HB 259

Abstract

This bill would allow Delaware residents two new deductions from personal income tax. The first is a deduction from taxable income of up to $2,500 for contributions to a “529” College Savings Plan. The second is a deduction from taxable income of up to $5,000 for contributions to a “529A” Savings Account – a special account for meeting the needs of certain individuals with disabilities. Under this Act, a Delaware resident taxpayer would be eligible for the deduction regardless of whether they made a contribution to a 529 or 529A plan sponsored by the State of Delaware or another state or institution, so long as the plans met federal criterion.