Budget Amendment ID: FY2019-S4-38-R1

Redraft OTH 38

Rejecting diversion of money to private schools

Ms. Jehlen, Messrs. Brady, Eldridge, Cyr, Boncore, O'Connor and Lesser and Ms. Friedman moved that the proposed new text be amended by inserting after section 13 the following 2 sections:-

“SECTION 13A. Paragraph (1) of subsection (a) of section 2 of chapter 62 of the General Laws, as so appearing, is hereby amended by adding the following subparagraph:-

(J) Amounts withdrawn from an account in a prepaid tuition program or college savings program established by the commonwealth or an instrumentality or authority of the commonwealth to pay for expenses associated with enrollment or attendance at an elementary or secondary school that are attributable to: (i) amounts expended for the purchase of an interest in or amounts contributed to such account for which the deduction in paragraph (19) of subsection (a) of part B of section 3 was allowed in a previous taxable year; or (ii) earnings and gains not included in federal gross income under section 529 of the Code, as amended and in effect for the taxable year.

SECTION 13B. Section 3 of said chapter 62, as so appearing, is hereby amended by inserting after the words “26 U.S.C. 529(e)(3)”, in lines 202 and 203, the following words:- ; provided, however, that “qualified higher education expenses” shall not include an expense associated with enrollment or attendance at an elementary or secondary school.”.