Bill > S756

This bill amends the Internal Revenue Code to expand the definition of "qualified higher education expenses" in 529 accounts (tax-advantaged savings plans typically used for educational expenses) to include certain postsecondary credentialing expenses. Specifically, the bill allows 529 account funds to be used for expenses related to obtaining and maintaining industry-recognized credentials, such as professional certifications, licenses, and apprenticeship certificates. Qualified expenses would include tuition, fees, books, supplies, equipment, testing fees, and continuing education fees for programs that meet specific criteria, such as being listed on state workforce development lists, recognized by veterans' programs, or identified by federal agencies as reputable. The bill defines a "recognized postsecondary credential" broadly to include industry-recognized employment credentials, professional licenses, apprenticeship certificates, and credentials recognized by the Workforce Innovation and Opportunity Act. These changes aim to provide more flexibility for individuals using 529 accounts to invest in workforce training and professional development, beyond traditional academic higher education. The amendments would apply to distributions made after the date of the bill's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/756/all-info