H.R. 3395 – 529 OPTIONS Act

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Updated April 15, 2026 at 5:25 PM UTC

The 529 OPTIONS Act would change the tax code so that money taken out of a 529 college‑savings plan can be used tax‑free for certain costs tied to a registered apprenticeship. It expands the definition of qualified education expenses to include items needed for apprenticeship training, allowing families and students who use 529 plans to cover those costs without paying taxes on the distribution.

Key Provisions

Adds apprenticeship‑related costs to the list of qualified higher‑education expenses for 529 plans.
Allows tax‑free withdrawals for books, supplies, and equipment required for a registered apprenticeship program.
Permits tax‑free use of 529 funds for child‑care at a licensed daycare and transportation costs related to the apprenticeship.
Includes costs for obtaining industry certifications or other credentials linked to the apprenticeship program.

Legislative Activity

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2 earlier actions

HouseFloor Latest Action

ASSUMING FIRST SPONSORSHIP - Mr. Norcross asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 3395, a bill originally introduced by former Representative Meehan, for purposes of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

May 7, 2018 • 7:11 PM

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HouseIntro Referral

Introduced in House

July 25, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 25, 2017

HouseFloor

ASSUMING FIRST SPONSORSHIP - Mr. Norcross asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 3395, a bill originally introduced by former Representative Meehan, for purposes of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

May 7, 2018 • 7:11 PM

Floor Debate

1 member

What members said about H.R. 3395 on the floor

1 Democrat

Rep. Donald NorcrossD-NJ-1 · May 7, 2018

Mr. Speaker, I ask unanimous consent that I may hereafter be considered to be the first sponsor of H.R. 3395, a bill originally introduced by Representative Meehan of Pennsylvania, for the purposes…

Bill Text

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Introduced in HouseIssued July 25, 2017

I

115th CONGRESS

1st Session

H. R. 3395

IN THE HOUSE OF REPRESENTATIVES

July 25, 2017

Mr. Meehan (for himself and Mr. Norcross) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow tax free distributions from section 529 college savings plans for certain expenses associated with registered apprenticeship programs.

1.

Short title

This Act may be cited as the 529 Opening Paths To Invest in Our Nation’s Students Act or as the 529 OPTIONS Act.

2.

Distributions from qualified tuition programs for certain expenses associated with registered apprenticeship programs

(a)

In general

Section 529(e)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(C)

Certain expenses associated with registered apprenticeship programs

The term qualified higher education expenses shall include—

(i)

books, supplies, and equipment required for the enrollment or attendance 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),

(ii)

child care at a licensed day care center, and transportation, in connection with such enrollment or attendance, and

(iii)

costs associated with obtaining an industry certification, or other type of credential, in connection with such enrollment or attendance or in connection with the completion of such program.

.

(b)

Effective date

The amendment made by this section shall apply to expenses paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.