Sponsors (28)
The bill expands tax-free use of 529 college savings to FAA-approved aviation training—making flight and maintenance certification more affordable and boosting the aviation workforce—while reducing federal revenue, risking diversion of college savings, and increasing administrative compliance for 529 plan managers.
Students and families can use existing Section 529 savings tax-free to pay tuition, fees, books, supplies, and equipment for FAA-approved aviation maintenance and commercial pilot courses, reducing out-of-pocket costs for trainees.
Prospective aviation technicians and pilots gain more affordable access to training, which lowers financial barriers and can increase enrollment in aviation programs.
The bill can strengthen the aviation workforce pipeline (national security and industry resilience) by making certification and training more attainable for people pursuing aviation careers.
All taxpayers may face reduced federal tax revenue because more distributions from 529 plans will be tax-favored when used for non-degree vocational aviation training.
Parents and students who intended 529 balances for traditional college could be disadvantaged if funds are spent on expensive flight training instead, potentially leaving insufficient savings for a degree.
State 529 plan administrators and smaller plan operators will face added administrative complexity and compliance burdens to verify FAA course eligibility (parts 147, 61, 141).
Based on analysis of 2 sections of legislative text.
Adds FAA-approved aviation maintenance and commercial pilot training costs to the list of qualified expenses payable with tax-free Section 529 distributions.
Official title: To amend the Internal Revenue Code of 1986 to allow qualified distributions from qualified tuition programs for certain aviation maintenance and commercial pilot courses.
Introduced March 3, 2025 by Mike Collins · Last progress March 3, 2025
Treats certain aviation maintenance and commercial pilot training costs as qualified higher education expenses eligible for tax-advantaged withdrawals from Section 529 education savings plans. Eligible costs include tuition, fees, books, supplies, and required equipment for FAA-regulated maintenance technician schools (14 C.F.R. part 147) and flight training under part 61 or certified pilot schools under part 141. The change amends the Internal Revenue Code so 529 plan distributions for these specified aviation training expenses are tax-free when used for the covered programs; it applies to distributions made after the date of enactment.