S. 756 — Freedom to Invest in Tomorrow’s Workforce Act

This section amends Section 529 of the Internal Revenue Code to expand the definition of qualified higher education expenses for 529 savings plans (i.e., tax-advantaged accounts for education costs) to include qualified postsecondary credentialing expenses. Such expenses cover (1) tuition, fees, books, supplies, and equipment required for enrollment or attendance at a recognized postsecondary credential program (or analogous expenses that would qualify under current law for eligible educational institutions); (2) fees for testing required to obtain or maintain a recognized postsecondary credential; and (3) fees for continuing education required to maintain such a credential. A recognized postsecondary credential program includes programs on a state eligible training provider list under the Workforce Innovation and Opportunity Act (WIOA), in the Veterans Benefits Administration's Web Enabled Approval Management System (WEAMS) directory, those recognized by reputable credentialing organizations for related examinations, or others designated by the Secretary of the Treasury (after consultation with the Secretary of Labor). A recognized postsecondary credential encompasses industry-recognized credentials accredited by specified bodies or listed in the Department of Defense Credentialing Opportunities On-Line (COOL) directory, registered apprenticeships under the National Apprenticeship Act, state or federal occupational or professional licenses (or prerequisite certifications), and WIOA-defined credentials (29 U.S.C. 3102(52)) provided through eligible programs. The amendments apply to distributions made after the date of enactment.