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

26 LC 61 0297 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 to1 savings trust accounts, availability, and terms and provisions relative to the Georgia Higher2 Education Savings Plan, so as to provide that the Board of Directors of the Georgia Higher3 Education Savings Plan shall determine the maximum contribution limit for savings trust4 accounts; to amend Code Section 48-7-27, relating to computation of taxable net income, so5 as to modify an exemption from ta xable net income for contributions to certain education6 savings plans; to provide for an effective date and applicabili ty; to provide for related7 matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Code Section 20-3-634 of the Official Code of Georgia Annotated, relating to savings trust11 accounts, availability, and terms and provisions relative to th e Georgia Higher Education12 Savings Plan, is amended by revising paragraph (1) of subsection (b) as follows:13 "(1) The maximum and minimum contribution allowed on behalf of each beneficiary for14 the payment of qualified higher education expenses at eligible institutions as defined in15 Section 529 of the Internal Revenue Code of 1986 or other appli cable federal law;16 H. B. 962 - 1 - 26 LC 61 0297 provided, however, that no additi onal contributions may be made to a savings trust17 account when the total account balance for all accounts for the beneficiary equals or18 exceeds $235,000.00 a reasonable maximum amount as determined by the board based19 on current and anticipated education expenses;"20 SECTION 2.21 Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of22 taxable net income, is amended by revising paragraph (11.1) of subsection (a) as follows:23 "(11.1) For taxable years beginning on or after January 1, 2020 2026:24 (A) An amount equal to the amount of contributions to a saving s trust account25 established pursuant to Article 11 of Chapter 3 of Title 20 qualified tuition program26 established and maintained by a state or agency or instrumental ity thereof which is27 exempt from taxation pursuant to Section 529 of the Internal Revenue Code of 1986 on28 behalf of the designated beneficiary, but not exceeding $4,000.00 per beneficiary;29 (B) If the contributor files a separate return or single return, the sum of contributions30 constituting deductions on the contributor's return under this paragraph shall not exceed31 $4,000.00 per beneficiary;32 (C) If the contributor files a joint return, the sum of contri butions constituting33 deductions on the contributor's return under this paragraph shall not exceed $8,000.0034 per beneficiary; and35 (D) For purposes of this paragraph, contributions or payments for any such taxable36 year may be made during or after such taxable year but on or be fore the deadline for37 making contributions to an individual retirement account under federal law for such38 taxable year;"39 H. B. 962 - 2 - 26 LC 61 0297 SECTION 3.40 (a) This Act shall become effective upon its approval by the G overnor or upon its41 becoming law without such approval.42 (b) Section 2 of this Act shall be applicable to all tax years beginning on or after January 1,43 2026.44 SECTION 4.45 All laws and parts of laws in conflict with this Act are repealed.46 H. B. 962 - 3 -