Freedom to Invest in Tomorrow’s Workforce Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill, the Freedom to Invest in Tomorrow’s Workforce Act, amends the Internal Revenue Code to expand the types of expenses eligible for tax-free withdrawals from 529 college savings plans. Specifically, it includes tuition, fees, books, and other related costs for programs that lead to industry-recognized credentials, apprenticeships, or professional licenses. This aims to support individuals pursuing skills-based training and career advancement.
Key provisions
- Expands 529 plan eligible expenses to include tuition, fees, books, and supplies for postsecondary credentialing programs.
- Defines ‘recognized postsecondary credential program’ based on state lists, WEAMS, reputable credentialing organizations, and Secretary of Labor designations.
- Recognized postsecondary credential includes industry-recognized certifications, apprenticeship completion certificates, and professional licenses.
- Includes fees for testing and continuing education as qualified expenses.
- Allows for withdrawals to cover expenses related to obtaining or maintaining recognized postsecondary credentials.
- Defines ‘recognized postsecondary credential’ based on accreditation, COOL directory listings, and Secretary of Labor designations.
- Apprenticeship completion certificates are now eligible expenses.
- The bill takes effect after enactment.
Who is affected
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Sponsors
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Cosponsors
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