Pennsylvania is now the first state in the nation offering investors tax breaks on any 529 plan, Dow Jones reports. Although Maine and Kansas also plan to offer such breaks, they will not begin until next year and are far less generous than Pennsylvania's tax breaks.
Pennsylvania's new law allows taxpayers to deduct up to $12,000 in contributions to a 529 from their state income tax. Couples may deduct up to $24,000. In Maine, taxpayers will only be able to deduct $250 in 529 contributions, while Kansas is allowing deductions of $3,000 per individual and $6,000 per couple.