Student Empowerment Act

12/15/2023, 4:05 PM

Student Empowerment Act

This bill allows tax-exempt distributions from qualified tuition programs (known as 529 plans) to be used for additional educational expenses in connection with enrollment or attendance at an elementary or secondary school.

(Under current law, distributions in connection with an elementary or secondary school are limited to tuition for a public, private, or religious school.) The bill allows the distributions to be used for additional educational expenses, including

  • curriculum and curricular materials,
  • books or other instructional materials,
  • online educational materials,
  • tutoring or educational classes outside the home,
  • testing fees,
  • fees for dual enrollment in an institution of higher education, and
  • educational therapies for students with disabilities.

Distributions may also be used for tuition and the purposes above in connection with a homeschool (whether treated as a homeschool or a private school under state law).

Congress
118
Number
S - 57
Introduced on
2023-01-24
# Amendments
0
Sponsors
+5

Variations and Revisions

1/24/2023
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Student Empowerment Act

This bill allows tax-exempt distributions from qualified tuition programs (known as 529 plans) to be used for additional educational expenses in connection with enrollment or attendance at an elementary or secondary school.

(Under current law, distributions in connection with an elementary or secondary school are limited to tuition for a public, private, or religious school.) The bill allows the distributions to be used for additional educational expenses, including

  • curriculum and curricular materials,
  • books or other instructional materials,
  • online educational materials,
  • tutoring or educational classes outside the home,
  • testing fees,
  • fees for dual enrollment in an institution of higher education, and
  • educational therapies for students with disabilities.

Distributions may also be used for tuition and the purposes above in connection with a homeschool (whether treated as a homeschool or a private school under state law).

Alternative Names
Official Title as IntroducedA bill to amend the Internal Revenue Code of 1986 to permit kindergarten through grade 12 educational expenses to be paid from a 529 account.
Policy Areas
Taxation
Potential Impact
Academic performance and assessments•
Bank accounts, deposits, capital•
Elementary and secondary education•
Higher education•
Income tax exclusion•
Special education•
Student aid and college costs•
Teaching, teachers, curricula

Comments

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Recent Activity

Latest Summary2/3/2023

Student Empowerment Act

This bill allows tax-exempt distributions from qualified tuition programs (known as 529 plans) to be used for additional educational expenses in connection with enrollment or attendance at an elementary or s...

Latest Action1/24/2023
Read twice and referred to the Committee on Finance.