transfer to any Lifelong Learning and 
Training Account program for the benefit 
of the designated beneficiary. 
‘‘(iv) 
MATCHING
FUNDS
FOR-
FEITED.—In the case of any transfer de-
scribed in clause (i)(II) or any change in 
the designated beneficiary of an interest in 
a Lifelong Learning and Training Account 
program (with the exception of any change 
due to the death of the old beneficiary), 
any amounts transferred to the account of 
the designated beneficiary under subsection 
(b)(4), and any earnings thereon, shall be 
reduced (but not below zero) by an amount 
equal to the total amount transferred to 
any account of any other beneficiary. 
‘‘(D) SPECIAL RULE FOR CONTRIBUTIONS 
OF
REFUNDED
AMOUNTS.—In the case of a 
beneficiary who receives a refund of any quali-
fied training expenditures from any program 
described in clauses (i) through (iii) of sub-
section (e)(5)(A), subparagraph (A) shall not 
apply to that portion of any distribution for the 
taxable year which is recontributed to a Life-
long Learning and Training Account program 
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of which such individual is a beneficiary, but 
only to the extent such recontribution is made 
not later than 60 days after the date of such 
refund and does not exceed the refunded 
amount. 
‘‘(3) ESTATE TAX TREATMENT.— 
‘‘(A) IN GENERAL.—No amount shall be 
includible in the gross estate of any individual 
for purposes of chapter 11 by reason of an in-
terest in a Lifelong Learning and Training Ac-
count program. 
‘‘(B) AMOUNTS INCLUDIBLE IN ESTATE OF 
DESIGNATED
BENEFICIARY
IN
CERTAIN 
CASES.—Subparagraph (A) shall not apply to 
amounts distributed on account of the death of 
a beneficiary. 
‘‘(4) OTHER GIFT TAX RULES.—For purposes 
of chapters 12 and 13— 
‘‘(A) TREATMENT
OF
DISTRIBUTIONS.— 
Except as provided in subparagraph (B), in no 
event shall a distribution from a Lifelong 
Learning and Training Account program be 
treated as a taxable gift. 
‘‘(B) TREATMENT
OF
DESIGNATION
OF 
NEW
BENEFICIARY.—The taxes imposed by 
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chapters 12 and 13 shall apply to a transfer by 
reason of a change in the designated beneficiary 
under the program (or a rollover to the account 
of a new beneficiary) unless the new beneficiary 
is— 
‘‘(i) assigned to the same generation 
as (or a higher generation than) the old 
beneficiary (determined in accordance with 
section 2651), and 
‘‘(ii) a member of the family of the 
old beneficiary. 
‘‘(5) ADDITIONAL TAX.—The tax imposed by 
section 530(d)(4) shall apply to any payment or dis-
tribution from a Lifelong Learning and Training Ac-
count program in the same manner as such tax ap-
plies to a payment or distribution from a Coverdell 
education savings account. 
‘‘(d) REPORTS.—Each officer or employee having 
control of the Lifelong Learning and Training Account 
program or their designee shall make such reports regard-
ing such program to the Secretary and to designated bene-
ficiaries with respect to contributions, transfers, distribu-
tions, and such other matters as the Secretary may re-
quire. The reports required by this subsection shall be filed 
at such time and in such manner and furnished to such 
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individuals at such time and in such manner as may be 
required by the Secretary. 
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) ADMINISTRATOR.—The term ‘adminis-
trator’ means the entity which established the Life-
long Learning and Training Account program and 
maintains such program, as described in subsection 
(b)(1). 
‘‘(2) APPLICABLE CALENDAR YEAR.—The term 
‘applicable calendar year’ means the calendar year 
beginning after the date on which a designated bene-
ficiary attained 60 years of age. 
‘‘(3) DESIGNATED
BENEFICIARY.—The term 
‘designated beneficiary’ means— 
‘‘(A) the individual designated at the com-
mencement of participation in the Lifelong 
Learning and Training Account program as the 
beneficiary of amounts paid (or to be paid) to 
the program, or 
‘‘(B) in the case of a change in bene-
ficiaries described in subsection (c)(2)(C), the 
individual who is the new beneficiary. 
‘‘(4) MEMBER OF FAMILY.—The term ‘member 
of the family’ means an individual— 
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‘‘(A) who has attained 25 years of age, 
and 
‘‘(B) who is, with respect to any des-
ignated beneficiary— 
‘‘(i) the spouse of such beneficiary, 
‘‘(ii) an individual who bears a rela-
tionship to such beneficiary which is de-
scribed in subparagraphs (A) through (G) 
of section 152(d)(2), 
‘‘(iii) the spouse of any individual de-
scribed in clause (ii), or 
‘‘(iv) any first cousin of such bene-
ficiary. 
