HB 962: Georgia Higher Education Savings Plan; Board of Directors shall determine maximum contribution limit for savings trust accounts; provide

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.

• 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.

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.

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.

• 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.

1. 2026-03-06Senate Read and Referred (Senate)
2. 2026-03-04House Passed/Adopted (House)
3. 2026-03-04House Third Readers (House)
4. 2026-02-18House Committee Favorably Reported (House)
5. 2026-01-16House Second Readers (House)
6. 2026-01-15House First Readers (House)
7. 2026-01-14House Hopper (House)

• Charles Martin (R, HD-049)Primary sponsor
• Carter Barrett (R, HD-024)
• Jan Jones (R, HD-047)
• Bruce Williamson (R, HD-112)
• Shaw Blackmon (R, HD-146)
• Stacey Evans (D, HD-057)

1. PassedHouse voteMarch 4, 2026

   163 yea, 5 nay (2 not voting, 7 absent)

   Passage: House Vote #621

• college savings plans
• 529 accounts
• state income tax deductions
• education funding