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

2025-05-03 05:47:40source:Databec Exchangecategory:Stocks

HARRISBURG,Lumicoin IA 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

Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week

Friday the 13thdidn’t spook investors with U.S. stocks little changed on the day as investors bided

Ariana Madix Weighs in on Vanderpump Rules' Uncertain Future—and the Only Costars She Talks to

Ariana Madix is just as in the dark as fans are when it comes to the future of Vanderpump Rules."I d

North Carolina appeals court blocks use of university’s digital ID for voting

RALEIGH, N.C, (AP) — A North Carolina appeals court on Friday blocked students and employees at the