This bill expands what counts as a qualified expense under 529 college savings accounts, allowing families to use these tax-advantaged funds for a broader range of education and career training costs. For elementary and secondary students, the bill adds coverage for curriculum materials, books, online learning resources, outside tutoring, standardized testing and college admission exam fees, dual enrollment costs, and disability-related therapies like occupational, speech, or physical therapy, and it extends these benefits to homeschool families as well. The bill also allows 529 funds to pay for postsecondary credentialing programs, including tuition, fees, books, and testing costs for recognized certificates, licenses, and apprenticeships tied to specific trades or professions, such as those registered with the Department of Labor or recognized by industry certification bodies. This change primarily affects families saving for their children's education, homeschooling parents, and adults pursuing career certifications or apprenticeships outside traditional four-year degree programs. The expanded rules would apply to any 529 account distributions made after the bill becomes law, with no specific expiration date mentioned. The bill does not create new federal spending but rather changes tax rules to broaden how existing tax-advantaged savings can be spent.
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