PRINTER'S NO. 1837
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1445
Session of
2017
INTRODUCED BY MARSHALL, O'NEILL, A. HARRIS, BARRAR, V. BROWN,
CHARLTON, DRISCOLL, JAMES, KAUFER, LONGIETTI, B. MILLER,
D. MILLER, ORTITAY, PASHINSKI, PICKETT, ROTHMAN, ROZZI, RYAN,
SAMUELSON AND WARD, MAY 24, 2017
REFERRED TO COMMITTEE ON FINANCE, MAY 24, 2017
AN ACT
Providing for the taxation or the exemption from taxation of
amounts and events relating to the Pennsylvania ABLE Savings
Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
ABLE Savings Program Tax Exemption Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." An ABLE savings account as defined in section 102
of the Pennsylvania ABLE Act.
"Designated beneficiary." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act.
"Eligible individual." The term shall have the same meaning
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as provided in section 102 of the Pennsylvania ABLE Act.
"Internal Revenue Code." The Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. ยง 1 et seq.).
"Pennsylvania ABLE Act." The act of April 18, 2016 (P.L.128,
No.17), known as the Pennsylvania ABLE Act.
"Pennsylvania ABLE Savings Program." The program established
under the Pennsylvania ABLE Act.
"Qualified disability expense." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act.
"Rollover distribution." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act.
Section 3. Contributions and distributions.
(a) Exemption.--Subject to subsection (b), the following
shall be exempt from all taxation by the Commonwealth and its
political subdivisions:
(1) Undistributed earnings on an account.
(2) A rollover distribution that is excludable from tax
under section 529A(c) of the Internal Revenue Code.
(3) An amount distributed from an account that is
excludable from tax under section 529A(c) of the Internal
Revenue Code.
(b) Deduction.--
(1) An amount paid as a contribution into an account
shall be deductible from taxable income on the annual
personal income tax return.
(2) The amount paid as a contribution to an account
allowable as a deduction under this section shall be subject
to an annual limitation not to exceed the threshold for
exclusion from gifts as provided in section 2503(b) of the
Internal Revenue Code, per designated beneficiary.
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(3) The deduction shall not result in taxable income
being less than zero.
(c) Tax.--An amount that is distributed from an account and
not described as exempt from taxation under this section shall
be taxable under Article III of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
(d) Change of beneficiary.--A change in designated
beneficiaries under section 529A(c) of the Internal Revenue Code
shall not constitute a taxable event.
Section 4. Effective date.
This act shall take effect immediately.
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