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H 3150

An Act relative to expanding 529 deductions

194th Legislature (2025-2026) Introduced by Kim Ferguson and 4 co-sponsors

Bill H 3150 expands tax deductions for 529 college savings plans in Massachusetts, boosting financial support for families saving for higher education.

Accompanied a study order, see H5313
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Bill Summary · H 3150

Summary of Bill H 3150: An Act Relative to Expanding 529 Deductions

Purpose and Intent

Bill H 3150 aims to expand the tax deductions available for contributions to 529 college savings plans in the Commonwealth of Massachusetts. The intent is to enhance the financial support for families saving for higher education, thereby encouraging more residents to invest in educational savings plans.

Key Provisions

The bill proposes the following changes to the Massachusetts General Laws:

  • Amendment to Section 3 of Chapter 62:
    • The current language in subparagraph (19) of paragraph (a) will be amended.
    • The phrase “established by the commonwealth or an instrumentality or authority of the commonwealth” will be replaced with “established by the commonwealth or any authority authorized under U.S.C. 529.”

This amendment broadens the scope of 529 plans eligible for tax deductions, potentially including more plans that meet federal requirements under the 529 program.

Who Would Be Affected

  • Families and Individuals: The primary beneficiaries of this bill are families saving for college expenses through 529 plans. By expanding the deductions, families may have increased financial flexibility and incentives to save for education.
  • Educational Institutions: Colleges and universities may see an increase in enrollment as families are more likely to save for tuition and related expenses.
  • Financial Institutions: Organizations that manage 529 plans may experience growth in account openings and contributions as a result of the expanded deductions.

Procedural Aspects

  • Introduced: The bill was introduced on February 27, 2025.
  • Committee Referral: It has been referred to the Committee on Revenue for further consideration.
  • Hearing Scheduled: A public hearing is set for November 18, 2025, from 10:00 AM to 1:00 PM in Room A-1, providing an opportunity for stakeholders to express their views on the proposed changes.

Related Legislation

  • House Docket No. 3804: This bill replaces a similar matter filed in the previous legislative session (House No. 2965 of 2021-2022), indicating ongoing legislative interest in enhancing 529 plan deductions.

Conclusion

Bill H 3150 represents a significant step towards improving the financial landscape for families saving for higher education in Massachusetts. By expanding the eligibility for tax deductions on 529 plans, the bill seeks to promote educational savings and make college more accessible for residents.

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

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