Bill > SB302

This bill extends and enhances the tax deduction for Achieving a Better Life Experience (ABLE) savings accounts, which are special tax-advantaged savings accounts designed to support individuals with disabilities. The bill recognizes that people with disabilities often face significant financial challenges, including higher medical, housing, and transportation costs, and aims to provide tax relief to help them manage these expenses. Specifically, the bill extends the tax deduction for ABLE account contributions and distributions until January 1, 2031, allowing taxpayers to deduct up to $20,000 per beneficiary for single filers and $30,000 for joint filers. ABLE accounts are unique because they allow individuals with disabilities to save money without jeopardizing their eligibility for means-tested government benefits like Medicaid and Supplemental Security Income. The accounts can be used for qualified expenses including education, housing, transportation, healthcare, assistive technology, and employment. By extending this tax benefit, the legislation seeks to promote financial independence and provide a safety net for individuals with disabilities, encouraging their workforce participation and economic self-sufficiency.

Budget and Finance

https://leg.colorado.gov/bills/sb25-302