A bill to encourage Pennsylvania employers to contribute to employees’ PA 529 tuition savings accounts has passed the House of Representatives unanimously.
The bi-partisan legislation was written by state Rep. Paul Friel, D-26th Dist. and state Rep. Kristin Marcell, R-178th Dist. in Bucks County.
House Bill 1745 would modify the state tax code to include the 529 Tuition Account Program (TAP) Tax Credit, enabling employer contributions to PA 529 College and Career Savings Program accounts. Friel and Marcell stated that their proposal aims to motivate Pennsylvania employers to assist employees in saving for future education expenses.
“We need new, creative solutions to help families afford a college education for their students, and for the Commonwealth to invest into our workforce – looping employers into the tuition savings process will help facilitate both,” Friel mentioned. “Rep. Marcell and I may be on opposite sides of the political aisle, but we readily set aside our differences to create this effective solution for the people we serve.”
“Addressing the skills gap and strengthening our workforce starts with access to education,” Marcell stated. “By encouraging employers to invest in their employees’ futures, House Bill 1745 not only supports Pennsylvania families but also contributes to building a more skilled and educated workforce.”
According to the lawmakers, any employer that contributes to an account owned by an employee under the 529 TAP Tax Credit would be able to claim a tax credit against the employer’s state tax liability. The amount of the tax credit would be equal to 25 percent of the employer’s aggregate contributions made to accounts owned by employees during the tax year.
The bill would also apply to employer contributions to employees’ PA ABLE (Achieving a Better Life Experience) accounts, which help families save to meet disability-related expenses.
