H.R. 3574

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3574 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 3574

To amend the Internal Revenue Code of 1986 to permit qualified 
distributions from section 529 plans for certain transportation and 
parking expenses.

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IN THE HOUSE OF REPRESENTATIVES

May 23, 2025

Ms. McClellan (for herself and Ms. Sanchez) 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 qualified 
distributions from section 529 plans for certain transportation and 
parking expenses.

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

SECTION 1. QUALIFIED DISTRIBUTIONS FROM SECTION 529 PLANS FOR CERTAIN 
TRANSPORTATION AND PARKING EXPENSES.

(a) In General.--Section 529(e)(3)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``and'' at the end of clause (ii), by 
striking the period at the end of clause (iii) and inserting ``, and'', 
and by inserting after clause (iii) the following new clause:
``(iv) reasonable expenses for 
transportation (including parking) to such 
eligible educational institution, not in excess 
of the allowance (applicable to the student) 
for transportation included in the cost of 
attendance (as defined in section 472 of the 
Higher Education Act of 1965 (20 U.S.C. 
1087ll), as in effect on the date of the 
enactment of this clause) as determined by such 
eligible educational institution.''.
(b) Apprenticeship Programs.--Section 529(c)(8) of such Code is 
amended by inserting ``and to reasonable expenses for transportation 
(including parking) in connection with such participation'' before the 
period at the end.
(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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