(The Center Square) — State income tax deductions that can save Delawares thousands are a reality for contributions made since Dec. 31.
House Bill 145, signed by Democratic Gov. John Carney, creates deductions for amounts up to $5,000 in DEPENDABLE accounts and up to $1,000 in DE529 Education Savings Plan accounts. The joint deposit amounts are $10,000 and $2,000 respectively.
DEPENDABLE plays an acronym for the state’s abbreviation and its program ABLE, which is Achieving a Better Life Experience. It is aimed at people with disabilities and their families and covers a wide range of expenses. The DE529 applies to education as its full name suggests.
In a statement, State Treasurer Colleen Davis said, “Creating pathways to economic empowerment remains one of my top priorities for our office. There is no better way to create this security than by saving, whether for the education or the future needs of someone with a disability.”
She added, in reference to the ABLE program and DEPENDABLE accounts, “There is no limit to what people with disabilities can do, so there is no reason to limit their savings. This new tax deduction will help save even more.”
The release reads, “The deduction of contributions to DE529 college savings plan accounts is effective January 1 of the calendar year following notification by the Delaware Secretary of Finance to the Settlement Registry of the availability of funds.”
In the statement, Rep. Krista Griffith – a sponsor of the bill – said of DE529: “If a parent contributes only $1,000 per year to a 529 account beginning in the year of the child’s birth ‘child, the account could reach $44,000 by the time the child turns 18.’