To amend the Internal Revenue Code of 1986 to permit qualified distributions from section 529 plans for certain transportation and parking expenses.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3574 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3574

    To amend the Internal Revenue Code of 1986 to permit qualified
  distributions from section 529 plans for certain transportation and
                           parking expenses.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2025

 Ms. McClellan (for herself and Ms. Sanchez) introduced the following
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

    To amend the Internal Revenue Code of 1986 to permit qualified
  distributions from section 529 plans for certain transportation and
                           parking expenses.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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.
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