Bill > HR750

This bill, known as the "Achieving Choice in Education Act" or "ACE Act," proposes several changes to the Internal Revenue Code to expand educational funding options and incentives. First, it broadens the definition of "qualified higher education expenses" for 529 savings plans to include a wide range of elementary and secondary education expenses, such as tuition, curriculum materials, books, online educational resources, tutoring fees, standardized test expenses, dual enrollment fees, and educational therapies for students with disabilities. This expansion explicitly covers expenses for both private schools and homeschooling. Second, the bill increases the annual distribution limit from 529 plans for elementary and secondary school expenses from $10,000 to $20,000. Third, it creates a new gift tax exclusion that allows individuals to contribute up to an additional $20,000 per year to 529 plans for a specific beneficiary without triggering gift tax consequences. Finally, the bill introduces a provision that ties tax-exempt bond eligibility to states' implementation of school choice programs, offering full or partial tax exemption for bonds issued by states that meet specific criteria related to the percentage of school-age children eligible for school choice programs and the funding allocation for those programs. These changes aim to provide more financial flexibility and support for families pursuing diverse educational options.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/750/all-info