Indiana § 20-51.4-4.5-2 Termination of account; funds revert; distribution tax exempt; student
test number

Indiana Statutes

§ 20-51.4-4.5-2 — Termination of account; funds revert; distribution tax exempt; student test number

Indiana § 20-51.4-4.5-2

Title 20EDUCATION

Art. 51.4INDIANA EDUCATION SCHOLARSHIP

Ch. 4.5Career Scholarship Account Program Fund and

This text of Indiana § 20-51.4-4.5-2 (Termination of account; funds revert; distribution tax exempt; student test number) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 20-51.4-4.5-2 (2026).

Text

Note: This version of section effective until 7-1-2026. See also following version of this section, effective 7-1-2026. Sec. 2.

(a)An agreement entered into under section 1 of this chapter terminates automatically for a career scholarship student if:

(1)the career scholarship student no longer resides in Indiana while the career scholarship student is eligible to receive grants under section 3 of this chapter; or

(2)the CSA account is not renewed within three hundred ninety-five (395) days after the date the CSA account was either established or last renewed. If a CSA account is terminated under this section, money in the career scholarship student's CSA account, including any interest accrued, reverts to the state general fund.

(b)An agreement made under section 1 of this chapter for

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Note: This version of section effective until 7-1-2026. See also
following version of this section, effective 7-1-2026.
Sec. 2. (a) An agreement entered into under
section 1 of this chapter terminates automatically for a career
scholarship student if:
(1) the career scholarship student no longer resides in Indiana
while the career scholarship student is eligible to receive grants
under section 3 of this chapter; or
(2) the CSA account is not renewed within three hundred
ninety-five (395) days after the date the CSA account was either
established or last renewed.
If a CSA account is terminated under this section, money in the career
scholarship student's CSA account, including any interest accrued,
reverts to the state general fund.
(b) An agreement made under section 1 of this chapter for a career
scholarship student while the career scholarship student is in grades 10
through 12 may be terminated before the end of the school year if the
parent of the career scholarship student or the emancipated career
scholarship student notifies the treasurer of state in a manner specified
by the treasurer of state.
(c) A distribution made to a CSA account or ESA account, as
applicable, under section 3 of this chapter is considered tax exempt as
long as the distribution is used for:
(1) a CSA qualified expense; or
(2) an ESA qualified expense if the career scholarship student is
participating in the ESA program.
The amount is subtracted from the definition of "adjusted gross
income" under IC 6-3-1-3.5 to the extent the distribution used for the
CSA qualified expense or ESA qualified expense, as applicable, is
included in the taxpayer's adjusted federal gross income under the
Internal Revenue Code.
(d) If a career scholarship student does not have a student test
number, the department shall establish a student test number as
described in IC 20-19-3-9.4 for the career scholarship student. The
treasurer of state shall provide the department information necessary
for the department to comply with this subsection.