A coalition of almost 800 nonprofit organizations, businesses and associations — including several in senior living — is urging Congress to include a bipartisan bill expanding eligible uses of college savings plans to workforce programs in a $78 billion tax package.
HR 7024, the Tax Relief for American Families and Workers Act of 2024, was introduced last week. The legislation primarily addresses limited expansions of the child tax credit, reinstatement of lapsed business tax deductions, and additional incentives for affordable housing development and disaster victims.
Several senior living organizations that are part of the Tomorrow’s Workforce Coalition joined a letter last week to congressional leaders to urge inclusion of HR 1477 / S 722 — the Freedom to Invest in Tomorrow’s Workforce Act — in the bill.
“The bill would shift the paradigm for 529 plans, transforming them from college savings plans to career savings plans,” according to the letter. “It would provide valuable tax-advantaged resources for students and workers — with or without a college degree — who pursue career growth, mid-career changes or career pathways that diverge from a typical academic degree.”
Argentum, the American Health Care Association / National Center for Assisted Living and several state-level senior living industry advocates signed onto the letter.
The senior living industry is throwing its support behind the effort following the loss of more than 100,000 positions during the pandemic. According to projections, the field will have 3 million job openings to fill by 2040.
“This legislation would be beneficial to our sector as our communities face workforce challenges,” an NCAL spokeswoman told McKnight’s Senior Living.” Allowing individuals tax-free resources to help pay for healthcare and long-term care-related training and credentials is the type of common-sense legislation we need to help further build our pipeline of workers.”
Although the caregiver shortage has lessened some, many assisted living communities still face significant challenges recruiting and retaining a sufficient number of staff members to meet increasing demand, according to Argentum.
“By expanding qualified expenses under 529 savings plans to include skills training, credentialing and certification programs, this bill will make it easier for more Americans to acquire in-demand skills and pursue new career paths,” Argentum Senior Vice President of Public Affairs Maggie Elehwany told McKnight’s Senior Living. “This bill will help attract more people to senior living, and we encourage members of the House and Senate tax-writing committees to include it as part of the bipartisan tax package.”
The act would permit the use of state-sponsored 529 education account funds to cover tuition, books, certification and testing costs related to workforce training programs, including certified nurse assistant programs. 529 funds are exempt from federal taxes if the funds used to pay for qualified education expenses.
The legislation, promoted by the Center for Association Leadership, would expand qualified expenses under 529 plans to include post secondary skills training and credentialing programs, including licenses and nongovernmental certifications.
Current law only permits the use of 529 accounts to pay for costs related to attending colleges, universities, vocational schools, registered apprenticeship programs, K-12 private tuition or other post-secondary institutions. Beneficiaries cannot use funds to obtain or maintain postsecondary credentials, including professional, voluntary certifications and licenses, and other training and credentials.
Among the other organizations that are part of the coalition are Arizona LeadingAge, LeadingAge Illinois, LeadingAge Virginia, the California Assisted Living Association, the California Association of Health Facilities and the Georgia Senior Living Association.
