Sen. Jason Rapert slipped through the special language subcommittee of Joint Budget today a change in a college savings plan that will allow a $5,000-a-year tax deduction for money put into a savings account for private K-12 education.
It’s estimated to cost the state more than $5 million a year in lost tax revenue.
Rapert said the change merely mirrors a change in federal law for the so-called 529 plans run through the treasurer’s office that allow tax-advantaged savings for higher education. The amendment also exempts from taxation the earnings on money invested in the account. The revenue impact report, which you can read at the bottom of the link, says there are 29,000 students in 179 private schools in the state, paying an average of about $5,700 each. The benefit would take effect this year.