H.R. 939

Student Empowerment Act

This bill expands the education-related expenses that may be paid for with tax-free distributions from a qualified tuition program (also known as a 529 plan) to include certain expenses related to elementary, secondary, and homeschool education.

Under current law, distributions from a 529 plan are excluded from gross income if they are used to pay for qualified higher education expenses, which includes up to $10,000 (per year and per beneficiary) for tuition at an elementary or secondary public, private, or religious school.

The bill expands the education-related expenses that may be paid for with tax-free distributions from a 529 plan to include tuition related to homeschooling and the following expenses related to elementary, secondary, and homeschool education:

• curriculum and curricular materials,
• books or other instructional materials,
• online educational materials,
• tutoring or educational classes outside the home,
• testing fees,
• fees for dual enrollment in an institution of higher education, and
• educational therapies for students with disabilities.