SF429

Senate Bill SF No. 429 aims to modify existing laws regarding individual income taxes as they relate to K-12 education expenses. Specifically, it proposes several changes to both the education expense subtraction and credit systems:

1. Extension of the Credit to Tuition: The bill allows the subtraction and credit system to be applied toward tuition payments in addition to other education-related expenses.

2. Increase in Subtraction and Credit Amounts: The maximum amounts for the education subtraction are proposed to be raised to $2,750 for kids in kindergarten through grade 6, and $4,125 for those in grades 7 to 12.

3. Higher Income Phaseout: The income levels at which the credit begins to phase out are increased, making the credit available to more families.

4. Adjustments for Inflation: The bill mandates annual adjustments to the maximum allowed subtraction and credit amounts and their phaseout thresholds to keep pace with inflation.

These amendments are intended to provide greater financial support for families incurring educational expenses, making it easier for them to manage the costs associated with K-12 education. This proposal, if enacted, would take effect from the taxable year 2025.