The bill amends sections 5747.70 and 5747.78 of the Revised Code to modify the income tax deductions for contributions to 529 plans and ABLE accounts. It establishes that the deduction for contributions to a qualified tuition program shall not exceed the annual contribution limit for each beneficiary, which is set at eight thousand dollars for joint filers and four thousand dollars for all other taxpayers for taxable years beginning in 2025. Additionally, the bill allows for the carryforward of excess contributions to future taxable years until fully deducted. The tax commissioner is also tasked with adjusting the annual contribution limits based on the gross domestic product deflator starting in 2026.

Furthermore, the bill clarifies that the annual contribution limit for ABLE accounts will have the same meaning as defined in section 5747.70. It removes previous language that specified limits based on whether taxpayers filed jointly or separately, thereby simplifying the deduction process. The existing sections 5747.70 and 5747.78 are repealed, indicating a comprehensive update to the tax deduction framework for these savings accounts.

Statutes affected:
As Introduced: 5747.70, 5747.78