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FOR IMMEDIATE RELEASE
May 29, 2007, 1:00 p.m. CT |
CONTACT
Jen Rae Hein, 402-471-1967
Ashley Cradduck, 402-471-1970 |
Gov. Heineman Signs Bill Encouraging More Families to Save for College
(Lincoln, Neb.) Gov. Dave Heineman signed LB 338 into law today, which increases the maximum annual income tax deduction for those contributing to the Nebraska educational savings plan trust.
The deduction will increase from the current $500 to $2,500 for households filing separate returns, and $1,000 to $5,000 for all other returns. The Nebraska Department of Revenue estimates that expanding the income tax deduction for contributions made to the Nebraska College Savings Plan will provide approximately $1 million in deductions each year.
“One of the major challenges we face in terms of higher education centers on improving our college-going rate,” Gov. Heineman said. “A five percent increase in that rate would give Nebraska one of the top five college attendance rates in the country. We value education in this state, and LB 338 is one way state government can help encourage families invest in their children’s future.”
Originally proposed in the Governor’s State of the State address and budget recommendations as a way to help more of Nebraska’s high school graduates attend college, the bill was introduced by Sen. Tim Gay of Papillion.
Sen. Gay said, “This is an important measure to help families manage the rising cost of tuition by planning ahead for their child’s education. I appreciate the Governor’s leadership and that of all the senators who voted for this legislation.”
As the administrator of Nebraska’s College Savings Plan, State Treasurer Shane Osborn, was a proponent of LB 338.
Treasurer Osborn said, “Higher education costs continue to increase and this initiative reflects our commitment to keep Nebraska’s 529 program competitive, while helping families achieve a solid future for their children. LB 338 ensures that taxpayers have a significant financial incentive to save for college, which is important for our state’s future success.”
"Increasing Nebraska's college-going rate and the educational attainment of our citizens is vital to Nebraska's future," said University of Nebraska President J.B. Milliken. "This legislation will encourage individuals and families to invest more in college savings, which will ultimately make it possible for more students to participate in post-secondary education. I believe this will improve access to a college education for Nebraska students -- which is the university's highest priority."
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