Bill > S1338

This bill amends Chapter 62 of the General Laws by adding a new paragraph to Section 3B, subsection (a), to create a tax deduction for amounts spent on college savings programs. Specifically, individuals can deduct the amount they spent in a taxable year to purchase an interest in or contribute to a prepaid tuition program or college savings program established by the Commonwealth or its instrumentalities. For single individuals, married individuals filing separately, or heads of households, the maximum deduction allowed per year is $5,000, while married couples filing jointly can deduct up to $10,000 annually. This provision aims to incentivize saving for college by offering a tax benefit.