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7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Achieving a Better Life Experience Program Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ directs the Department of Workforce Services to either:
14 • administer the state Achieving a Better Life Experience Program (ABLE);
15 • enter into a contract with a state that maintains a qualified ABLE program to
16 provide Utah residents access to that state's qualified ABLE program; or
17 • inform eligible individuals and parents or legal guardians of eligible individuals
18 about qualified ABLE programs offered by other states to which Utah residents
19 may apply; and
20 ▸ allows persons that contribute to an account in any qualified ABLE program to
21 claim a nonrefundable state tax credit.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 35A-12-102, as enacted by Laws of Utah 2015, Chapter 460
29 35A-12-201, as enacted by Laws of Utah 2015, Chapter 460
30 59-7-620, as enacted by Laws of Utah 2015, Chapter 460
31 59-10-1035, as enacted by Laws of Utah 2015, Chapter 460
32 REPEALS:
33 35A-12-202, as enacted by Laws of Utah 2015, Chapter 460
34 35A-12-301, as enacted by Laws of Utah 2015, Chapter 460
35 35A-12-302, as enacted by Laws of Utah 2015, Chapter 460
36 35A-12-303, as enacted by Laws of Utah 2015, Chapter 460
37 35A-12-304, as enacted by Laws of Utah 2015, Chapter 460
38 35A-12-305, as enacted by Laws of Utah 2015, Chapter 460
39 35A-12-401, as enacted by Laws of Utah 2015, Chapter 460
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41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 35A-12-102 is amended to read:
43 35A-12-102. Definitions.
44 As used in this chapter:
45 (1) "Account" means [
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82 (2) "Qualified ABLE program" means the same as that term is defined in 26 U.S.C.
83 Sec. 529A.
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85 created by this chapter.
86 Section 2. Section 35A-12-201 is amended to read:
87 35A-12-201. Creation of program.
88 (1) There is created the state Achieving a Better Life Experience Program.
89 (2) The department shall do one of the following:
90 (a) administer the [
91 compliance with:
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94 (i) 26 U.S.C. Sec. 529A; and
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103 (b) enter into a contract with a state that maintains a qualified ABLE program to
104 provide Utah residents access to that state's qualified ABLE program; or
105 (c) inform eligible individuals and parents or legal guardians of eligible individuals
106 about qualified ABLE programs offered by other states to which Utah residents may apply.
107 (3) This chapter may not be interpreted to:
108 (a) authorize or provide a disability-related service to an eligible individual;
109 (b) be a factor in establishing residency; or
110 (c) provide that contributions made into an account are sufficient to cover the qualified
111 disability expenses of an eligible individual.
112 (4) An account is not insured or guaranteed by the state.
113 (5) The state does not guarantee the rate or payment of interest or other return on an
114 account.
115 Section 3. Section 59-7-620 is amended to read:
116 59-7-620. Nonrefundable tax credit for contribution to state Achieving a Better
117 Life Experience Program account.
118 (1) As used in this section:
119 [
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122 (a) "Account" means an account in a qualified ABLE program where the designated
123 beneficiary of the account is a resident of this state.
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125 (i) makes a contribution to an account; and
126 (ii) receives a statement from the [
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130 (c) "Designated beneficiary" means the same as that term is defined 26 U.S.C. Sec.
131 529A.
132 (d) "Qualified ABLE program" means the same as that term is defined in Section
133 35A-12-102.
134 (2) A contributor to an account [
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136 (3) Subject to the other provisions of this section, the tax credit is equal to the product
137 of:
138 (a) 5%; and
139 (b) the total amount of contributions:
140 (i) the contributor makes for the taxable year; and
141 (ii) for which the contributor receives a statement from the [
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143 (4) A contributor may not claim a tax credit under this section:
144 (a) for an amount of excess contribution to an account that is returned to the
145 contributor [
146 (b) with respect to an amount the contributor deducts on a federal income tax return.
147 (5) A tax credit under this section may not be carried forward or carried back.
148 Section 4. Section 59-10-1035 is amended to read:
149 59-10-1035. Nonrefundable tax credit for contribution to state Achieving a Better
150 Life Experience Program account.
151 (1) As used in this section:
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155 (a) "Account" means an account in a qualified ABLE program where the designated
156 beneficiary of the account is a resident of this state.
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158 (i) makes a contribution to an account; and
159 (ii) receives a statement from the [
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163 (c) "Designated beneficiary" means the same as that term is defined 26 U.S.C. Sec.
164 529A.
165 (d) "Qualified ABLE program" means the same as that term is defined in Section
166 35A-12-102.
167 (2) A contributor to an account [
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169 (3) Subject to the other provisions of this section, the tax credit is equal to the product
170 of:
171 (a) 5%; and
172 (b) the total amount of contributions:
173 (i) the contributor makes for the taxable year; and
174 (ii) for which the contributor receives a statement from the [
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176 (4) A contributor may not claim a tax credit under this section:
177 (a) for an amount of excess contribution to an account that is returned to the
178 contributor [
179 (b) with respect to an amount the contributor deducts on a federal income tax return.
180 (5) A tax credit under this section may not be carried forward or carried back.
181 Section 5. Repealer.
182 This bill repeals:
183 Section 35A-12-202, Application.
184 Section 35A-12-301, Account administrator -- Fees or service charges.
185 Section 35A-12-302, Contributions.
186 Section 35A-12-303, Account agreements -- Beneficiaries.
187 Section 35A-12-304, Duties of account administrator.
188 Section 35A-12-305, Reports.
189 Section 35A-12-401, Scope of chapter -- No state guarantee.