Bill
HB 5753
HB 5753 would change the personal income tax deduction for contributions to state 529 college savings programs, altering tax savings for savers and affecting filings.
HB 5753 — Summary
Overview
- Title: AN ACT CONCERNING THE AMOUNT OF THE PERSONAL INCOME TAX DEDUCTION FOR CONTRIBUTIONS TO STATE-ESTABLISHED 529 QUALIFIED STATE TUITION PROGRAMS
- Purpose (as indicated by title): To modify the amount of the personal income tax deduction available for contributions to state-established 529 qualified state tuition programs.
- Status: Ref. to Joint Committee on Finance, Revenue and Bonding
- Introduced: January 21, 2025
What the bill would change
- Core change: The bill would change the amount of the personal income tax deduction for contributions to the state's 529 college savings programs.
- Nature of change: The specific adjustment (e.g., new deduction cap, indexing, eligibility criteria, or other limitations) is not provided in the information available. The actual deduction level and any related rules would be set forth in the bill’s text.
- Scope: Applies to contributions made to state-established 529 qualified state tuition programs. These programs are typically designed to save for beneficiaries’ qualified education expenses and offer tax advantages at the state level.
Who would be affected
- Primary beneficiaries: Taxpayers who contribute to the state-established 529 programs, and their beneficiaries (e.g., students whose education savings benefit from the deduction).
- Other affected parties: State treasury and tax administration, which would implement and enforce the revised deduction rules and ensure proper reporting.
- Potential indirect effects: Changes to the deduction could influence saving behavior for higher education, state tax revenue, and administrative workload for taxpayers and the tax department.
Key provisions to look for in the enacted text (typical elements you would expect)
- The revised deduction amount (e.g., per-contributor cap, per-beneficiary cap, or overall deduction limit).
- Eligibility rules and who can claim the deduction (income limits, filing status, etc.).
- Calculation methodology (flat amount, percentage of contributions, inflation indexing).
- Carry-forward provisions or limits on timing (which tax years are affected).
- Interaction with other education-related tax benefits and any sunset or review provisions.
- Effective date and applicability (tax year(s) to which the change would apply).
Procedural and timeline notes
- The bill has been introduced and immediately referred to the Joint Committee on Finance, Revenue and Bonding for consideration.
- Next steps if advanced: Committee hearings, potential amendments, and votes; referral to the full chamber(s); potential enactment or rejection.
- Effective date: Dependent on the final text; typical enactments specify the tax year or calendar year from which the changes apply.
Fiscal considerations (not specified in the provided text)
- The adjusted deduction could increase or decrease state tax revenue depending on the new cap and usage.
- The fiscal impact would be assessed in committee analyses and the fiscal note that accompany the bill.
Notes
- A complete, precise summary of provisions requires the bill’s full text. The above reflects the bill’s stated purpose and status and outlines the kinds of changes such a bill would typically involve.
Compiled from official sources — confirm details with the bill’s official record.
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