Under the program, Tennesseans who open accounts with at least $50 will receive a one-time $50 match from the state. Those who roll over their account balances from other 529 college savings plans, including the state's prepaid plan, will get $100.
The program also has other benefits, such as federal tax-free earnings if the money is used for higher education expenses.
About four years ago, the state partnered with Georgia to start a college savings plan. The new one is specific to Tennessee.
Haslam praised the plan as a "great opportunity for Tennesseans who want to attend college."
(Copyright 2012 by The Associated Press. All Rights Reserved.)