U.S. Rep. Fred Upton (R-MI) on March 23 unveiled a bipartisan, bicameral bill that would permit Americans to utilize their 529 college savings accounts to cover the costs of certain workforce training and credentialing programs.
Currently, only colleges, vocational schools, universities, or other post-secondary institutions are considered an eligible 529 education savings plan expense, according to the office of Rep. Upton, who cosponsored the Freedom to Invest in Tomorrow’s Workforce Act, H.R. 2171, with bill sponsor U.S. Rep. Abigail Spanberger (D-VA).
If enacted, H.R. 2171 would expand the phrase ‘qualified higher education expenses’ to include fees required to obtain or maintain a recognized postsecondary credential, including a certificate or certification programs that are accredited by the National Commission on Certifying Agencies or the American National Standards Institute, or any postsecondary credential identified in regulations or guidance promulgated by the Internal Revenue Service, according to the text of the bill.
“The bipartisan Freedom to Invest in Tomorrow’s Workforce Act aims to help students in southwest Michigan and across the country access opportunities to develop the necessary skills today to succeed in tomorrow’s workforce,” Rep. Upton said. “As the country looks toward a robust economic recovery, we need skilled talent. This legislation will help make that happen.”
H.R. 2171 also would maintain the current allowable uses for 529 plan expenses, such as colleges and vocational schools.
U.S. Sens. Amy Klobuchar (D-MN) and Mike Braun (R-IN) on March 23 introduced companion legislation S. 905 in their chamber.