Helping Parents Educate Children During the Coronavirus Pandemic

Bill: 116-s-3949
Sponsor: full_name: Sen. Cruz, Ted [R-TX]
Introduced: 2020-06-11
Policy area: Taxation
Subjects: Academic performance and assessments

Bank accounts, deposits, capital

Books and print media

Cardiovascular and respiratory health

Elementary and secondary education

Emergency medical services and trauma care

Employee benefits and pensions

Higher education

Income tax deferral

Income tax exclusion

Infectious and parasitic diseases

Special education

Student aid and college costs

Teaching, teachers, curricula
Latest action: action_date: 2020-06-11
text: Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S2936)

Summaries:
action_date: 2020-06-11
action_desc: Introduced in Senate
text: <p><b>Helping Parents Educate Children During the Coronavirus Pandemic</b></p> <p>This bill expands the types of educational expenses that may be paid from a qualified tuition program (commonly known as a 529 plan) for students enrolled at or attending an elementary or secondary public, private, or religious school. It also permits payments of certain education expenses for home schooling during the COVID-19 (i.e., coronavirus disease 2019) emergency period beginning on March 13, 2020, and ending on the date the emergency period has ended.</p> <p>The bill also permits penalty free distributions from tax-preferred retirement plans for the period after February 29, 2020, and before January 1, 2021, if contributed to a 529 plan. </p>

tv_txt: II 116th CONGRESS 2d Session S. 3949 IN THE SENATE OF THE UNITED STATES June 11, 2020 Mr. Cruz (for himself, Mr. Lee , Mr. Scott of South Carolina , and Mr. Scott of Florida ) 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 kindergarten through grade 12 educational expenses to be paid from a 529 account during the Coronavirus Emergency Period.

1. Short title This Act may be cited as the Helping Parents Educate Children During the Coronavirus Pandemic . 2. 529 account funding for homeschool and additional elementary and secondary expenses during the coronavirus emergency period (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, from the period beginning on March 13, 2020, and ending on the date on which the national emergency declared by the President under section 201 of the National Emergencies Act ( 50 U.S.C. 1601 et seq.) related to the coronavirus (as defined in section 506 of the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 ( Public Law 116–123 )) has ended, expenses for the purposes described in subparagraphs (B), (C), (D), (E), and (H) in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law) or with a parent or guardian educating a child at home due to school closure because of the coronavirus (as so defined). . (b) Effective date The amendment made by this section shall apply to distributions made after the date of the enactment of this Act. 3. Rollovers from certain retirement plans In the case of a distribution from an eligible retirement plan described in clause (i), (ii), or (iii) of section 402(c)(8)(B) of the Internal Revenue Code of 1986 after February 29, 2020, and before January 1, 2021— (1) section 72(t) of such Code shall not apply to such distribution; (2) such distribution shall be treated as meeting the requirements of section 401(k)(2)(B)(i), if applicable; and (3) such distribution shall be treated as having been contributed in a direct trustee-to-trustee transfer within 60 days of the distribution for purposes of section 401(a)(31) or 408(d)(3), whichever is applicable, if within 60 days of such distribution, an amount equal to the amount of such distribution is contributed to a qualified tuition program under section 529 of the Internal Revenue Code of 1986.