Sec. 231. Expansion of section 529 plans
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Section 529(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: Any reference in this subsection to the term qualified higher education expense shall include a reference to expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act ( 29 U.S.C. 50 ). .
Section 529(c)(7) of such Code is amended by striking include a reference to and all that follows and inserting include a reference to— expenses for tuition in connection with enrollment or attendance of a designated beneficiary at an elementary or secondary public, private, or religious school, and expenses, with respect to a designated beneficiary, for— curriculum and curricular materials, books or other instructional materials, online educational materials, tuition for tutoring or educational classes outside of the home (but only if the tutor or class instructor is not related (within the meaning of section 152(d)(2)) to the student), dual enrollment in an institution of higher education, and educational therapies for students with disabilities, in connection with a homeschool (whether treated as a homeschool or a private school for purposes of applicable State law). .
Section 529(c) of such Code, as amended by subsection (a), is amended by adding at the end the following new paragraph: Any reference in this subsection to the term qualified higher education expense shall include a reference to amounts paid as principal or interest on any qualified education loan (as defined in section 221(d)) of the designated beneficiary or a sibling of the designated beneficiary. The amount of distributions treated as a qualified higher education expense under this paragraph with respect to the loans of any individual shall not exceed $10,000 (reduced by the amount of distributions so treated for all prior taxable years).
For purposes of subparagraph
(B)and subsection (d), amounts treated as a qualified higher education expense with respect to the loans of a sibling of the designated beneficiary shall be taken into account with respect to such sibling and not with respect to such designated beneficiary. For purposes of this paragraph, the term sibling means an individual who bears a relationship to the designated beneficiary which is described in section 152(d)(2)(B). . Section 221(e)(1) of such Code is amended by adding at the end the following: The deduction otherwise allowable under subsection
(a)(prior to the application of subsection (b)) to the taxpayer for any taxable year shall be reduced (but not below zero) by so much of the distributions treated as a qualified higher education expense under section 529(c)(9) with respect to loans of the taxpayer as would be includible in gross income under section 529(c)(3)(A) for such taxable year but for such treatment. . Section 529(c)(7)(A), as amended by subsection (b), is amended to read as follows: expenses described in section 530(b)(3)(A)(i) in connection with enrollment or attendance of a designated beneficiary at an elementary or secondary public, private, or religious school, and . Section 529(e) is amended by adding at the end the following new paragraph: Nothing shall prevent an unborn child from being treated as a designated beneficiary or an individual under this section. For purposes of this paragraph— The term unborn child means a child in utero. The term child in utero means a member of the species homo sapiens, at any stage of development, who is carried in the womb. . Except as otherwise provided in this subsection, the amendments made by this section shall apply to distributions made after December 31, 2018. The amendment made by subsection
(e)shall apply to contributions made after December 31, 2018.
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Sec. 231
Expansion of section 529 plans
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