H.R. 750 119th Congress House

ACE Act

Official title: To amend the Internal Revenue Code of 1986 to provide incentives for education.

Introduced: January 28, 2025 Introduced by: Eric Burlison Republican · Missouri See on congress.gov

Taxation

Everywhere this bill has been 2 steps

Introduced

In committee

Reported out

Passed House

Passed Senate

To President

Became law

Jan 28, 2025

Referred to the House Committee on Ways and Means.

Jan 28, 2025

Introduced in House

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What's happening now January 28, 2025

Referred to the House Committee on Ways and Means.

Plain-English summary Congressional Research Service

Achieving Choice in Education Act or the ACE Act

This bill expands the expenses that may be paid for with tax-free distributions from a qualified tuition program (known as a 529 plan) to include certain elementary, secondary, and homeschool education expenses and makes other changes related to 529 plans. The bill also limits the tax exclusion for interest on state or local bonds.

Under current law, 529 plan distributions are excluded from gross income if they are used to pay for qualified higher education expenses, which includes up to $10,000 (per year and per beneficiary) for tuition at an elementary or secondary public, private, or religious school.

The bill expands the expenses that may be paid for with tax-free 529 plan distributions to include homeschooling tuition and the following expenses related to elementary, secondary, and homeschool education:

curriculum,
books,
instructional and online educational materials,
tutoring or educational classes outside the home,
testing fees,
fees for dual enrollment in a higher education institution, and
educational therapies for disabled students.

The bill also increases the amount of tax-free 529 plan distributions that may be used to pay for elementary, secondary, and homeschool education expenses to $20,000.

The bill increases the annual gift tax exclusion by $20,000 for contributions made to a 529 plan. (Under current law, up to $19,000 may be excluded from taxable gifts in 2025.)

Finally, the bill limits the tax exclusion for interest on state or local bonds to bonds issued by states that meet minimum school choice requirements or political subdivisions of such states.

Related & companion bills 3

Bill text 1 version

Introduced in House Formatted Text PDF Formatted XML

Source documents hosted by congress.gov.

Committees of jurisdiction 1

Ways and Means Committee
House of Representatives

Lobbying activity 1

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

AFL-CIO
for AFL-CIO · District of Columbia · 1st Quarter 2025 (Jan 1 - Mar 31)

Bodies those filers lobbied

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Cosponsors 5