The bill would create a refundable federal credit for eligible ABLE account beneficiaries equal to 100% of up to $2,000 in qualified annual contributions, subject to income-based phaseouts and the ABLE account contribution limit. The credit would be paid into the individual’s ABLE account and apply to taxable years beginning after December 31, 2026; certain distributions could reduce eligible contributions. It would also require demographic reporting on ABLE beneficiaries, authorize Treasury grants to states to promote ABLE accounts, and authorize $5 million annually for fiscal years 2027 through 2031.

FactVote-generated overview; it is not an official CRS summary.