Indiana HB1282 amends the state's Indiana529 plan to align with Section 529 of the Internal Revenue Code.

Indiana HB1282 makes various changes to the state's Indiana529 plan to conform to Section 529 of the Internal Revenue Code. It defines terms such as "taxpayer," "qualified withdrawal," and "nonqualified withdrawal." The bill specifies that a taxpayer is entitled to a credit against their adjusted gross income tax for contributions made to an Indiana529 plan. It also outlines the conditions under which a taxpayer must repay a portion of the credit if a nonqualified withdrawal is made. The changes are effective January 1, 2026, and are retroactive.

Indiana HB1282 amends the state's Indiana529 plan to align with Section 529 of the Internal Revenue Code.

Indiana HB1282 makes various changes to the state's Indiana529 plan to conform to Section 529 of the Internal Revenue Code. It defines terms such as "taxpayer," "qualified withdrawal," and "nonqualified withdrawal." The bill specifies that a taxpayer is entitled to a credit against their adjusted gross income tax for contributions made to an Indiana529 plan. It also outlines the conditions under which a taxpayer must repay a portion of the credit if a nonqualified withdrawal is made. The changes are effective January 1, 2026, and are retroactive.