| 1 | 1 | | 25 LC 50 1075 |
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| 2 | 2 | | Senate Bill 266 |
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| 3 | 3 | | By: Senators Esteves of the 35th, Gooch of the 51st, Brass of the 6th, Jones II of the 22nd, |
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| 4 | 4 | | Still of the 48th and others |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | To amend Article 11 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, |
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| 8 | 8 | | 1 |
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| 9 | 9 | | relating to the Georgia Higher Education Savings Plan, so as to revise the maximum amount2 |
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| 10 | 10 | | of contributions allowed per beneficiary of savings trust accounts for higher education3 |
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| 11 | 11 | | expenses; to amend Code Section 48-7-27 of the Official Code of Georgia Annotated,4 |
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| 12 | 12 | | relating to computation of taxable net income, so as to revise the deduction for contributions5 |
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| 13 | 13 | | to savings trust accounts; to provide for a short title; to provide for related matters; to provide6 |
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| 14 | 14 | | for an effective date; to repeal conflicting laws; and for other purposes.7 |
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| 15 | 15 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 |
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| 16 | 16 | | SECTION 1.9 |
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| 17 | 17 | | This Act shall be known and may be cited as the "College Success 529 Expansion Act."10 |
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| 18 | 18 | | SECTION 2.11 |
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| 19 | 19 | | Article 11 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to the12 |
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| 20 | 20 | | Georgia Higher Education Savings Plan, is amended by revising paragraph (1) of subsection13 |
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| 21 | 21 | | (b) of Code Section 20-3-634, relating to savings trust accounts, availability, and terms and14 |
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| 22 | 22 | | provisions, as follows:15 |
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| 23 | 23 | | S. B. 266 |
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| 24 | 24 | | - 1 - 25 LC 50 1075 |
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| 25 | 25 | | "(1) The maximum and minimum contribution allowed on behalf of each beneficiary for |
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| 26 | 26 | | 16 |
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| 27 | 27 | | the payment of qualified higher education expenses at eligible institutions as defined in17 |
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| 28 | 28 | | Section 529 of the Internal Revenue Code of 1986 or other applicable federal law;18 |
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| 29 | 29 | | provided, however, that no additional contributions may be made to a savings trust19 |
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| 30 | 30 | | account when the total account balance for all accounts for the beneficiary equals or20 |
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| 31 | 31 | | exceeds $235,000.00 |
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| 32 | 32 | | a reasonable maximum amount as determined by the board based21 |
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| 33 | 33 | | on current and anticipated education expenses;"22 |
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| 34 | 34 | | SECTION 3.23 |
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| 35 | 35 | | Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of24 |
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| 36 | 36 | | taxable net income, is amended by revising paragraph (11.1) of subsection (a) as follows:25 |
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| 37 | 37 | | "(11.1) For taxable years beginning on or after January 1, 2020 2026:26 |
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| 38 | 38 | | (A) An amount equal to the amount of contributions to a savings trust account27 |
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| 39 | 39 | | established pursuant to Article 11 of Chapter 3 of Title 20 on behalf of the designated28 |
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| 40 | 40 | | beneficiary, but not exceeding $4,000.00 $5,000.00 per beneficiary;29 |
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| 41 | 41 | | (B) If the contributor files a separate return or single return, the sum of contributions30 |
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| 42 | 42 | | constituting deductions on the contributor's return under this paragraph shall not exceed31 |
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| 43 | 43 | | $4,000.00 $5,000.00 per beneficiary;32 |
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| 44 | 44 | | (C) If the contributor files a joint return, the sum of contributions constituting33 |
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| 45 | 45 | | deductions on the contributor's return under this paragraph shall not exceed $8,000.0034 |
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| 46 | 46 | | $10,000.00 per beneficiary; and35 |
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| 47 | 47 | | (D) For purposes of this paragraph, contributions or payments for any such taxable36 |
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| 48 | 48 | | year may be made during or after such taxable year but on or before the deadline for37 |
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| 49 | 49 | | making contributions to an individual retirement account under federal law for such38 |
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| 50 | 50 | | taxable year;"39 |
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| 51 | 51 | | S. B. 266 |
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| 52 | 52 | | - 2 - 25 LC 50 1075 |
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| 53 | 53 | | SECTION 4. |
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| 54 | 54 | | 40 |
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| 55 | 55 | | This Act shall become effective upon its approval by the Governor or upon its becoming law41 |
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| 56 | 56 | | without such approval. 42 |
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| 57 | 57 | | SECTION 5.43 |
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| 58 | 58 | | All laws and parts of laws in conflict with this Act are repealed.44 |
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| 59 | 59 | | S. B. 266 |
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| 60 | 60 | | - 3 - |
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