LINCOLN- Nebraska’s educational savings accounts designed to help pay for public or private college expenses could expand to cover private K-12 tuition, in line with federal law, beginning in 2029. The proposed change from State Sen. Tony Sorrentino of the Elkhorn area was amended 32-11 Tuesday evening into Legislative Bill 647 after multiple hours of debate. At least 42 states already allow such savings accounts to cover tuition at K-12 private schools, which was first allowed in 2018 after passage of the federal Tax Cuts and Jobs Act, for up to $10,000 per beneficiary per year.

A 529 savings plan — in Nebraska, NEST 529 — offers tax breaks to encourage families or students to donate and allow the savings to grow tax-free. Multiple attempts to expand the accounts in Nebraska have stalled in recent years. State Sen. Brad von Gillern of the Elkhorn area, who led LB 647 as chair of the Legislature’s Revenue Committee, said he didn’t have the “foreknowledge” to use NEST 529 accounts for his children. “It’s a great way to save for college education, and with the implementation of this bill … those funds could also be used for primary education,” von Gillern said.

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