---
title: HB 962. Georgia Higher Education Savings Plan; Board of Directors shall determine maximum contribution limit for savings trust accounts; provide
collection: bills
id: 2025-2026/hb962
cite_as: HB 962, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb962
md_url: https://georgiacommons.org/bills/2025-2026/hb962.md
text_url: https://georgiacommons.org/bills/2025-2026/hb962/text
source_url: https://www.legis.ga.gov/legislation/72211
date: 2026-03-06
status: engrossed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 464
omitted_url: https://georgiacommons.org/bills/2025-2026/hb962.md?full=1
bill_number: HB 962
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-03-04
last_action: Senate Read and Referred
sponsors:
  - Charles Martin
  - Carter Barrett
  - Jan Jones
  - Bruce Williamson
  - Shaw Blackmon
  - Stacey Evans
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB962/2025
upstream_id: 2080492
summaries_model: claude-sonnet-5
topic_tags:
  - college savings plans
  - 529 accounts
  - state income tax deductions
  - education funding
---

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

## Text

House Bill 962
By: Representatives Martin of the 49th, Barrett of the 24th, Jones of the 47th, Williamson of
the 112th, Blackmon of the 146th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 20-3-634 of the Official Code of Georgia Annotated, relating to
savings trust accounts, availability, and terms and provisions relative to the Georgia Higher
Education Savings Plan, so as to provide that the Board of Directors of the Georgia Higher
Education Savings Plan shall determine the maximum contribution limit for savings trust
accounts; to amend Code Section 48-7-27, relating to computation of taxable net income, so
as to modify an exemption from taxable net income for contributions to certain education
savings plans; to provide for an effective date and applicability; to provide for related
matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Code Section 20-3-634 of the Official Code of Georgia Annotated, relating to savings trust
accounts, availability, and terms and provisions relative to the Georgia Higher Education
Savings Plan, is amended by revising paragraph (1) of subsection (b) as follows:
"(1) The maximum and minimum contribution allowed on behalf of each beneficiary for
the payment of qualified higher education expenses at eligible institutions as defined in
Section 529 of the Internal Revenue Code of 1986 or other applicable federal law;
provided, however, that no additional contributions may be made to a savings trust
account when the total account balance for all accounts for the beneficiary equals or
exceeds <del>$235,000.00</del> <ins>a reasonable maximum amount as determined by the board based
on current and anticipated education expenses;"
</ins> SECTION 2.
Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of
taxable net income, is amended by revising paragraph (11.1) of subsection (a) as follows:
"(11.1) For taxable years beginning on or after January 1, <del>2020</del> <ins>2026:
</ins> (A) An amount equal to the amount of contributions to a <del>savings trust account
established pursuant to Article 11 of Chapter 3 of Title 20</del> <ins>qualified tuition program
established and maintained by a state or agency or instrumentality thereof which is
exempt from taxation pursuant to Section 529 of the Internal Revenue Code of 1986</ins> on
behalf of the designated beneficiary, but not exceeding $4,000.00 per beneficiary;
(B) If the contributor files a separate return or single return, the sum of contributions
constituting deductions on the contributor's return under this paragraph shall not exceed
$4,000.00 per beneficiary;
(C) If the contributor files a joint return, the sum of contributions constituting
deductions on the contributor's return under this paragraph shall not exceed $8,000.00
per beneficiary; and
(D) For purposes of this paragraph, contributions or payments for any such taxable
year may be made during or after such taxable year but on or before the deadline for
making contributions to an individual retirement account under federal law for such
taxable year;"
SECTION 3.
(a) This Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
(b) Section 2 of this Act shall be applicable to all tax years beginning on or after January 1,
2026.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

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.

### Plain-language summary

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 it 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.

## Status

- Status: Engrossed (2026-03-04)
- Last action: Senate Read and Referred (2026-03-06)
- Sponsors: Charles Martin, Carter Barrett, Jan Jones, Bruce Williamson, Shaw Blackmon, Stacey Evans
- Official page: https://www.legis.ga.gov/legislation/72211

> The history, votes, and amendments (464 characters) are at https://georgiacommons.org/bills/2025-2026/hb962.md?full=1