Finance Committee Approves Disability Assistance Measures

Would establish savings accounts, exempt some trust income from taxes

The Senate Finance Committee today (April 18) approved two bills to assist disabled Pennsylvanians and their families, according to Committee Chairman Pat Browne.

Senate Bill 54, introduced by Senator Ted Erickson, would authorize the establishment and maintenance of Disability Savings Accounts for individuals determined to have mental retardation.

The accounts, which could be created by an individual, or by an employer or family member for the benefit of a mentally retarded person, could be used to assist the beneficiary to achieve and maintain financial independence. Increases in the value of a Disability Savings Account and distribution for qualified disability expenses would be excluded from the state's Personal Income Tax under the bill.

Senate Bill 659, introduced by Senator Sean Logan, would exempt the first $3,000 of income from a qualified disability trust for tax reporting purposes from inheritance tax.

"These bills would provide significant opportunities to provide financial assistance for Pennsylvanians with disabilities and their families," Senator Browne said. "We can provide tax relief while promoting efforts to help Pennsylvanians with disabilities improve the quality of their lives."

Contact:

Stacey Connors
(717) 787-1349