MADISON, Wis. (AP) – The state Assembly has passed a proposal that would allow maximum contributions to a state college savings plan to increase based on inflation.
The bill also would allow more people to contribute to the program. The EdVest program currently allows parents, grandparents, great-grandparents, aunts and uncles to make tax-deductible contributions to accounts to cover a child’s college costs. The bill would allow anyone, not just family members, to contribute to an account.
The measure would also tie the current tax deduction for making a qualifying investment to the rate of inflation. Under current law, qualifying contributions are eligible for a tax deduction up to $3,000 a year.
The Assembly passed the bill on a voice vote Thursday. The Senate passed it last month. It now goes to Gov. Scott Walker.