Bill · H.R. 750· House(119-HR-750)
ACE Act
- Introduced
- 1/28/2025
- Last activity
- 1/28/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Eric Burlison
- Cosponsors
- - 5 - 0
- Introduced
- In Committee
What this bill would do
The ACE Act aims to amend the Internal Revenue Code of 1986 to provide various incentives for education. It expands the definition of qualified higher education expenses under 529 plans to include several elementary and secondary school costs, including homeschooling. The bill also increases the limitation on distributions from 529 plans for these specific expenses. Additionally, it introduces a gift tax exclusion for contributions made to 529 plans. Finally, the act restricts the tax-exempt status of certain state or local bonds based on whether a state implements specific school choice laws.
Yes· 3 of 5
Does this make it easier to use public money at a school other than the local one?+7
The bill incentivizes school choice by expanding the definition of qualified expenses for 529 plans to include various K-12 and homeschooling costs.
Would children be better off under this?+6
The bill expands the ability to use 529 funds for various essential educational and therapeutic needs for children.
Would people with disabilities be better off under this?+6
The bill explicitly includes educational therapies for students with disabilities as a qualified expense for 529 plan distributions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Expanded use of 529 funds: Students attending public, private, or religious schools, as well as those in homeschool settings, can use 529 funds for various expenses. This includes tuition, curriculum, books, online materials, certain tutoring, testing fees, dual enrollment, and educational therapies for students with disabilities (Section 2(a)).
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Increased distribution limits: The cap on distributions from 529 plans for elementary and secondary school expenses is increased from $10,000 to $20,000 (Section 3).
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New gift tax benefits: The bill adds a gift tax exclusion for contributions made to 529 plans, allowing for increased gift amounts up to $20,000 for the designated beneficiary (Section 4).
Potential Negative Impacts for People
-
Restrictions on state and local bonds: The tax-exempt status of state or local bonds may be impacted based on whether a state is considered a "minimum school choice State" or meets specific requirements regarding school choice programs (Section 5(a)).
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Tax implications for certain states: Under this act, if a state is a "minimum school choice State" but does not meet specific spending and eligibility requirements, the tax exemption on its bonds may be reduced to 50 percent of the interest (Section 5(a)(2)(A)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Children+6Good For People With Disabilities+6Good For Middle Class Households+5
- Education And Technology
- Improves School Choice+7
- Economy And Finance
- Reduces Middle Class Taxes+5
- 10/17/2025
- 1 Cosponsor added.
- 1/28/2025
- Referred to the House Committee on Ways and Means.
- 4 Cosponsors added.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Mike BostRepublican · Illinois
John CarterRepublican · Texas
Andy HarrisRepublican · Maryland
Tracey MannRepublican · Kansas
Randy WeberRepublican · Texas