Lower Bucks Today

The 529 tax credit, introduced by state Representatives Kristin Marcell and Paul Friel, has been integrated into the Tax Code signed by Governor Josh Shapiro. This measure encourages employers to contribute to their employees' PA 529 College and Career Savings Program accounts, aiming to benefit families in Pennsylvania and promote workforce development.

House Bill 1745 expands this tax credit initiative to support workforce growth and alleviate higher education costs for families in Pennsylvania. The PA 529 tax credit offers a 25% tax credit on employer contributions up to $500 per participating employee annually. This policy is designed to motivate employers to aid their employees' educational savings, facilitating financial planning for future educational expenses.

Representative Friel stated, “The 529 Act is an example of how we can, and must, work together to make progress for our families.” He emphasized the importance of bipartisan collaboration in making education more accessible.

Representative Marcell added, “Addressing the skills gap and strengthening our workforce starts with access to education.” She highlighted that the tax credit supports both family savings for higher education and the development of a skilled workforce.

Pennsylvania Treasurer Stacy Garrity praised the new tax credit: “This tax credit is outstanding news. It will encourage employers to help employees save with our tremendous PA 529 College and Career Savings Program.” Garrity noted that this would enhance employer attractiveness while aiding families across Pennsylvania.

The PA 529 program offers two flexible savings plan options aimed at covering various educational expenses. House Bill 1745 emphasizes the significance of workforce development in maintaining economic growth and competitiveness.