The Freedom to Invest in Tomorrow’s Workforce Act in both the House of Representatives (H.R. 1477) and the Senate (S. 722) expands eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs such as AMPP’s education and credential opportunities.
This bipartisan legislation provides valuable tax-advantaged resources for workers who pursue alternative career pathways, mid-career changes, or career growth by boosting their career prospects and earning potential at any phase of their careers and educational backgrounds. The bill allows members to use the 529 accounts to help pay tuition for participation in certification programs or continuing education courses, including required books and equipment associated with the certification program. The bill allows 529 savings plan beneficiaries to use their funds to pay for examination/testing fees charged by the program or by independent certification organizations to obtain and maintain recognized professional certifications and other materials protection credentials
Changes are needed as only costs related to attending colleges, universities, vocational schools, registered apprenticeship programs, K-12 private tuition, and other post-secondary institutions are eligible for the current 529 expenses. The bill intends to build the groundwork for a strong and equitable job market by emphasizing workforce training, supporting company investment in skills enhancement, and fostering job creation and economic growth.