arrow_back Back to App

Tax relief for career training and credentials using 529 accounts.

This act expands the use of savings in 529 education accounts to cover expenses related to obtaining or maintaining recognized postsecondary credentials and career training. Citizens can now use these tax-advantaged funds for professional certifications, testing fees, and required program materials, not just traditional college education. This change provides greater financial flexibility for individuals seeking to advance their careers through specialized training.
Key points
The definition of 'qualified higher education expenses' for 529 accounts is expanded to include career training and credentialing costs.
Funds can cover tuition, fees, books, supplies, and equipment for recognized postsecondary credential programs, as well as testing fees required to obtain or maintain credentials.
The changes apply to expenses paid or incurred in taxable years beginning after the date the Act becomes law, offering new savings opportunities for workforce development.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_722
Sponsor: Sen. Klobuchar, Amy [D-MN]
Process start date: 2023-03-08
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

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 118_S_722.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-03-08.

What are the main provisions?

Key points include:

  • The definition of 'qualified higher education expenses' for 529 accounts is expanded to include career training and credentialing costs.
  • Funds can cover tuition, fees, books, supplies, and equipment for recognized postsecondary credential programs, as well as testing fees required to obtain or maintain credentials.
  • The changes apply to expenses paid or incurred in taxable years beginning after the date the Act becomes law, offering new savings opportunities for workforce development.
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 2025-12-27.

CATEGORIES

Taxes Education Labor