Federal

American Workforce Empowerment Act

Source: Congress.gov · 500 words in original text

What This Bill Does

This bill changes the rules for 529 college savings plans to allow them to pay for certain job training programs that don't lead to a degree. The bill specifically adds support for registered apprenticeships and recognized training certificates that the government has approved.

Who It Affects

Families and individuals who want to use 529 savings plans for technical training. People enrolled in registered apprenticeships with the U.S. Department of Labor. Students pursuing recognized postsecondary credentials (training certificates that count toward career skills). Organizations that sponsor apprenticeships and training programs.

Key Provisions

- Money from 529 plans can now pay for fees, books, supplies, tools and equipment needed for registered apprenticeships that the Secretary of Labor approves (Sec. 2(a)) - Money from 529 plans can now pay for expenses related to recognized postsecondary credentials as defined by the Workforce Innovation and Opportunity Act, including testing and credential fees (Sec. 2(a)) - These new uses apply to expenses paid or incurred after the bill becomes law for programs that start after the bill becomes law (Sec. 2(b))

What Changes

If this becomes law, the definition of what a 529 plan can pay for will expand from only college costs to include costs for certain apprenticeships and career training certificates. Families could use existing 529 savings accounts toward these training programs instead of higher education at a traditional college or university.

Important Definitions

The bill does not provide definitions. It references definitions from other laws: "recognized postsecondary credential" is defined in the Workforce Innovation and Opportunity Act, and "registered apprenticeship program" means programs registered with the Secretary of Labor.

Effective Date

The changes apply to expenses paid or incurred after the date this bill becomes law for programs beginning after the date this bill becomes law. The specific date is not specified in bill text.

I 118TH CONGRESS 1ST SESSION H. R. 329 To 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. IN THE HOUSE OF REPRESENTATIVES JANUARY 12, 2023 Mr. FINSTAD (for himself, Mr. JOHNSON of Ohio, Mr. GALLAGHER, Mr. CUR- TIS, Mr. BISHOP of North Carolina, Mr. BALDERSON, Mr. LUETKE- MEYER, Mr. BACON, Mr. LATURNER, Mr. GOSAR, Mr. COSTA, Mr. ELLZEY, Mr. ISSA, Mr. BOST, Mr. LAMALFA, Mr. CARTER of Texas, Mr. STAUBER, Mr. RUIZ, Mr. MOORE of Alabama, Mr. RUTHERFORD, Mr. VALADAO, Mr. DUNN of Florida, Mr. NEWHOUSE, Mr. MANN, Mrs. MCCLAIN, Mr. WESTERMAN, and Mr. CALVERT) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to permit 529 plans to be used for certain non-degree technical training certificate programs and apprenticeship pro- grams. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘American Workforce 4 Empowerment Act’’. 5 VerDate Sep 11 2014 03:49 Jan 25, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H329.IH H329 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 329 IH SEC. 2. 529 ACCOUNT FUNDING FOR NON-DEGREE TECH- 1 NICAL TRAINING CERTIFICATE PROGRAMS 2 AND APPRENTICESHIP PROGRAMS. 3 (a) IN GENERAL.—Paragraph (8) of section 529(c) 4 of the Internal Revenue Code of 1986 is amended to read 5 as follows: 6 ‘‘(8) TREATMENT OF CERTAIN EXPENSES ASSO- 7 CIATED WITH TECHNICAL TRAINING CERTIFICATE 8 PROGRAMS AND REGISTERED APPRENTICESHIP PRO- 9 GRAMS.—Any reference in this subsection to the 10 term ‘qualified higher education expense’ shall in- 11 clude a reference to expenses for fees, books, sup- 12 plies, tools, and equipment required for the partici- 13 pation of a designated beneficiary in— 14 ‘‘(A) an apprenticeship program registered 15 and certified with the Secretary of Labor under 16 section 1 of the National Apprenticeship Act 17 (29 U.S.C. 50), and 18 ‘‘(B) a recognized postsecondary credential 19 as defined under section 3 of the Workforce In- 20 novation and Opportunity Act (29 U.S.C. 21 3102), including testing and other fees required 22 by the organization issuing the recognized post- 23 secondary credential as a condition of obtaining 24 or maintaining the credential.’’. 25 VerDate Sep 11 2014 03:49 Jan 25, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H329.IH H329 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 329 IH (b) EFFECTIVE DATE.—The amendment made by 1 this section shall apply to expenses paid or incurred after 2 the date of the enactment of this Act for programs begin- 3 ning after the date of the enactment of this Act. 4 Æ VerDate Sep 11 2014 03:49 Jan 25, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H329.IH H329 kjohnson on DSK79L0C42PROD with BILLS

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.