On March 6, 2025, the Oklahoma State Legislature introduced House Bill 2740, aimed at enhancing the Oklahoma College Savings Plan by expanding tax deductions for contributions. The bill proposes significant changes to the existing framework, allowing taxpayers to deduct contributions made to college savings accounts, with a maximum annual deduction of $10,000 for individual taxpayers and $20,000 for those filing jointly.

Key provisions of HB 2740 include the ability for taxpayers to carry forward any unused deduction amounts for up to five years, thereby encouraging ongoing contributions to college savings accounts. This initiative seeks to address the rising costs of higher education and promote financial preparedness among families in Oklahoma.

During the legislative discussions, proponents of the bill emphasized its potential to alleviate the financial burden of college expenses, arguing that increased savings could lead to higher enrollment rates in higher education institutions. However, some opposition arose regarding the fiscal implications of the proposed tax deductions, with critics expressing concerns about the impact on state revenue and the prioritization of tax benefits for higher-income families.

The bill's introduction has sparked a broader debate about educational funding and the state's role in supporting college affordability. Experts suggest that if passed, HB 2740 could significantly influence savings behavior among Oklahoma families, potentially leading to increased college attendance and graduation rates.

As the legislative process unfolds, stakeholders will be closely monitoring amendments and discussions surrounding HB 2740, which could shape the future of college savings in Oklahoma. The bill's progression will be a key focus in the coming weeks, as lawmakers weigh the economic and social implications of enhancing the Oklahoma College Savings Plan.