relative to liability as taxable income of education freedom account payments.

HB 402 amends state law to clarify that funds deposited in Education Freedom Accounts (EFAs) are not considered taxable income for parents or students at the state level. The bill directly affects families using EFA programs by removing state tax liability on these education payments. It specifies that while state taxation does not apply, federal taxation may still apply to EFA funds. This change modifies RSA 194-F:2, VI to explicitly state that EFA funds are exempt from state income tax.