HB 402 · 2025 · House · Ways and Means Committee
Education freedom account tax reporting
AI-generatedrelative 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- ✓Introduced
- ✕House
- Senate
- Governor
- 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.
In the bill's words
Quoted verbatim from the bill as introduced. Passages chosen from the operative text.Computed by this site
“The scholarship organization shall produce and assure timely delivery of the appropriate Internal Revenue Service Form 1099 to parties responsible for any federal tax liability incurred from payments made from a student’s EFA.”
“RSA 194-F:2, VI, relative to funds deposited in an education freedom account not constituting taxable income to the parent of the education freedom account student, is repealed.”
Official record
gc.nh.gov · the authoritative source
Sponsors
- 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.…”
“This is outlandish. If people are taking funding from taxpayers they too need to pay taxes on this gift they are receiving”
“I urge you to SUPPORT this bill. Thank you for your time.”
“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.…”
“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.…”
“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.”
Verbatim excerpts of submitted testimony, quoted from the testimony tool.
Read the testimony · as of Aug 12, 2026
Votes
yeanay- Feb 19, 2025HouseCommittee report· regular calendar: Inexpedient to Legislate11–8Overall58% yea
- Mar 27, 2025HouseDivisionLay HB402 on Table (Rep. Sweeney)Adopted202–149Overall58% yea
Hearings and debates
- Feb 12, 2025Public hearingHouse Ways and Means4:07–17:2013m 13slocated in the stream transcriptPublic Hearing
- Feb 19, 2025Public hearingHouse Ways and Means38:34–44:396m 5slocated in the stream transcriptMajority Committee Report: Inexpedient to Legislate — roll call; Executive Session
- Mar 27, 2025Floor debateHouse floor8:36:22–8:43:227mlocated in the stream transcriptLay HB402 on Table (Rep. Sweeney) — adopted, division 202-149
- Dec 17, 2025Floor debateHouse floorWatchnot located in the transcript — opens the full streamDied on Table, Session ended
Timestamps locate where this bill is taken up in the chamber's YouTube stream.
Legislative history
- Jan 9, 2025HouseIntroduced (in recess of) 01/09/2025 and referred to Ways and Means HJ 3 P. 8
- Feb 12, 2025HousePublic Hearing: 02/12/2025 10:00 am LOB 203
- Feb 19, 2025HouseExecutive Session: 02/19/2025 10:15 am LOB 201
- Feb 21, 2025House==CANCELLED== Executive Session: 02/21/2025 10:15 am LOB 203
- Feb 19, 2025HouseMajority Committee Report: Inexpedient to Legislate 02/19/2025 (Vote 11-8; RC) HC 17 P. 68
- Feb 26, 2025HouseMinority Committee Report: Ought to Pass with Amendment # 2025-0588h
- Mar 27, 2025HouseLay HB402 on Table (Rep. Sweeney): MA DV 202-149 03/27/2025 HJ 11 P. 101
- 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.