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DR 0289 - Employer Contributions to Employee 529 Qualified State Tuition Program Credit


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.