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House Bill 225
Chair's Name: Larry O�Neal
Committee: Ways & Means
House Sponsor: Richard Royal
HB 225 removes certain requirements for deducting contributions to certain college savings plans, beginning in 2007. The bill removes the requirement that the beneficiary must be claimed as a dependent on the Georgia income tax return of the beneficiary�s parents or guardians. It also removes the maximum federal adjusted gross income amounts, and the requirement that the parent or guardian be the account owner of the designated beneficiary�s account.
This bill received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor under the Structured Rule.
Chairman O�Neal�s opinion of this legislation:
WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?
HB 225 removes means test for taking income tax deductions for contributions to college savings plans, beginning in 2007. The bill removes the requirement that the beneficiary must be claimed as a dependent on the Georgia income tax return of the beneficiary�s parents or guardians. It also permits grandparents to contribute and be able to deduct contributions.
WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?
This bill makes it easier to contribute to a child�s college savings plan.
THIS LEGISLATION:
This bill encourages more family members, besides parents and guardians, to contribute to a family member�s college savings, as they can take advantage of this tax deduction.
- Reduces the Tax Burden on Our Citizens:
This bill will allow more citizens to deduct these contributions.
- Increases Personal Responsibility
This bill encourages family members other than parents or guardians to contribute to a family member�s college savings, and to assure a post graduate educational opportunity for Georgia�s children.
Senate Changes:
The Senate added the Governor�s retiree income tax exclusion. This change is a revenue bill and did not originate or pass in the house, thus the House disagreed with the Senate's changes.
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