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.