I 
114TH CONGRESS 
1ST SESSION 
H. R. 553 
To amend the Internal Revenue Code of 1986 to encourage the use of 
529 plans and Coverdell education savings accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 27, 2015 
Mr. MESSER 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 encourage 
the use of 529 plans and Coverdell education savings 
accounts, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ALLOWANCE OF HOME SCHOOL EXPENSES AS 
QUALIFIED EDUCATION EXPENSES FOR PUR-
POSES OF A COVERDELL EDUCATION SAV-
INGS ACCOUNT. 
(a) IN GENERAL.—Section 530(b)(3) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
VerDate Sep 11 2014 
02:49 Feb 03, 2015
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H553.IH
H553
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(C) PRIVATE SCHOOL.—For purposes of 
this section, the term ‘private school’ includes 
any home school that meets the requirements of 
State law applicable to such home schools, 
whether or not such school is deemed a private 
school for purposes of State law.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 2. ELIMINATION OF COVERDELL EDUCATION SAVINGS 
ACCOUNT CONTRIBUTION LIMITATION. 
(a) IN GENERAL.—Section 530(b)(1)(A) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘or’’ 
at the end of clause (i), by striking ‘‘or’’ at the end of 
clause (ii) and inserting a period, and by striking clause 
(iii). 
(b) PROHIBITION
ON EXCESS CONTRIBUTIONS.— 
Section 530(b) of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(5) PROHIBITION
ON
EXCESS
CONTRIBU-
TIONS.—A program shall not be treated as a Cover-
dell education savings account unless it provides 
adequate safeguards to prevent contributions on be-
half of a designated beneficiary in excess of those 
VerDate Sep 11 2014 
02:49 Feb 03, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H553.IH
H553
emcdonald on DSK67QTVN1PROD with BILLS
necessary to provide for the qualified education ex-
penses of the beneficiary.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 3. 529 PROGRAMS FOR PRE-KINDERGARTEN, ELEMEN-
TARY, 
AND 
SECONDARY 
EDUCATION 
EX-
PENSES. 
(a) IN GENERAL.—Section 529(e)(3) of the Internal 
Revenue Code of 1986 is amended— 
(1) by redesignating subparagraph (B) as sub-
paragraph (C); 
(2) by striking ‘‘QUALIFIED
HIGHER
EDU-
CATION
EXPENSES’’ and all that follows through 
‘‘The term ‘qualified higher education expenses’ 
means—’’ and inserting the following: ‘‘QUALIFIED 
EDUCATION EXPENSES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
education expenses’ means— 
‘‘(i) qualified higher education ex-
penses, and 
‘‘(ii) qualified pre-kindergarten, ele-
mentary, and secondary education ex-
penses. 
VerDate Sep 11 2014 
02:49 Feb 03, 2015
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H553.IH
H553
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(B) QUALIFIED HIGHER EDUCATION EX-
PENSES.—The term ‘qualified higher education 
expenses’ means’’; and 
(3) by adding at the end the following new sub-
paragraphs: 
‘‘(D) QUALIFIED PRE-KINDERGARTEN, EL-
EMENTARY, AND SECONDARY EDUCATION EX-
PENSES.—The term ‘qualified pre-kindergarten, 
elementary, and secondary education expenses’ 
means— 
‘‘(i) expenses for tuition, fees, aca-
demic tutoring, special needs services in 
the case of a special needs beneficiary, 
books, supplies, and other equipment which 
are incurred in connection with the enroll-
ment or attendance of the designated bene-
ficiary of the trust as a pre-kindergarten, 
elementary, or secondary school student at 
a public, private, or religious school, 
‘‘(ii) expenses for room and board, 
uniforms, 
transportation, 
and 
supple-
mentary items and services (including ex-
tended day programs) which are required 
or provided by a public, private, or reli-
VerDate Sep 11 2014 
02:49 Feb 03, 2015
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H553.IH
H553
emcdonald on DSK67QTVN1PROD with BILLS
gious school in connection with such enroll-
ment or attendance, and 
‘‘(iii) expenses for the purchase of any 
computer technology or equipment (as de-
fined in section 170(e)(6)(F)(i)) or Inter-
net access and related services, if such 
technology, equipment, or services are to 
be used by the beneficiary and the bene-
ficiary’s family during any of the years the 
beneficiary is in school. 
Clause (iii) shall not include expenses for com-
puter software designed for sports, games, or 
hobbies unless the software is predominantly 
educational in nature. 
‘‘(E) SCHOOL.—The term ‘school’ means 
any school which provides pre-kindergarten, ele-
mentary, or secondary education (pre-kinder-
garten through grade 12), as determined under 
State law. Such a school shall be treated as an 
eligible educational institution for purposes of 
subsection (b).’’. 
(b) CONFORMING AMENDMENTS.—Section 529 of 
such Code is amended by striking ‘‘qualified higher edu-
cation’’ each place it appears in subsections (b) and (c) 
and inserting ‘‘qualified education’’. 
VerDate Sep 11 2014 
02:49 Feb 03, 2015
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H553.IH
H553
emcdonald on DSK67QTVN1PROD with BILLS