Bill Text: NH HB402 | 2025 | Regular Session | Introduced

---

Bill Title: Relative to liability as taxable income of education freedom account payments.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2025-01-10 - Introduced (in recess of) 01/09/2025 and referred to Ways and Means House Journal 3 [HB402 Detail]

Download: New_Hampshire-2025-HB402-Introduced.html

---

HB 402  - AS INTRODUCED

 

 

2025 SESSION

25-0707

07/02

 

HOUSE BILL 402

 

AN ACT relative to liability as taxable income of education freedom account payments.

 

SPONSORS: Rep. Luneau, Merr. 9; Rep. Ames, Ches. 13; Rep. M. Smith, Straf. 10

 

COMMITTEE: Ways and Means

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill:

 

I.  Repeals the statement that education freedom account funds shall not constitute taxable income to the parent of the education freedom account student.

 

II.  Requires the timely delivery of IRS 1099 forms to parties responsible for tax liabilities incurred from payments made from a education freedom account.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

25-0707

07/02

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Five

 

AN ACT relative to liability as taxable income of education freedom account payments.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Paragraph; Education; Education Freedom Accounts; Authority and Responsibilities of the Scholarship Organization.  Amend RSA 194-F:4 by inserting after paragraph XVII the following new paragraph:

XVIII.  The scholarship organization shall produce and assure timely delivery of the appropriate Internal Revenue Service Form 1099 to parties responsible for any federal tax liability incurred from payments made from a student’s EFA.

2  Repeal.  RSA 194-F:2, VI, relative to funds deposited in an education freedom account not constituting taxable income to the parent of the education freedom account student, is repealed.

3  Effective Date.  This act shall take effect 60 days after its passage.