With the nation’s airline industry continuing to face a pilot shortage, U.S. Rep. Mike Kelly (R-PA) recently proposed a bipartisan bill that would make training at federally certified commercial pilot and aircraft maintenance technician schools a qualified expense for existing 529 Plans, which are tax advantaged investment accounts that parents or guardians use to save for their child’s education.
“The airline industry has been experiencing a shortage of pilots for years, and early retirements forced by the COVID-19 pandemic only accelerated that shortage,” Rep. Kelly said on Tuesday. “We must do everything we can to incentivize more Americans to become airline pilots.”
The congressman on March 28 signed on as one of seven original cosponsors of the Aviation Workforce Development Act, H.R. 1818, which is sponsored by U.S. Rep. Mike Collins (R-GA). U.S. Rep. Jimmy Panetta (D-CA) is the lead original cosponsor of the bill, which would amend the Internal Revenue Code of 1986 to allow qualified distributions from qualified tuition programs for certain aviation maintenance and commercial pilot courses, according to the congressional record bill summary.
“By making training more affordable, not only can we hire more pilots, but we can also provide more flights — both domestically and internationally — to fully serve airports like Erie International Airport, which has lost critical air service in recent years due in part to the skilled labor shortage,” said Rep. Kelly.
529 Plan funds initially could only be used for degrees at four-year universities, but in recent years, Congress has added to the list of qualified expenses by including apprenticeship programs in certain trades, though most aviation programs aren’t currently on that list, according to information provided by Rep. Kelly’s office.
“I’m proud to support this bipartisan legislation that would make the necessary training for these professions more affordable by expanding the utility of 529 plans to cover aviation programs,” said Rep. Panetta. “By making these professions more attainable, we can grow and foster the next generation of commercial pilots and mechanics needed to support our nation’s travel and tourism economy.”
Numerous aviation companies and industry groups support the bill, including the Aeronautical Repair Station Association, the Aerospace Industries Association, the Air Line Pilots Association, the Coalition of Airline Pilots Associations, Raytheon Technologies, and the Flight School Association of North America, among others.