LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 20 HLS 202ES 52
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 22, 2020 4:07 PM Author: EDMONDS
Dept./Agy.: Revenue
Subject: Deductions for Educational Expenses Analyst: Jodi Mauroner
TAX/INCOME TAX EN DECREASE GF RV See Note Page 1 of 1
Provides relative to income tax deduction for certain educational expenses incurred during the COVID-19 pandemic (Item
#26)
Proposed legislation provides for a tax deduction for the educational expenses incurred from March 13 through December
31, 2020 during the COVID-19 pandemic for educational coaching services for students receiving virtual education delivered
by the public or non-public school in an amount equal to the actual amount of expenses, or $5,000 whichever is less.
Provides definitions, including “immediate family” and “in-person facilitator of virtual education”. Prohibits dual eligibility for
this and other existing tax credits as provided in law. Effective upon governor's signature.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. DECREASE $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
There will be an indeterminable decrease to the state general fund to the extent filers claim the deduction for educational
coaching services. The deduction amount is equal to the actual amount paid but no more than $5,000 may be claimed by
parents who have engaged an individual to oversee/assist the student who received virtual educational instruction from a
teacher at a public/nonpublic school. The LFO cannot determine the extent to which filers will make such claims or the
amount that may be claimed. Each such claim can have a maximum tax reduction impact of $300 ($5,000 x 6% maximum
marginal tax rate).
The new deductions are applicable to expenses during 2020, incurred from March 13 through December 31, and would be
claimed on tax returns filed in the spring of 2021.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Staff Director
or a Net Fee Decrease {S}