HB18-1209 (Garnett/Pettersen) No 529 Account Income Tax Deduction for K-12 Kindergarten through Twelfth Expenses
A change in the federal “Tax Cuts and Jobs Act” allows tax-advantaged college savings plans known as 529s to also cover up to $10,000 a year in K-12 public, private and religious school expenses. Colorado’s 529 program, CollegeInvest, allows families to invest their after-tax money into a college savings plan and through compound interest, accrue earnings rapidly over time. This bill amends Colorado law to ensure that a taxpayer may not claim a deduction for elementary or secondary school expenses, meaning the state income tax deduction would not be aligned with federal changes.
The Children’s Campaign supports this bill. 529s provide families an opportunity to save for college tuition and other anticipated expenses, and should not be extended to K-12 private and religious school expenses. HB18-1209 would have the opposite effect of HB18-1221, which would align the state income tax deduction to the changes in the “Tax Cuts and Jobs Act.” The Children’s Campaign opposes HB18-1221.
Assigned to the House Education Committee