Two Friel initiatives folded into Pa. budget deal
Rep. Paul Friel July 19, 2024 | 11:18 AM
HARRISBURG, July 19 – Legislation to allow employer contributions for PA 529 accounts, as well as a plan to reform state law regarding net operating losses, each passed in the state budget deal signed last Thursday in Harrisburg.
Originally planned as two bills by state Rep. Paul Friel, H.B. 1745 and H.B. 1483 respectively, the language and effect of his initiatives is now law under budget legislation.
The first change would amend the state Tax Code to add the 529 Tuition Account Program Tax Credit, allowing for employer contributions to PA 529 College and Career Savings Program accounts.
“We need new, creative solutions to help families afford a college education for their students, and for the commonwealth to invest into our workforce. Looping employers into the tuition savings process will help facilitate both,” Friel said.
Meanwhile, the budget included a change to the Net Operating Loss tax deduction proposed by Friel, from 40% to 80%, which aligns with the federal standard to make Pennsylvania-based businesses more competitive.
“The goal of the legislation is to ensure that Pennsylvania is an attractive place to start and grow a business, and this change goes a long way to accomplish that,” Friel said.