May 23, 2025
Ms. McClellan (for herself and Ms. Sánchez) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to permit qualified distributions from section 529 plans for certain transportation and parking expenses.
Section 1. Qualified distributions from section 529 plans for certain transportation and parking expenses
(a) In general
Section 529(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking and
at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and
, and by inserting after clause (iii) the following new clause:
(iv)
reasonable expenses for transportation (including parking) to such eligible educational institution, not in excess of the allowance (applicable to the student) for transportation included in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll), as in effect on the date of the enactment of this clause) as determined by such eligible educational institution.
(b) Apprenticeship programs
Section 529(c)(8) of such Code is amended by inserting and to reasonable expenses for transportation (including parking) in connection with such participation
before the period at the end.
(c) Effective date
The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.