State Treasurer Don Stenberg says it would provide the same tax benefits to some K-12 expenses as it does for college expenses.
“The federal law that passed in December and the president signed, limits expenditures for K-12 education just to the tuition,” Stenberg tells Nebraska Radio Network.
That means withdrawals from a 529 plan for K-12 tuition at a public, private, or parochial school would be tax-free up to $10,000 a year.
Stenberg says that would begin in January 2020, if passed into law.
“The reason for that date is that there’s a substantial budget deficit that the legislature is going to have to deal with,” Stenberg explains, “and we felt that chances of getting this bill passed into law this year would be higher, if there’s no fiscal impact in the current budget year.”
Stenberg says he estimates the expanded tax break could cost the state about $1.4 million that first year.
The bill was introduced January 5 by St. Sen. Lydia Brasch.
AUDIO: Mike Loizzo reports [:41]