ST TREAS-COLLEGE SAVINGS
Synopsis of Bill as introduced:
Amends the State Treasurer Act and the Illinois Income Tax Act.
Exempts College Savings Pool moneys from a participant's or designated
beneficiary's creditors and from consideration of a beneficiary's
eligibility for scholarships awarded by the State. For Illinois
income tax purposes, redefines an individual's adjusted gross income
to (i) include earnings on college savings and tuition programs other
than the College Savings Pool and the Illinois Prepaid Tuition Program
and (ii) remove rollover contributions from the exemption for College
Savings Pool contributions. Effective immediately.
FISCAL NOTE (State Treasurer)
HB 4187 will save the State significant lost revenues. Under
current law, due to changes in Federal tax laws, the State
could lose approximately $3 million in exempted interest
earnings on investments in out-of-state college savings
programs, also a possible loss of $6 million in deductions
for investments in college savings transferred from
out-of-state programs. This bill will prevent that loss.
HOUSE AMENDMENT NO. 1.
In the State Treasurer Act, removes the exemption of College
Savings Pool moneys from a participant's or beneficiary's creditors.
In the Illinois Income Tax Act, provides that an individual's adjusted
gross income must be increased by the amount excluded from his or her
federal gross income for distributions from tuition programs other
than the College Savings Pool or the Illinois Prepaid Tuition Trust
Fund. Provides that the deduction from an individual's adjusted gross
income for contributions to a College Savings Pool account does not
apply to amounts excluded from his or her federal gross income.
Last action on Bill: PUBLIC ACT.............................. 92-0626
Last action date: JUL-11-2002
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0
END OF INQUIRY
Full Text Bill Status