7AFEF5DD0757E900872583A600759BB5 Hearing Summary

Representative Larson, sponsor, presented House Bill 19-1123, concerning the alignment of the state income tax deduction for contributions to a 529 account with changes in the federal "Tax Cut and Jobs Act" of 2017.  The bill modifies the state income tax deduction for contributions to an education savings account established under Section 529 of the Internal Revenue Code (529 account). The bill allows money in a 529 account to be withdrawn to pay for qualified kindergarten through twelfth grade (K-12) education expenses, including those for enrollment or attendance at a public, private, or religious school. The bill also requires that such withdrawals not be subject to state income tax recapture. Representative Larson distributed materials relating to the bill (Attachment A).

Representative Larson answered committee questions about the provisions of the bill.

Matthew Scott, Department of Revenue, answered questions from the committee regarding what a 529 account could be used for.

Representative Larson continued to respond to committee questions regarding the bill and how 529 accounts are currently used.

The following people provided testimony:

Ali Mickelson, Colorado Fiscal Institute, testified in opposition to the bill.

Jonna Levine, Support Jeffco Kids, testified in opposition to the bill.

The above panel answered questions from the committee. Representative Larson also answered committee questions.

Mr. Scott returned to the table to answer committee questions about 529 account compliance.

Ms. Mickelson and Ms. Levine responded to committee questions about 529 accounts throughout the country.

Ryan Case, American Federation of Teachers and Colorado Education Association, testified in opposition to the bill.

Evie Hudak, Colorado Parent Teacher Association, testified in opposition to the bill.

Katherine Kelly, St. Rose of Lima, testified in support of the bill.

Barb Bulthuis, Crossroads School, testified in support of the bill.

Doug Cox, Parkhill Academy, testified in support of the bill.

Mr. Cox answered questions from the committee.

Weston Kurz, Dayspring Academy and Colorado Association of Private Schools (CAPS), testified in support of the bill and distributed a letter from CAPS to the committee (Attachment B).

Katrina Yoshida, ACE Scholarships, testified in support of the bill.

Ross Izard, ACE Scholarships, testified in support of the bill and distributed three letters in support of the bill to the committee (Attachment C).

The panel responded to questions from the committee.