Wisconsin has extended tax deductions in its EdVest 529 college savings plan to grandparents. Beginning with their 2002 tax return, grandparents will be able to deduct up to $3,000 of annual contributions to EdVest per grandchild.
The plan also allows contributors to contribute five years' worth of maximum contributions, or $55,000 by individuals or $110,000 by a married couple, without having to pay gift taxes.
"The state tax deduction is a great incentive to get more of Wisconsin saving for the education of our youth," said Jack Voight, treasurer for the state of Wisconsin.
Strong Capital Management is the program manager for Wisconsin's plan.