In today's competitive job market, offering meaningful benefits can set your company apart and help attract and retain top talent. Pennsylvania's new Employer Tax Credit for 529 Contributions provides an excellent opportunity for businesses to support their employees' educational savings while receiving a 25% state tax credit in return.

What is the PA 529 Employer Tax Credit?
This new tax credit program incentivizes Pennsylvania employers to contribute to their employees' PA 529 College and Career Savings Accounts by allowing them to claim a 25% tax credit on total matching contributions. Employers can contribute up to $500 per employee annually and receive a tax credit for their support.

How Does It Work?
For example, if an employer contributes $500 each to the PA 529 accounts of 10 employees in 2025, the total contribution would be $5,000. The employer would then qualify for a $1,250 tax credit (25% of $5,000).

Why Offer a 529 Contribution Benefit?
Helping employees save for education does more than provide financial support—it enhances your company's overall benefits package and boosts workplace morale. Here's how:

✅ Attract Top Talent – Stand out to job seekers by offering meaningful financial benefits.
✅ Enhance Employee Benefits – Provide an additional perk that complements traditional retirement and healthcare offerings.
✅ Improve Retention & Satisfaction – Reduce financial stress for employees and their families.
✅ Support Workforce Development – Help employees and their dependents save for higher education, apprenticeships, and career training.

Getting Started is Easy
Employers looking to offer PA 529 contributions as a workplace benefit can take advantage of this tax credit with a simple process. To learn more about participation, eligibility, and claiming the tax credit:

📞 Call 800-440-4000
📧 Email pa529@patreasury.gov
🌐 Visit www.pa529.com/employers