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Sens. Laura Murphy and Jennifer Bertino Tarrant

SPRINGFIELD – Employers that offer payroll deductions to help save for children’s college education could receive double the current annual tax credit under a measure sponsored by State Senator Jennifer Bertino-Tarrant (D-Shorewood).

“One of the greatest investments we can make is in higher education for our children,” Bertino-Tarrant said. “Companies that match employee contributions to qualified college savings programs deserve to receive a tax credit to offset the cost.”

Senate Bill 2800 increases the maximum annual tax credit provided to employers that match an employee's contributions to qualified college savings and prepaid tuition accounts from $500 to $1,000 per employee.

Additionally, it would extend the availability of tax credits to employers that match an employee's contributions to a Bright Start/Bright Directions or College Illinois savings plan. Tax credits for student-assistance contributions would end Dec. 31, 2030 under the legislation.

“The expansion will allow more employees to contribute to the program, and allow those who have already maxed out their annual tax credit to save even more for their children’s education,” Bertino-Tarrant said. “Every dollar saved early on in a child’s life will give them the opportunity to receive a quality education.”

The measure passed the Senate Revenue Committee Wednesday. It heads to the full Senate for further consideration.