The Skills Investment Act of 2023 expands and renames existing Coverdell education savings accounts to Coverdell lifelong learning accounts, allowing people to use these tax-advantaged savings accounts for workforce training and skill development beyond traditional college education. The bill permits account holders to pay for career training services, apprenticeships, technical certifications, and related expenses like transportation and testing through eligible workforce providers, starting at age 16. For adults over age 30, the bill increases contribution limits from $2,000 to $4,000 per year and extends the contribution age limit to 70, with a $10,000 account balance cap for those over 30. The legislation also creates a new tax credit allowing employers to deduct 25 percent of contributions they make to these accounts for their employees and allows individuals age 18 and older to deduct their own contributions from their taxable income. These changes take effect January 1, 2024, for most provisions.
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