LaRose Announces Senate Passage Of Legislation Helping Families Save For Their Children’s Futures
COLUMBUS—State Senator Frank LaRose (R-Hudson) announced the passage of legislation today in the Ohio Senate that doubles the maximum income tax deduction to $4,000 per beneficiary for contributions to college savings accounts and disability expense savings accounts with the goal of helping Ohio families save for their futures.
“The cost of college is putting a significant financial burden on many Ohio families,” said Senator LaRose, who co-sponsored Senate Bill 5. “This legislation recognizes the importance of making a college education more affordable for the students and families of Ohio by expanding tax free college savings .”
Senate Bill 5 builds on a law passed in 2016, which established Achieving a Better Life Experience (ABLE) savings accounts so families can save and make funds available for their loved ones’ disability-related expenses. Additionally, the bill establishes the Joint Committee on Ohio College Affordability to study and develop innovative strategies to reduce the cost of attending college in the state.
As the cost of higher education continues to rise nearly every year, it has become increasingly difficult for students and families to afford a college degree without accumulating significant amounts of student loan debt.
Increasing the tax deduction for contributions to an Ohio college savings plan will allow families to save more money over time in order to prepare for higher education costs. Other states, including Michigan, Illinois, Pennsylvania, and West Virginia have increased their allowed tax deductions for contributions to a 529 college savings plan.
Senate Bill 5 now goes to the House of Representatives for further consideration. Similar language contained in the Senate’s version of the biennial state budget, which was announced earlier this week.
From a press release originally posted on OhioSenate.gov/LaRose