The U.S. House of Representatives has passed a sweeping new tax package—The One, Big, Beautiful Bill—aimed at delivering lasting tax relief to American families, workers, farmers, and small businesses. The bill now moves to the Senate for consideration.
Empowering career-ready education by expanding 529 accounts to cover certifications, licensing, and apprenticeships
A newly proposed provision expands 529 education savings account uses to include a wide range of career-focused credentials and training programs—a major step forward for workforce development and the skilled trades. Families could use these accounts to pay for expenses related to industry-recognized certifications, professional licensing, continuing education, and registered apprenticeships.
The new “qualified postsecondary credentialing expenses” include tuition, fees, testing, books, and required supplies tied to participation in a recognized credentialing program. These programs must be listed under state Workforce Innovation and Opportunity Act (WIOA) directories, military COOL directories, Department of Veterans Affairs listings, or be approved by nationally recognized accreditation bodies such as ANSI or the Institute for Credentialing Excellence.
For HVACR contractors and others in the skilled trades, the bill makes 529 funds available for apprenticeship completion certificates, occupational licenses, and professional certifications. This move cuts out-of-pocket training costs for the next generation of HVACR professionals while empowering more families to invest early in career education outside of a traditional college path.
The change would apply to 529 distributions made after the date of enactment, providing immediate benefit to students and workers pursuing high-demand credentials in HVACR, plumbing, electrical, and other essential trades.
Room for improvement as the “Big Beautiful Bill” heads to the Senate
The 529 expansion is just one exciting element of the sweeping tax and spending package detailed in last week’s blog post. As the Senate finalizes its proposal, however, we hope they will reconsider the House move to sunset the 25C, 45L and 25D efficiency tax credits that are critical to helping consumers cope with today’s rising equipment costs. Click here to learn more and urge your members of Congress to preserve these important tax incentives. Stay tuned for more as this “Big Beautiful Bill” moves through the legislative process.
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