Title: 529 OPTIONS Act
Policy area: Taxation

Summary:
529 Opening Paths To Invest in Our Nation's Students Act or the 529 OPTIONS 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.
The bill expands the definition of "qualified higher education expenses" for which tax-free distributions are allowed to include (1) books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in an apprenticeship program registered and certified with the Department of Labor; (2) child care at a licensed day care center, and transportation, in connection with such enrollment or attendance; and (3) costs associated with obtaining an industry certification or other credential in connection with an apprenticeship program.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2679 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2679

     To amend the Internal Revenue Code of 1986 to allow tax free 
   distributions from section 529 college savings plans for certain 
      expenses associated with registered apprenticeship programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 2019

 Mr. Norcross (for himself, Mr. Kelly of Pennsylvania, Mr. Kildee, and 
  Ms. Dean) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to allow tax free 
   distributions from section 529 college savings plans for certain 
      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 ``529 Opening Paths To Invest in Our 
Nation's Students Act'' or the ``529 OPTIONS Act''.

SEC. 2. DISTRIBUTIONS FROM QUALIFIED TUITION PROGRAMS FOR CERTAIN 
              EXPENSES ASSOCIATED WITH 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--
                            ``(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) child care at a licensed day care 
                        center, and transportation, in connection with 
                        such enrollment or attendance, and
                            ``(iii) costs associated with obtaining an 
                        industry certification, or other type of 
                        credential, in connection with such enrollment 
                        or attendance or in connection with the 
                        completion of such program.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenses paid or incurred after the date of the enactment of this 
Act, in taxable years ending after such date.
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