Revise NC 529 Program.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1024

Short Title: Revise NC 529 Program. (Public)
Sponsors: Representatives Roberson, Price, and T. Brown (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and
Operations of the House
April 22, 2026
*H1024-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A MATCHING PROGRAM F OR CONTRIBUTIONS TO THE 2
PARENTAL SAVINGS TRU ST FUND AND TO CREAT E A TAX DEDUCTION FO R 3
CERTAIN CONTRIBUTIONS TO QUALIFIED TUITION PROGRAMS. 4
The General Assembly of North Carolina enacts: 5
6
PART I. PARENTAL SAVINGS TRUST FUND MATCHING PROGRAM 7
SECTION 1.(a) G.S. 116-209.25 is amended by adding the following new 8
subsection to read: 9
"(e1) Matching Program. – The Authority shall establish a matching program for 10
contributions made by eligible persons who open an education savings and investment plan 11
account qualified under section 529 of the Internal Revenue Code to contribute funds to the 12
Parental Savings Trust Fund for qualifying students. As part of the Program, the Authority shall 13
provide matching contributions of one hundred dollars ($100.00) for every fifty dollars ($50.00) 14
contributed by an eligible person, up to five hundred dollars ($500.00) per year. Matching funds 15
shall be provided up to a maximum of one thousand five hundred dollars ($1,500) per qualifying 16
student. For purposes of this subsection, the following definitions shall apply: 17
(1) Eligible person. – A qualified parent or other interested party that meets all of 18
the following criteria: 19
a. Qualifies as a resident under the criteria set forth in G.S. 116-143.1 20
and in accordance with the coordinated and centralized residency 21
determination process administered by the Authority. 22
b. Has a household income not in excess of two hundred fifty percen t 23
(250%) of the federal poverty guidelines. 24
(2) Program. – The matching program established pursuant to this subsection. 25
(3) Qualifying student. – An eligible s tudent in accordance with section 529 of 26
the Code who meets all of the following criteria: 27
a. Qualifies as a resident under the criteria set forth in G.S. 116-143.1 28
and in accordance with the coordinated and centralized residency 29
determination process administered by the Authority. 30
b. Is 14 years of age or younger." 31
SECTION 1.(b) There is appropri ated from the General Fund to the Board of 32
Governors of The University of North Carolina for the 2026 -2027 fiscal year the sum of one 33
hundred eighty thousand dollars ($180,000) in recurring funds to be allocated to the State 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1024-First Edition
Education Assistance Authority to provide matching contributions to the Parental Savings Trust 1
Fund pursuant to G.S. 116-209.25(e1), as enacted by subsection (a) of this section. 2
SECTION 1.(c) This section becomes effective July 1, 2026. 3
4
PART II. CREATE A TA X DEDUCTION FOR CERT AIN CON TRIBUTIONS TO 5
QUALIFIED TUITION PROGRAMS 6
SECTION 2.(a) G.S. 105-153.5(b) is amended by adding a new subdivision to read: 7
"(12a) An amount, not to exceed two thousand dollars ($2,000), contributed to an 8
account in the Parental Savings Trust Fund of the State Education Assistance 9
Authority established pursuant to G.S. 116-209.25. In the case of a married 10
couple filing a joint return, the maximum dollar amount of the deduction is 11
four thousand dollars ($ 4,000). The taxpayer shall add to adjusted gross 12
income the amount deducted in a prior taxable year under this subdivision to 13
the extent this amount was withdrawn from the Parental Savings Trust Fund 14
and not used to pay for the qualified higher education expenses of the 15
designated beneficiary, unless the withdrawal was made without penalty 16
under section 529 of the Code due to the death or permanent disability of the 17
designated beneficiary." 18
SECTION 2.(b) This section is effective for taxa ble years beginning on or after 19
January 1, 2027. 20
21
PART III. EFFECTIVE DATE 22
SECTION 3. Except as otherwise provided, this act is effective when it becomes 23
law. 24