Madison…The Wisconsin State Assembly passed AB 731, the ABLE Technical Fix bill today. Representative John Macco (R-Ledgeview), the bill’s author, released the following statement:
“I have been working on this issue since I took office,” said Rep. Macco. “This bill will open up a marketplace for individuals with disabilities so they can access a program more quickly than previously possible and choose a program tailored to their needs.”
Achieving a Better Life Experience (ABLE) accounts are tax-sheltered money market savings accounts specifically designed for individuals with disabilities. The accounts are based on 529 college savings accounts. Rep. Macco authored the bill to establish these accounts which was passed as part of the 2015-17 Biennial Budget.
Because of unforeseen costs associated with setting up a proprietary Wisconsin program including $500,000 in fiscal year 2016 and $300,000 in subsequent years and a federal law allowing individuals to open up accounts in other states where they do not reside, Rep. Macco authored AB 731 to repeal the statute mandating a specific Wisconsin program and to apply the same state income tax benefit to Wisconsinites who open accounts in other states.
“This proposal will save our state money,” continued Rep. Macco. “However, I would not have written this bill if cost saving was the only benefit. I believe the true value of this legislation is allowing individuals with disabilities a variety of options of other states’ programs to help with their financial planning.”