On Tuesday, U.S. Rep. Marie Gluesenkamp Perez, D-Skamania, and Rep. Chuck Edwards, R-North Carolina, introduced the bipartisan Fairness for the Trades Act.
The legislation will expand the eligible uses of 529 education savings plans to include the tools necessary for technical careers, according to a news release from Gluesenkamp Perez.
“529 savings plans are tax-advantaged investment vehicles designed for saving for future education expenses,” the congresswoman’s office wrote in the news release. “Contributions to the plans grow tax-deferred, and withdrawals are tax-free when used for qualified expenses. Funds from a plan can be used at any accredited college, university, vocational school or other post-secondary educational institutions in the United States — and eligible uses were recently expanded to include expenses related to registered apprenticeships.”
The Fairness for the Trades Act would expand use for the purchase of certain qualified business expenses in construction, plumbing, electrical, logging, fishing, farming and certain auto repair and maintenance fields.
It would apply to tangible assets subject to depreciation and the deduction would be taken in the year of the expense.
“Hardworking tradespeople power America — but buying the tools to start a career or business in the trades is expensive,” Gluesenkamp Perez stated in the release. “Our young people should be able to choose their own career path where they can do what they love and are skilled at. That’s why it’s important that 529 savings plans can also fund toolboxes — not only tuition. By expanding uses for 529 savings plans to include equipment needed to start a small business or work in the trades, our bipartisan Fairness for the Trades Act will help level the playing field, honor the prestige of these careers, and provide new opportunities for the next generation.”
Edwards noted that, for years, there have been shortages of welders, plumbers, construction workers, truckers and “other important jobs simply because students have always been told that the ‘right’ career path is to get a four-year degree.”
“The Fairness for the Trades Act will refute that philosophy and expand career opportunities by allowing trade students to use their 529 education plan to buy the equipment needed to learn their trade,” Edwards stated in the release. “There are multiple paths to achieving the American dream, and I’m proud to help lead a bill that supports students pursue the career that interests them most.”
Gluesenkamp Perez operated an auto repair and machine shop before being elected to Congress. According to the news release, she has prioritized legislation to build the trades workforce of the future, supported full funding for Perkins grants that support state career and technical education (CTE) programs, and is working to extend CTE opportunities to sixth grade students.
Full text of the bill is available at https://tinyurl.com/4v9h3tuw.
Gluesenkamp Perez previously introduced the legislation in the 118th Congress.
