Tax Breaks For Alabama College Savings Plans

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M50o93H7pQ09L8X1t49cHY01Z5j4TT91fGfr Tax Breaks For Alabama College Savings Plans
Published: Thu, June 19, 2008 - 2:52 pm
Last Updated: Thursday, June 19, 2008 - 3:36 pm
Gov. Bob Riley says a new state law will
allow parents to save up to $250 annually in state income taxes.
Riley joined State Treasurer Kay Ivey on Thursday for the
ceremonial signing of a bill that gives parents a tax break on
money they contribute toward the state's two college savings plan.
The Legislature passed the bill last month at Ivey's request. It
provides a state income tax deduction of up to $5,000 per year for
money put in the state's Prepaid Affordable College Tuition plan or
the state's Higher Education 529 Fund. That $5,000 deduction
translates into $250 annually in tax savings.
The state treasurer oversees the two college savings plans.



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