# Plain Language Summary of H.R. 8128

This bill makes changes to how people can use 529 college savings accounts—the tax-advantaged accounts that families set up to save money for education. Right now, these accounts are pretty limited in what they can pay for. This bill expands what you're allowed to use the money for, giving families more flexibility in how they invest in their children's future.

The first major change lets families use 529 account money to pay for apprenticeships. If your child wants to learn a trade like plumbing, electrical work, or carpentry through a registered apprenticeship program, you can now tap into these savings accounts to cover those costs. This is a big deal because apprenticeships are a real alternative to traditional four-year college degrees, and they often lead directly to good-paying jobs. The second change allows 529 funds to be used for short-term career training programs—things like certificate programs in healthcare, technology, or other fields that don't take years to complete. This opens up the accounts to cover vocational training and career pathway programs that help people gain specific job skills quickly.

The bill also makes a smaller change affecting wealthy private colleges and universities. It slightly increases a tax that these institutions pay on their investment earnings (from 1.4% to 1.6%), but it creates an exemption for private schools that don't accept any federal student aid. This means schools that operate completely independently from federal funding won't have to pay this tax. Overall, the bill is designed to make education savings accounts work for more types of career preparation, not just traditional college, while making minor adjustments to how private institutions are taxed.

To amend the Internal Revenue Code of 1986 to expand the uses for funds under qualified tuition programs, and for other purposes.

Rep. Smucker, Lloyd [R-PA-11]

 <p>This bill expands the uses of qualified tuition program (529 plans) funds to include payment of costs related to industry recognized apprenticeship programs. It also provides for payment of expenses related to a career and technical education program or a career pathway.</p> <p>The bill increases from 1.4% to 1.6% the rate of the excise tax on the investment income of certain private colleges and universities.</p>