An employer who contributes directly to an employee’s 529 qualified state tuition program account administered by CollegeInvest is allowed to claim a credit against the employer’s income taxes. The employer is allowed to claim a credit in an amount equal to 20% of the contribution. The maximum credit an employer may claim for each employee in a taxable year is $500. The credit is neither transferable nor refundable, but may be carried forward on the employer’s return for up to three years.
