HOUSE OF REPRESENTATIVES

151st GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 4

TO

HOUSE BILL NO. 145

AMEND House Bill No. 145 by deleting lines 5 through 8 in their entirety and inserting in lieu thereof the following:

“ (11) Any amount, up to a limit of $1,000, contributed by an individual during the taxable year to one or more accounts established and maintained pursuant to the Delaware College Investment Plan as set forth in Chapter 34 of Subchapter XII of Title 14 of the Delaware Code, provided, however, that no deduction shall be permitted under this subsection for any amount contributed through (1) a change in the designated beneficiary of or (2) a transfer or rollover from an account established and maintained pursuant to the Delaware College Investment Plan as set forth in Chapter 34 of Subchapter XII of Title 14 of the Delaware Code; and provided further, that no deduction shall be permitted under this section for any amount contributed during the taxable year to an account in a Delaware sponsored tuition program for expenses intended or used for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school; and provided further, that no deduction shall be permitted under this subsection for any amount contributed during the taxable year for an individual, head of household, married filing separate combined, or married filing separate filer with a federal adjusted gross income greater than $100,000 or for joint filers, with a federal adjusted gross income greater than $200,000. For spouses filing a joint return with federal adjusted gross income not greater than $200,000, the amount of the subtraction shall be the amount contributed by the spouses, up to a limit of $2,000. ”.

FURTHER AMEND House Bill No. 145 by deleting lines 9 through 12 in their entirety and inserting in lieu thereof the following:

“ (12) Any amount, up to a limit of $5,000, contributed by an individual during the taxable year to one or more accounts established and maintained pursuant to the Delaware Achieving a Better Life Experience (ABLE) Program as set forth in Chapter 96A of Title 16 of the Delaware Code; provided, however, that no deduction shall be permitted under this subsection for any amount contributed through (1) a change in the designated beneficiary of or (2) a transfer or rollover from an account established and maintained pursuant to the Delaware Achieving a Better Life Experience Program as set forth in Chapter 96A of Title 16 of the Delaware Code. For spouses filing a joint return, the amount of the subtraction shall be the amount contributed by the spouses, up to a limit of $10,000. ”.

FURTHER AMEND House Bill No. 145 by deleting lines 13 through 17 in their entirety and inserting in lieu thereof:

“Section 2: The legislation will take effect for contributions to Delaware College Investment Plan and ABLE accounts made after December 31, 2021.”

SYNOPSIS

This Amendment clarifies that the deduction for contributions to accounts established and maintained pursuant to the Delaware College Investment Plan is limited to $1,000 per individual per year and the deduction for contributions to accounts established and maintained pursuant to the Delaware Achieving Better Live Experience (ABLE) program is limited to $5,000 per individual per year, without regard to the number of accounts to which contributions are made. The Amendment clarifies that spouses filing a joint return are entitled to a deduction of up to $2,000 for contributions to accounts established and maintained pursuant to the Delaware College Investment Plan and up to $5,000 for contributions to accounts established and maintained pursuant to the ABLE program. The Amendment also limits the deduction for contributions to a Delaware College Investment Plan Account to contributions intended or used for qualified college expenses. The contribution for which a deduction is taken would be eligible for all qualified expenses except for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. For contributions to a Delaware College Investment Plan Account, the Amendment provides a means test limiting the deduction to individual, head of household, or married filing separate filers with an adjusted gross income of $100,000 or less per individual, and to joint filers with an adjusted gross income of $200,000 or less. The Amendment also provides a means test limiting the deduction to individual or head of household filers with an adjusted gross income of $100,000 or less and to joint, married filing separate combined, or married filing separate with an adjusted gross income of $200,000 or less. This Amendment makes the legislation effective for contribution to 529 and ABLE accounts made after December 31, 2021. This Amendment also corrects a section numbering error in HB 145 and clarifies the references for eligible Delaware College Investment and ABLE plans.