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.)
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