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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | November 13, 2023 09:29 AM |
|---|---|
| From: | Senator Marty Flynn |
| To: | All Senate members |
| Subject: | 529 Account Contribution Employer Tax Credit |
| Student loan debt in the United States has reached unprecedented levels, with an estimated 45 million borrowers collectively owing over $1.5 trillion in student loans. This crisis has far-reaching consequences for students, recent graduates, and the broader economy. 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. When created in 1996, these plans were only designed to cover higher education expenses. Since then, the program has been expanded to include K-12 education costs, as well as costs related to apprenticeships, as recently as 2020. We must work to continue to make education, in all forms, as accessible and affordable as possible for the citizens of the Commonwealth. Accordingly, I intend to introduce legislation creating a tax credit for employer contributions to 529 tuition savings accounts. An employer that makes a contribution towards an employee's 529 account would be eligible to claim a tax credit towards the employer’s state tax liability. This initiative aims to incentivize employers to support their employees' educational goals and alleviate the financial burden of education for both employees and their families. Please consider joining as a co-sponsor on this very important legislation, as it is sure to promote a more skilled and educated workforce in our Commonwealth and beyond. This legislation will be a companion to Representative Friel’s House Bill 1745. |
Introduced as SB1143