On July 17, 2024, Pennsylvania Governor Josh Shapiro signed House Bill 1745 into law. This bill provides a new tax credit for PA businesses that contribute to their employees’ 529 plans.
The new PA 529 tax credit allows for a 25% tax credit for employers who match up to $500 of employee contributions per participating employee per year. This initiative encourages employers to support their employees’ educational savings.
This new law goes into effect January 1, 2025. PA will hopefully provide more information over the next couple of months to address the following questions.
- Will there be any caps on the number of employees?
- Will contributions to related parties be allowed?
- What documentation will employers need to maintain to know that their employees made contributions?
If you would like to discuss your business or personal tax planning, tax preparation, and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton, PA office to discuss your situation. You can also schedule a consultation at Click Here.
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About Bryan Haarlander, EA, CTRS:
Bryan Haarlander is an IRS-licensed Enrolled Agent and a Certified Tax Resolution Specialist who owns and operates a specialized tax services firm serving clients in the western suburbs of Philadelphia, PA. This includes the cities of Chester Springs, Coatesville, Collegeville, Devon, Downingtown, Exton, King of Prussia, Paoli, Philadelphia, Phoenixville, Pottstown, Radnor, Reading, Wayne, and West Chester. We also serve clients in Delaware, New Jersey, New York, and the United States.
Bryan is well-known for his IRS tax resolution expertise and his book How to Resolve Your IRS Tax Debt Problems.
