---
title: SB 266. "College Success 529 Expansion Act"; enact
collection: bills
id: 2025-2026/sb266
cite_as: SB 266, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb266
md_url: https://georgiacommons.org/bills/2025-2026/sb266.md
text_url: https://georgiacommons.org/bills/2025-2026/sb266/text
source_url: https://www.legis.ga.gov/legislation/70836
date: 2025-02-27
status: introduced
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: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb266.md?full=1
bill_number: SB 266
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2025-02-26
last_action: Senate Read and Referred
sponsors:
- Jason Esteves
- Steve Gooch
- Matt Brass
- Harold Jones
- Shawn Still
- Kim Jackson
- Jason Anavitarte
- Drew Echols
- Chuck Hufstetler
- Russ Goodman
- Nikki Merritt
- Blake Tillery
- Elena Parent
- Sonya Halpern
- Ricky Williams
- Kay Kirkpatrick
- Josh McLaurin
- Michael Rhett
- Sam Watson
- Derek Mallow
- Gail Davenport
- RaShaun Kemp
- Donzella James
- Ed Harbison
- David Lucas
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB266/2025
upstream_id: 1986046
summaries_model: claude-sonnet-5
topic_tags:
- 529 college savings
- state tax deductions
- higher education savings plan
- Georgia income tax
---
# SB 266. "College Success 529 Expansion Act"; enact
## Text
Senate Bill 266
By: Senators Esteves of the 35th, Gooch of the 51st, Brass of the 6th, Jones II of the 22nd,
Still of the 48th and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 11 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated,
relating to the Georgia Higher Education Savings Plan, so as to revise the maximum amount
of contributions allowed per beneficiary of savings trust accounts for higher education
expenses; to amend Code Section 48-7-27 of the Official Code of Georgia Annotated,
relating to computation of taxable net income, so as to revise the deduction for contributions
to savings trust accounts; to provide for a short title; to provide for related matters; to provide
for an effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "College Success 529 Expansion Act."
SECTION 2.
Article 11 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to the
Georgia Higher Education Savings Plan, is amended by revising paragraph (1) of subsection
(b) of Code Section 20-3-634, relating to savings trust accounts, availability, and terms and
provisions, 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 $235,000.00 a reasonable maximum amount as determined by the board based
on current and anticipated education expenses;"
SECTION 3.
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, 2020 2026:
(A) An amount equal to the amount of contributions to a savings trust account
established pursuant to Article 11 of Chapter 3 of Title 20 on behalf of the designated
beneficiary, but not exceeding $4,000.00 $5,000.00 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 $5,000.00 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
$10,000.00 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 4.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 5.
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.
A Georgia Senate bill would remove the fixed dollar cap on Georgia's 529 college savings accounts and raise the state income tax deduction for contributions to those accounts.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2025-02-26)
- Last action: Senate Read and Referred (2025-02-27)
- Sponsors: Jason Esteves, Steve Gooch, Matt Brass, Harold Jones, Shawn Still, Kim Jackson, Jason Anavitarte, Drew Echols, Chuck Hufstetler, Russ Goodman, Nikki Merritt, Blake Tillery, Elena Parent, Sonya Halpern, Ricky Williams, Kay Kirkpatrick, Josh McLaurin, Michael Rhett, Sam Watson, Derek Mallow, Gail Davenport, RaShaun Kemp, Donzella James, Ed Harbison, David Lucas
- Official page: https://www.legis.ga.gov/legislation/70836
> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb266.md?full=1