Committee Approves College Savings Bill

Montgomery, AL – The Senate Finance and Taxation-Education Committee approved a bill Wednesday that would exempt Alabama's college savings plan from state income taxes. A similar bill has already received House approval. Legislators are responding to a report by the Morningstar fund rating agency. It listed Alabama's college savings plan as one of the top five worst in the country because the state taxes withdrawals. State Treasurer Kay Ivey says the corrective legislation will encourage more people to begin saving for their children's college education.