Government Relations

UW System Position on Bills Introduced in the Legislature During the 2009-2010 Session

Pending Legislation

SB 106

Tax Credit for College Savings (EdVest)

Full Description

(Molepske/Lassa)  The 2009-10 state budget (2009 WI Act 20) adopted several provisions of the original draft of AB 135/SB 106.  This altered the state’s college savings program, EdVest, to allow non-custodial, legally divorced or separated parents to both claim a tax deduction for contributions to their child’s EdVest account.  Previously, the tax deduction was only available to the parent or parents who claimed the child as a dependent for federal tax purposes.

Senate Substitute Amendment 1 (SSA1) and Assembly Substitute Amendment 1 (ASA1) eliminate the requirement that the beneficiary of the EdVest account be a specified relative of the claimant. 

SSA1/ASA1 also provide a tax deduction of not more than $3,000 per beneficiary per year by each contributor.  In addition, they eliminate the current provision that limits the total deduction for a married couple filing a joint return to $3,000 per year.

This legislation would allow any individual to receive a tax deduction of up to $3,000 per beneficiary per year for contributions to a child’s EdVest account.

UW System Position

SUPPORT:  Allowing more individuals to claim an income tax deduction for EdVest contributions encourages greater investment in the postsecondary education of Wisconsin children.

While this legislation might produce a short-term reduction in state revenue, encouraging greater college savings will increase higher education opportunities available to future generations and build the foundation for long-term economic growth in Wisconsin.