H 1024

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