GREEN BAY, WI (WTAQ) – Wisconsin lawmakers are introducing a bill that would help individuals with disabilities and their families save for the future. The state created a tax benefit for “Achieving a Better Life Experience” savings accounts but does not yet run its own ABLE program.
“It’s for achieving a better life experience for those with disabilities, for those that otherwise would have difficulty in being able to save up for post-secondary or other things that are critical in making sure they have that quality of life,” says Republican State Senator Andre Jacque.
Jacque and Democratic State Representative Lisa Subeck introduced the legislation on Friday.
“This is helping individuals classified with a disability under the age of 26 to be able to have tax-exempt savings account set up to cover certain expenses,” Jacque tells WTAQ News, “Whether that’s housing and transportation, education, training and health, and prevention wellness, assistive technology – these are all things that are obviously critical when you talk to the disabled community and really empowering them to be enabled to achieve more of their dreams.”
Wisconsin passed legislation creating a state tax benefit for ABLE participants in 2016, but chose not to implement its own ABLE program. Wisconsin is among just nine states that does not operate an ABLE program – leading to estimations that participation is significantly lower than states that either run their own program or partner with another state for their programs.
“This brings Wisconsin in line with everyone who sees the value in a state-run program.”
Wisconsinites currently using the program are going through other states, and Jacque says that just doesn’t make sense.
“You don’t have that same confidence when we talk about programs from other states. This is something where you don’t want to worry about the long term benefits,” Jacque says, “We want to make sure that our state program, our state statutes really keep up – and make sure that we offer the best that we can in terms of those same tax advantage accounts for families.”
The bill would require the Department of Financial Institutions to seek a partnership with another state to implement a Wisconsin-branded ABLE option or to implement a Wisconsin option if a partnership is not feasible.
“This is making sure that you have the ability – especially if you’re a disabled individual – to be able to work, set some money aside without it counting against you in terms of some of the benefits and other things that are really critical,” Jacque explains, “Being able to have health coverage and other things that make it so you’re able to have the best life for yourself and your family.”
In a press release, Jacque says the proposal would make ABLE accounts more accessible. He also explains that it would not work against disabled individuals who are working.
“We’re not going to penalize individuals for doing things that we objectively see are good. You’re not going to penalize someone, for instance, for having a job that has a retirement account or a pension,” Jacque says, “You don’t want to penalize someone for trying to take on more work experience when they’re going to be paying more in healthcare premiums than what they’d otherwise be making in salary. And this is that same sort of approach.”
DFI would also develop a webpage, marketing strategies, and offer information to help Wisconsin residents with disabilities and their families navigate their options to open an ABLE account.
“It’s going to offer very substantial benefits. You’re really looking at what our federal tax advantage is that we’ve already extended here at the state level. This is really just common sense in making sure that this is an option that’s available.”
The bill is backed by lawmakers on both sides of the aisle, as well as over 30 disability rights groups.
“We’ve had a number of folks sign on already and this is bipartisan legislation – and something I know a variety of disability groups are very much in support of and will be lobbying on down at the Capitol this week.”
The ABLE program would also not create an extra burden on taxpayers, as the infrastructure is already mostly in place.
“This is something that is going to allow for our existing employees as well as funding to make a state-based option available directly to Wisconsin consumers,” Jacque says.
