Changes the federal tax treatment of 529 college savings plans so certain costs for qualifying postsecondary credential programs count as qualified higher education expenses. Tuition, testing fees, and required continuing-education fees for eligible credential programs will be allowable tax-free 529 distributions for payments made after enactment.

The change adds a definition of “qualified postsecondary credentialing expenses” and specifies which credential programs and credentials qualify, expanding the set of education-related expenses that can be paid with tax-advantaged 529 dollars.