Legislation would expand 529 TAP Tax Credit

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The state House of Representatives recently advanced House Bill 1745, bipartisan legislation that would expand the 529 TAP Tax Credit, which encourages work force development.

Under the bill, an incentive would created that would remove barriers to educational accessibility and affordability. Employers would have the ability to contribute to employees’ 529 college savings accounts.

The PA 529 program offers two savings plan options that cover various educational expenses.

State Reps. Kristin Marcell (R-Bucks) and Paul Friel’s (D-Chester) introduced the bill.

“Addressing the skills gap and strengthening our workforce starts with access to education,” Marcell said. “By encouraging employers to invest in their employees’ futures, House Bill 1745 not only supports Pennsylvania families but also contributes to building a more skilled and educated workforce.”

“We need new, creative solutions to help families afford a college education for their students, and for the commonwealth to invest in our workforce – looping employers into the tuition savings process will help facilitate both,” Friel said. “Rep. Marcell and I may be on opposite sides of the political aisle, but we readily set aside our differences to create this effective solution for the people we serve.”

The bill also amends the Tax Reform Code of 1971 to provide classes of personal income.