A state representative wants to change Illinois tax policy to match up with the recent federal tax reform. The new federal standards allow parents to use 529 college savings plans for K-12 education. But state law still only permits the use of Illinois plans for higher education costs.
Republican state Representative Peter Breen says without his plan, parents will move their money into 529 plans in other states which already conform to the new federal law.
Breen’s plan would also allow taxpayers to get tax credits for making donations to public school foundations… helping to offset limits on the deductibility of state and local taxes.