AN ACT INCREASING THE AMOUNT OF THE PERSONAL INCOME TAX DEDUCTION FOR CONTRIBUTIONS TO STATE-ESTABLISHED 529 QUALIFIED STATE TUITION PROGRAMS.

HB 5145 increases the state personal income tax deduction for contributions to state-run 529 college savings plans. It doubles the deduction limit from $5,000 to $10,000 for single filers and from $10,000 to $20,000 for joint filers. This change directly affects taxpayers who contribute to these state-established 529 plans, reducing their taxable income by the higher amount. The bill modifies existing tax law to provide greater tax savings for families saving for education expenses.