Carpino Proposes Bill Aimed at Creating a Tax-Free Savings Account for Those with Disabilities
HARTFORD – State Representative Christie Carpino (R-32) introduced legislation this session that would create a tax-free savings account (H.B. 5099), allowing people with disabilities to pay certain expenses in a state program modeled after the federally-proposed legislation: Achieving a Better Life Experience (ABLE). Carpino is looking to expand upon current regulations to also allow these savings accounts to be exempt from state taxes. She introduced the bill along with co-sponsor State Rep. Noreen Kokoruda (R-101).
ABLE Accounts are tax-advantaged savings accounts for individuals with disabilities and their families. As a result of the ABLE Act, income earned by the accounts will not be taxed. In addition, contributions made to the account by any person (the account beneficiary, family, and friends) will not be tax deductible.
There is a distinct need for ABLE accounts. Although, there are public benefits available for families with children who have disabilities, these are often income-based and leave many out of the fold. This bill recognizes the extra and significant costs of living with a disability. In fact, it allows for eligible individuals and families to establish ABLE savings account that will not affect their eligibility for these benefits.
“This bill, if passed, will provide a great piece of mind to families of children with disabilities. When it comes to saving, we know that every little penny counts and adds up, by eliminating the state tax collected on interest in these saving accounts; we are allowing these families to save even more for their loved ones. ” said Rep. Carpino, who also serves as a member of the intellectual and developmental disabilities caucus in the legislature.
The proposed bill was initially referred to the Joint Committee on Public Health and has passed to the Finance, Revenue and Bonding Committee where it will await further action there. This session of the Connecticut General Assembly convened on January 7th, and will conclude at midnight, Wednesday, June 3rd, 2015.
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