Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3150

Introduced
2/27/25  

Caption

Relative to expanding 529 deductions

Impact

If enacted, H3150 would amend existing state tax laws, particularly section 3 of chapter 62 of the General Laws, by removing restrictive language that limits deductions to plans established solely by the Commonwealth or its instrumentalities. The suggested revisions would allow contributions to any qualified 529 plan authorized under U.S. law to qualify for state tax deductions, potentially stimulating greater participation in such savings plans by Massachusetts residents. This change is expected to help mitigate the financial burden of higher education by providing families with more effective ways to save.

Summary

House Bill H3150, titled 'An Act relative to expanding 529 deductions', seeks to enhance the tax deduction benefits for individuals contributing to 529 college savings plans in Massachusetts. Currently, these plans allow families to save money for educational expenses, and the proposed amendments aim to make contributions to these plans more advantageous by broadening the eligibility criteria for tax deductions. The bill highlights a growing recognition of the importance of higher education funding amidst soaring college costs, positioning itself as a vital tool for families looking to save for their children's educational future.

Contention

While the bill has garnered support from various legislators and advocates for educational funding, there are concerns regarding its fiscal implications. Opponents argue that increasing deductions could lead to a decrease in state revenue, which may affect funding for public education and other essential services. The extent of the bill's impact on state budget allocation and whether it will disproportionately benefit higher-income families, who are more likely to utilize 529 plans, are points of contention among lawmakers. Ultimately, the discussions surrounding HB H3150 reflect broader debates about how best to support educational funding while balancing state fiscal responsibilities.

Companion Bills

MA H5313

Replaced by Study Order

Previously Filed As

MA H3151

Relative to increasing 529 deductions

MA S2066

Relative to increasing 529 deductions

MA H1777

Relative to expanding protections against incest

MA H3203

Relative to gun safe deductions

MA H3206

Relative to fossil fuel free 529s

MA H3098

Relative to home heating oil deductions

MA H3063

Updating and expanding the renter's income tax deduction

MA H2292

Relative to extending the requirements of the MBTA Communities Act to all cities and towns

MA S1981

Relative to graduate student loan deductions

MA H3237

Relative to medical and dental expense deductions

Similar Bills

No similar bills found.