A new tax credit bill in Pennsylvania encourages employers to contribute to employees’ PA 529 College and Career Savings Program accounts by offering a 25% tax credit on contributions up to $500.
New Tax Credit Bill Encourages Employers to Help Pennsylvania Residents Save for College
Pennsylvania residents can now boost their college savings with a new tax credit bill that encourages employers to help. The bill originally House Bill 1745, lets employers get a 25% tax credit on contributions up to $500 per employee to their PA 529 College and Career Savings Program accounts. This program helps families save for college costs like tuition, fees, room and board, books, and supplies at colleges and technical schools.
READ ALSO: $100 Cap: Texas Families To Save Big During August 9-11 Tax-Free Weekend
(photo:
Tri-State Alert)
New Tax Credit in Pennsylvania Makes It Easier for Families to Save for Education
The bill, supported by Reps. Kristin Marcell (R-Bucks) and Paul Friel (D-Chester), is now part of the state’s Tax Code. Representative Marcell said, “By encouraging employers to invest in their employees’ futures and this tax credit supports Pennsylvania families and builds a more skilled and educated workforce. We are making it easier for families to save for higher education ensuring that our students have the opportunities they need to succeed.” This shows Pennsylvania’s focus on improving education and job skills, according to the report of WTAJ.
PA Treasury Secretary Stacy Garrity said the tax credit will greatly help families save more for education. There are already over 300,000 PA 529 accounts with almost $8 billion in savings. The program offers two savings plans and helps residents figure out how much to save based on different types of colleges from community colleges to Ivy League schools. This new tax credit will make it easier for families to afford their children’s education.
