AICC Advocacy Success: 529 Expansion Included in Ways & Means Tax Bill!

Tomorrow's Workforce Coalition Members

It is with great excitement that we write to report that, after significant advocacy efforts by the Tomorrow's Workforce Coalition (TWC) team and by you, the TWC membership, the language of the Freedom to Invest in Tomorrow’s Workforce Act has been included in the major tax legislative package that House Republicans released this week! The House Ways & Means Committee finished marking up the broader tax bill, including Freedom to Invest, earlier today, and the bill will head to the House floor next week. From there, if the House passes the legislation (a big “if”), it will move over to the Senate for further consideration over the next 4-6 weeks.

The inclusion of Freedom to Invest is a byproduct of years of lobbying by scores of organizations who understand how this legislation could transform 529 savings accounts from “college savings plans” to “career savings plans” by allowing beneficiaries to use funds in those plans for, among other things, obtaining and maintaining professional certifications, licenses, and credentials, like those offered and represented by TWC members. But make no mistake: this legislation would not exist and would not be advancing without the TWC’s existence and efforts—our organization and our members have been the driving force behind it since we first devised and drafted it several years ago! 

The inclusion of Freedom to Invest in the tax package coincides with the bill having just hit a significant milestone: as of Friday, the House version of the bill now has at least 161 cosponsors, exceeding last session's total of 150.  Democratic support for the bill, with 67 cosponsors, has also now surpassed last session’s total of 60, which is somewhat remarkable given that many Democrats recognize that the bill stands its greatest chance of enactment by being included in the Republican tax package.  The upshot of this bipartisan progress is that, even if the GOP tax package fails to be enacted, our bill stands a chance to be considered on a standalone basis or as part of a bipartisan tax package later this year.  We are pursuing all available paths to ensure that Freedom to Invest is enacted into law at the earliest possible opportunity.

To be sure, there are several separate provisions in the wide-ranging Republican tax bill that could pose potential complications for certification organizations/professional societies/membership associations. We are currently assessing those provisions and their potential impact. As such, to the extent you are engaging in your own advocacy efforts, TWC members will need to assess whether or not they will support the broader bill beyond Freedom to Invest. However, we are pleased that this transformative legislation is making the progress we were hoping it would and will keep you updated as the legislation process continues to unfold.

Many thanks for your attention. Please let us know if you have any questions.

-The TWC Team