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HB 4768

Relating to updating definitions to incorporate federal law changes to qualified higher education expenses for purposes of 529 accounts

2026 Regular Session Introduced by Joe Ellington and 2 co-sponsors

West Virginia aligns 529 college savings account rules with federal law changes to expand eligible education expenses and prevent tax penalties for account holders.

Chapter 172, Acts, Regular Session, 2026
#education(higher)
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Bill Summary · HB 4768

Legislative bill overview

HB 4768 updates West Virginia's definition of qualified higher education expenses for 529 college savings accounts to align with recent federal law changes. The bill ensures that state law keeps pace with federal regulations governing what expenses can be paid from these tax-advantaged accounts without penalty.

Why is this important

529 accounts are widely used by West Virginia families to save for education costs with tax benefits. When federal law expands what counts as qualified expenses (such as student loan repayment or apprenticeship costs), state law must reflect these changes or account holders face unexpected tax penalties. This update ensures consistency between state and federal rules, protecting families' savings plans.

Potential points of contention

  • Scope of changes unclear: The bill's text references federal law changes without specifying which expenses are newly included, making it difficult to assess the full impact without reviewing accompanying federal regulations
  • Potential cost to state: Expanded eligible expenses could reduce state tax revenue if more 529 distributions qualify for tax-free treatment
  • Retroactive application questions: Unclear whether changes apply retroactively to existing accounts or only prospectively, which could create administrative confusion

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

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