Measure creates tax-exempt savings accounts for those with disabilities
From Illinois Business Journal news services
SPRINGFIELD – Illinois families worried about the financial security of loved ones living with disabilities will soon have another resource to promote their independence.
An initiative supported by state Sen. Scott Bennett, D-Champaign, creates a tax-exempt plan to assist individuals and families in saving money to cover expenses for people with disabilities.
Senate Bill 1383 creates the Illinois Achieving a Better Life Expectancy Act (ABLE Act), which creates accounts similar to tax-advantaged college saving plans where income earned in the account is not taxable.
The legislation comes after the federal government passed the Achieving a Better Life Experience Act of 2014 with bipartisan support. Virginia this year became the first state to enact the program since the federal legislation was passed.
The Treasurer’s Office would be responsible for creating ABLE accounts in accordance with federal rules and regulations. The accounts can be used to pay for qualifying expenses, such as education, health, housing and transportation costs.
Senate Bill 1383 goes into effect Jan. 1.