| Committee: Ways and Means Education | Sponsor: Greer |
| Analyst: Jessica Perez | Date: 04/06/2021 |
FISCAL NOTE
House Bill 296 as introduced would allow a taxpayer who is 65 years old or older to exempt from income tax 70% of the distributions from a defined contribution deferred compensation plan, up to the caps set by this bill. In Tax Year 2023 the maximum exemption would be $3,000 and the maximum exemption would increase by $3,000, each year thereafter until it reaches $30,000 in Tax Year 2031.
According to information provided to our office by the Department of Revenue, this bill would decrease receipts to the Education Trust Fund by the following estimated amounts for the years listed:
| Year | Revenue Estimate In Millions |
| 2022 | $ (78) |
| 2023 | $ (84) |
| 2024 | $ (90) |
| 2025 | $ (97) |
| 2026 | $ (104) |
| 2027 | $ (112) |
| 2028 | $ (120) |
| 2029 | $ (128) |
| 2029 | $ (130) |
| 2031 and each year thereafter | $ (131) |
| Bill Poole, Chair Ways and Means Education |