Arkansas panel endorses change to college savings plans
LITTLE ROCK, Ark. (AP) — Arkansas lawmakers have advanced a proposal to allow taxpayers with tax-deductible 529 college savings plans to withdraw funds for tuition at public, private and religious K-12 schools.
A legislative subcommittee on Wednesday recommended including the change in a budget bill for the state treasurer’s office. The proposal now heads to the Joint Budget Committee.
Republican Sen. Jason Rapert says the measure is intended to mirror a change in federal tax law that was recently enacted. The state finance department estimated the change could reduce state revenue by as much as $5.2 million a year if every private school family took full advantage of the 529 plan.