Modify tax deductions for 529 plan and ABLE account contributions
What changed between versions
New provision establishing specific annual contribution limits ($8,000 for joint filers, $4,000 for others) for 529 plan deductions starting in 2025, with automatic annual adjustments based on inflation measured by the GDP deflator beginning in 2026.
New language clarifying that distributions or refunds from 529 plans for reasons other than education expenses, death, disability, or scholarship receipt must be added back to federal adjusted gross income for Ohio tax purposes.
Reformatting and restructuring of the bill text to align with House passage procedures, including addition of cosponsor information and reorganization of section numbering and formatting.
Clarification that the 'annual contribution limit' for ABLE account deductions under Section 5747.78 has the same meaning as defined in Section 5747.70 for 529 plans.
