LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6275 NOTE PREPARED: Nov 11, 2020
BILL NUMBER: HB 1308 BILL AMENDED:
SUBJECT: Education Savings Plan Tax Credit.
FIRST AUTHOR: Rep. Miller D BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill increases the maximum amount of the annual credit against adjusted
gross income to which a taxpayer is entitled for a contribution to a College Choice 529 Education Savings
Plan.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Department of State Revenue (DOR): The DOR will incur additional
expenses to revise tax forms, instructions, and computer programs to reflect the changes made by the bill.
The DOR's current level of resources should be sufficient to implement these changes.
Explanation of State Revenues: The bill increases the maximum annual income tax credit amount a
taxpayer may claim for contributions to an Indiana College Choice 529 Savings Plan from $1,000 to $2,000.
The credit modification is effective beginning in tax year 2022, so it will impact state General Fund revenue
beginning in FY 2023. The bill is estimated to reduce state General Fund revenue between $37.2 M and
$51.7 M annually beginning in FY 2023.
Additional Information - This tax credit may be claimed by individual taxpayers who make contributions to
an Indiana College Choice 529 Education Savings Plan. The credit is equal to 20% of the taxpayer’s annual
contributions to an Indiana College Choice 529 Education Savings Plan, up to a current maximum credit of
$1,000 annually. The credit is nonrefundable and unused credits may not be carried forward or carried back.
In tax year 2018, the credit was claimed on 110,564 returns for a total of $74.3 M.
The revenue loss associated with the bill was estimated using a combination of data from the DOR and the
HB 1308 1
Indiana Education Savings Authority. The lower bound estimate assumes taxpayers claim an amount equal
to the average Indiana College Choice 529 Education Savings Plan contribution made during FY 2019. The
upper bound estimate assumes the maximum $2,000 credit provided by this bill. Both estimates allow for
some taxpayers to have insufficient tax liabilities to exhaust the full value of the nonrefundable credit. Both
estimates also allow for some taxpayers to spend less than the current $1,000 credit limit.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of State Revenue; Indiana Education Savings Authority.
Local Agencies Affected:
Information Sources: LSA Income Tax Database; CollegeChoice Basic Financial Statements and
Supplementary Information for the year ended 06/30/2019,
https://emma.msrb.org/ER1272902-ER993602-ER1396468.pdf
Fiscal Analyst: Olivia Smith, 317-232-9869.
HB 1308 2


Statutes affected:
1. Introduced House Bill (H): 6-3-3-12