Title: A bill to amend the Internal Revenue Code of 1986 to permit amounts paid for programs to obtain a recognized postsecondary credential or a license to be treated as qualified higher education expenses for purposes of a 529 account.
Policy area: Taxation

Summary:
This bill allows tax-exempt distributions from qualified tuition programs (known as 529 plans) to be used for expenses required for programs to obtain a recognized postsecondary credential or occupational license.
A "recognized postsecondary credential" is a credential consisting of an industry-recognized certificate or certification, a certificate of completion of an apprenticeship, a license recognized by the state involved or federal government, or an associate or baccalaureate degree.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 379 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                 S. 379

 To amend the Internal Revenue Code of 1986 to permit amounts paid for 
 programs to obtain a recognized postsecondary credential or a license 
to be treated as qualified higher education expenses for purposes of a 
                              529 account.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 7, 2019

Ms. Klobuchar (for herself, Ms. Baldwin, Ms. Duckworth, Mrs. Feinstein, 
 and Mr. Manchin) 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 permit amounts paid for 
 programs to obtain a recognized postsecondary credential or a license 
to be treated as qualified higher education expenses for purposes of a 
                              529 account.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CERTAIN CAREER TRAINING EXPENSES TREATED AS QUALIFIED HIGHER 
              EDUCATION EXPENSES.

    (a) In General.--Paragraph (3) of section 529(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Certain career training expenses.--
                            ``(i) In general.--In the case of an 
                        individual who is enrolled in or attending a 
                        program to obtain a recognized postsecondary 
                        credential or occupational license, the term 
                        `qualified higher education expenses' includes 
                        expenses similar to the expenses described in 
                        subparagraph (A) which are required for such 
                        program.
                            ``(ii) Program to obtain a recognized 
                        postsecondary credential.--For purposes of this 
                        subparagraph--
                                    ``(I) the term `recognized 
                                postsecondary credential' has the 
                                meaning given the term in section 3(52) 
                                of the Workforce Innovation and 
                                Opportunity Act (29 U.S.C. 3102(52)), 
                                and
                                    ``(II) when used with respect to 
                                obtaining such a credential, the term 
                                `program' means only a program which is 
                                included, and is offered by a provider 
                                which is included, on the list 
                                described in section 122(d) of the 
                                Workforce Innovation and Opportunity 
                                Act (29 U.S.C. 3152(d)).''.
    (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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