NH House Testimony

HB402

House · 2025 sessionDemocraticDied in House

Education freedom account tax reporting

AI

Repeals the exemption of education freedom account funds from taxable income and requires timely delivery of IRS 1099 forms to parties responsible for the resulting tax liabilities.

relative to liability as taxable income of education freedom account payments.

Education - GeneralTaxes - State

Status

Died on the table in the House · March 27, 2025
  1. Introduced
  2. House
  3. Senate
  4. Governor
  5. Law

Division of testimony

167 submissions
Support 82Oppose 85Neutral 0
Jennifer LohnesOpposeAmherst, NHfor MyselfFeb 12, 2025

I oppose bill 402

Mary WilkeSupportCONCORD, NHfor MyselfFeb 12, 2025

The current EFA statute says that the money families receive via the program is not taxable. However, the NH legislature does not have the power to change the Internal Revenue Code. It looks to me like the Internal Revenue Code exempts from taxes scholarships that are used to pay tuition and certain related supplies at degree-granting educational institutions that have a regular faculty and curriculum. See https://www.irs.gov/taxtopics/tc421 . But I can't find any exemption for scholarship moneys used for home schooling or to pay for learning centers, tutoring services, etc. I'm not an expert in this, so please don't rely on me! But don't turn a blind eye to the question either. HB 402 doesn't say that all EFA recipients must pay taxes on their EFA funds. It just requires the scholarship org. to send 1099s to families that ARE responsible for such taxes. Surely Children's Scholarship Fund - a multi-million dollar organization with partner programs all over the country - can obtain a legal opinion regarding which kinds of EFA payments are taxable and which are not. They've been in business for decades; presumably they've already obtained such advice. Many EFA recipients may be unknowingly filing false tax returns in reliance on the EFA statute; this bill would protect them from that. It's hard to see what's objectionable about it.

Winifred KrogmanSupportDunbarton, NHfor MyselfFeb 12, 2025

Vaccines provide protection not only to individuals but to communities against infectious disease. The NH vaccination program to ensure access to vaccinations for all children provides a path that will protect both children and their communities from the spread of communicable diseases. One job of government is to provide protections to its citizens. As a citizen of NH I want our government to continue to ensure that the health of our citizens is protected by ensuring access to vaccines for all children within our state.

Sarah McCarthySupportManchester, NHfor MyselfFeb 12, 2025

Dear Representatives, I urge you to SUPPORT this bill. Thank you for your time.

Ann HeffernonSupportN Swanzey, NHfor MyselfFeb 12, 2025

This is outlandish. If people are taking funding from taxpayers they too need to pay taxes on this gift they are receiving

Wynne Graves MoodySupportLee, NHfor MyselfFeb 12, 2025

VEHEMENTLY support

GERIANNE BAILEYOpposeStoddard, NHfor MyselfFeb 12, 2025

I oppose this bill.

Evelyn GavertOpposeAmherst, NHfor MyselfFeb 12, 2025

This is not taxable according to the IRS. I oppose strongly!

Diane HashemOpposeThornton, NHfor MyselfFeb 12, 2025

I oppose HB 402

Ann RettewSupportConcord, NHfor MyselfFeb 12, 2025

Transparency.

Russell HodgkinsOpposeAmherst, NHfor MyselfFeb 12, 2025

The IRS generally holds education scholarships to be non-taxable. I don't think you can just make up tax laws.

Alison ThatcherSupportAshland, NHfor MyselfFeb 12, 2025

As a mother and someone who cares for the welfare of all children in our state, I strongly oppose HB524. Areas where many folks do not get vaccines are seeing horrible outbreaks of preventable diseases, such as the current measles outbreak in Texas. I would not want any of this state's children to go through that, and I would hope that those who we have elected to represent and protect us feel the same way.

Gordon SpringateOpposeWilton, NHfor MyselfFeb 12, 2025

I strongly oppose this Bill. The EFA is a fund that has only one purpose and that is a child’s education. The amount is non-taxable since the amount does not have a widespread purpose. If the EFA is taxable, then the money MUST be allowed for any and all uses. Therefore a 1099 is not relevant.

Kenneth MayneSupportGreenville, NHfor Myselfflagged non-germaneFeb 12, 2025

I agree with requiring the administrator of the voucher program to notify parents of their obligation to pay income tax on the vouchers, where applicable.

Simon BerrioOpposeDalton, NHfor MyselfFeb 12, 2025

Until child support is taxable at the federal level, I'll continue to oppose the addition of new income taxes.

Johanna LawrenceOpposeRye, NHfor MyselfFeb 12, 2025

Public Hearing: 02/12/2025 10:00 am LOB 202-204 Hello House Ways & Means Committee, We oppose HB 402 relative to liability as taxable income of education freedom account payments. Thank you!

Rachel MartinOpposeWeare, NHfor MyselfFeb 12, 2025

As a resident and tax payer of Weare, NH, my family and I ask that you OPPOSE this bill (HB402)

Christine RuppOpposeExeter, NHfor MyselfFeb 12, 2025

Keep NH tax burden low - oppose.

Carolyn SheaOpposeSomersworth, NHfor MyselfFeb 12, 2025

I oppose this bill because I am a struggling mother whom homeschools and also works full time to provide for my children. I pay more taxes than I already should have to between my house and my paychecks. It is absolute nonsense to charge taxes on a grant that is supposed to be educating our children. We already pay taxes for a public school system we do not even take part in. It would be completely ludicrous to have this bill pass. My son was abused and locked in a closet multiple times at seabrook elementary school in Nh. He was too special for them to handle. They even sat on him and held his arms down. efa has made it possible to provide my children with the education he deserves and put him in programs such as MMA and STEAM classes.

Jessica MathewsOpposeKingston, NHfor MyselfFeb 12, 2025

This is absurd, and would never hold up to challenges in court. We don’t even have a state income tax. EFA accounts are ONLY used on educational expenses, which are not subject to tax. You also can’t tax some parents for their children’s supplies, but not others. I’m actually surprised anyone proposed this in all seriousness. They clearly don’t understand the law or how this program works very well.

Kara MaynardOpposePembroke, NHfor MyselfFeb 12, 2025

If there are plans to tax EFA as income, then obviously there will be legislation introduced to similarly tax all public school students for their education as income as well. No? Then this is unconditionally unconstitutional and should be struck down.

Katherine RascoOpposePelham, NHfor MyselfFeb 12, 2025

I fully oppose this bill. Public school families are not taxed on the state funded money that is used to purchase their children’s textbooks and paper. It does not make any sense for EFA parents be taxed on that same state money for their children’s textbooks and paper. Will you be taxing each public school child as well?

MEGAN FANSLAUOpposeSTRAFFORD, NHfor MyselfFeb 12, 2025

EFA should not be considered a taxable income. This is money for education that is only a portion of what the public school gets. It is 25%. It is heavily monitored and can only be used for educational purposes. If considering this as income my children will loose their insurance. I cannot use this money on anything except school related items. Taxing this will greatly hurt my family.

Benjamin StinsonSupportConcord, NHfor MyselfFeb 12, 2025

Position recorded without written comment.

John PetitSupportLitchfield, NHfor MyselfFeb 12, 2025

Position recorded without written comment.