Georgia CommonsHouse · Engrossed · 2025-2026 Regular Session
HB 962: Georgia Higher Education Savings Plan; Board of Directors shall determine maximum contribution limit for savings trust accounts; provide
Last action March 6, 2026 · Senate Read and Referred
House Bill 962 would let the Georgia Higher Education Savings Plan's board set its own cap on how much can be saved per beneficiary, instead of the current fixed $235,000 limit, and would let the state income tax deduction for contributions cover out-of-state 529 plans too.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest the General Assembly's website lists.
In plain language
Georgia currently caps total contributions to a Georgia Higher Education Savings Plan (a 529 college savings account) at $235,000 per beneficiary once the account balance reaches that amount. This bill removes that fixed dollar figure from Georgia law (O.C.G.A. § 20-3-634) and instead lets the Plan's Board of Directors set a 'reasonable maximum amount' based on current and anticipated education costs, meaning the cap could change over time without a new law. The bill also changes the state income tax deduction for education savings contributions (O.C.G.A. § 48-7-27). Currently the deduction only applies to Georgia's own savings trust accounts; the bill extends it to contributions made to any qualified tuition program recognized under Section 529 of the federal tax code, not just Georgia's plan. The deduction limits stay at $4,000 per beneficiary for single filers and $8,000 for joint filers. The changes take effect once signed by the Governor, with the tax provision applying to tax years starting on or after January 1, 2026.
What the bill does
- Removes the fixed $235,000 contribution cap for Georgia 529 savings accounts and lets the Board of Directors set the maximum instead, based on education cost projections.
- Expands the state income tax deduction so it applies to contributions to any Section 529 qualified tuition program, not just Georgia's own savings trust accounts.
- Keeps the existing tax deduction caps of $4,000 per beneficiary for single filers and $8,000 for joint filers.
- Updates the tax law's start date so the expanded deduction applies to contributions made for tax years beginning on or after January 1, 2026.
- Sets the whole Act's effective date as the date the Governor signs it or it otherwise becomes law.
Who it affects
Georgia families and individuals who save for college through the Georgia Higher Education Savings Plan or other Section 529 tuition savings programs, the Plan's Board of Directors, who gains authority to set contribution limits, and Georgia taxpayers who claim the state income tax deduction for education savings contributions.
Why it matters
Families saving for a child's education could eventually be allowed to contribute more than $235,000 per beneficiary if the board raises the cap, and Georgians who use out-of-state 529 plans, not just Georgia's own plan, could newly qualify for the state tax deduction on their contributions starting in 2026.
Key provisions
- Section 1 amends O.C.G.A. § 20-3-634 to replace the $235,000 contribution ceiling with a limit the Board of Directors determines based on current and anticipated education expenses.
- Section 2 amends O.C.G.A. § 48-7-27 to extend the tax deduction to contributions made to any Section 529 qualified tuition program administered by a state or its agency, not only Georgia's plan.
- Section 2 keeps the deduction caps at $4,000 per beneficiary for single or separate filers and $8,000 for joint filers.
- Section 3 makes the Act effective upon the Governor's signature (or becoming law without it), with the tax deduction change applying to tax years starting on or after January 1, 2026.
- Section 4 repeals any conflicting laws.
Discussed in meetings (11)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Ways & Means Committee, February 18, 2026
From 0:25:12 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the bill would replace the Georgia education savings plan's $235,000 account contribution ceiling with a limit set by the plan's board. The sponsor also said it would extend Georgia's income-tax deduction to contributions to other states' plans, giving families more choice while encouraging education savings. The sponsor described Georgia's plan as nationally recognized but said it might not fit every family. No questions were asked. The committee approved the bill by voice vote, with no count announced.
House Rules Committee, February 23, 2026
From 1:29:25 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 962 would allow Georgians to receive an income-tax deduction for contributions to any 529 college savings plan. The sponsor also said the bill would remove the existing upper contribution limit and let the plan's board set that limit, with the goal of encouraging college savings. There were no questions.
