Freedom To Invest in Tomorrow's Workforce Act
Bill: H.R.2171 | Sponsor: Rep. Spanberger, Abigail Davis (D-VA)
Policy area: Taxation

Summary:
Freedom To Invest in Tomorrow's Workforce Act
This bill allows the use of funds in a qualified tuition program (commonly known as a 529 account) to pay for expenses associated with obtaining or maintaining recognized postsecondary credentials.

To amend the Internal Revenue Code of 1986 to permit certain expenses 
   associated with obtaining or maintaining recognized postsecondary 
 credentials to be treated 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 CAREER TRAINING AND 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 career training and credentialing 
                expenses.--
                            ``(i) In general.--The term `qualified 
                        higher education expenses' includes--
                                    ``(I) tuition, fees, books, 
                                supplies, and equipment required for 
                                the enrollment or attendance of an 
                                individual 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 
                                subparagraph (e)(3)(A),
                                    ``(II) fees required to obtain or 
                                maintain a recognized postsecondary 
                                credential (as defined in section 3(52) 
                                of the Workforce Innovation and 
                                Opportunity Act), including certificate 
                                or certification programs that are 
                                accredited by the National Commission 
                                on Certifying Agencies or the American 
                                National Standards Institute, or any 
                                postsecondary credential identified in 
                                regulations or guidance promulgated by 
                                the Internal Revenue Service, in 
                                consultation with the Department of 
                                Labor, for purposes of this subclause; 
                                and
                                    ``(III) fees for testing and other 
                                fees required by the organization 
                                issuing the recognized postsecondary 
                                credential as a condition of 
                                maintaining or obtaining the 
                                credential.
                            ``(ii) Recognized postsecondary credential 
                        program.--For purposes of this paragraph, the 
                        term `recognized postsecondary credential 
                        program' means a program to obtain a recognized 
                        postsecondary credential if such program is 
                        included on a list prepared under section 
                        122(d) of the Workforce Innovation and 
                        Opportunity Act or meets the training or 
                        educational prerequisites to qualify an 
                        individual to take an examination developed or 
                        administered by an organization widely 
                        recognized as providing reputable credentials 
                        in the occupation, where such examination is 
                        required to obtain or maintain a recognized 
                        postsecondary credential.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenses paid or incurred in taxable years beginning after the date 
of the enactment of this Act.
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