The implications of HB 939 are significant for families choosing to enroll their children in various educational settings, including homeschooling. By allowing a wider array of expenses to be covered by 529 accounts, the bill seeks to alleviate some financial burdens associated with education. This change could lead to increased enrollment in alternative education models, as families might feel more financially empowered to pursue diverse educational opportunities beyond traditional public schooling.
Summary
House Bill 939, also known as the Student Empowerment Act, proposes amendments to the Internal Revenue Code of 1986. The bill allows expenses related to kindergarten through grade 12 education to be paid from a 529 savings account. This includes tuition for private, public, or religious schools as well as costs for curriculum materials, books, and educational materials. The legislation aims to broaden the scope of educational expenses that families can cover using these tax-advantaged accounts.
Contention
However, the bill is not without its points of contention. Critics may express concerns regarding the potential for misallocation of tax-advantaged funds, especially concerning accountability for educational effectiveness in settings such as homeschooling or private institutions. Additionally, there may be debates over the fairness of expanding 529 account use in a way that could potentially divert public resources from traditional public education systems, as well as questions about the equity of access for low-income families.