PENNSYLVANIA— Pennsylvania Treasurer Stacy Garrity is applauding the unanimous approval of House Bill 1745 by the House Education Committee. The bill, sponsored by Rep. Paul Friel (D-26), proposes a tax credit for employers contributing to their employees’ PA 529 College and Career Savings Program accounts.
If passed, the legislation will amend the Tax Reform Code of 1971, introducing a tax credit for employer contributions to 529 savings accounts. The goal is to encourage employers to help Pennsylvania families save for future education expenses.
“Creating this tax credit will encourage employers to help Pennsylvanians save for their child’s or grandchild’s future education with our tremendous PA 529 program,” said Treasurer Garrity. “HB 1745 will benefit families across Pennsylvania, and it will allow employers to offer a new benefit, making them more attractive places to work.”
Rep. Friel also expressed his satisfaction with the bill’s progress: “This is an example of where we can come together and help provide greater educational opportunities to our students and communities.”
HB 1745 proposes a 25 percent tax credit on employer contributions of up to $500 per participating employee per year. This would apply to contributions made to any 529 account. A similar tax credit already exists in seven other states – Arkansas, Colorado, Idaho, Illinois, Nebraska, Nevada, and Wisconsin.
The PA 529 program has been helping families save and pay for education for over 30 years. Currently, there are over 290,000 PA 529 accounts with assets exceeding $6.9 billion.
The program offers two plans: the PA 529 Guaranteed Savings Plan, which allows families to save at today’s tuition rates for future costs, and the PA 529 Investment Plan, which provides numerous investment options with earnings based on financial market performance. The latter was recently awarded Morningstar’s Gold Rating, making it one of the top two plans in the country.
Treasurer Garrity thanked House Education Committee Chair Rep. Peter Schweyer (D-134) and House Education Committee Republican Chair Rep. Jesse Topper (R-78) for their support of the legislation, which now awaits further action by the General Assembly.
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