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SB 113

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

2025 Regular Session Introduced by Rob Sampson

Connecticut expands income tax deduction for 529 college savings contributions to incentivize education financing, reducing state tax revenue while primarily benefiting higher-income savers.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#incometaxdeductions(state) #tuition
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Bill Summary · SB 113

Legislative bill overview

SB 113 proposes to increase Connecticut's personal income tax deduction for contributions to state-sponsored 529 college savings plans (qualified tuition programs). The bill would allow taxpayers to deduct a larger amount of their annual contributions from their state income taxes, making it more financially attractive to save for education through these state-administered accounts.

Why is this important

529 plans are a primary vehicle for families to save for higher education expenses while receiving tax benefits. Expanding Connecticut's deduction could incentivize more residents to save for college, potentially reducing reliance on student loans and increasing education accessibility. However, this also reduces state tax revenue and primarily benefits higher-income households that have discretionary savings capacity.

Potential points of contention

  • Fiscal impact: Increasing the deduction reduces state income tax revenue; lawmakers must balance education incentives against budget constraints
  • Regressive benefit structure: Higher-income families are more likely to use 529 plans and benefit from expanded deductions, raising equity concerns about who receives the tax benefit
  • Specificity unclear: The bill title doesn't specify the new deduction amount, making it difficult to assess the actual cost-benefit without seeing bill language

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

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