NC H787

Establishes a matching program for NC 529 education savings accounts, providing $100 in state matching funds for every $50 contributed by eligible participants, up to $500 per year and $1,500 lifetime per student

Limits matching program eligibility to NC residents with household income at or below 250% of federal poverty guidelines, with beneficiaries who are 14 years old or younger

Appropriates $180,000 in recurring funds from the General Fund to the State Education Assistance Authority for fiscal year 2025-2026 to fund the matching program

Creates a state income tax deduction of up to $2,000 ($4,000 for married couples filing jointly) for contributions to the Parental Savings Trust Fund, effective for tax years beginning January 1, 2026

Requires taxpayers to add back previously deducted amounts to adjusted gross income if funds are withdrawn and not used for qualified higher education expenses of the beneficiary