Kiggans Aims to Expand Use of 529s for Trade Schools and Apprenticeships

WASHINGTON, DC: Today, Congresswoman Jen Kiggans (VA-02) announced she has cosponsored H.R. 329, the American Workforce Empowerment Act. This legislation would expand the parameters of 529 college savings plans to allow them to be used for non-degree technical training certificate programs and apprenticeship programs. Such programs are critical for in-demand jobs in industries such as construction, information technology, and the medical field.

“Families who want to give their children options for success through apprenticeships or trade schools should have the same access to federal incentives as those sending their kids to a four-year college,” said Congresswoman Kiggans. “We need welders, electricians, and computer programmers, just like we need doctors, accountants, and judges. That’s why I’m proud to cosponsor the American Workforce Empowerment Act! Not only will this bill support young adults and their families in making the educational and financial decisions best for them, it will also help grow America’s skilled workforce by giving the next generation increased access to vocational training for in demand jobs.”

BACKGROUND

A 529 plan gives families a tax-advantaged way to save and pay for a child’s education. Under current law, students and families can use 529 tax-free savings accounts for college, however they cannot use those same savings accounts for apprenticeships.

Specifically, H.R. 329 would amend the Internal Revenue Code of 1986 to permit 529 plans to be used for certain non-degree technical training certificate programs and apprenticeship programs. This includes expenses for related fees, books, supplies, tools, and equipment required for the participation in such programs. You can read the full bill text here.

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