AN ACT to amend and reenact section twelve-a, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred and thirty-one, as amended, and to amend and reenact section seven, article thirty, chapter eighteen of said code, all relating to the prepaid tuition contract; authorizing reduction in federal adjusted gross income for purposes of the West Virginia personal income tax; and extending the modification for payments made for other college savings plans administered by the board of trustees of the prepaid tuition trust fund.

Be it enacted by the Legislature of West Virginia:
That section twelve-a, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred and thirty- one, as amended, be amended and reenacted; and that section seven, article thirty, chapter eighteen of said code, be amended and reenacted, all to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 21. PERSONAL INCOME TAX.

§11-21-12a. Additional modification reducing federal adjusted gross income.

In addition to amounts authorized to be subtracted from federal adjusted gross income pursuant to subsection (c), section twelve of this article, any payment made under a prepaid tuition contract or other college savings plan administered by the board, pursuant to article thirty, chapter eighteen of this code, is also an authorized modification reducing federal adjusted gross income, but only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal adjusted gross income for the taxable year in which the payment is made. This modification is available regardless of the type of return form filed. The taxpayer may also elect to carry forward the modification over a period not to exceed five taxable years, beginning in the taxable year in which the payment was made.
CHAPTER 18. EDUCATION.
ARTICLE 30. WEST VIRGINIA PREPAID TUITION TRUST ACT.
§18-30-7. Income tax deduction for purchasers.
As provided in section twelve-a, article twenty-one, chapter eleven of this code, a purchaser of a prepaid tuition contract or other college savings plan administered by the board, under the provisions of this article, is eligible for a tax deduction.