H.R.1151 - Freedom to Invest in Tomorrow’s Workforce Act (119th Congress)
Summary
H.R.1151, the "Freedom to Invest in Tomorrow's Workforce Act," aims to amend the Internal Revenue Code of 1986 to include certain postsecondary credentialing expenses as qualified higher education expenses for 529 accounts. This would allow individuals to use 529 savings plans to cover costs associated with obtaining or maintaining recognized postsecondary credentials. The bill defines 'qualified postsecondary credentialing expenses' and 'recognized postsecondary credential program,' outlining specific criteria for eligible programs and credentials.
Expected Effects
The bill's passage would expand the permissible uses of 529 savings accounts, potentially incentivizing individuals to pursue postsecondary credentials. This could lead to a more skilled workforce and increased economic mobility. The change would apply to distributions made after the enactment date.
Potential Benefits
- Expands access to skills training and credentialing programs by making them more affordable through 529 savings plans.
- Encourages individuals to pursue industry-recognized credentials, potentially leading to better employment opportunities.
- Supports workforce development by aligning 529 plans with the needs of the modern labor market.
- Simplifies the process of saving for and funding postsecondary education and training.
- May lead to a more skilled and competitive workforce, benefiting the economy as a whole.
Potential Disadvantages
- May disproportionately benefit higher-income individuals who are more likely to have 529 accounts.
- Could potentially lead to increased utilization of 529 plans, impacting tax revenue.
- Requires careful oversight to ensure that programs and credentials meet the specified criteria.
- The definition of 'recognized postsecondary credential program' relies on existing lists and directories, which may need to be updated regularly.
- The overall impact on workforce development may be limited if other barriers to education and training are not addressed.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has broad authority to tax and spend for the general welfare, and this bill uses tax policy to encourage workforce development. There are no apparent infringements on individual rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).