SB 266: "College Success 529 Expansion Act"; enact

Georgia runs a 529-style college savings program called the Georgia Higher Education Savings Plan, which currently stops accepting new contributions to a beneficiary's account once the total balance hits $235,000. This bill removes that fixed dollar cap and instead lets the plan's governing board set a 'reasonable maximum amount' based on current and anticipated education costs. The bill also increases the state income tax deduction for contributions to these accounts. Starting with the 2026 tax year, the maximum deductible contribution per beneficiary rises from $4,000 to $5,000 for single filers, and from $8,000 to $10,000 per beneficiary for joint filers. The law would take effect as soon as the Governor signs it or it becomes law without his signature.

• Removes the fixed $235,000 cap on total 529 account balances per beneficiary and lets the plan's board set its own maximum based on education cost projections.
• Raises the state income tax deduction for 529 contributions from $4,000 to $5,000 per beneficiary for single or separate filers.
• Raises the deduction cap for joint filers from $8,000 to $10,000 per beneficiary.
• Applies the higher deduction amounts starting with tax years beginning on or after January 1, 2026.
• Gives the bill a short title, the 'College Success 529 Expansion Act.'

Georgia families and individuals who save for college through the Georgia Higher Education Savings Plan (529 accounts), the plan's governing board, and Georgia taxpayers who claim the state income tax deduction for contributions to these accounts.

Families could keep contributing to a beneficiary's 529 account past the current $235,000 limit if the board raises the cap, and both single and joint filers could deduct more from their state taxes each year for contributions, potentially lowering their state tax bills starting in 2026.

• Section 2 revises O.C.G.A. § 20-3-634(b)(1) to replace the fixed $235,000 account balance cap with a board-determined 'reasonable maximum amount' based on current and anticipated education expenses.
• Section 3 revises O.C.G.A. § 48-7-27(a)(11.1) to raise the per-beneficiary deduction from $4,000 to $5,000 and set the effective tax year starting January 1, 2026.
• Section 3(C) raises the joint-filer deduction cap per beneficiary from $8,000 to $10,000.
• Section 4 sets the effective date as the date the Governor signs the bill or it otherwise becomes law without his signature.

1. 2025-02-27Senate Read and Referred (Senado)
2. 2025-02-26Senate Hopper (Senado)

• Jason Esteves (D, SD-035)Patrocinador principal
• Steve Gooch (R, SD-051)
• Matt Brass (R, SD-006)
• Harold Jones (D, SD-022)
• Shawn Still (R, SD-048)
• Kim Jackson (D, SD-041)
• Jason Anavitarte (R, SD-031)
• Drew Echols (R, SD-049)
• Chuck Hufstetler (R, SD-052)
• Russ Goodman (R, SD-008)
• Nikki Merritt (D, SD-009)
• Blake Tillery (R, SD-019)
• Elena Parent (D, SD-044)
• Sonya Halpern (D, SD-039)
• Ricky Williams (R, SD-025)
• Kay Kirkpatrick (R, SD-032)
• Josh McLaurin (D, SD-014)
• Michael Rhett (D, SD-033)
• Sam Watson (R, SD-011)
• Derek Mallow (D, SD-002)
• Gail Davenport (D, SD-017)
• RaShaun Kemp (D, SD-038)
• Donzella James (D, SD-028)
• Ed Harbison (D, SD-015)
• David Lucas (D, SD-026)

• 529 college savings
• state tax deductions
• higher education funding
• Georgia income tax