Synopsis:

H.B. 296 would create a tax break on contributions to Achieving a Better Life Experience (ABLE) accounts, special savings accounts for people with disabilities that are exempt from certain taxes and do not affect eligibility for social programs like Supplemental Security Income. H.B. 296 would add another financial incentive by allowing contributors to deduct from their taxable income the amount of money they put into an ABLE account. The deduction would cap at $2,500 for individuals and $5,000 for married couples, and would not be available to individuals who make more than $125,000 and married couples who make more than $250,000. H.B. 296 takes the place of H.B. 148, a stalled 2017 bill that would have created deductions for contributions to both ABLE accounts and the 529 college savings accounts they were modeled on – of which there are about 13,500 in Delaware. With estimates projecting H.B. 148 would cost the state close to $1 million dollars in lost tax revenue every year, the bill was unable to report out of the House Appropriations Committee. H.B. 296 would reduce the loss in tax revenue to approximately $35,000 by narrowing the deduction to ABLE accounts. Currently there are fewer than 20 accounts open in Delaware.

Supporters:

Reps. Trey Paradee (D), Kevin Hensley (R), Helene Keeley (D), John Mitchell (D), Melanie George Smith (D), Jeff Spiegelman (R), David Wilson (R); Sens. Nicole Poore (D), Margaret Rose Henry (D), Bryant Richardson (R); 321foundation.

Opponents:

None reported.

Links to Additional Resources: