The Association of Independent Colleges and Universities in Massachusetts (AICUM) applauds Sunday’s passage of an economic development bill that includes the creation of a tax deduction for a key college savings program. A provision in the bill creates a tax incentive to encourage families to save for higher education through contributions to qualified college savings plans, known as 529s.
Low and middle-income families stand to benefit as this tax deduction for the popular college savings provision becomes law. According to a recent study, 72 percent of households nationwide participating in 529 savings programs make less than $150,000 a year. A recent MassInsight survey, conducted by Opinion Dynamics, demonstrated that 76 percent of Massachusetts respondents would support a tax deduction for contributions to college savings plans. By implementing this provision, Massachusetts will join the vast majority of income tax states in using these incentives to help families save for the future.
Following the economic development bill’s passage, AICUM president Richard Doherty released the below statement:
“Through the creation of this college savings tax incentive, House and Senate members have demonstrated a tremendous commitment to helping Massachusetts families save for the future. College savings tax incentives open doors for children growing up in low and middle income families, as they are proven to encourage families to start saving earlier and more frequently for their children’s education.
Aside from the countless benefits that college savings incentives have for students looking to attend college and graduate with manageable loans, these incentives also benefit our entire economy. Everyone wins when students can attend college and invest more of their post-college earnings back into the economy. Passing an economic development bill that includes college savings incentives is one of the best ways the legislature could have helped Massachusetts families now and in the future. I want to especially thank Senate President Stan Rosenberg, House Speaker Robert DeLeo, Senator Eileen Donoghue, and Representative Joseph Wagner for their leadership in promoting this incentive and recognizing its impact on continued economic development in the Commonwealth.”
The Association of Independent Colleges and Universities in Massachusetts (AICUM) was founded by independent college presidents and today comprises 58 degree-granting, accredited independent colleges and universities in the Commonwealth. It is the leading voice on public policy matters affecting independent colleges and universities in Massachusetts. AICUM plays a critical role in advocating for college affordability, including state and federal funding for need-based student financial aid, federal research support and addressing state and Federal legislative and regulatory issues.