Last week, Rep. Marie Gluesenkamp Perez (WA-03) introduced the Fairness for the Trades Act. The legislation will expand the eligible uses of 529 education savings plans to include the tools necessary for technical careers.

529 savings plans are tax-advantaged investment vehicles designed for saving for future education expenses. Contributions to the plans grow tax-deferred, and withdrawals are tax-free when used for qualified expenses. Funds from a plan can be used at any accredited college, university, vocational school, or other post-secondary educational institutions in the United States – and eligible uses were recently expanded to include expenses related to registered apprenticeships.

The Fairness for the Trades Act would expand use for the purchase of certain qualified business expenses in construction, plumbing, electrical, logging, fishing, farming, and certain auto repair and maintenance fields. This would apply to tangible assets subject to depreciation and the deduction would be taken in the year of the expense.

“For hardworking young people who have access to a 529 savings plan, it’s important they can choose their own career path where they do what they love and are skilled at. Buying the tools to start a career or business in the trades is expensive – and these plans need to support toolboxes, not only tuition,” said Rep. Gluesenkamp Perez. “Expanding uses for these savings plans to include the equipment needed to work in the trades and start a small business will provide opportunities for the next generation to pursue the careers that power America. It also helps get us one step closer to restoring a level playing field for the trades while addressing critical workforce shortages in our communities.”

Rep. Gluesenkamp Perez operated an auto repair and machine shop before coming to Congress, and she has prioritized legislation to build the trades workforce of the future, including bipartisan bills to help small businesses hire trade school graduates and support them in starting their own businesses, build awareness of career and technical education opportunities, and strengthen forestry career training. She has also supported full funding for Perkins grants that support state CTE programs.

Full text of the bill is available here.