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Tax Benefits for Career Training and Credentials in 529 Accounts

This new law allows funds from 529 savings accounts to cover costs associated with career training and obtaining professional certifications. This means more individuals can benefit from tax advantages for their professional development, making it easier to acquire new skills and improve their job prospects.
Key points
Expanded Use of 529 Accounts: Funds from these accounts can now be used for tuition, fees, and materials for recognized postsecondary credential programs and related exams.
Tax Benefits for Vocational Training: Expenses for career training and certifications are treated as qualified higher education expenses, potentially offering tax advantages.
Support for Career Advancement: The act makes it easier to finance training that helps individuals gain new skills and advance their careers, without bearing the full cost out-of-pocket.
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Additional Information
Print number: 117_S_905
Sponsor: Sen. Klobuchar, Amy [D-MN]
Process start date: 2021-03-23
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Freedom To Invest in Tomorrow's Workforce Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_905.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-03-23.

What are the main provisions?

Key points include:

  • Expanded Use of 529 Accounts: Funds from these accounts can now be used for tuition, fees, and materials for recognized postsecondary credential programs and related exams.
  • Tax Benefits for Vocational Training: Expenses for career training and certifications are treated as qualified higher education expenses, potentially offering tax advantages.
  • Support for Career Advancement: The act makes it easier to finance training that helps individuals gain new skills and advance their careers, without bearing the full cost out-of-pocket.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Klobuchar, Amy [D-MN].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Education Labor