Planning Tips for Homeowners & Businesses

• Homeowners
  If you are considering solar installations, energy-efficient appliances, or EV purchases, ensure everything is installed and commissioned before the December 31, 2025, deadline to secure your tax credits.
• EV Buyers
  New and used EVs must be purchased and placed in service on or before September 30, 2025, to qualify.
• Installing EV Chargers?
  You have until June 30, 2026, to complete the installation and claim the credit.
• Commercial Developers
  Act quickly: begin sizable clean energy projects by July 4, 2026, with substantial physical work, to meet the safe-harbor construction requirement and qualify into 2027.

Bottom Line

The One Big Beautiful Bill marks a strong pivot away from clean energy incentives. Whether you are upgrading your home or managing large-scale green energy projects, now is the time to move—or risk losing potentially thousands in tax savings. Talk to your tax advisor or contractor immediately to align your plans with the new, tighter timelines.

In this blog post, we’ll break down the major benefits of 529 plans, recent legislative updates, and how these plans can play a vital role in securing your family’s financial future.

What Is a 529 Plan?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education expenses. Named after Section 529 of the Internal Revenue Code, these plans are sponsored by states or educational institutions and offer a variety of investment options.

While originally created for higher education expenses, recent legislation has expanded their use, making them even more versatile and attractive to families.

Tax Benefits of 529 Plans

One of the biggest advantages of a 529 plan is tax-deferred growth. That means your investments grow without being taxed year to year, and withdrawals are tax-free when used for qualified education expenses. These qualified expenses include:

• College or university tuition and mandatory fees
• Books and supplies
• Computers, software, and internet access
• Room and board (for students enrolled at least half-time)

While contributions to a 529 plan aren’t deductible on your federal income tax return, many states offer tax incentives. Some states provide tax deductions or credits for contributions, and others even offer matching grants for qualifying households. Be sure to check your state’s specific rules to see what benefits may be available.

Gifting and Estate Planning Advantages

Beyond saving for education, 529 plans offer important estate and gift tax planning opportunities. For 2025, the annual federal gift tax exclusion is $19,000 per recipient ($38,000 for a married couple). That means you can contribute up to this amount to a 529 plan for a beneficiary each year without incurring gift taxes. 

Want to contribute more? The IRS allows "super funding" — you can contribute up to five years' worth of annual exclusions in a single year. That’s $95,000 for an individual or $190,000 for a couple per beneficiary in 2025, without triggering a gift tax, as long as you make a proper election on your tax return. If you want to go beyond even that, you may be able to contribute more under the lifetime gift and estate tax exemption, which is $13.99 million in 2025.

Expanded Use of 529 Funds

Originally, 529 plans could only be used for postsecondary education. But recent legislative changes have significantly increased their flexibility: 

• K-12 Education: Thanks to the Tax Cuts and Jobs Act (TCJA), you can now use up to $10,000 per year per student for tuition at elementary or secondary public, private, or religious schools.
• Student Loan Repayment: Under the SECURE Act, you may use up to $10,000 in 529 plan funds to repay the beneficiary’s student loans. You can also use an additional $10,000 for each of the beneficiary’s siblings.
• Apprenticeship Programs: 529 plans can now also cover expenses related to registered apprenticeships, including fees and required tools or equipment.

Roth IRA Rollovers:

Beginning in 2024, the SECURE 2.0 Act allows unused 529 funds to be rolled into a Roth IRA for the beneficiary. The lifetime limit is $35,000 and is subject to several requirements, including that the 529 plan must have been open for at least 15 years.

Grandparent Contributions and FAFSA:

One of the more recent and welcome changes affects how grandparent-owned 529 plans are treated in financial aid calculations. Under new FAFSA rules, distributions from grandparent-owned 529 plans no longer count as untaxed income, which means they won’t reduce the student’s eligibility for financial aid.

Looking Ahead

Legislation continues to evolve. Proposals have been introduced to further expand the qualified uses for 529 plan funds, potentially allowing for even broader education-related expenses. Staying informed and working with a trusted financial or tax advisor can help ensure you take full advantage of the available benefits.

Conclusion:

A Smart Way to Build Security for the Next Generation

Education is one of the best investments you can make in your family’s future. Whether it’s helping with college tuition, private school fees, or apprenticeship programs, a 529 plan offers a tax-efficient, flexible, and impactful way to support your loved ones.

Have questions or want to get started? Contact us today to learn how 529 plans can fit into your broader financial and estate planning strategy.