RELATING TO THE NATIONAL GUARD.

2025 Regular Session Introduced by Nadine Nakamura

House Bill 1063 expands Arkansas' ABLE program by raising the disability onset age to 46, allowing more individuals to access tax-deferred savings accounts.

Introduced and Pass First Reading.

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Purpose and Intent

House Bill 1063 aims to amend the Achieving a Better Life Experience (ABLE) Program Act in Arkansas. The primary intent of the bill is to expand eligibility for disability savings accounts by changing the age limit for the onset of disability or blindness from 26 years to 46 years. This change is designed to provide more individuals with access to tax benefits associated with the ABLE program, thereby enhancing financial support for those with disabilities.

Key Provisions

Amendment of Definitions: The bill modifies the definitions of "disability certification" and "eligible individual" within the ABLE Program Act.

Disability Onset Age: The onset age for qualifying disabilities or blindness is raised from 26 to 46 years.
Eligibility Criteria: Individuals who have a medically determinable physical or mental impairment or blindness that occurred before the age of 46 will now qualify for the program.

Tax Benefits: Taxpayers will be allowed to set up tax-deferred ABLE accounts for individuals whose disabilities onset before the age of 46, allowing for contributions of up to $5,000 per year to these accounts.

Effective Date: The changes proposed in HB 1063 will take effect on January 1, 2026.

Impact

Beneficiaries: The bill is expected to increase the number of eligible beneficiaries for the ABLE program, allowing individuals with disabilities that onset before age 46 to benefit from tax deductions and savings opportunities.

Fiscal Impact: The estimated reduction in general revenue due to the expanded eligibility is projected to be less than $20,000 per year. The total contributions to ABLE accounts may increase by approximately 50%, leading to an estimated annual revenue impact of about $18,500.

Taxpayer Impact: Taxpayers will have the opportunity to contribute to ABLE accounts for a broader range of individuals, enhancing financial support for families with members who have disabilities.

Procedural Aspects

Legislative Journey: HB 1063 was introduced on December 11, 2024, and has passed its first reading. It has undergone several readings and amendments in both the House and Senate, with the final version being passed on April 14, 2025.

Training and Resources: The Department of Finance and Administration will need to update tax booklets and training materials to reflect the changes in eligibility criteria.

Conclusion

House Bill 1063 represents a significant step towards improving financial support for individuals with disabilities in Arkansas by broadening access to the ABLE program. By raising the age limit for disability onset, the bill aims to provide more individuals and families with the necessary resources to manage the financial implications of disabilities.

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