House floor session, March 4, 2026 (legislative day 27, PM, part 1)
From 2:28:06 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1902
Summary by Georgia Commons: The sponsor said the bill would let the Georgia Higher Education Savings Plan board set account contribution limits instead of keeping the limit in law, and extend tax-deduction treatment to investments in other states' plans. Asked whether the board could lower the limit, the sponsor said that was not expected but could not promise the board's decision. The sponsor said annual deduction limits and federally permitted uses would not change. One member raised concern about more money being available for private K-12 schooling. The sponsor responded that families can already use multiple states' plans after reaching Georgia's $235,000 limit. Asked about cost, the sponsor cited a fiscal estimate of $30 million to $50 million, but considered it high. The sponsor explained that $50 million in lost revenue would assume roughly $1 billion in additional savings at an approximately 5% tax rate, and contrasted that with a little over $7 billion accumulated in Georgia's plan over about 25 years. The House passed the bill 163-5.
House Rules Committee, March 4, 2026
From 0:36:34 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1881
Summary by Georgia Commons: The committee added HB 962 to the day's supplemental calendar under structured rules without stated opposition. No provisions were discussed.
Senate Higher Education Committee, March 24, 2026
From 0:14:28 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 962 would let the college savings plan board replace the $235,000 contribution ceiling with a reasonable maximum and allow Georgia income-tax deductions for contributions to other states’ plans. The sponsor argued that families should choose their investments and said Georgia’s plan held roughly $7 billion to $8 billion. One member questioned effects on plan outreach and higher-cost marketing. A second member questioned benefits to outside advisers and cited estimated revenue losses of $157 million to $249 million. The sponsor challenged the interpretation of those estimates; another member clarified that the fiscal note covered five years. A State Treasurer’s Office witness opposed the expanded deduction, saying Georgia had the nation’s second-lowest-cost plan, with average fees of 0.083%, compared with 0.84% for adviser-sold plans. The witness said plan fees support savings outreach and assistance that the change could affect. The chair’s combined substitute for HB 1413 instead set a $550,000 ceiling, which the chair said the governor’s office requested, and omitted the expanded deduction pending further discussion. No separate vote occurred.
House Higher Education Committee, April 1, 2026
From 0:26:04 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair explained changes to the college-savings provisions from HB 962 included in HB 1300. Instead of allowing the savings-plan board to set a changing contribution limit, the package would set the cap at $550,000. The chair said the governor's office preferred a fixed amount because of concerns about delegating authority to an unelected board. The chair also described narrowing proposed tax deductions for out-of-state plans: eligibility would depend on reciprocal treatment of Georgia's plan, deduction limits would be halved, and the provision would expire after five years. The chair said the Office of Planning and Budget had no objections to the revised language and that the goal was to encourage additional savings rather than shift money away from Georgia's plan. A member asked which bill supplied this section, and the chair identified HB 962 and repeated the changes. No separate vote was taken.
House Rules Committee, April 2, 2026
From 1:04:55 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The presenter identified HB 962 as the source of 529 savings plan updates included in the substitute for SB 556. The presenter did not explain those updates further. The committee approved the combined substitute without stated opposition.
- Read aloud: House floor session, January 15, 2026 (legislative day 4), 0:41:05
- Read aloud: House floor session, January 16, 2026 (legislative day 5), 0:57:15
- Read aloud: House floor session, February 18, 2026 (legislative day 20), 0:41:05
- Read aloud: Senate floor session, March 6, 2026 (legislative day 28, part 1), 0:38:17
Status timeline
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Chuck Martin (R, HD-49)
- Carter Barrett (R, HD-24)
- Jan Jones (R, HD-47)
- Bruce Williamson (R, HD-112)
- Shaw Blackmon (R, HD-146)
- Stacey Evans (D, HD-57)
Votes
- House voteMarch 4, 2026
163 yea, 5 nay (2 not voting, 7 excused)
Topics
- college savings plans
- 529 accounts
- state income tax deductions
- education funding