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SB 80

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 Mark Anderson and 1 co-sponsor

Connecticut bill would increase state income tax deduction for contributions to 529 education savings plans, incentivizing college savings while reducing state tax revenue.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#incometaxdeductions(state) #tuition
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Bill Summary · SB 80

Legislative bill overview

SB 80 would increase the Connecticut state income tax deduction available to taxpayers who contribute to 529 qualified tuition savings plans administered by the state. Currently, Connecticut allows a deduction for such contributions, and this bill seeks to raise that deduction amount, making it more valuable for families saving for education expenses.

Why is this important

529 plans are tax-advantaged savings vehicles designed to help families afford college and other qualified education costs. Expanding the deduction incentivizes higher education savings and reduces the after-tax cost of saving for tuition, potentially increasing participation in these programs among Connecticut residents. This directly affects household finances and state tax revenue.

Potential points of contention

  • Fiscal impact: Increasing the deduction reduces state tax revenue; legislators will debate whether the revenue loss is justified by education savings incentives
  • Equity concerns: 529 plans primarily benefit middle and upper-income families who can afford to save; critics may argue the deduction disproportionately favors wealthier taxpayers while lower-income families cannot take full advantage
  • Specificity unclear: The bill's language doesn't specify the new deduction amount, raising questions about the actual cost and benefit magnitude during committee review

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

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