MONTGOMERY, Ala. (AP) - Gov. Bob Riley says a new state law will allow parents to save up to $250 annually in state income taxes.
Riley joined State Treasurer Kay Ivey on Thursday for the ceremonial signing of a bill that gives parents a tax break on money they contribute toward the state's two college savings plan.
The Legislature passed the bill last month at Ivey's request. It provides a state income tax deduction of up to $5,000 per year for money put in the state's Prepaid Affordable College Tuition plan or the state's Higher Education 529 Fund. That $5,000 deduction translates into $250 annually in tax savings.
The state treasurer oversees the two college savings plans.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.