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Bill

S 6778

Increases tax free contributions to family tuition accounts

2025 Regular Session Introduced by Robert Jackson

Raises tax-free contributions to family tuition accounts, boosting education-savings for families and clarifying who can contribute and how funds may be used.

REFERRED TO BUDGET AND REVENUE
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WeVote Research Nonpartisan
Bill Summary · S 6778

Summary of Bill S 6778 – Increases tax free contributions to family tuition accounts

Status: REFERRED TO BUDGET AND REVENUE
Introduced: March 24, 2025
Sponsor: Robert Jackson (primary)
Bill Type: Classification: bill

Purpose and intent

  • The bill aims to expand or increase the amount of tax-free contributions that may be made to family tuition accounts. The underlying goal is to enhance savings options for families to prepare for educational expenses.

Key provisions (as introduced)

  • The exact text and details are not provided here. Based on the title, the bill would likely:
    • Increase the annual or lifetime limit on tax-free contributions to family tuition accounts.
    • Clarify eligible contributors (e.g., parents, guardians, relatives) and possibly rules for who can contribute.
    • Define or confirm the tax treatment of contributions and withdrawals (e.g., tax-free contributions and tax-free or taxable withdrawals for qualified education expenses).
    • Set administrative rules for account management, eligibility, and compliance.
    • Establish effective date and any phase-in period, if applicable.
  • Specific dollar amounts, caps, eligible uses, and penalties (if any) would be spelled out in the enacted text.

Affected parties

  • Families and individuals who contribute to family tuition accounts.
  • Account holders and beneficiaries (students) using funds for educational expenses.
  • State or local tax administration and revenue departments responsible for administering tax-advantaged accounts.
  • Education providers and institutions that receive or recognize qualified expenses.

Procedural and timeline notes

  • The bill has been referred to the Budget and Revenue committee, signaling it will undergo fiscal review for potential revenue impact and budgetary effects.
  • As introduced on March 24, 2025, the bill will proceed through committee hearings, potential amendments, and floor consideration. If enacted, regulations or guidelines may be issued to implement the changes.

Related legislation

  • S 1225 (prior-session)
  • S 7197 (prior-session)
  • S 396 (prior-session)
  • S 3485 (prior-session)
  • S 2619 (prior-session)
  • S 4962 (prior-session)

Potential impact and considerations

  • Positive: Increased savings opportunities for families may make education more affordable and encourage early planning for college or other qualifying educational expenses.
  • Fiscal: Potential impact on state revenue, depending on how the tax benefit is structured and whether it affects overall tax collections.
  • Practical: Implementation will require clear definitions of eligible accounts, contribution rules, and compliance mechanics to avoid misuse or confusion.

Note: Specific provisions (e.g., exact contribution limits, eligible accounts, and tax treatment) will be determined by the bill’s enacted text and any subsequent amendments.

Compiled from official sources — confirm details with the bill’s official record.

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