The Missouri Chamber of Commerce and Industry supports legislation that would significantly expand tax incentives for families saving for education and workforce training.
SB 1279, sponsored by Sen. Mary Elizabeth Coleman (R-Arnold), would allow Missouri taxpayers to deduct 100% of their contributions to a 529 education savings account from their state income taxes. Current law limits the deduction to $8,000 for single filers and $16,000 for married couples.
During a hearing before the Senate Economic and Workforce Development Committee, Coleman said removing those caps would give families greater flexibility and a stronger incentive to invest in future education and training.
“We know that inflation has hit higher education at a much higher rate than anything else, making it more difficult to save your way into paying for college,” Coleman said. “This is a way to help Missouri families be able to pay for and seek the education they want.”
The legislation builds on the success of MOST, Missouri’s 529 Education Plan—the state’s official education savings program. MOST offers tax advantages while allowing funds to be used for a wide range of education expenses, not just traditional four-year college tuition. Eligible uses include K-12 education, trade schools, colleges and universities and apprenticeship programs.
Earnings in MOST accounts grow tax-free and can be withdrawn tax-free for qualified expenses such as tuition, books, supplies, tutoring, online learning, testing fees, apprenticeships and certain student loan repayments.
The Missouri Chamber has actively promoted the MOST program for several years and supports policy changes like SB 1279 that expand its usefulness, particularly for apprenticeships and workforce-focused training programs. These investments help ensure Missouri has a skilled workforce ready to meet the needs of employers across the state.
Missouri Chamber Vice President for Government Affairs Jared Hankinson testified in favor of the bill, saying, “Employers are facing a workforce crisis in all industries across the state, and this can help address that. This legislation would also create a pathway for more families to take an interest in their child’s educational future.”
For more information, contact Hankinson at jhankinson@mochamber.com or call (573) 634-3511.
