ACE Act

House Bill

H.R. 750

119th Congress

ACE Act

In Committee

Introduced:Jan 28, 2025

Primary Sponsor

Eric Burlison

Representative

Republican

MO-7

Cosponsors

5

Quick Stats

Policy Area

Taxation

Summary

The ACE Act expands 529 education savings plan eligible expenses to include homeschool tuition, curriculum, books, tutoring, and educational therapy for K-12 students. It raises the annual limit to 20,000 dollars for these expenses and increases the gift tax exclusion for 529 contributions. States must meet school choice requirements to maintain tax-exempt bond status.

Latest Action

Referred to the House Committee on Ways and Means.

SponsorEric Burlison (R-MO)

Introduced1/28/2025

StatusReferred to the House Committee on Ways and Means.

ChamberHouse

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Vote Prediction

ACE Act

The ACE Act expands 529 education savings plan eligible expenses to include homeschool tuition, curriculum, books, tutoring, and educational therapy for K-12 students. It raises the annual limit to 20,000 dollars for these expenses and increases the gift tax e

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The ACE Act expands 529 education savings plan eligible expenses to include homeschool tuition, curriculum, books, tutoring, and educational therapy for K-12 students. It raises the annual limit to 20,000 dollars for these expenses and increases the gift tax exclusion for 529 contributions. States must meet school choice requirements to maintain tax-exempt bond status.

Bill Number: 750
Sponsor: Eric Burlison (R-MO)
Introduced: 1/28/2025
Status: Referred to the House Committee on Ways and Means.
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: ACE Act
Bill Number: 750
Sponsor: Eric Burlison (R-MO)
Status: Referred to the House Committee on Ways and Means.
Introduced: 1/28/2025
Summary: The ACE Act expands 529 education savings plan eligible expenses to include homeschool tuition, curriculum, books, tutoring, and educational therapy for K-12 students. It raises the annual limit to 20,000 dollars for these expenses and increases the gift tax exclusion for 529 contributions. States m

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

The ACE Act expands 529 education savings plan eligible expenses to include homeschool tuition, curriculum, books, tutoring, and educational therapy for K-12 students. It raises the annual limit to 20,000 dollars for these expenses and increases the gift tax exclusion for 529 contributions. States must meet school choice requirements to maintain tax-exempt bond status.

Last updated: 1/6/2026

Official Summary

Congressional Research Service summary

Achieving Choice in Education Act or the ACE ActThis 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:<ul><li>curriculum,</li><li>books,</li><li>instructional and online educational materials,</li><li>tutoring or educational classes outside the home,</li><li>testing fees,</li><li>fees for dual enrollment in a higher education institution, and</li><li>educational therapies for disabled students.</li></ul>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.

Key Points

Main provisions of the bill

Expands 529 plans to cover homeschool and K-12 expenses
Includes curriculum, books, tutoring, and testing fees
Raises annual K-12 expense limit to 20,000 dollars
Increases gift tax exclusion by 20,000 dollars for 529 contributions
Ties state bond tax exemption to school choice requirements

How This Impacts Americans

Potential effects on citizens and communities

Families could use 529 plans for broader K-12 and homeschool expenses including curriculum and tutoring. Contributions to 529 plans would receive larger gift tax benefits. States without school choice programs could lose tax-exempt bond status.