Bill > S311

This bill, known as the Achieving Choice in Education Act (ACE Act), proposes several amendments to the Internal Revenue Code to expand educational funding options and incentives. The bill would modify 529 savings plans to include a broader range of educational expenses for elementary and secondary education, such as tuition, curriculum materials, books, online educational resources, tutoring, standardized test fees, dual enrollment costs, and educational therapies for students with disabilities. It increases the annual distribution limit for these plans from $10,000 to $20,000 and expands gift tax exclusions to allow additional tax-free contributions to 529 plans. Notably, the bill also introduces a significant provision linking tax-exempt bond eligibility to state school choice programs, requiring states to implement school choice initiatives (such as tax credit scholarships, voucher programs, or education savings accounts) to qualify for full tax-exempt bond status. States must ensure that at least 40% of school-age children are eligible for these choice programs and meet specific spending requirements to maintain their tax-exempt bond privileges. These changes would take effect at different times, with most provisions applying to distributions and gifts made after December 31, 2026, and bond-related changes applying to bonds issued after the act's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/311/all-info