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.

Bill: 116-s-379
Sponsor: full_name: Sen. Klobuchar, Amy [D-MN]
Introduced: 2019-02-07
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Employment and training programs

Higher education

Income tax deferral

Income tax exclusion

Licensing and registrations

Student aid and college costs
Latest action: action_date: 2019-02-07
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-02-07
action_desc: Introduced in Senate
text: <p>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. </p> <p>A &quot;recognized postsecondary credential&quot; 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. </p>

tv_txt: II 116th CONGRESS 1st Session S. 379 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.

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.