Certain Postsecondary Credentialing Expenses Treated as Qualified Higher Education Expenses for Purposes of 529 Accounts
Section 70414 · Sec. 70414 ·
What this chapter is about
This part lets a college savings account pay for job credentials. That covers course costs, test fees and ongoing training. The program must be on a state list or a named federal one. The change reaches money taken out after this law passed.
“The term `qualified higher education expenses' includes qualified postsecondary credentialing expenses (as defined in subsection (f)).”
The section adds a new subparagraph (C) to section 529(e)(3) of the Internal Revenue Code of 1986 bringing qualified postsecondary credentialing expenses within the term qualified higher education expenses.
What the document actually says
“The term `qualified higher education expenses' includes qualified postsecondary credentialing expenses (as defined in subsection (f)).”
That sentence, in plain words
The term now takes in the cost of getting a job credential. The next part says what that covers.
What this is about
A credential is a license, certificate or the like. Before this the account paid only for school. Now it may pay for these too.
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“fees for testing if such testing is required to obtain or maintain a recognized postsecondary credential, and”
The section adds a new subsection (f) to section 529 of the Internal Revenue Code of 1986 defining qualified postsecondary credentialing expenses as tuition, fees, books, supplies and equipment required for the beneficiary's enrollment or attendance in a recognized postsecondary credential program, or any other expense that would be covered under subsection (e)(3)(A) if incurred at an eligible educational institution; fees for testing required to get or keep a recognized postsecondary credential; and fees for continuing education required to keep one.
What the document actually says
“fees for testing if such testing is required to obtain or maintain a recognized postsecondary credential, and”
That sentence, in plain words
Test fees count if the test is needed for the credential. That covers getting one and keeping one.
What this is about
Course costs and gear count too. So does training needed to keep a credential. The list sits in one new part of the tax code.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “means”Who acts: Congress, Secretary of the TreasuryHow: statuteSec. 70414 in the PDF
What the document says
“such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)),”
The section defines a recognized postsecondary credential program as one on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act, one listed in the public directory of the Web Enabled Approval Management System of the Veterans Benefits Administration or a successor directory, one recognized by an organization widely known for reputable credentials in the occupation as preparing people for its required examination, or one the Secretary identifies as reputable after consulting the Secretary of Labor.
What the document actually says
“such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)),”
That sentence, in plain words
The program counts if it sits on a state list. That list is drawn up under a federal jobs law.
What this is about
Three other routes are open. One is a list kept for veterans. One is a well known trade exam body. The last is the Secretary naming it.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and”
The section defines a recognized postsecondary credential as an industry recognized postsecondary employment credential issued by a program accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies or the American National Standards Institute, or included in the Credentialing Opportunities On-Line directory maintained by the Department of Defense or a branch of the Armed Forces, or identified by the Secretary as industry recognized after consulting the Secretary of Labor; a certificate of completion of an apprenticeship registered and certified with the Secretary of Labor under the National Apprenticeship Act; an occupational or professional license issued or recognized by a State or the federal government, with any certification that is a condition of getting one; and a recognized postsecondary credential as defined in section 3(52) of the Workforce Innovation and Opportunity Act provided through a State listed program.
What the document actually says
“any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and”
That sentence, in plain words
A job license from a state or the federal government counts. So does a certificate needed to get one.
What this is about
Some job certificates count too. So does a paper showing an apprenticeship is done. The law names the bodies that approve them.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70414 in the PDF
What the document says
“The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.”
The section applies its amendments to distributions made after the date of enactment.
What the document actually says
“The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.”
That sentence, in plain words
The changes reach money taken out after this law passed.
What this is about
Money taken out before then is not touched. The old rules still hold for it. The date is the day this law passed.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: bring credentialing expenses within the term, define a qualified postsecondary credentialing expense, define a recognized postsecondary credential program and a recognized postsecondary credential, and fix the effective date.
The redesignation of subsection (f) as subsection (g), which moves existing text without changing what it requires.
The section works by amending section 529 of the Internal Revenue Code of 1986 and points to the Workforce Innovation and Opportunity Act and the National Apprenticeship Act, none of which is indexed here.
