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Read. Follow. Verify.North Carolina Bill Creates Matching Program for 529 Education Savings and Adds State Tax Deduction for Contributions
Last action · April 8, 2025: Ref To Com On Rules, Calendar, and Operations of the House (House action)Sponsors: James Roberson and 19 others
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What This Bill Would Do
North Carolina House Bill 787 establishes a state-funded matching program providing up to $500 per year in matching funds for low- and middle-income families contributing to the , and creates a state income tax deduction of up to $2,000 for contributions starting in 2026.
Families earning up to 250% of the federal poverty guidelines become eligible for $100 in state matching funds for every $50 they save in a qualified 529 education account, up to a lifetime cap of $1,500 per student, while taxpayers statewide gain a new annual tax deduction of up to $2,000 ($4,000 for joint returns) for contributions made beginning January 1, 2026.
- Section 529 plans are tax-advantaged savings accounts authorized under federal law specifically to encourage saving for higher education expenses. context
- The State Education Assistance Authority administers financial aid, scholarship programs, and savings trusts for students attending institutions of higher education in North Carolina. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Low- and middle-income North Carolina residents
Households with incomes at or below 250% of federal poverty guidelines become eligible for state matching funds of up to $500 per year when contributing to a 529 education savings plan.
North Carolina individual income taxpayers
Taxpayers who contribute to the Parental Savings Trust Fund become eligible for a state income tax deduction of up to $2,000 for individuals and $4,000 for joint returns starting in 2026.
State Education Assistance Authority
The Authority is required to establish and administer the new matching program and coordinate residency determinations.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Who qualifies for the state matching program funds?
What is the maximum matching contribution a student can receive?
How large is the tax deduction for contributions?
What happens if money is withdrawn from the 529 account for non-educational purposes?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
3 actions- Apr 8, 2025HouseRef To Com On Rules, Calendar, and Operations of the House
- Apr 8, 2025HousePassed 1st Reading
- Apr 3, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 15 more sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Introduction of Direct State Matching for College Savings
The legislation transitions North Carolina from offering general tax-advantaged savings tools to providing direct state financial matching funds specifically for low- and middle-income families.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance45How much this matters to a regular citizen
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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