The House Appropriations Committee on Monday moved Senate Bill 302 to the Committee of the Whole with a favorable recommendation, advancing a proposal to extend Colorado’s income-tax deduction for ABLE (529A) accounts through December 2030.

Supporters told the committee the deduction helps people with disabilities save for disability-related expenses without risking public benefits. Jack Johnson, an attorney at Disability Law Colorado, said ABLE accounts help protect benefits and reduce poverty.

"ABLE accounts are substantial, are substantial impact on people with disabilities including having protecting their benefits and preventing them from going into the cycle of poverty," Johnson said.

Meredith Henry, senior policy and advocacy associate with The Arc of Colorado, said extending the deduction promotes financial independence and long-term planning.

"Extending ABLE tax deductions strengthens Colorado's commitment to economic empowerment and long term financial planning for people with disabilities," Henry said.

Dan Boley, a father of a child with a disability who testified in favor of the bill, said removal of barriers to work and saving matters to families.

The bill’s sponsor, Representative Zocay, described the measure as an extension of an existing, dollar-for-dollar state deduction for contributions to 529A/ABLE accounts. After a public-comment period with three witnesses, Representative Titone moved the bill to the Committee of the Whole; Representative Velasco seconded. The committee recorded the measure as passing unanimously.

The bill’s supporters said the deduction allows families and individuals to save for deposits, housing and other disability-related costs that otherwise could push them over benefit asset limits. Witnesses said eliminating the deduction would remove an existing incentive to participate in ABLE accounts and could discourage saving.

No statutes or specific funding sources were cited during the hearing.

Committee members asked no substantive questions of the witnesses. The committee advanced the bill without amendment for further consideration by the full House.