The Indiana House of Representatives voted in favor of legislation co-authored by State Rep. Donna Schaibley (R-Carmel) that would provide a tax credit for contributions to savings accounts for Hoosiers with special needs.
Schaibley
According to Schaibley, Indiana ABLE accounts are tax exempt and can be opened by Hoosiers with disabilities or their families to cover qualified disability expenses. Anyone can add funds to these accounts, and Schaibley is working to provide a tax credit to those who contribute. These accounts are used by individuals with disabilities to save for their future and pay for certain expenses, like medication, education or assistive technology.
“This savings program helps individuals with disabilities save money to offset costs of qualified disability expenses so they can live as independently as possible,” Schaibley said. “Creating this tax credit could incentivize more people to make contributions to ABLE accounts.”
Schaibley said ABLE accounts can be used to cover the costs of care associated with a disability without jeopardizing the beneficiary’s eligibility for federal and state assistance programs, like SNAP or Medicaid.
Those who contribute to an Indiana ABLE account could receive a tax credit of up to $1,000.
To establish an account, Hoosiers must have a physical or mental disability diagnosed before age 26 and be eligible for Supplemental Security Income through the Social Security Administration.
House Bill 1350 now moves to the Senate for consideration. For more information, visit iga.in.gov.
To learn more about Indiana ABLE accounts, visit in.savewithable.com.
State Rep. Donna Schaibley (R-Carmel) represents House District 24, which includes portions of Boone and Hamilton counties.