Delaware Vote Tracker

HB 145 – New Tax Deductions for Education and DEpendABLE Accounts

House Bill 145 is a bill, sponsored by Rep Krista Griffith, that would provide tax benefits to Delawareans saving for education or for the benefit of people with disabilities. It would give a personal income tax deduction of up to $1,000 for contributions to a DE529 Education Savings Plan Account, and up to $5,000 for contributions to DEpendABLE accounts.

DE529 accounts help parents, grandparents and others pay for education expenses, reducing the possibility of debt. Money in the accounts is tax free as it grows and withdrawals for qualified education expenses like tuition, fees, and books are federal and Delaware income tax-free.

DEpendABLE, Delaware’s Achieving a Better Life Experience (ABLE) program, allows individuals with disabilities and their families to save for a broad range of expenses on a tax-advantaged basis without jeopardizing their benefits from supplemental security income (SSI), Medicaid and other federal and state programs.

And amendment was introduced with the bill as it was moved out of the Revenue & Finance Committee in the House. The bill and the amendment are now in the Appropriations Committee. The Amendment states that the deduction is not eligible for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. So it seems that the deduction is only available for college tuition and expenses.

House Bill 145 SponsorsYes VotesNo Votes
Griffith, K.Johnson, Longhurst, Heffernan, Dorsey Walker, Bush, Brady, Lambert
Paradee, Sturgeon, Hansen, Gay
Current Status — House Appropriations 4/22/21

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