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Tax Changes: Lifelong Learning Accounts and Expanded Skill Development Funding.

This Act transforms the existing Coverdell Education Savings Accounts into flexible Lifelong Learning Accounts, allowing funds to be used for a wide range of job training, skill development, and career education beyond traditional schooling. It introduces new tax incentives, including a credit for employers who contribute and a deduction for adult beneficiaries who save for their own upskilling, supporting continuous learning up to age 70.
Key points
Coverdell Education Savings Accounts (CESAs) are renamed Coverdell Lifelong Learning Accounts (CLLAs) and can be used for qualified skill development expenses after age 16.
The age limit for making contributions is significantly raised from 18 to 70, supporting continuous professional development throughout a career.
Employers receive a new 25% tax credit for non-elective contributions made to their employees' CLLAs.
Beneficiaries aged 18 or older can deduct their contributions to the account, though distributions of these deductible amounts will be taxed upon withdrawal.
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Additional Information
Print number: 118_HR_7517
Sponsor: Rep. Kilmer, Derek [D-WA-6]
Process start date: 2024-03-01
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OFFICIAL LEGAL TITLE

Skills Investment Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_7517.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-03-01.

What are the main provisions?

Key points include:

  • Coverdell Education Savings Accounts (CESAs) are renamed Coverdell Lifelong Learning Accounts (CLLAs) and can be used for qualified skill development expenses after age 16.
  • The age limit for making contributions is significantly raised from 18 to 70, supporting continuous professional development throughout a career.
  • Employers receive a new 25% tax credit for non-elective contributions made to their employees' CLLAs.
  • Beneficiaries aged 18 or older can deduct their contributions to the account, though distributions of these deductible amounts will be taxed upon withdrawal.
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 Rep. Kilmer, Derek [D-WA-6].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Education Labor