Rep. Jim Renacci (OH-16) today release the below statement after the House Ways & Means Committee approved H.R. 529, a bill that strengthens and enhances 529 college savings plans.
“Republicans and Democrats agree that we must address the rising cost of higher education. However, we disagree on how to best ease the burden on hardworking Americans. While President Obama has proposed a tax on 529 college savings plans, House Republicans propose to modernize and expand them, and most importantly ensure they remain tax-free. During this time of economic uncertainty, we must do everything we can to make it easier for Ohioans and Americans everywhere to succeed. I was proud to support this important legislation that strengthens – not weakens – a savings tool that millions of middle class Americans rely on to afford college.”
Today, there are more than 12 million accounts that have resulted in over $225 billion saved toward a college education. Specifically, this legislation clarifies that computers are a qualified expense for 529 account funds and it eliminates unnecessary paperwork, making it easier for students to obtain the tools they need in order to excel in college. Additionally, H.R. 529 permits the re-deposit of refunds from colleges without taxes or penalties.