This bill amends various sections of the Nebraska educational savings plan trust to broaden its scope to include savings plans for elementary and secondary education. It introduces new definitions, harmonizes existing laws, and specifies that certain assets and income from educational savings accounts will not be considered when determining eligibility for state assistance programs. A significant addition is the exclusion of income from the Nebraska educational savings plan trust from federal adjusted gross income for tax purposes, providing tax relief for participants. The bill also modifies the responsibilities of the council overseeing the investment management of the trust, ensuring fiduciary duties are upheld, and clarifies the treatment of contributions and earnings in relation to state income tax.

Additionally, the bill establishes new programs, including the Employer Matching Contribution Incentive Program and the College Savings Plan Low-Income Matching Scholarship Program, both set to begin on January 1, 2022. The Employer Matching Contribution Incentive Program encourages employers to make matching contributions to employee accounts, while the Low-Income Matching Scholarship Program supports individuals with limited means by matching private contributions. The bill also introduces the Meadowlark Program to enhance access to postsecondary educational opportunities, with state scholarship funds matching participant contributions based on household income. Overall, the bill aims to enhance the educational savings framework in Nebraska, making it more inclusive and beneficial for families saving for their children's education.

Statutes affected:
Introduced: 68-1201, 72-1239.01, 77-2716, 85-1801, 85-1802, 85-1804, 85-1805, 85-1806, 85-1807, 85-1808, 85-1809, 85-1810, 85-1811, 85-1812, 85-1813, 85-1814, 85-1815, 85-1816, 85-1817, 85-2802, 85-2803, 85-2804