Bill > HB342

This bill makes several changes to the Education Savings Plan in New Mexico: 1. It amends the definition of "base income" in the state's Income Tax Act to include any amounts withdrawn from an Education Savings Plan that are not used for qualified higher education expenses. 2. It allows taxpayers to claim a deduction from their net income for contributions made to an Education Savings Plan, up to the cost of attendance at the applicable institution of higher education. 3. It makes various updates to the Education Trust Act, which governs the state's Education Savings Program, including clarifying definitions, the board's powers and duties, and rules around education investment agreements and accounts. 4. It specifies that money in Education Savings Plan accounts is exempt from creditors' claims and that the state is not liable for any contractual obligations of the Education Savings Program beyond the Education Trust Fund and Program Administration Fund. The overall goal of the bill appears to be to provide more flexibility and tax benefits for New Mexico residents saving for higher education through the state's Education Savings Plan.

Education

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=342&year=23