Treasurer Garrity Applauds PA 529 Tax Credit Bill Being Incorporated into Recently Passed Tax Code, Offering Significant Benefits to Families and Employers

Harrisburg, PA - The 529 tax credit, originally House Bill 1745 and co-prime sponsored by state Reps. Kristin Marcell (R-Bucks) and Paul Friel (D-Chester), has been successfully incorporated into the Tax Code bill recently signed by Gov. Josh Shapiro. This new tax credit incentivizes employers to contribute to their employees' PA 529 College and Career Savings Program accounts, providing substantial benefits to families across Pennsylvania and supporting workforce development.

House Bill 1745 expands the tax credit to encourage workforce development and ease the financial burden of higher education for Pennsylvania families. The PA 529 tax credit allows for a 25 percent tax credit on employer contributions of up to $500 per participating employee per year. This initiative encourages employers to support their employees' educational savings, facilitating financial planning for future educational expenses.

"This tax credit is outstanding news. It will encourage employers to help employees save with our tremendous PA 529 College and Career Savings Program and PA ABLE Savings Program for people with disabilities. That will be a huge help to families across Pennsylvania, and by offering this new benefit, employers will become even more attractive places to work. I thank Rep. Friel and Rep. Marcell for their great work getting this tax credit enacted."

Pennsylvania State Treasurer Stacy Garrity

"This tax credit is outstanding news. It will encourage employers to help employees save with our tremendous PA 529 College and Career Savings Program and PA ABLE Savings Program for people with disabilities. That will be a huge help to families across Pennsylvania, and by offering this new benefit, employers will become even more attractive places to work. I thank Rep. Friel and Rep. Marcell for their great work getting this tax credit enacted."

Representative Paul Friel (D-26)

"Addressing the skills gap and strengthening our workforce starts with access to education. By encouraging employers to invest in their employees' futures, 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."

Representative Kristin Marcell (R-178)

The PA 529 program, known for its flexibility and growing popularity, offers two savings plan options to cover various educational expenses, laying a strong foundation for the initiative. House Bill 1745 underscores the importance of workforce development in sustaining economic growth and competitiveness.

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