Jumpstart Savings Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7115 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7115

   To amend the Internal Revenue Code of 1986 to establish Jumpstart 
 Programs for saving for apprenticeship and trade occupation training, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2026

 Mr. Moore of West Virginia (for himself, Mr. Rulli, Mrs. Hinson, Mr. 
 Goldman of Texas, and Mr. Moore of Alabama) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to establish Jumpstart 
 Programs for saving for apprenticeship and trade occupation training, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jumpstart Savings Act''.

SEC. 2. JUMPSTART PROGRAM.

    (a) In General.--Part VIII of subchapter F of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
529A the following new section:

``SEC. 529B. JUMPSTART PROGRAM.

    ``(a) In General.--A Jumpstart Program shall be exempt from 
taxation under this subtitle. Notwithstanding the preceding sentence, 
such program shall be subject to the taxes imposed by section 511 
(relating to imposition of tax on unrelated business income of 
charitable organizations).
    ``(b) Jumpstart Program.--For purposes of this section--
            ``(1) In general.--The term `Jumpstart Program' means a 
        program established and maintained by a State or agency or 
        instrumentality thereof under which a person may make 
        contributions to an account which is established for the 
        purpose of meeting the qualified occupation, profession, or 
        trade expenses of the designated beneficiary of the account.
            ``(2) Additional requirements.--A program shall not be 
        treated as a Jumpstart Program unless such program meets rules 
        similar to the rules of paragraphs (2), (3), (4), (5), and (6) 
        of section 529(b).
    ``(c) Qualified Occupation, Profession, or Trade Expenses.--For 
purposes of this section, the term `qualified occupation, profession, 
or trade expenses' means--
            ``(1) expenses in connection with completing an 
        apprenticeship program registered and certified with the 
        Department of Labor, as provided in the Act of August 16, 1937 
        (commonly known as the `National Apprenticeship Act'; 50 Stat. 
        664, chapter 663; 29 U.S.C. 50 et seq.),
            ``(2) tuition, fees, books, supplies, and equipment 
        required for the enrollment or attendance of a designated 
        beneficiary in an associate degree or certification program at 
        a community and technical college,
            ``(3) fees for required certification or licensure for the 
        beneficiary to practice a trade or occupation,
            ``(4) amounts paid or incurred for the purchase of tools 
        and equipment acquired by the individual in the normal course 
        of the practice of a trade or occupation, and
            ``(5) costs incurred by the beneficiary that are necessary 
        to establish a business in a State in which the beneficiary 
        will practice an occupation or profession when the costs are 
        exclusively paid or incurred for the purpose of establishing 
        and operating such business.
    ``(d) Tax Treatment of Designated Beneficiaries and Contributors.--
For purposes of this section, rules similar to the rules of paragraphs 
(1), (2), (3), (4), and (5) of section 529(c) shall apply to Jumpstart 
Accounts in the same manner as applied to qualified tuition programs 
described in section 529(b)(1)(A)(ii).
    ``(e) Designated Beneficiary.--The term `designated beneficiary' 
means--
            ``(1) the individual designated at the commencement of 
        participation in the Jumpstart Program as the beneficiary of 
        amounts paid (or to be paid) to the program, and
            ``(2) in the case of a change in beneficiaries under rules 
        similar to the rules of section 529(c)(3)(C), the individual 
        who is the new beneficiary.
    ``(f) Reports.--Each officer or employee having control of the 
Jumpstart Program or their designee shall make such reports regarding 
such program to the Secretary and to designated beneficiaries with 
respect to contributions, distributions, and such other matters as the 
Secretary may require. The reports required by this paragraph shall be 
filed at such time and in such manner and furnished to such individuals 
at such time and in such manner as may be required by the Secretary.''.
    (b) Rollover From Qualified Tuition Programs.--Section 
529(c)(3)(C)(i) of such Code is amended by striking ``or'' at the end 
of subclause (II), by striking the period at the end of subclause (III) 
and inserting ``, or'', and by inserting after subclause (III) the 
following new subclause:
                                    ``(IV) to a Jumpstart Program (as 
                                defined in section 529B(b)(1)) of the 
                                designated beneficiary or a member of 
                                the family of the designated 
                                beneficiary.''.
    (c) Failure to Provided Reports.--Section 6693(a)(2) of such Code 
is amended by redesignating subparagraphs (F) and (G) as subparagraphs 
(G) and (E), respectively, and by inserting after subparagraph (E) the 
following new subparagraph:
                    ``(F) section 529B(f) (relating to Jumpstart 
                Program),''.
    (d) Clerical Amendment.--The table of sections for part VIII of 
subchapter F of chapter 1 is amended by inserting after the item 
relating to section 529A the following new item:

``Sec. 529B. Jumpstart Program.''.
    (e) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.
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