Surpassing-Bill to offset student debt through tax credit passes Pennsylvania House

2025-04-28 18:56:59source:L’École de Gestion d’Actifs et de Capitalcategory:Stocks

HARRISBURG,Surpassing Pa. (AP) — To offset the burden of student debt, employers in Pennsylvania could get a tax credit if they make contributions to their employees’ tuition savings account, under a bill that passed the Pennsylvania House of Representatives on Wednesday.

The legislation, which passed unanimously and now goes on to the state Senate, would allow employers to contribute up to $500 to an employee’s tuition savings account annually for a tax credit equal to 25% of the employer’s total contributions.

Tuition savings accounts, like the 529 plan, can be used for educational expenses — like tuition, room and board, books — at K-12 schools, college or career training programs and are meant to lower future borrowing.

Sponsors for the bill say with student debt totaling $1.77 trillion nationally, the legislation would help reduce the financial burden on students.

Pennsylvania ranks nearly last in just about every measure for college affordability. Tuition rates are high, students leave encumbered with more debt and the state gives less to higher education than others.

Employers that make contributions would have to do so equally to all employees who have tuition savings accounts.

The Department of Revenue estimates there are roughly 600,000 tuition savings accounts owned by Pennsylvania employees. The state would see an estimated $65.7 million cost annually, if each eligible account received the maximum contribution.

More:Stocks

Recommend

For those in their 40s, navigating finances should mean putting an emphasis on retirement

For 48-year-old Rowan Childs of Wisconsin, a recent divorce turned her financial life upside down. "

Joey Fatone opens up about fat loss procedure, getting hair plugs: 'Many guys get work done'

Joey Fatone is getting candid about his body modifications as a Hollywood star.The NSYNC singer told

Slipknot's ex-drummer Jay Weinberg hints at firing, says he's 'heartbroken and blindsided'

Jay Weinberg, Slipknot's drummer of 10 years, is speaking out about his alleged firing from the band