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HB 5103

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

2026 Regular Session Introduced by Geoff Luxenberg and 1 co-sponsor

Connecticut bill increases state income tax deduction for 529 college savings contributions, benefiting higher-income savers while reducing state tax revenue.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#incometaxdeductions(state) #tuition
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Bill Summary · HB 5103

Legislative bill overview

HB 5103 would increase Connecticut's personal income tax deduction for contributions made to 529 qualified state tuition programs (also known as 529 plans). These are tax-advantaged savings accounts designed to help families pay for education expenses. The bill raises the amount residents can deduct from their state taxable income when contributing to these plans.

Why is this important

This change directly affects household finances for families saving for college, potentially making higher education more affordable by reducing their state tax burden. It also influences state tax revenue, as larger deductions mean less taxable income collected by Connecticut. The policy reflects ongoing debates about whether government should incentivize education savings and who benefits most from such incentives.

Potential points of contention

  • Regressive nature of tax benefits: Tax deductions primarily benefit higher-income households who save for college and pay state income taxes; lower-income families may not have income to deduct or may use other funding sources
  • State revenue impact: Increasing the deduction costs the state general fund in lost tax revenue, raising questions about funding priorities during budget constraints
  • Equity concerns: The benefit flows largely to families already planning college education; it doesn't address affordability for lowest-income students who cannot contribute to 529 plans

Compiled from official sources — confirm details with the bill’s official record.

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