HB962: HB962 Georgia Higher Education Savings Plan; Board of Directors shall determine maximum contribution limit for savings trust accounts; provide

Georgia's Higher Education Savings Plan (also known as Path2College, a state-run 529 college savings program) currently caps total contributions per beneficiary at $235,000 under a specific dollar figure written into state law (O.C.G.A. § 20-3-634). This bill removes that fixed number and instead lets the plan's Board of Directors set a 'reasonable maximum amount' based on current and anticipated education costs. The bill also updates the state income tax deduction tied to these accounts (O.C.G.A. § 48-7-27). It keeps the existing deduction amounts of $4,000 per beneficiary for single filers and $8,000 for joint filers, but moves the starting tax year for the rule from 2020 to 2026. The law would take effect as soon as the Governor signs it, with the tax change applying to tax years starting on or after January 1, 2026.

• Removes the fixed $235,000 contribution cap for Georgia Higher Education Savings Plan accounts and lets the plan's Board of Directors set the maximum instead.
• Directs the Board to base that maximum on current and anticipated education expenses rather than a fixed dollar figure.
• Updates the state income tax deduction statute so the described deduction rules apply starting with tax year 2026 instead of 2020.
• Keeps the existing $4,000 per-beneficiary deduction cap for individual filers and $8,000 for joint filers.
• Sets the law to take effect immediately upon the Governor's signature, with the tax provision applying to tax years beginning on or after January 1, 2026.

Georgia families and individuals who save for college using the state's Higher Education Savings Plan (Path2College 529 accounts), the plan's Board of Directors, and Georgia taxpayers who claim the state income tax deduction for contributions to these accounts.

Families saving for college would no longer be limited by a fixed dollar cap written into law; instead, the amount they can save would rise or fall based on decisions the plan's Board makes about future education costs, potentially allowing larger balances over time as tuition increases.

• Section 1 amends O.C.G.A. § 20-3-634 to strike the specific $235,000 account balance cap and replace it with a 'reasonable maximum amount' set by the Board of Directors based on current and anticipated education expenses.
• Section 2 amends O.C.G.A. § 48-7-27(a)(11.1), changing the applicable starting tax year from 2020 to 2026 while keeping the $4,000 and $8,000 per-beneficiary deduction limits for single and joint filers.
• Section 3 makes the Act effective upon the Governor's approval, with the tax deduction change applying to tax years beginning 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
• 529 plans
• education savings tax deduction
• Georgia Higher Education Savings Plan
• state income tax