Title: Expanding Access to Apprenticeships Act
Policy area: Taxation

Summary:
Expanding Access to Apprenticeships Act
This bill allows tax-free distributions from qualified tuition programs (known as 529 plans) to be used for certain expenses associated with registered apprenticeship programs.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1623 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1623

 To amend the Internal Revenue Code of 1986 to allow for distributions 
       from 529 accounts for expenses associated with registered 
                        apprenticeship programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2019

Mr. Daines (for himself, Mr. Booker, Ms. Murkowski, Ms. Warren, and Mr. 
Brown) 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 allow for distributions 
       from 529 accounts for expenses associated with registered 
                        apprenticeship programs.

    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 ``Expanding Access to Apprenticeships 
Act''.

SEC. 2. DISTRIBUTIONS FROM 529S FOR REGISTERED APPRENTICESHIP PROGRAMS.

    (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 expenses associated with registered 
                apprenticeship programs.--The term `qualified higher 
                education expenses' shall include expenses for--
                            ``(i) books, supplies, and equipment 
                        required for the enrollment or attendance of a 
                        designated beneficiary in an apprenticeship 
                        program registered and certified with the 
                        Secretary of Labor under section 1 of the 
                        National Apprenticeship Act (29 U.S.C. 50),
                            ``(ii) transportation in connection with 
                        such enrollment or attendance, and
                            ``(iii) obtaining an industry certification 
                        (or other credential) in connection with such 
                        enrollment or attendance or in connection with 
                        the completion of such program.''.
    (b) Treatment as Enrollment at Eligible Educational Institution.--
Subsection (e) of section 529 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(6) Treatment of registered apprenticeship programs.--
        Solely for purposes of this section, the term `eligible 
        educational institution' includes an entity operating an 
        apprenticeship program registered and certified with the 
        Secretary of Labor under section 1 of the National 
        Apprenticeship Act (29 U.S.C. 50), and an individual 
        participating in such a program shall be treated as enrolled in 
        or attending an eligible educational institution.''.
    (c) Treatment of Room and Board Costs for Participants in 
Registered Apprenticeship Programs.--Subparagraph (B) of section 
529(e)(3) of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new clause:
                            ``(iii) Special rule for individuals 
                        participating in registered apprenticeship 
                        programs.--In the case of an individual who is 
                        enrolled in or attending an apprenticeship 
                        program described in subparagraph (C)(i) for 
                        any period (and who is not, but for subclause 
                        (I), an eligible student (as defined in section 
                        25A(b)(3)) for such period)--
                                    ``(I) for purposes of clause (i), 
                                such individual shall be treated as an 
                                eligible student for such period,
                                    ``(II) clause (ii) shall not apply, 
                                and
                                    ``(III) the amount treated as 
                                qualified higher education expenses by 
                                reason of clause (i) for such period 
                                shall not exceed the sum of the monthly 
                                housing stipends which would be payable 
                                to such designated beneficiary for 
                                months during such period under section 
                                3313(g)(3)(B)(i) of title 38, United 
                                States Code, if such beneficiary were 
                                entitled to educational assistance 
                                under chapter 33 of such title 38.
                        The Secretary shall publish, at the appropriate 
                        time determined by the Secretary, the monthly 
                        housing stipend amount described in subclause 
                        (III) with respect to each ZIP code area of the 
                        United States.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to distributions paid after December 31, 2019.
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