GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH10356-MTfa-34
Short Title: Revise NC 529 Program. (Public)
Sponsors: Representative Roberson.
Referred to:
*DRH10356 -MTfa-34*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A MATCHING PROGRAM FOR CONTRIBUTIONS TO THE 2
PARENTAL SAVINGS TRUST FUND AND TO CREATE A TAX DEDUCTION FOR 3
CERTAIN CONTRIBUTIONS TO QUALIFIED TUITION PROGRAMS . 4
The General Assembly of North Carolina enacts: 5
6
PART I. PARENTAL SAVINGS TRUST FUND MATCHING PROGRAM 7
SECTION 1.(a) G.S. 116-209.25 is amended by adding the following new 8
subsection to read: 9
"(e1) Matching Program. – The Authority shall establish a matching program for 10
contributions made by eligible persons who open an education savings and investment plan 11
account qualified under section 529 of the Internal Revenue Code to contribute funds to the 12
Parental Savings Trust Fund for qualifying students. As part of the Program, the Authority shall 13
provide matching contributions of one hundred dollars ($100.00) for every fifty dollars ($50.00) 14
contributed by an eligible person, up to five hundred dollars ($500.00) per year. Matching funds 15
shall be provided up to a maximum of one thousand five hundred dollars ($1,500) per qualifying 16
student. For purposes of this subsection, the following definitions shall apply: 17
(1) Eligible person. – A qualified parent or other interested party that meets all of 18
the following criteria: 19
a. Qualifies as a resident under the criteria set forth in G.S. 116-143.1 20
and in accordance with the coordinated and centralized residency 21
determination process administered by the Authority. 22
b. Has a household income not in excess of two hundred fifty percent 23
(250%) of the federal poverty guidelines. 24
(2) Program. – The matching program established pursuant to this subsection. 25
(3) Qualifying student. – An eligible student in accordance with section 529 of 26
the Code who meets all of the following criteria: 27
a. Qualifies as a resident under the criteria set forth in G.S. 116-143.1 28
and in accordance with the coordinated and centralized residency 29
determination process administered by the Authority. 30
b. Is 14 years of age or younger." 31
SECTION 1.(b) There is appropriated from the General Fund to the Board of 32
Governors of The University of North Carolina for the 2025-2026 fiscal year the sum of one 33
hundred eighty thousand dollars ($180,000) in recurring funds to be allocated to the State 34
Education Assistance Authority to provide matching contributions to the Parental Savings Trust 35
Fund pursuant to G.S. 116-209.25(e1), as enacted by subsection (a) of this section. 36
H.B. 787
Apr 3, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRH10356-MTfa-34
SECTION 1.(c) This section becomes effective July 1, 2025. 1
2
PART II. CREATE A TAX DEDUCTION FOR CERTAIN CONTRIBUTIONS TO 3
QUALIFIED TUITION PROGRAMS 4
SECTION 2.(a) G.S. 105-153.5(b) is amended by adding a new subdivision to read: 5
"(12a) An amount, not to exceed two thousand dollars ($2,000), contributed to an 6
account in the Parental Savings Trust Fund of the State Education Assistance 7
Authority established pursuant to G.S. 116-209.25. In the case of a married 8
couple filing a joint return, the maximum dollar amount of the deduction is 9
four thousand dollars ($4,000). The taxpayer shall add to adjusted gross 10
income the amount deducted in a prior taxable year under this subdivision to 11
the extent this amount was withdrawn from the Parental Savings Trust Fund 12
and not used to pay for the qualified higher education expenses of the 13
designated beneficiary, unless the withdrawal was made without penalty 14
under section 529 of the Code due to the death or permanent disability of the 15
designated beneficiary." 16
SECTION 2.(b) This section is effective for taxable years beginning on or after 17
January 1, 2026. 18
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PART III. EFFECTIVE DATE 20
SECTION 3. Except as otherwise provided, this act is effective when it becomes 21
law. 22