Harrisburg, PA − July 11, 2024 − Senator Marty Flynn is excited to announce the creation of a tax credit for employer contributions to 529 tuition savings accounts. This initiative aims to incentivize employers to support their employees’ educational goals, thereby alleviating the financial burden of education for both employees and their families.
Addressing the Student Loan Debt Crisis: Student loan debt in the United States has reached unprecedented levels, with an estimated 45 million borrowers collectively owing over $1.5 trillion. This crisis has far-reaching consequences for students, recent graduates, and the broader economy.
Expanding the 529 Tuition Account Program: A Tuition Account Program 529 account, or a “qualified tuition plan,” is a tax-advantaged savings account designed to encourage saving for future educational expenses. Initially created in 1996 to cover higher education expenses, the program has expanded to include K-12 education costs and apprenticeship-related expenses.
Key Features of the Proposed Legislation:
- Employers making contributions towards an employee’s 529 account will be eligible to claim a tax credit towards their state tax liability.
- This tax credit aims to incentivize employers to support their employees’ educational goals.
- The initiative promotes a skilled and educated workforce in Pennsylvania by making education more accessible and affordable.
Senator Marty Flynn Statement:
“We must work to continue to make education, in all forms, as accessible and affordable as possible for the citizens of the Commonwealth. By introducing a tax credit for employer contributions to 529 tuition savings accounts, we are taking a significant step towards reducing the financial burden of education. This initiative will not only support employees and their families but also promote a more skilled and educated workforce in Pennsylvania. This is truly a win-win opportunity for employers and employees.”
Senator Flynn encourages all eligible employers in Lackawanna and Luzerne Counties, and across the Commonwealth, to participate in this new tax credit opportunity.
For more information, please contact Senator Flynn’s office.