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is
amended and the section is amended by adding a clause to read:
Amend Bill, page 2, by inserting between lines 1 and 2
* * *
(B) [Any rollover that is excludable from tax under section
529(c)(3)(C) of the Internal Revenue Code of 1986, as amended.]
Any distribution that is excludable from tax under section 529
of the Internal Revenue Code of 1986, as amended.
Amend Bill, page 2, line 3, by inserting after "employer's"
matching
Amend Bill, page 2, lines 7 through 9, by striking out "OR"
in line 7 and all of lines 8 and 9 and inserting a period
Amend Bill, page 2, line 11, by striking out "an article" and
inserting
articles
Amend Bill, page 2, line 14, by inserting before
"CONTRIBUTION"
MATCHING
Amend Bill, page 2, line 16, by inserting after "employer"
2024/90NAD/HB1745A04747 - 1 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
matching
Amend Bill, page 3, lines 4 and 5, by striking out all of
said lines
Amend Bill, page 3, line 6, by striking out "Treasury
Department" and inserting
Department of Revenue
Amend Bill, page 3, by inserting between lines 6 and 7
"Matching contribution." A deposit of money by an employer
into an employee-owned account during the tax year that does not
exceed the amount of deposits made into that account by the
employee during the same tax year.
Amend Bill, page 3, line 17, by inserting after "employer"
matching
Amend Bill, page 3, line 22, by inserting after "employer"
matching
Amend Bill, page 3, line 25, by striking out "2023" and
inserting
2024
Amend Bill, page 3, line 25, by striking out "2029" and
inserting
2030
Amend Bill, page 3, line 26, by inserting after "a"
matching
Amend Bill, page 4, line 2, by inserting after "aggregate"
matching
Amend Bill, page 4, lines 4 through 7, by striking out all of
said lines and inserting
(c) Tax credit limit for employers.--The total amount of
matching contributions to accounts owned by employees for which
an employer may claim a tax credit shall be no more than $500
per employee during the tax year.
Amend Bill, page 4, line 8, by inserting after "of"
matching
2024/90NAD/HB1745A04747 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Amend Bill, page 4, line 10, by inserting after "qualifying"
matching
Amend Bill, page 4, by inserting between lines 12 and 13
(e) Proof of employee contribution.--In a manner prescribed
by the employer, an employee shall provide to the employer
evidence of the total amount deposited into the employee's
account during the previous tax year.
Amend Bill, page 5, line 4, by striking out "Department of
Revenue" and inserting
department
Amend Bill, page 5, line 21, by striking out "(a)
Guidelines.--"
Amend Bill, page 5, lines 24 through 28, by striking out all
of said lines
Amend Bill, page 5, line 29, by inserting after "in"
matching
Amend Bill, page 6, line 1, by inserting after "a"
matching
Amend Bill, page 6, line 3, by inserting after "make"
matching
Amend Bill, page 6, line 5, by inserting after "equal"
matching
Amend Bill, page 6, line 10, by inserting after "employer"
matching
Amend Bill, page 6, line 11, by inserting after "a"
matching
Amend Bill, page 6, line 13, by inserting after "the"
matching
Amend Bill, page 6, by inserting between lines 27 and 28
ARTICLE XXIX-I
TUITION ACCOUNT PROGRAMS
Section 2901-I. Definitions.
The following words and phrases when used in this article
2024/90NAD/HB1745A04747 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." As defined in section 302 of the act of April 3,
1992 (P.L.28, No.11), known as the Tuition Account Programs and
College Savings Bond Act.
"Account owner." As defined in section 302 of the Tuition
Account Programs and College Savings Bond Act.
"Beneficiary." As defined in section 302 of the Tuition
Account Programs and College Savings Bond Act.
" Tuition Account Program Contract." As defined in section
302 of the Tuition Account Programs and College Savings Bond
Act.
Section 2902-I. Fees.
Notwithstanding section 313(c) of the act of April 3, 1992
(P.L.28, No.11), known as the Tuition Account Programs and
College Savings Bond Act, the Treasury Department may not impose
a fee on the termination of an account if the termination was a
result of the death or disability of the beneficiary.
Section 2903-I. Taxation of payment.
Notwithstanding section 313(d) of the act of April 3, 1992
(P.L.28, No.11), known as the Tuition Account Programs and
College Savings Bond Act, if a Tuition Account Program Contract
is terminated under section 313(a) of the Tuition Account
Programs and College Savings Bond Act, a payment received by an
account owner from the Treasury Department shall not be
considered in the classes of income under section 303 for the
purpose of computing the tax under Article III.
Amend Bill, page 6, line 28, by striking out "in 60 days."
and inserting
as follows:
(1) The following shall take effect immediately:
(i) The amendment of section 303(a.7)(2)(i)(B) of
the act.
(ii) This section.
(2) The remainder of this act shall take effect in 60
days.
2024/90NAD/HB1745A04747 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36