529 OPTIONS Act

Bill: 116-hr-2679
Sponsor: full_name: Rep. Norcross, Donald [D-NJ-1]
Introduced: 2019-05-10
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Child care and development

Employment and training programs

Financial services and investments

Higher education

Income tax exclusion

Licensing and registrations

Student aid and college costs
Latest action: action_date: 2019-05-10
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2019-05-10
action_desc: Introduced in House
text: <p><b>529 Opening Paths To Invest in Our Nation's Students Act or the 529 OPTIONS Act </b></p> <p>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. </p> <p>The bill expands the definition of &quot;qualified higher education expenses&quot; 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. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 2679 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.

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 . 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.