Ala. Legislature Approves Tax Break For College Savings
Montgomery, AL – The state Legislature is ready to provide a tax break to Alabama parents who save for their children's college expenses.
The Alabama Senate voted 28-0 Thursday to give final passage to the tax break legislation. The bill passed the House earlier and now goes to the governor for signing into law.
The tax break bill would provide a state income tax deduction for Alabama families making a contribution of up to $5,000 per year to either of Alabama's two state-sponsored college savings plan.
But for the tax break to take effect, the Senate also has to pass a separate bill that would require out-of-state residents to withhold taxes from the sale of property in Alabama at the time of the transaction rather than paying it later.
(Copyright 2008 by The Associated Press. All Rights Reserved.)