S-756 : Still Just a Bill

The "Freedom to Invest in Tomorrow's Workforce Act," also known as S.756, proposes changes to Section 529(e)(3) of the Internal Revenue Code of 1986. The bill broadens the definition of "qualified higher education expenses" to include certain postsecondary credentialing expenses, making them eligible for 529 account funds.

Key provisions of the bill include:

• Qualified Postsecondary Credentialing Expenses: Defines eligible expenses as tuition, fees, books, supplies, and equipment required for recognized postsecondary credential programs. It also includes fees for testing and continuing education needed to obtain or maintain credentials.
• Recognized Postsecondary Credential Program: Specifies various programs that qualify, including those on state lists under the Workforce Innovation and Opportunity Act, programs listed in the Veterans Benefits Administration's WEAMS directory, programs recognized by credentialing organizations, and programs identified by the Secretaries of Education and Labor.
• Recognized Postsecondary Credential: Defines eligible credentials as industry-recognized employment credentials, certificates of apprenticeship, occupational or professional licenses, and credentials defined in the Workforce Innovation and Opportunity Act.
• Effective Date: The changes will apply to distributions made after the enactment of this Act.

In short, this bill aims to allow individuals to use 529 savings accounts for a broader range of educational and training expenses related to postsecondary credentials, with the intention of supporting workforce development.