Upton, House Approve Legislation to Expand and Strengthen 529 College Savings Plans
WASHINGTON, D.C. – Today, Congressman Fred Upton, R-St. Joseph, joined by the majority of his House colleagues voted to advance a bill that would expand and strengthen tax-free 529 college savings plans. The legislation, H.R. 529, To amend the Internal Revenue Code of 1986 to improve 529 plans, would expand, strengthen, and modernize 529 college savings accounts. Specifically, H.R. 529 would allow payments from 529 plans to be used to buy important educational tools like computers as well as assistive technology devices, to eliminate a burdensome tax requirement, and to allow taxpayers, on a tax-free basis, to re-deposit refunds from educational institutions.
“H.R. 529 is a commonsense, bipartisan bill that will help middle-class families struggling with student-loan debt burdens,” said Upton. “These 529 college savings plans are an essential tool for families across Michigan as they plan and save for college or post-secondary training. I am proud to support H.R. 529 and hope the Senate acts swiftly to send this bill to the president’s desk.”
According to estimates from the Joint Committee on Taxation, implementing H.R. 529 would reduce revenues by $51 million during the 2015-2025 period.
Background: Created in 1996, 529 college savings plans are an education savings plan operated by a state or educational institution designed to help families set aside funds for future college or post-secondary costs. An estimated 12 million parents use tax-free 529 college savings plans.