Fairness for the Trades Act

This bill would let people use 529 college savings plans to buy tools and equipment for certain trade jobs, without tax penalties. It adds “qualified business trade expenses” to what counts as education costs. That means a student or trainee in approved trades could use 529 funds to purchase work gear and equipment they need for their trade, like professional tools or machines (but not buildings). The change applies to expenses in tax years that start after the law is enacted.

The bill lists which trades qualify by industry codes. These include many construction trades (like electrical, plumbing, HVAC, carpentry, roofing), site work and utility work, and repair and maintenance fields (such as auto repair and equipment repair), as well as some forestry and fishing jobs. Only tangible items that wear out over time and can be depreciated count as eligible purchases.

Key points:

• Who is affected: Students and trainees preparing for listed trades, along with families using 529 plans.
• What changes: 529 money could cover trade tools and equipment, not just tuition and books, as long as the items are depreciable and used in the qualified trade field.
• When: For expenses in tax years beginning after the law takes effect.