Relative to increasing 529 deductions

The bill amends the Massachusetts tax code to increase the state tax deductions allowed for contributions to 529 college savings plans. For individual filers, the deduction increases from $1,000 to $5,000, and for joint filers, it increases from $2,000 to $10,000.

Supporters of the bill are likely to emphasize that it makes college savings more accessible and beneficial for families by significantly increasing the tax benefits for contributing to 529 plans. This change could encourage more families to save for higher education, reducing future student debt and making college more affordable.

Critics may argue that increasing the 529 plan deduction primarily benefits wealthier families who are able to make larger contributions, potentially reducing state revenue without proportionally aiding lower-income households. Additionally, they might contend that the savings could be better allocated to broader educational funding initiatives.