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LB 296: Changes to educational savings plans relating to income tax reductions

As introduced: LB296 was introduced to make changes to the Nebraska College Savings Program. The Nebraska state income tax deduction limitations available for contributions made to a Nebraska College Savings Program is increased from $2,500.00 to $5,000.00 for a married person filing separately and to $10,000.00 for a joint filing.

Rollover contributions from another state’s plan into a Nebraska College Savings Program account would be entitled to the Nebraska state income tax deduction. This change brings the statute into agreement with interpretations of the Nebraska Department of Revenue.

LB296 further provides how ownership of the account shall be handled upon the death of the account owner.

Introducing Senator(s): Hadley

Committee: Revenue

Committee Hearing Date: February 1, 2013

Current Status: Approved by Governor on June 3, 2013

Estimated Fiscal Impact: The estimated reduction to the General Fund would be as follows:

FY 2013-2014 $ 0;

FY 2014-2015 $ 1,297,000;

FY 2015-2016 $ 1,371,000;

FY 2016-2017 $ 1,449,000

LB 296 applies to all taxable years beginning or deemed to begin on or after January 1, 2014.

Voices for Children’s Position: Support

Research: See our blog on Educational savings plans

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