Advocacy

Issue Brief: Freedom to Invest in Tomorrows Workforce Act

THE ISSUE

Landscape architects, licensed in all 50 states, the District of Columbia, and several U.S. territories, are charged with protecting the public’s health, safety, and welfare from significant and substantial risks. Like all licensed professionals, landscape architects and licensure candidates incur substantial costs for the educational and professional development requirements to obtain and maintain their license. ASLA is committed to identifying tools, resources, and policies to help offset or defray some of these costs.

Background

The Internal Revenue Service (IRS) permits contributions to state-sponsored education savings vehicles, referred to as a 529 savings plan. Contributions to 529 savings plans are exempt from federal taxes if funds are used to pay for qualified education expenses. Many states also provide additional state tax benefits, such as state tax credits, towards 529 savings plan contributions.

Current law permits workers and families to use 529 savings plans to pay for certain expenses for elementary or secondary public, private, or religious school as well as college, university, vocational, or other postsecondary educational institutions. Eligible 529 expenses generally include those required for enrollment, attendance, books, supplies, and equipment. Currently, 529 savings plans do not cover expenses related to postsecondary credentials and skills training.

Expanding qualified expenses under 529 savings plans to cover costs associated with postsecondary training and credentialing, including government issued professional licenses, would benefit landscape architecture licensure candidates and licensees.

To continue the Society’s support of licensure, ASLA joined the American Society of Association Executives’ (ASAE) Tomorrow's Workforce Coalition. The coalition advocates for policies that enhance economic development and strengthen the workforce, including the Freedom to Invest in Tomorrow's Workforce Act.

Bill Summary

On March 8, 2023, Representatives Robert Wittman (VA) and Abigail Spanberger (VA) reintroduced H.R. 1477, the Freedom to Invest in Tomorrow's Workforce Act. A Senate version of the bill, S. 722, was reintroduced by Senators Amy Klobuchar (MN) and Mike Braun (IN) on March 8, 2023.

This measure would expand eligible expenses under 529 savings plans to cover costs associated with workforce training and credentialing programs, including government issued professional licenses.

Specifically, the Act would enable landscape architecture professionals to use 529 savings plans to help cover licensure costs and fees associated with: 
  • Licensure prep courses, practice exams, and study materials; 
  • Licensure exams; 
  • Continuing education and licensure renewal; and
  • Other costs required to obtain and maintain a license.
This measure would provide emerging and licensed professionals within the landscape architecture profession a valuable federal and state tax-advantaged resource to pursue and maintain state licensure.

The Joint Committee on Taxation estimated the bill would only cost $85 million over ten years.

Recent Action

On March 8, 2023, H.R. 1477 was reintroduced and referred to the House Committee on Ways and Means.

On March 8, 2023, S. 722 was reintroduced and referred to the Senate Committee on Finance.

Sponsors

Representative Robert Wittman (VA), and cosponsors.

Senator Amy Klobuchar (MN), and cosponsors.

 

Resources 

Tomorrow's Workforce Coalition  

Representative Robert Wittman (VA) Press Release: Wittman, Spanberger Reintroduce the Freedom to Invest in Tomorrow’s Workforce Act. March 9, 2023.

Representative Abigail Spanberger (VA) Press Release: Spanberger, Wittman Reintroduce Bipartisan Bill to Allow Virginia Students & Workers to Use 529 Savings Plans to Pay for Training & Credentialing Programs. March 9, 2023.

Senator Amy Klobuchar (MN) Press Release: Klobuchar, Braun Introduce Bipartisan Legislation to Help Americans Save and Pay for Skills Training and Credentialing Programs. March 16, 2023.

Senator Mike Braun (IN) Press Release: Braun, Klobuchar introduce bipartisan legislation to help Americans save and pay for skills training and credentialing programs. March 16, 2023.

IRS: Qualified Tuition Programs (QTPs).

ASAE: Fact Sheet—the Freedom to Invest in Tomorrow’s Workforce Act.

ASAE: Member Organizations—Tomorrow’s Workforce Coalition.

Related ASLA Policies

Professional Licensure

Education

Contact

Roxanne Blackwell, 
Esq., Hon. ASLA,
Director of Federal
Government Affairs
governmentaffairs@asla.org

Elizabeth Hebron,
Director of State
Government Affairs
governmentaffairs@asla.org

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