(1) Notwithstanding any other law to the contrary, the amount of any distribution to a designated beneficiary, as defined in section 529 (e)(1) of the internal revenue code, from a college savings program account established under this part 3 shall be exempt from state income taxation to the extent that this income is used to pay qualified higher education expenses of the designated beneficiary.
(2) To the extent that distributions from an ABLE savings program account established pursuant to this part 3 to a designated beneficiary for qualified disability expenses are excluded from taxable income pursuant to section 529A of the internal revenue code, or any successor provision, such distributions are also excluded from state taxable income.
Source: L. 99: Entire part added, p. 463, § 1, effective July 1. L. 2000: Entire part amended, p. 1296, § 16, effective May 26. L. 2015: Entire section amended, (HB 15-1359), ch.
269, p. 1054, § 13, effective June 3.