119-s756

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 756 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 756

 To amend the Internal Revenue Code of 1986 to treat certain 
 postsecondary credentialing expenses as qualified higher education 
 expenses for purposes of 529 accounts.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 February 26, 2025

 Ms. Klobuchar (for herself, Mr. Marshall, Mr. Welch, and Ms. Collins) 
introduced the following bill; which was read twice and referred to the 
 Committee on Finance

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to treat certain 
 postsecondary credentialing expenses as qualified higher education 
 expenses for purposes of 529 accounts.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Freedom to Invest in Tomorrow's 
Workforce Act''.

SEC. 2. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS 
 QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 
 ACCOUNTS.

    (a) In General.--

Section 529

    (e)

    (3) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
 ``
            (C) Certain postsecondary credentialing 
 expenses.--The term `qualified higher education 
 expenses' includes qualified postsecondary 
 credentialing expenses (as defined in subsection

    (f) ).''.

    (b) Qualified Postsecondary Credentialing Expenses.--

Section 529 of 
such Code is amended by redesignating subsection

    (f) as subsection

    (g) and by inserting after subsection

    (e) the following new subsection:
 ``

    (f) Qualified Postsecondary Credentialing Expenses.--For purposes 
of this section--
 ``

    (1) In general.--The term `qualified postsecondary 
 credentialing expenses' means--
 ``
        (A) tuition, fees, books, supplies, and equipment 
 required for the enrollment or attendance of a 
 designated beneficiary in a recognized postsecondary 
 credential program, or any other expense incurred in 
 connection with enrollment in or attendance at a 
 recognized postsecondary credential program if such 
 expense would, if incurred in connection with 
 enrollment or attendance at an eligible educational 
 institution, be covered under subsection

    (e)

    (3)
        (A) ,
 ``
        (B) fees for testing if such testing is required 
 to obtain or maintain a recognized postsecondary 
 credential, and
 ``
            (C) fees for continuing education if such 
 education is required to maintain a recognized 
 postsecondary credential.
 ``

    (2) Recognized postsecondary credential program.--The 
 term `recognized postsecondary credential program' means any 
 program to obtain a recognized postsecondary credential if--
 ``
        (A) 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) ),
 ``
        (B) such program is listed in the public 
 directory of the Web Enabled Approval Management System

    (WEAMS) of the Veterans Benefits Administration, or 
 successor directory such program,
 ``
            (C) an examination (developed or administered by 
 an organization widely recognized as providing 
 reputable credentials in the occupation) is required to 
 obtain or maintain such credential and such 
 organization recognizes such program as providing 
 training or education which prepares individuals to 
 take such examination, or
 ``
            (D) such program is identified by the Secretary, 
 after consultation with the Secretary of Labor, as 
 being a reputable program for obtaining a recognized 
 postsecondary credential for purposes of this 
 subparagraph.
 ``

    (3) Recognized postsecondary credential.--The term 
 `recognized postsecondary credential' means--
 ``
        (A) any postsecondary employment credential that 
 is industry recognized and is--
 ``
            (i) any postsecondary employment 
 credential issued by a program that is 
 accredited by the Institute for Credentialing 
 Excellence, the National Commission on 
 Certifying Agencies, or the American National 
 Standards Institute,
 ``
            (ii) any postsecondary employment 
 credential that is included in the 
 Credentialing Opportunities On-Line

    (COOL) directory of credentialing programs (or 
 successor directory) maintained by the 
 Department of Defense or by any branch of the 
 Armed Forces, or
 ``
            (iii) any postsecondary employment 
 credential identified for purposes of this 
 clause by the Secretary, after consultation 
 with the Secretary of Labor, as being industry 
 recognized,
 ``
        (B) any certificate of completion of an 
 apprenticeship that is registered and certified with 
 the Secretary of Labor under the Act of August 16, 1937 
 (commonly known as the `National Apprenticeship Act'; 
 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),
 ``
            (C) 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
 ``
            (D) any recognized postsecondary credential as 
 defined in 

section 3

    (52) of the Workforce Innovation 
 and Opportunity Act (29 U.S.C. 3102

    (52) ), provided 
 through a program described in paragraph

    (2)
        (A) .''.
            (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after the date of the enactment of this 
Act.
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