MADISON, Wis. (AP) – Gov. Scott Walker has signed into law a bill that allows maximum contributions to a state college savings plan to increase based on inflation.
The bill Walker signed Tuesday also allows 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 new law allows anyone, not just family members, to contribute to an account.
The new law also ties the current tax deduction for making a qualifying investment to the rate of inflation. Under previous law, qualifying contributions are eligible for a tax deduction up to $3,000 a year.