Newark, DE – Under a new law, Delaware families will now be able to direct deposit their tax refunds into their Delaware College Investment Plan (DCIP) accounts.
Signed into law by Delaware Gov. Jack Markell on April 14, 2010, DCIP is a 529 plan that grows tax free if the money is used for higher education expenses.
"By high school, every Delaware student should know the power of compound interest and how a small bit of money can, over time, grow dramatically. The Delaware College Investment Plan gives families the chance to start well before a child, grandchild, niece or nephew is even in high school to make an investment in their dream of a college education," Markell said.
The law impacts state returns covering tax years beginning after Dec. 31, 2009. While families can use the funds to pay for tuition at any recognized institution of higher education, Markell made special mention of the educational opportunities provided publicly by Delaware's public universities, including the University of Delaware, Delaware State University and Delaware Technical and Community College.
The bill was a joint effort by Representative Terry Schooley and Senator Dave Sokola, who chair the Education Committees in their respective Chambers.
"Tax refunds are often not budgeted as part of regular household expenses. Allowing direct deposit will enable families to plan ahead and save these funds for their children's education, which is so critical to their success," said Schooley.
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