Legislation to extend employer tax credit
4/4/2017, 7 p.m.
Legislation that would keep tax credits in place for employers
contributing to their employees' college accounts has been introduced by State Sen. Jennifer Bertino-Tarrant (D-Shorewood).
The tax credit is set to expire in 2020, but Bertino-Tarrant's plan would extend it to 2025. The senator's legislation also increases the tax credit amount an employer would be eligible for by $500.
"This tax credit is an important tool for incentivizing employers to help their employees pay for college," Bertino-Tarrant said. "I am proud to be working with the Illinois Treasurer's Office to sponsor legislation that would benefit both workers and businesses."
The tax credit is provided to employers that match an employee's contribution to a qualified Illinois prepaid tuition program, such as Bright Start or College Illinois.
Bertino-Tarrant's proposal, Senate Bill 1382, increases the maximum annual tax credit provided to employers that match an employee's contribution to qualified college savings and prepaid tuition accounts from $500 to $1,000 per employee.
The Treasurer's Office believes that more employers will participate if the credit is extended another five years. Employers have expressed concerns about the tax credit expiring.
Increasing the tax credit should also encourage more employers to participate and contribute at higher amounts.