HB 3208 — COLLEGE SAVINGS PROGRAMS

Summary

Amends the Illinois Income Tax Act. Removes a provision that requires a taxpayer to add to federal adjusted gross income, to arrive at base income for Illinois income tax purposes, distributions from a qualified tuition program under Section 529 of the Internal Revenue Code other than distributions from the College Savings Pool or the Illinois Prepaid Tuition Program to the extent those distributions were excluded from income in arriving at federal adjusted gross income. Amends the State Treasurer Act and further amends the Illinois Income Tax Act to allow an income tax deduction for moneys contributed in the taxable year to the College Savings Pool, the Illinois Prepaid Tuition Program, or to any other qualified tuition program under Section 529 of the Internal Revenue Code (now, deduction limited to College Savings Pool contributions). Effective immediately.

Bill Text

• Introduced View text Current html

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends the State Treasurer Act to establish and administer a College Savings Pool, detailing its operations, participant definitions, investment policies, and contribution limits.

• 15 ILCS 505/16.5

  The State Treasurer may establish and administer a College Savings Pool to supplement and enhance the investment opportunities otherwise available to persons seeking to finance the costs of higher education.

  This establishes the College Savings Pool and its purpose.

• 15 ILCS 505/16.5

  "Participant", as used in this Section, means any person who makes investments in the pool. → "Participant", as used in this Section, means any person who makes investments in the pool. "Designated beneficiary", as used in this Section, means any person on whose behalf an account is established in the College Savings Pool by a participant.

  This introduces the term 'Designated beneficiary' and its definition.

• 15 ILCS 505/16.5

  Beginning in 2001 and every year thereafter, the maximum fee limit shall be adjusted by the Treasurer based on the Consumer Price Index for the North Central Region as published by the United States Department of Labor, Bureau of Labor Statistics for the immediately preceding calendar year. → Beginning in 2001 and every year thereafter, the maximum fee limit shall be adjusted by the Treasurer based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor for the immediately preceding calendar year.

  This updates the specific Consumer Price Index referenced for fee adjustments.

• 15 ILCS 505/16.5

  The Treasurer shall limit the contributions that may be made on behalf of a designated beneficiary based on an actuarial estimate of what is required to pay tuition, fees, and room and board for 5 undergraduate years at the highest cost eligible educational institution. → The Treasurer shall limit the contributions that may be made on behalf of a designated beneficiary based on an actuarial estimate of what is required to pay tuition, fees, and room and board for a period equivalent to 5 undergraduate years at the highest cost eligible educational institution.

  This clarifies the time frame related to contribution limits.

• 15 ILCS 505/16.5

  The Treasurer shall provide the Illinois Student Assistance Commission each year at a time designated by the Commission, an electronic report of all participant accounts in the Treasurer's College Savings Pool, listing total contributions and disbursements from each individual account during the previous calendar year. → The Treasurer shall provide the Illinois Student Assistance Commission each year at a time designated by the Commission, an electronic report of all participant accounts in the Treasurer's College Savings Pool, listing total contributions and disbursements from each individual account during the previous calendar year. This report shall also include any penalties incurred by participants during the previous calendar year.

  This adds a requirement for the report to include penalties incurred by participants.

• 15 ILCS 505/16.5

  No interest in the program may be pledged as security for a loan. → No contributions to the College Savings Pool authorized by this Section shall be considered in evaluating the financial capability of any person or entity for the purposes of obtaining a loan or credit with any financial institution.

  This clarifies that contributions are not to be considered when assessing loan eligibility.

Action History

1. January 11, 2005

   Session Sine Die

2. March 21, 2003

   Added Chief Co-Sponsor Rep. Jack McGuire

3. March 13, 2003

   Rule 19(a) / Re-referred to Rules Committee

4. February 28, 2003

   Assigned to Revenue Committee

5. February 27, 2003

   Referred to Rules Committee

6. February 27, 2003

   First Reading

7. February 27, 2003

   Filed with the Clerk by Rep. Mary K. O'Brien

Sponsors

• Mary K. O'Brien · Cosponsor

Subjects