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529 Account Expansion: Tax-Free Funds for Trade and Vocational Equipment.

This legislation expands how funds saved in 529 education accounts can be used. It allows tax-free withdrawals to cover the cost of essential tools and equipment required for certain vocational and trade fields. This change lowers the financial barrier for individuals starting careers in skilled trades by making the purchase of necessary work equipment tax-advantaged.
Key points
529 savings can now be used tax-free to purchase tools and equipment necessary for specific trade and construction careers.
Eligible purchases include tangible property subject to depreciation, such as machinery or specialized tools, but not buildings.
The change provides a significant tax benefit for those entering technical professions like plumbing, electrical work, or automotive repair.
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Additional Information
Print number: 118_HR_9984
Sponsor: Rep. Perez, Marie Gluesenkamp [D-WA-3]
Process start date: 2024-10-11
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to permit qualified business trade expenses to be treated as qualified higher education expenses for purposes of 529 accounts.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9984.

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 2024-10-11.

What are the main provisions?

Key points include:

  • 529 savings can now be used tax-free to purchase tools and equipment necessary for specific trade and construction careers.
  • Eligible purchases include tangible property subject to depreciation, such as machinery or specialized tools, but not buildings.
  • The change provides a significant tax benefit for those entering technical professions like plumbing, electrical work, or automotive repair.
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. Perez, Marie Gluesenkamp [D-WA-3].

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 2025-12-26.

CATEGORIES

Taxes Education Labor