Student Empowerment Act

Bill: 117-s-44
Sponsor: full_name: Sen. Cruz, Ted [R-TX]
Introduced: 2021-01-26
Policy area: Taxation
Subjects: Academic performance and assessments

Bank accounts, deposits, capital

Elementary and secondary education

Higher education

Income tax exclusion

Special education

Student aid and college costs

Teaching, teachers, curricula
Latest action: action_date: 2021-01-26
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-01-26
action_desc: Introduced in Senate
text: <p><b>Student Empowerment Act </b></p> <p>This bill allows tax-exempt distributions from qualified tuition programs (known as 529 plans) to be used for additional educational expenses in connection with enrollment or attendance at an elementary or secondary school. </p> <p>(Under current law, distributions in connection with an elementary or secondary school are limited to tuition for a public, private, or religious school.) The bill allows the distributions to be used for additional educational expenses, including</p> <ul> <li>curriculum and curricular materials, </li> <li>books or other instructional materials, </li> <li>online educational materials, </li> <li>tutoring or educational classes outside the home, </li> <li>testing fees, </li> <li>fees for dual enrollment in an institution of higher education, and </li> <li>educational therapies for students with disabilities.</li> </ul> <p>Distributions may also be used for tuition and the purposes above in connection with a homeschool (whether treated as a homeschool or a private school under state law).</p>

tv_txt: II 117th CONGRESS 1st Session S. 44 IN THE SENATE OF THE UNITED STATES January 26, 2021 Mr. Cruz (for himself, Mr. Cotton , Mr. Toomey , Mr. Sasse , Mr. Johnson , Mr. Lankford , and Mr. Paul ) 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.

1. Short title This Act may be cited as the Student Empowerment Act . 2. 529 account funding for homeschool and additional elementary and secondary expenses (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 expenses for the purposes described in subparagraphs (A) through (H) in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law). . (b) Effective date The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.