Freedom to Invest in Tomorrow’s Workforce Act
This bill expands the expenses eligible for tax-free withdrawals from a qualified tuition program (known as a 529 plan) to include tuition, fees (including test fees), books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program.
Under the bill, a recognized postsecondary credentialing program includes certain programs identified by a state as providing training services, a program listed in the Web Enabled Approval Management System (WEAMS) maintained by the Department of Veterans Affairs, certain examinations required to obtain or maintain a credential, and other reputable credentialing programs.
Further, under the bill, such programs must be designed for an individual to obtain
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 756 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 756
To amend the Internal Revenue Code of 1986 to treat certain
postsecondary credentialing expenses as qualified higher education
expenses for purposes of 529 accounts.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 26, 2025
Ms. Klobuchar (for herself, Mr. Marshall, Mr. Welch, and Ms. Collins)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to treat certain
postsecondary credentialing expenses as qualified higher education
expenses for purposes of 529 accounts.
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 ``Freedom to Invest in Tomorrow's
Workforce Act''.
SEC. 2. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS
QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529
ACCOUNTS.
(a) In General.--Section 529(e)(3) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(C) Certain postsecondary credentialing
expenses.--The term `qualified higher education
expenses' includes qualified postsecondary
credentialing expenses (as defined in subsection
(f)).''.
(b) Qualified Postsecondary Credentialing Expenses.--Section 529 of
such Code is amended by redesignating subsection (f) as subsection (g)
and by inserting after subsection (e) the following new subsection:
``(f) Qualified Postsecondary Credentialing Expenses.--For purposes
of this section--
``(1) In general.--The term `qualified postsecondary
credentialing expenses' means--
``(A) tuition, fees, books, supplies, and equipment
required for the enrollment or attendance of a
designated beneficiary in a recognized postsecondary
credential program, or any other expense incurred in
connection with enrollment in or attendance at a
recognized postsecondary credential program if such
expense would, if incurred in connection with
enrollment or attendance at an eligible educational
institution, be covered under subsection (e)(3)(A),
``(B) fees for testing if such testing is required
to obtain or maintain a recognized postsecondary
credential, and
``(C) fees for continuing education if such
education is required to maintain a recognized
postsecondary credential.
``(2) Recognized postsecondary credential program.--The
term `recognized postsecondary credential program' means any
program to obtain a recognized postsecondary credential if--
``(A) such program is included on a State list
prepared under section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3152(d)),
``(B) such program is listed in the public
directory of the Web Enabled Approval Management System
(WEAMS) of the Veterans Benefits Administration, or
successor directory such program,
``(C) an examination (developed or administered by
an organization widely recognized as providing
reputable credentials in the occupation) is required to
obtain or maintain such credential and such
organization recognizes such program as providing
training or education which prepares individuals to
take such examination, or
``(D) such program is identified by the Secretary,
after consultation with the Secretary of Labor, as
being a reputable program for obtaining a recognized
postsecondary credential for purposes of this
subparagraph.
``(3) Recognized postsecondary credential.--The term
`recognized postsecondary credential' means--
``(A) any postsecondary employment credential that
is industry recognized and is--
``(i) any postsecondary employment
credential issued by a program that is
accredited by the Institute for Credentialing
Excellence, the National Commission on
Certifying Agencies, or the American National
Standards Institute,
``(ii) any postsecondary employment
credential that is included in the
Credentialing Opportunities On-Line (COOL)
directory of credentialing programs (or
successor directory) maintained by the
Department of Defense or by any branch of the
Armed Forces, or
``(iii) any postsecondary employment
credential identified for purposes of this
clause by the Secretary, after consultation
with the Secretary of Labor, as being industry
recognized,
``(B) any certificate of completion of an
apprenticeship that is registered and certified with
the Secretary of Labor under 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.),
``(C) any occupational or professional license
issued or recognized by a State or the Federal
Government (and any certification that satisfies a
condition for obtaining such a license), and
``(D) any recognized postsecondary credential as
defined in section 3(52) of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102(52)), provided
through a program described in paragraph (2)(A).''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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