HB4751sam001 100TH GENERAL ASSEMBLY

Sen. Bill Cunningham

Filed: 5/8/2018

10000HB4751sam001 LRB100 17260 RJF 39737 a

AMENDMENT TO HOUSE BILL 4751

AMENDMENT NO. ______. Amend House Bill 4751 as follows:

on page 26, immediately below line 19, by inserting the following:

"(D-20.5) For taxable years beginning on or after January 1, 2018, in the case of a distribution from a qualified ABLE program under Section 529A of the Internal Revenue Code, other than a distribution from a qualified ABLE program created under Section 16.6 of the State Treasurer Act, an amount equal to the amount excluded from gross income under Section 529A(c)(1)(B) of the Internal Revenue Code;"; and

on page 27, by replacing lines 1 through 10 with the following:

"(D-21.5) For taxable years beginning on or after January 1, 2018, in the case of the transfer of moneys from a qualified tuition program under Section 529 or a qualified ABLE program under Section 529A of the Internal Revenue Code that is administered by this State to an ABLE account established under an out-of-state ABLE account program, an amount equal to the contribution component of the transferred amount that was previously deducted from base income under subsection (a)(2)(Y) or subsection (a)(2)(HH) of this Section;"; and

on page 27, line 12, after "2009,", by inserting "and prior to January 1, 2018,"; and

on page 27, line 22, after "disability", by inserting ". For taxable years beginning on or after January 1, 2018: (1) in the case of a nonqualified withdrawal or refund, as defined under Section 16.5 of the State Treasurer Act, of moneys from a qualified tuition program under Section 529 of the Internal Revenue Code administered by the State, an amount equal to the contribution component of the nonqualified withdrawal or refund that was previously deducted from base income under subsection (a)(2)(Y) of this Section, and (2) in the case of a nonqualified withdrawal or refund from a qualified ABLE program under Section 529A of the Internal Revenue Code administered by the State that is not used for qualified disability expenses, an amount equal to the contribution component of the nonqualified withdrawal or refund that was previously deducted from base income under subsection (a)(2)(HH) of this Section;"; and

on page 41, line 11, by replacing "and" with "and"; and

on page 41, by replacing line 26 with "(GG) is exempt from the provisions of Section 250; and ."; and

on page 41, immediately below line 26, by inserting the following:

"(HH) For taxable years beginning on or after January 1, 2018, a maximum of $10,000 contributed in the taxable year to a qualified ABLE account under Section 16.6 of the State Treasurer Act, except that amounts excluded from gross income under Section 529(c)(3)(C)(i) or Section 529A(c)(1)(C) of the Internal Revenue Code shall not be considered moneys contributed under this subparagraph (HH). For purposes of this subparagraph (HH), contributions made by an employer on behalf of an employee, or matching contributions made by an employee, shall be treated as made by the employee. This subparagraph (HH) is exempt from the provisions of Section 250.".