COLUMBUS—State Sen. Bob Peterson (R-Washington Court House) announced the passage of legislation Thursday in the Ohio Senate that doubles the maximum income tax deduction to $4,000 per beneficiary for contributions to college savings accounts and disability expense savings accounts with the goal of helping Ohio families save for their futures.
“Saving money to care for a loved one living with a disability or to help reduce the financial burden of getting a college education can place a tremendous financial burden on families,” said Peterson. “This legislation helps families save for their children’s futures using additional tax relief and provides greater opportunity for Ohioans to achieve financial independence.”
Senate Bill 5 builds on a law passed in 2016, which established Achieving a Better Life Experience (ABLE) savings accounts so families can save and make funds available for their loved ones’ disability-related expenses. Additionally, the bill establishes the Joint Committee on Ohio College Affordability to study and develop innovative strategies to reduce the cost of attending college in the state, according to Peterson.
As the cost of higher education continues to rise nearly every year, it has become increasingly difficult for students and families to afford a college degree without accumulating an significant amounts of student loan debt.
Increasing the tax deduction for contributions to an Ohio college savings plan will allow families to save more money over time in order to prepare for higher education costs, Peterson said. Other states, including Michigan, Illinois, Pennsylvania, and West Virginia have increased their allowed tax deductions for contributions to a 529 college savings plan.
Senate Bill 5 now goes to the House of Representatives for further consideration. Similar language contained in the Senate’s version of the biennial state budget, which was announced earlier this week.
Serving Ohio’s Injured Workers and Supporting Businesses
On Thursday, the Ohio Senate also approved House Bill 28, referred to as the biennial Industrial Commission budget, which serves injured workers and provides support for businesses by adjudicating workers’ compensation claims and keeping thousands of disputes out of Ohio’s court system. This is the fourth consecutive budget with a decrease due to efficiencies achieved by the agency, according to Peterson.
Sen. Bob Peterson represents the 17th District in the Ohio Senate, which encompasses all or part of Clinton, Fayette, Gallia, Highland, Jackson, Lawrence, Pickaway, Pike, Ross, and Vinton counties. He currently serves as president pro tempore of the Ohio Senate. Learn more at www.OhioSenate.gov/Peterson.