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 <del>$235,000.00</del> <ins>a reasonable maximum amount as determined by the board based
on current and anticipated education expenses;"
</ins> 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, <del>2020</del> <ins>2026:
</ins> (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 <del>$4,000.00</del> <ins>$5,000.00</ins> 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
<del>$4,000.00</del> <ins>$5,000.00</ins> 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 <del>$8,000.00
</del> <ins>$10,000.00</ins> 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.