This bill amends the current law regarding education freedom accounts by repealing the provision that states funds from these accounts shall not be considered taxable income for the parents of students utilizing the accounts. Specifically, it deletes the language in RSA 194-F:2, VI that previously exempted these funds from being classified as taxable income.

Additionally, the bill introduces a new requirement for scholarship organizations overseeing education freedom accounts. It mandates that these organizations must produce and ensure the timely delivery of IRS Form 1099 to individuals responsible for any federal tax liabilities arising from payments made from a student's education freedom account. This change aims to clarify tax responsibilities associated with these accounts and will take effect 60 days after the bill's passage.

Statutes affected:
Introduced: 194-F:4, 194-F:2