ISSA Supports 529 BillJanuary 27, 2020
H.R. 5339, the Freedom to Invest in Tomorrow’s Workforce Act, would allow 529 savings accounts to be used for workforce training, certification, and other credentialing program costs. The bipartisan bill, introduced by U.S. Representatives Abigail Spanberger (D-VA) and Rob Wittman (R-VA), would provide valuable tax-advantaged resources for individuals pursuing career advancement, alternative career pathways, or mid-career changes. ISSA proudly supports this legislation.
Every state sponsors a 529 savings plan (“529”) to encourage saving for higher education. The funds in a 529 account are exempt from federal taxes if used to pay for qualified educational expenses. Currently, 529s only allow students to pay for:
- Post-secondary two- and four-year college degrees and graduate or professional school
- Career and technical education programs from Title IV accredited institutions
- Up to US$10,000 a year in elementary and high school tuition.
Workforce training and credentialing programs are currently excluded from 529s. H.R. 5339 would provide opportunities for families to save for higher education and professional development by amending the tax code to add obtaining or maintaining a “recognized post-secondary credential” as an eligible expense for a 529 plan. The bill also would give individuals freedom to use 529s to cover the costs of high-quality credentialing programs, including:
- Tuition for participation in the certification program
- Examination/testing fees charged by the program or by independent certification organizations
- Required books and equipment associated with the certification program
- Tuition for continuing education courses
- Fees associated with renewal of certification
- Expenses associated with practice exams
- Other charges by the certification organization required to obtain or maintain certification.
“This bipartisan legislation would enable more individuals to enter and thrive in the 21st-century cleaning industry by providing them with opportunities to save for professional development such as the myriad of cleaning training and certifications ISSA offers,” said John Nothdurft, ISSA Director of Government Affairs.
For additional information or questions regarding H.R. 5339, other public policy issues related to the cleaning industry, and ISSA’s advocacy efforts, please contact Stacy Seiden, ISSA Government Affairs Coordinator, at [email protected].