This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
COLUMBUS, Ohio (AP) — A proposal to increase state tax benefits on college savings accounts has cleared the Ohio Senate.
The bill passed Wednesday with bipartisan support.
It would increase the maximum income-tax deduction allowed for contributions to a 529 college savings plan from $2,000 to $10,000 for each beneficiary annually. The measure heads next to the House.
Proponents said average Ohio student loan debt in 2013 was $29,090, above the national average. They said increasing tax breaks would allow families to borrow less and save more.
The vote follows President Barack Obama's decision in January to drop a plan that would have scaled back 529 tax benefits at the federal level. Congressional members of both parties disapproved.
Over 640,000 Ohioans invest in 529 college savings plans, exceeding $9 billion in total contributions.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.