Student Empowerment Act
Bill: S.44 | Sponsor: Sen. Cruz, Ted (R-TX)
Policy area: Taxation

Summary:
Student Empowerment Act
This bill allows tax-exempt distributions from qualified tuition programs (known as 529 plans) to be used for additional educational expenses in connection with enrollment or attendance at an elementary or secondary school.
(Under current law, distributions in connection with an elementary or secondary school are limited to tuition for a public, private, or religious school.) The bill allows the distributions to be used for additional educational expenses, including
Distributions may also be used for tuition and the purposes above in connection with a homeschool (whether treated as a homeschool or a private school under state law).

To amend the Internal Revenue Code of 1986 to permit kindergarten 
  through grade 12 educational expenses to be paid from a 529 account.

    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 ``Student Empowerment Act''.

SEC. 2. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND ADDITIONAL ELEMENTARY 
              AND SECONDARY EXPENSES.

    (a) In General.--Section 529(c)(7) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(7) Treatment of elementary and secondary tuition.--Any 
        reference in this section to the term `qualified higher 
        education expense' shall include a reference to the following 
        expenses in connection with enrollment or attendance at, or for 
        students enrolled at or attending, an elementary or secondary 
        public, private, or religious school:
                    ``(A) Tuition.
                    ``(B) Curriculum and curricular materials.
                    ``(C) Books or other instructional materials.
                    ``(D) Online educational materials.
                    ``(E) Tuition for tutoring or educational classes 
                outside of the home, including at a tutoring facility, 
                but only if the tutor or instructor is not related to 
                the student and--
                            ``(i) is licensed as a teacher in any 
                        State,
                            ``(ii) has taught at an eligible 
                        educational institution, or
                            ``(iii) is a subject matter expert in the 
                        relevant subject.
                    ``(F) Fees for a nationally standardized norm-
                referenced achievement test, an advanced placement 
                examination, or any examinations related to college or 
                university admission.
                    ``(G) Fees for dual enrollment in an institution of 
                higher education.
                    ``(H) Educational therapies for students with 
                disabilities provided by a licensed or accredited 
                practitioner or provider, including occupational, 
                behavioral, physical, and speech-language therapies.
        Such term shall include expenses for the purposes described in 
        subparagraphs (A) through (H) in connection with a homeschool 
        (whether treated as a homeschool or a private school for 
        purposes of applicable State law).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.
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