Freedom to Invest in Tomorrow’s Workforce Act
Quick Read: Bipartisan, bicameral legislation ((H.R. 1477 / S. 722) would expand qualified expenses under 529 savings plans to include postsecondary training and credentialing, such as licenses and professional certifications. For would-be Certified Professional Accountants (CPAs) or current CPAs working to maintain their licensing and update their certifications, this legislation would offer a valuable tax-advantaged resource as they pursue career growth and life-long learning opportunities.
Issue: CPAs play a more important role in business than ever before, especially in many newer initiatives such as digital transformation, environmental, social and governance (ESG), and artificial intelligence. For CPAs who work in core functions like tax and audit, their work helps ensure that taxpayers are complying with tax laws, that financial reporting is sound, and that businesses are acting ethically. While earning the CPA credential has historically been one of the most notable ways to exhibit a high level of competence in the accounting profession, the expense of the CPA exam preparation, application, and registration can easily exceed $3,000, depending on the state, and is often cited by would-be CPAs as a deterrent to sitting for the CPA exam. Additionally, CPAs must keep up with continuing professional education requirements to ensure they maintain and improve their skills. By expanding the allowable use of 529 education savings plans, would-be and current CPAs and other skilled workers would be given more financial flexibility as they decide how best to pay for the requirements associated with obtaining and maintaining a license.
Bill Summary: The bill proposes expanding qualified expenses under 529 savings plans to include postsecondary training and credentialing, such as licenses and professional, nongovernmental certifications. It should allow individuals to use 529 funds for expenses, fees, and costs related to the Uniform CPA Examination (CPA Exam), which is one of three critical components required for licensure as a certified public accountant (CPA) in the United States.
Tomorrow’s Workforce Coalition: The AICPA is proud to be a member of the “Tomorrow’s Workforce Coalition,” a voluntary group of more than 500 member organizations advocating to help pass the legislation. The group is led by the American Society of Association Executives (ASAE) and the Professional Certification Coalition (PCC). For more information on the coalition, please see the ASAE press release here.
AICPA Staff Contact
Lauren Pfingstag Vahey, Director, Congressional & Political Affairs at Lauren.Pfingstag@aicpa-cima.com