Bill · H.R. 808· House(119-HR-808)
Fairness for the Trades Act
- Introduced
- 1/28/2025
- Last activity
- 1/28/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Marie Perez
- Cosponsors
- - 0 - 3
- Introduced
- In Committee
What this bill would do
This bill, titled the "Fairness for the Trades Act," proposes changes to the Internal Revenue Code of 1986. It aims to allow qualified business trade expenses to be treated as qualified higher education expenses for 529 accounts. This would permit designated beneficiaries to use these accounts for specified business property. The property must be tangible, not including buildings, and subject to the allowance for depreciation. These expenses must be used in a qualified trade field as defined by specific National industry codes.
Yes· 3 of 5
Does this cut taxes for small businesses?+4
The bill allows for the use of 529 account funds to pay for depreciable tangible business property, effectively increasing the utility of tax-advantaged savings for small business equipment.
Does this make it easier to run a small business?+4
The bill expands the allowable uses of 529 funds to include specific business property for tradespeople.
Would business owners be better off under this?+4
The bill benefits business owners in specific trades by allowing them to use 529 funds for depreciable tangible property.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Expansion of 529 Account Uses: The bill would allow the term 'qualified higher education expenses' to include qualified business trade expenses (Section 2(a)). This provides more flexibility for how funds in 529 accounts are used.
-
Support for Specific Trades: Beneficiaries can use funds for specified business property used in a qualified trade field (Section 2(b)(1)). This applies to individuals working in various fields described by specific National industry codes of the North American Industry Classification System (Section 2(b)(3)).
-
Equipment Accessibility: The bill allows for the purchase of specified business property, which is defined as tangible property (excluding buildings) that is subject to the allowance for depreciation (Section 2(b)(2)).
Potential Negative Impacts for People
-
Restrictions on Property Types: The bill specifically excludes buildings from what qualifies as specified business property (Section 2(b)(2)).
-
Limited Scope of Fields: The benefit is restricted only to those in a "qualified trade field" as defined by a specific list of National industry codes (Section 2(b)(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+4Reduces Small Business Taxes+4
- Demographic And Interest Groups
- Good For Business Owners+4Good For Middle Class Households+3
- Education And Technology
- Improves College Affordability+3
- 2/3/2026
- 1 Cosponsor added.
- 4/14/2025
- 1 Cosponsor added.
- 1/28/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Robert BresnahanRepublican · Pennsylvania
Chuck EdwardsRepublican · North Carolina
Riley MooreRepublican · West Virginia