Credit for employer contributions to employee 529 qualified state tuition programs - legislative declaration - definitions - repeal

(c) Employer means any person doing business in the state.

(3) For income tax years commencing on or after January 1, 2019, but prior to January 1, 2032, if an employer makes a contribution of money to a 529 qualified state tuition program account owned by an employee during the income tax year, without regard to the named beneficiary of the account, then the employer is allowed a credit against the income taxes imposed by this article 22 in an amount equal to twenty percent of the contribution. The maximum total credit an employer may claim under this section for each employee in a taxable year is five hundred dollars.

(4) If the amount of the credit allowed in this section exceeds the amount of income taxes otherwise due on the employer's income in the income tax year for which the credit is being claimed, the amount of the credit not used as an offset against income taxes in the current income tax year may be carried forward and used as a credit against subsequent years' income tax liability for a period not to exceed three years and must be applied first to the earliest income tax years possible. Any credit remaining after the period may not be refunded or credited to the employer.

(5) No later than January 1, 2019, and quarterly thereafter, collegeinvest shall provide the department with an electronic report containing information for 529 qualified state tuition program account holders, beneficiaries, and donors that the department determines is necessary for the administration of the credit allowed in this section. The report must include, but is not limited to:

(a) The name and social security number of the account holder of each 529 qualified state tuition program account;

(b) The name, date of birth, and social security number of the beneficiary of each 529 qualified state tuition program account; and

(c) Contribution data that contains the:

(I) Amount of each contribution;

(II) Date of each contribution; and

(III) Source of each contribution, including the social security number or federal employee identification number of the contributor.

(6) The department of revenue may seek, accept, and expend gifts, grants, or donations from private or public sources for the department's costs in administering the income tax credit allowed in this section. The department may expend money received through gifts, grants, or donations consistent with any terms and conditions imposed as a condition of receiving such money for administering the income tax credit allowed in this section within existing appropriations; except that, notwithstanding part 13 of article 75 of title 24, the general assembly may appropriate state funds to the department in the future to administer the income tax credit allowed in this section.

(7) This section is repealed, effective December 31, 2036.