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S.B. 383
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VETOES
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be treated as having been made in the next succeeding taxable year and, subject to
the $2,500 annual limitation for each prepaid contract, may be carried over to
succeeding taxable years until the full amount of the advance payments
CONTRIBUTIONS has been allowed as a subtraction.
(o) (1) In this subsection, "investment account", "qualified designated
beneficiary", "contributor", and "qualified higher education expenses" have the
meanings stated in § 18-19A-01 of the Education Article.
(1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.
(II) "CONTRIBUTOR" MEANS A CONTRIBUTOR WITHIN THE
MEANING OF § 529 OF THE INTERNAL REVENUE CODE.
(III) "DESIGNATED BENEFICIARY" HAS THE MEANING STATED IN §
529 OF THE INTERNAL REVENUE CODE.
(IV) "QUALIFIED HIGHER EDUCATION EXPENSES" HAS THE
MEANING STATED IN § 529 OF THE INTERNAL REVENUE CODE.
(V) "QUALIFIED HIGHER EDUCATION INVESTMENT PROGRAM"
MEANS A QUALIFIED TUITION PROGRAM UNDER WHICH AN INDIVIDUAL MAY MAKE
CONTRIBUTIONS TO AN ACCOUNT WHICH IS ESTABLISHED FOR THE PURPOSE OF
MEETING THE QUALIFIED HIGHER EDUCATION EXPENSES OF THE DESIGNATED
BENEFICIARY OF THE ACCOUNT.
(VI) "QUALIFIED TUITION PROGRAM" HAS THE MEANING STATED IN
§ 529 OF THE INTERNAL REVENUE CODE.
(2) (I) The subtraction under subsection (a) of this section includes the
amount contributed by a contributor during the taxable year to an investment
account OF CONTRIBUTIONS MADE BY A CONTRIBUTOR TO A QUALIFIED HIGHER
EDUCATION INVESTMENT PROGRAM ON BEHALF OF A DESIGNATED BENEFICIARY.
(II) THE SUBTRACTION UNDER THIS SUBSECTION DOES NOT
INCLUDE ANY AMOUNT THAT IS A TAX-FREE ROLLOVER OR CHANGE IN DESIGNATED
BENEFICIARIES UNDER § 529(C)(3)(C) OF THE INTERNAL REVENUE CODE FROM
ANOTHER QUALIFIED TUITION PROGRAM, AS DEFINED IN § 529 OF THE INTERNAL
REVENUE CODE.
(3) (I) (I) Subject to paragraph (4) of this subsection, for each
investment account FOR EACH CONTRIBUTOR FOR EACH DESIGNATED BENEFICIARY,
the subtraction under paragraph (2) of this subsection may not exceed $2,500 for any
taxable year.
(II) FOR PURPOSES OF THE TAX LIMITATION UNDER THIS
PARAGRAPH, EACH SPOUSE ON A JOINT INCOME TAX RETURN SHALL BE TREATED
SEPARATELY.
(II) FOR PURPOSES OF THE LIMITATION UNDER THIS PARAGRAPH,
EACH SPOUSE ON A JOINT INCOME TAX RETURN SHALL BE TREATED SEPARATELY
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- 4556 -
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