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To amend the Internal Revenue Code of 1986 to permit qualified business trade expenses to be treated as qualified higher education expenses for purposes of 529 accounts.
Summary
The Fairness for the Trades Act amends the Internal Revenue Code to allow tax-advantaged 529 education savings accounts to be used to pay for qualified business trade expenses in addition to traditional higher education expenses. The bill defines qualified business trade expenses as amounts paid for tangible depreciable property used in specified trade fields, including agriculture, construction, and skilled trades such as plumbing, electrical work, HVAC systems, auto repair, and heavy equipment operation as identified by specific North American Industry Classification System codes. The bill permits individuals to use 529 account funds to purchase tools, equipment, and other tangible property needed for careers in these designated trade fields. The amendments apply to expenses paid in taxable years beginning after the bill's enactment.
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Sponsor (1)
3 cosponsors
Actions (2)
- Jan 28, 2025 Referred to the House Committee on Ways and Means. · house
- Jan 28, 2025 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE HOUSE OF REPRESENTATIVES
January 28, 2025
Ms. Perez (for herself and Mr. Edwards) 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 business trade expenses to be treated 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 “Fairness for the Trades Act”.
SEC. 2. QUALIFIED BUSINESS TRADE 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) Qualified business trade expenses.—The term ‘qualified higher education expenses’ includes qualified business trade expenses (as defined in subsection (f)).”.
(b) Qualified Business Trade Expenses.—Section 529 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:
“(f) Qualified Business Trade Expenses.—For purposes of this section—
“(1) In general.—The term ‘qualified post business trade expenses’ means amounts paid by the designated beneficiary for specified business property used by the designated beneficiary in a qualified trade field.
“(2) Specified business property.—The term ‘specified business property’ means tangible property (other than buildings) which is of a character subject to the allowance for depreciation.
“(3) Qualified trade field.—The term ‘qualified trade field’ means any field which is described by one of the following National industry codes of the North American Industry Classification System: 113110, 113210, 113310, 114111, 114112, 114119, 114210, 115310, 236115, 236116, 236117, 236118, 236210, 236220, 237110, 237120, 237130, 237210, 237310, 237990, 238110, 238120, 238130, 238140, 238150, 238160, 238170, 238190, 238210, 238220, 238290, 238310, 238320, 238330, 238340, 238350, 238390, 238910, 238990, 811111, 811114, 811198, 811210, 811310, 811411, 811412, 811420, 811430, or 811490.”.
(c) Effective Date.—The amendments made by this section shall apply to expenses paid in taxable years beginning after the date of the enactment of this Act. <all>
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