SB266: SB266 "College Success 529 Expansion Act"; enact

Georgia's 529 college savings program, called the Georgia Higher Education Savings Plan, currently stops accepting new contributions to a beneficiary's account once the total balance reaches $235,000. This bill removes that fixed dollar limit and instead lets the plan's governing board set a "reasonable maximum amount" based on current and anticipated education costs, meaning the cap could rise over time without a new law. The bill also increases the state income tax deduction for contributions to these accounts. Starting with tax years beginning on or after January 1, 2026, the per-beneficiary deduction rises from $4,000 to $5,000 for individual or single filers, and from $8,000 to $10,000 for joint filers. The law would take effect as soon as the Governor signs it or it becomes law without his signature.

• Eliminates the current $235,000 fixed cap on total contributions to a Georgia 529 account per beneficiary and replaces it with a board-set maximum tied to education costs.
• Raises the state income tax deduction for contributions to a Georgia 529 savings trust account from $4,000 to $5,000 per beneficiary for individual filers.
• Raises the state income tax deduction for joint filers from $8,000 to $10,000 per beneficiary.
• Moves the starting point for the higher deduction to tax years beginning on or after January 1, 2026, instead of 2020.
• Names the bill the "College Success 529 Expansion Act" and sets the effective date as the date of the Governor's approval or enactment without approval.

Georgia families and individuals who save for college through the state's 529 higher education savings plan, the plan's governing board, which would gain authority to set the contribution ceiling, and Georgia taxpayers who claim the state income tax deduction for 529 contributions.

Families saving for college could put away more money before hitting the plan's balance limit, since the cap would adjust with education costs instead of staying fixed. Contributors could also claim larger state tax deductions starting in 2026, potentially lowering their Georgia income tax bills.

• Section 1 gives the bill its short title, the "College Success 529 Expansion Act."
• Section 2 rewrites O.C.G.A. § 20-3-634(b)(1) to replace the $235,000 total account balance cap with a board-determined "reasonable maximum amount" based on current and anticipated education expenses.
• Section 3 amends O.C.G.A. § 48-7-27(a)(11.1) to raise the per-beneficiary deduction from $4,000 to $5,000 for single filers and from $8,000 to $10,000 for joint filers, effective for tax years starting on or after January 1, 2026.
• Section 4 sets the effective date as upon the Governor's approval or upon becoming law without approval.
• Section 5 repeals conflicting laws.

1. 2025-02-27Senate Read and Referred (Senate)
2. 2025-02-26Senate Hopper (Senate)

• Jason Esteves (D, SD-035)Primary sponsor
• Steve Gooch (R, SD-051)
• Matt Brass (R, SD-006)
• Harold Jones (D, SD-022)
• Shawn Still (R, SD-048)
• Kim Jackson (D, SD-041)
• Jason Anavitarte (R, SD-031)
• Drew Echols (R, SD-049)
• Chuck Hufstetler (R, SD-052)
• Russ Goodman (R, SD-008)
• Nikki Merritt (D, SD-009)
• Blake Tillery (R, SD-019)
• Elena Parent (D, SD-044)
• Sonya Halpern (D, SD-039)
• Ricky Williams (R, SD-025)
• Kay Kirkpatrick (R, SD-032)
• Josh McLaurin (D, SD-014)
• Michael Rhett (D, SD-033)
• Sam Watson (R, SD-011)
• Derek Mallow (D, SD-002)
• Gail Davenport (D, SD-017)
• RaShaun Kemp (D, SD-038)
• Donzella James (D, SD-028)
• Ed Harbison (D, SD-015)
• David Lucas (D, SD-026)

• 529 college savings
• state tax deductions
• higher education savings plan
• Georgia income tax