Deposit: means the payment of money from a source other than a match. See Utah Code 35A-9-601
Federal earned income tax credit: means the federal earned income tax credit:
(a)
described in Section 32, Internal Revenue Code; and
(b)
that a qualifying individual claims and is eligible to claim on the federal income tax return for the taxable year. See Utah Code 35A-9-601
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Qualifying individual: means an individual who the department identifies as experiencing intergenerational poverty and who has not been disqualified from participating in the program for overclaiming a match in a previous year. See Utah Code 35A-9-601
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a)
There is created the Education Savings Incentive Program to provide an annual monetary match to eligible 529 savings accounts.
(b)
The program is established within the higher education system.
(c)
The department shall implement the program as early as is practicable, but the department shall begin accepting applications for the program no later than January 1, 2024.
(2)
(a)
For each qualifying individual that meets the requirements of Subsection (3), the state shall match, during a calendar year, the amount of a deposit into one or more of the qualifying individual’s eligible 529 savings accounts up to $300.
(b)
The amount in Subsection (2)(a) is the maximum match amount per family per calendar year.
(c)
(i)
Except as provided in Subsections (2)(c)(ii) and (iii), the match rate is $1 for each $1 deposit.
(ii)
In a fiscal year where the balance of money in the restricted account is insufficient to sustain a $1 for each $1 deposit match rate, the department shall reduce the amount of each match proportionately.
(iii)
(A)
Subject to Subsection (2)(c)(iii)(B), in a fiscal year when the balance of the money in the restricted account exceeds the amount needed for a $1 for each $1 deposit match rate, the department shall increase the amount of each match proportionately.
(B)
If a qualifying individual’s proportionate share under Subsection (2)(c)(iii)(A) is greater than the amount allowed under Subsections (2)(a) and (b), the qualifying individual shall receive the amount allowed under Subsections (2)(a) and (b).
(3)
To participate in the program, a qualifying individual shall:
(a)
apply with the department in accordance with Section 35A-9-604;
(b)
claim and receive a federal earned income tax credit on the qualifying individual’s federal income tax return for the previous taxable year; and
(c)
during the calendar year for which the qualifying individual applies to participate in the program, be the account owner of one or more eligible 529 savings accounts into which a deposit was made.
