HB 22-1310

House Bill 22-1310, also known as the "529 Account Apprenticeship Expenses" bill, allows Colorado residents to use funds from a 529 college savings plan for expenses related to apprenticeships. This includes fees, books, supplies, and equipment needed for these programs. The bill updates state law to match federal changes that now permit such uses of 529 accounts. Since the bill has been signed into law, Colorado residents can now use their 529 funds for eligible apprenticeship costs without facing additional taxes at the state level.

Official Summary

The federal "Setting Every Community Up for Retirement Enhancement Act of 2019" expanded qualified distributions from a qualified state tuition program (529 account) to include expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in certain apprenticeship programs. In light of these changes to federal law, the act amends Colorado law to clarify what qualifies as a qualified distribution from a 529 account for the purpose of determining state taxable income. The act allows expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in certain apprenticeship programs to be treated as such a qualified distribution. (Note: This summary applies to this bill as enacted.)

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