Bill > SB412

This bill increases the tax subtraction amount for contributions to Maryland 529 college savings plans from $2,500 to $4,850 for taxable years beginning after December 31, 2025. The bill specifically covers two types of Maryland 529 plans: the Maryland Senator Edward J. Kasemeyer Prepaid College Trust and the Maryland Senator Edward J. Kasemeyer College Investment Plan (and Broker-Dealer College Investment Plan). The increase allows account holders and contributors to subtract a higher amount of their contributions from their Maryland state income taxes. If an individual cannot deduct the full amount in a given tax year due to the limitation, they can carry over the remaining amount to the next 10 succeeding tax years. The bill defines key terms such as "account holder," "contributor," and "qualified higher education expenses," and provides separate provisions for prepaid college trust accounts and investment accounts. The legislation will take effect on July 1, 2025, providing Maryland residents with an increased tax benefit for saving for higher education expenses.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0412?ys=2025RS