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An Act To Restore the Tax Deduction for Contributions to College Savings Accounts
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5122, sub-§2, ¶PP  is enacted to read:
 
PP.  For tax years beginning on or after January 1, 2017, the portion of contributions to a qualified tuition program established under Section 529 of the Code up to $1,000 annually per designated beneficiary. This deduction may not be claimed on returns when federal adjusted gross income exceeds $100,000 for returns with a filing status of single or married filing separately or $200,000 for returns with a filing status of married joint or head of household.
 
SUMMARY
This bill restores an income tax deduction for contributions to a qualified tuition program established under Section 529 of the United States Internal Revenue Code of 1986 that was repealed in 2015 and sets the deduction at a maximum of $1,000 annually per designated beneficiary. The change applies to tax years beginning on or after January 1, 2017.