H.R. 1151

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1151 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 1151

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 HOUSE OF REPRESENTATIVES

February 7, 2025

Mr. Wittman (for himself, Mr. Horsford, Mr. Hern of Oklahoma, Mr. 
Larson of Connecticut, Mr. Finstad, Ms. McClellan, Mr. Collins, Mr. 
Panetta, Mr. Carey, and Mr. Subramanyam) 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 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 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.--For 
purposes of this subparagraph, 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 WEAMS Public 
directory (or successor directory) maintained by the 
Department of Veterans Affairs,
``(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, including--
``(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 Services, and
``(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 National 
Apprenticeship Act (29 U.S.C. 50),
``(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).''.
(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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