This bill amends current law regarding education freedom accounts by repealing the provision that exempted funds from these accounts from being considered taxable income for parents. Specifically, it removes the language stating that education freedom account funds shall not constitute taxable income to the parent of the education freedom account student.

Additionally, the bill introduces a requirement for scholarship organizations to 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