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HB 402 · 2025 · House · Ways and Means Committee

Education freedom account tax reporting

AI-generated

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

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.AI-generated

Status

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

Analysis

This bill: I. Repeals the statement that education freedom account funds shall not constitute taxable income to the parent of the education freedom account student. II. Requires the timely delivery of IRS 1099 forms to parties responsible for tax liabilities incurred from payments made from a education freedom account.

From the bill's official ANALYSIS section.

Official record

Bill page — docket & status

gc.nh.gov · the authoritative source

Sponsors

Rep. David LuneauDPrimeDemocratic Advisor
  • Rep. Marjorie SmithDRanking Member· Judiciary

Also: Rep. Dick AmesD

Public testimony

167 signed in online · 23 wrote testimony

49% support51% oppose0% neutral

In their wordsVerbatim, exactly as submitted

“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.…”
— Alison Thatcher, Ashlandsupports
“This is outlandish. If people are taking funding from taxpayers they too need to pay taxes on this gift they are receiving”
— Ann Heffernon, N Swanzeysupports
“I urge you to SUPPORT this bill. Thank you for your time.”
— Sarah McCarthy, Manchestersupports
“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.…”
— MEGAN FANSLAU, STRAFFORDopposes
“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.…”
— Katherine Rasco, Pelhamopposes
“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.”
— Kara Maynard, Pembrokeopposes

Verbatim excerpts of submitted testimony, quoted from the testimony tool.

Read the testimony · as of Aug 12, 2026

Hearings

  • 2025-02-1210:00 amHouse Ways and MeansLOB 203Public hearingrescheduled
  • 2025-02-1910:15 amHouse Ways and MeansLOB 201Public hearingrescheduled

Legislative history

  1. Jan 9, 2025HouseIntroduced (in recess of) 01/09/2025 and referred to Ways and Means HJ 3 P. 8
  2. Feb 12, 2025HousePublic Hearing: 02/12/2025 10:00 am LOB 203
  3. Feb 19, 2025HouseExecutive Session: 02/19/2025 10:15 am LOB 201
  4. Feb 21, 2025House==CANCELLED== Executive Session: 02/21/2025 10:15 am LOB 203
  5. Feb 19, 2025HouseMajority Committee Report: Inexpedient to Legislate 02/19/2025 (Vote 11-8; RC) HC 17 P. 68
  6. Feb 26, 2025HouseMinority Committee Report: Ought to Pass with Amendment # 2025-0588h
  7. Mar 27, 2025HouseLay HB402 on Table (Rep. Sweeney): MA DV 202-149 03/27/2025 HJ 11 P. 101
  8. Dec 17, 2025HouseDied on Table, Session ended 12/17/2025 HJ 19

Coverage

No reporting linked yet.

Documents (PDF)

Bill text & amendments link direct to gc.nh.gov; committee reports stream from the state record.