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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | October 17, 2023 09:12 AM |
|---|---|
| From: | Representative Paul Friel |
| To: | All House members |
| Subject: | TAP 529 Tax Credit |
| Today, student loan debt is higher than both credit card debt and auto loans, totaling $1.77 trillion. For students, parents and families budgeting for a postsecondary education, the rising costs continue to present major challenges. As students and families face these rising costs, plans that encourage saving for college are one approach that can help students attain a higher education and avoid burdensome debt. My legislation would create a credit for employer contributions to 529 tuition savings accounts. Any employer that contributes to an account owned by an employe under the Tuition Account Program 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% of the employer’s aggregate contributions made to accounts owned by employes during the tax year. The total amount of contributions that an employer may make to accounts owned by employes would not exceed $500 per employe during the tax year. Nearly 16 million Americans have a 529 account as of 2021. The use of 529 plans has grown dramatically in recent years. This bill will allow us to help students thrive and continue their education. Together we can improve college access and making it more affordable by reducing the financial burden on Pennsylvania’s students and their families. Please join me in co-sponsoring this legislation. |
Introduced as HB1745
Memo Updated: October 17, 2023 09:13 AM