ICI Urges Illinois Legislators to Enact College Savings Legislation

Washington, DC, December 4, 2002 - The Institute has urged Illinois legislators to enact SB 729, legislation that would encourage college savings. In a recent letter to legislators, the Institute noted that SB 729 would help Illinois families attain their savings goals by encouraging them to invest in qualified state tuition programs, such as Section 529 college savings plans.

SB 729 would allow Illinois residents to make a tax deduction for contributions to both an Illinois and an out-of-state 529 plan; and would allow them to exclude from gross income amounts withdrawn from any state 529 plan that would qualify for exclusion under federal law.

Earlier this year, the Governor of Illinois signed into law legislation that created tax benefits for investing in the state's college savings programs. The Institute has long supported efforts to educate investors about the benefits of saving for education, including regulatory efforts to promote investor understanding of the state tax consequences associated with an investment in a Section 529 college savings plan.