Arizona SB 1349 passed the House of Representatives, as amended, on April 30, 2019, and was transmitted back to the state senate for concurrence. On May 16, 2019, the Arizona Senate concurred, passing SB 1349 to be sent to Governor Doug Ducey (R) for signature.
This bill amends the Arizona state statutes relating to the Family College Savings Program, aligning them with the federal changes to 529 plans that were a result of the Tax Cuts and Jobs Act of 2017.
Amongst a few clerical changes, this bill amends the definition of qualified higher education expenses to include the following.
- The purchase of a computer, peripheral equipment, or computer software or internet access and related services—as long as the computer, equipment, and software or services are used primarily by the beneficiary during the years the beneficiary is enrolled at an eligible educational institution. These items must also meet the definition of qualified higher education expenses in section 529 of the Internal Revenue Code.
- Tuition to enroll in or attend an elementary or secondary public, private, or religious school pursuant to section 529 of the Internal Revenue Code.
The definition of a qualified withdrawal is also amended to include the following.
- Tuition of less than $10,000 for the designated beneficiary to enroll in or attend an elementary or secondary public, private, or religious school pursuant to section 529 of the Internal Revenue Code, provided the withdrawal is made in accordance with the statutes.
Additionally, the bill provides that through December 31, 2025, on direction of an account owner, up to $15,000 of an account may roll over to an Achieving a Better Life Experience Act (ABLE) account, established pursuant to 26 U.S. Code section 529A.