To amend the Internal Revenue Code of 1986 to permit qualified distributions from section 529 plans for certain transportation and parking expenses.
Latest Action
Referred to the House Committee on Ways and Means.
Official Summary
Official summary has not been imported yet.
GovScope Watchdog™
AI Government Intelligence™This bill proposes an amendment to the Internal Revenue Code of 1986 to allow qualified distributions from section 529 education savings plans to be used for certain transportation and parking expenses. Section 529 plans are tax-advantaged savings accounts designed to encourage saving for future education costs. Currently, these plans typically cover tuition, fees, books, and related educational expenses. The bill aims to expand the allowable uses of these funds to include transportation and parking costs associated with education.
The bill seeks to broaden the scope of qualified expenses under section 529 plans to include transportation and parking costs, potentially increasing flexibility for plan beneficiaries. However, the bill has failed or expired and was last referred to the House Committee on Ways and Means.
- Amends the Internal Revenue Code of 1986 to permit qualified distributions from section 529 plans for transportation and parking expenses.
- Targets expenses related to education, expanding beyond traditional tuition and fees.
- The bill was introduced in the House and referred to the House Committee on Ways and Means but did not advance further.
['Students and families who use section 529 plans for education savings', 'Educational institutions indirectly, as transportation and parking costs may be more manageable for students', 'Financial institutions managing 529 plans']
['Potential increase in tax-exempt distributions could reduce federal tax revenue.', 'Challenges in defining and verifying eligible transportation and parking expenses for compliance and oversight.', 'Possible administrative burden on plan administrators to track and approve new categories of qualified expenses.']
The bill was introduced in the 118th Congress and referred to the House Committee on Ways and Means, which oversees taxation and revenue-related matters. The bill did not progress beyond committee referral and is currently classified as failed or expired. The policy area is taxation, specifically related to education savings incentives.
Hidden impact flags detected: 2
GovScope reviewed 2 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.
['Increased use of 529 plan funds for transportation and parking could reduce out-of-pocket education-related costs for students and families.', 'Potential shift in how families budget for education expenses, possibly affecting demand for other financial aid or support programs.', 'Financial institutions may develop new products or services to accommodate expanded qualified expenses.']
The bill lacks a full official summary and full text publicly available, limiting detailed analysis. The absence of detailed implementation provisions may pose challenges for oversight and enforcement. Monitoring revenue impacts and administrative burdens will be important if similar legislation is reconsidered.
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