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HB 5016

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

2026 Regular Session Introduced by Gary Turco

Connecticut increases state income tax deduction for 529 education savings plan contributions to encourage college savings.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#collegesavingsprograms #incometaxdeductions(state)
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WeVote Research Nonpartisan
Bill Summary · HB 5016

Legislative bill overview

HB 5016 would increase the Connecticut state income tax deduction available to taxpayers who contribute to 529 qualified state tuition savings programs. The bill modifies the existing deduction amount, allowing residents to deduct larger contributions from their state taxable income when saving for higher education expenses.

Why is this important

529 plans are tax-advantaged education savings accounts that help families finance college costs. By increasing the deduction, Connecticut aims to make it more affordable for residents to save for education while reducing state tax liability. This particularly affects middle and upper-middle-income families who can afford to contribute to these plans.

Potential points of contention

  • Revenue impact: Increasing the deduction reduces state tax revenue, which must be addressed through budget adjustments or other revenue sources during tight fiscal periods
  • Equity concerns: 529 plans primarily benefit higher-income families who have discretionary income to save; lower-income families may see minimal benefit regardless of deduction size
  • Specific deduction amount unclear: The bill text references increasing "the amount" but the actual proposed deduction limit is not specified in the summary provided, making fiscal analysis difficult

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

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