Connecticut House Bill HB05255

Connecticut 2019 Regular Session

• Introduced: 1/14/19
• Refer: 1/14/19

Caption

An Act Concerning The Tax Deduction For Certain Section 529 Qualified State Tuition Program Distributions.

Impact

The bill's implications on state law are significant, as it directly alters how families can utilize funding from 529 plans. By disallowing tax deductions for private school distributions, the legislation seeks to steer families toward public education options over private schooling. The intent appears to be an effort to promote greater equity in educational funding and utilization of taxpayer resources, indicating a state policy focus on public education support.

Summary

House Bill 05255 addresses the eligibility of tax deductions for certain distributions under Section 529 qualified state tuition programs. Specifically, the bill proposes an amendment to section 12-701 of the general statutes, clarifying that distributions made from a Section 529 plan for elementary or secondary private school tuition should not qualify for personal income tax deductions. This amendment is meant to redefine tax liability for families utilizing these educational savings accounts for private schooling.

Contention

Discussions surrounding the bill may center on the complexities of educational choice and funding. Proponents of HB 05255 may argue that removing tax benefits for private schooling can help ensure that public education systems remain adequately funded and prioritized. Conversely, opponents might assert that this legislation restricts parental choice in education and could disproportionately affect families who prefer private institutions for educational reasons. This tension reflects broader debates on educational equity, public funding, and the role of government in personal choice regarding education.