‘‘(5) QUALIFIED TRAINING EXPENDITURES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
training expenditures’ means any expenditures 
for training which results in the attainment of 
a recognized postsecondary credential and 
which is provided through— 
‘‘(i) a program of training services 
which is listed under section 122(d) of the 
Workforce Innovation and Opportunity Act 
(29 U.S.C. 3152(d)), 
‘‘(ii) a program which is conducted by 
an area career and technical education 
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school, a community college, or a labor or-
ganization, or 
‘‘(iii) a program which is sponsored 
and administered by an industry trade as-
sociation, industry or sector partnership, 
or labor organization. 
‘‘(B) RELATED
DEFINITIONS.—For pur-
poses of subparagraph (A)— 
‘‘(i) AREA
CAREER
AND
TECHNICAL 
EDUCATION SCHOOL.—The term ‘area ca-
reer and technical education school’ means 
such a school, as defined in section 3 of 
the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2302), 
which participates in a program under that 
Act (20 U.S.C. 2301 et seq.). 
‘‘(ii) 
COMMUNITY
COLLEGE.—The 
term ‘community college’ means an institu-
tion which— 
‘‘(I) is a junior or community col-
lege as defined in section 312(f) of the 
Higher Education Act of 1965 (20 
U.S.C. 1058(f)), except that the insti-
tution need not meet the requirements 
of paragraph (1) of that section; and 
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‘‘(II) participates in a program 
under title IV of that Act (20 U.S.C. 
1070 et seq.). 
‘‘(iii) INDUSTRY OR SECTOR PARTNER-
SHIP.—The term ‘industry or sector part-
nership’ has the meaning given such term 
under section 3 of the Workforce Innova-
tion and Opportunity Act (29 U.S.C. 
3102). 
‘‘(iv) 
INDUSTRY
TRADE
ASSOCIA-
TION.—The term ‘industry trade associa-
tion’ means an organization which— 
‘‘(I) is described in paragraph (3) 
or (6) of section 501(c) and exempt 
from taxation under section 501(a); 
and 
‘‘(II) is representing an industry. 
‘‘(v) 
LABOR
ORGANIZATION.—The 
term ‘labor organization’ means a labor or-
ganization, within the meaning of the term 
in section 501(c)(5). 
‘‘(vi) RECOGNIZED
POSTSECONDARY 
CREDENTIAL.—The term ‘recognized post-
secondary credential’ means a credential 
consisting of an industry-recognized certifi-
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cate or certification, a license recognized 
by the State involved or Federal Govern-
ment, or an associate or baccalaureate de-
gree. 
‘‘(C) EXCLUSION.—The term ‘qualified 
training expenditures’ shall not include any 
amounts paid for meals, lodging, transpor-
tation, or other services incidental to any train-
ing described in subparagraph (A). 
‘‘(6) APPLICATION OF SECTION 514.—An inter-
est in a Lifelong Learning and Training Account 
program shall not be treated as debt for purposes of 
section 514. 
‘‘(f) PUBLIC AWARENESS.— 
‘‘(1) IN GENERAL.—The Secretary shall con-
duct a public information campaign, utilizing paid 
advertising, to inform the public of the availability of 
Lifelong Learning and Training Account programs. 
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—There is authorized to 
be appropriated such sums as are necessary to 
carry out this subsection. 
‘‘(B) AVAILABILITY.—Any sums appro-
priated under the authorization contained in 
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this subsection shall remain available, without 
fiscal year limitation, until expended. 
‘‘(g) REGULATIONS.—Notwithstanding any other 
provision of this section, the Secretary shall prescribe such 
regulations as may be necessary or appropriate to carry 
out the purposes of this section and to prevent abuse of 
such purposes, including regulations under chapters 11, 
12, and 13 of this title.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 135(d)(2)(B) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘sections 
529(c)(3)(B) and 530(d)(2)’’ and inserting ‘‘sections 
529(c)(3)(B), 530(d)(2), and 531(c)(2)(B)’’. 
(2) The table of sections for part VIII of sub-
chapter E of chapter 1 of the Internal Revenue Code 
of 1986 is amended by inserting after the item relat-
ing to section 530 the following new item: 
‘‘Sec. 531. Lifelong Learning and Training Account programs.’’. 
(c) ADMINISTRATION ASSISTANCE.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury, or the Secretary’s delegate (referred to in this 
paragraph as the ‘‘Secretary’’), shall make a grant, 
in such amount as the Secretary determines appro-
priate, to each State or agency or instrumentality 
thereof that has established and maintains a Life-
long Learning and Training Account program under 
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section 531 of the Internal Revenue Code of 1986 
(as added by subsection (a)), for purposes of admin-
istering such program. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as may be necessary to carry out the purposes of 
this subsection. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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