HARRISBURG, PA — In a rare display of bipartisan unity, the Pennsylvania House of Representatives has unanimously passed legislation aimed at encouraging employers to contribute to their employees’ education savings. House Bill 1745, co-authored by State Rep. Paul Friel, D-Chester, and Rep. Kristin Marcell, R-Bucks, seeks to amend the state tax code to introduce a new incentive for businesses to invest in the future education of their workforce.
Under this proposed amendment, Pennsylvania’s employers would be able to claim a tax credit for contributions made to their employees’ PA 529 College and Career Savings Program accounts. Specifically, the bill allows a tax credit equal to 25% of the total contributions an employer makes to these accounts within a tax year.
The PA 529 plan, a cornerstone of the Commonwealth’s efforts to facilitate higher education savings, enables families to save for college and career expenses in a tax-advantaged way. The introduction of the 529 Tuition Account Program (TAP) Tax Credit aims to expand this opportunity by leveraging employer support, thereby easing the financial burden on families striving to afford post-secondary education for their children.
Highlighting the innovative approach of the legislation, Rep. Friel emphasized the need for creative solutions to make higher education more accessible. “We’re looking at a win-win situation here,” Friel explained. “By making it easier for families to save for college, we’re not only helping students access higher education but also empowering our workforce with the skills needed for tomorrow’s jobs.”
Rep. Marcell, echoing her colleague’s sentiments, pointed out the broader economic implications of the bill. “Investing in education is investing in our economy,” Marcell stated. “This bill encourages employers to play a direct role in closing the skills gap and building a stronger, more educated workforce.”
The proposed tax credit also extends to contributions made to PA ABLE accounts, which are designed to help families save for disability-related expenses. This inclusion underscores the legislation’s comprehensive approach to supporting Pennsylvania families across a broad spectrum of needs.
The unanimous passage of House Bill 1745 represents a significant step toward its implementation and signals strong legislative support for innovative educational funding mechanisms. As the bill moves to the Senate for consideration, stakeholders across the state are watching closely, hopeful for a positive outcome that could set a precedent for similar initiatives nationwide.
By fostering a collaborative relationship between employers and employees in the realm of education savings, Pennsylvania stands to enhance its educational landscape and workforce readiness. This legislation not only promises financial relief for countless families but also positions the Commonwealth as a leader in addressing the challenges of affordability and accessibility in higher education.
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