An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

529 plan

A tax-advantaged savings plan designed to encourage saving for future education costs, typically for college, but also for K-12 expenses.

Tax-exempt bond

A type of loan issued by state or local governments where the interest earned by the investor is not subject to federal income tax, and often state and local taxes as well.

School choice program

Government policies that provide parents with options other than their assigned public school, such as private school vouchers, education savings accounts, or tax credit scholarships.

Internal Revenue Code of 1986

The main body of federal tax law in the United States, which outlines rules for taxation.

Qualified higher education expense

Specific costs (like tuition, fees, and books) that can be paid for with tax-free withdrawals from a 529 plan without penalty, expanding here to include certain K-12 and homeschooling expenses.

Gift tax exclusion

The amount of money one person can give to another in a single year without having to pay a federal gift tax or report the gift to the IRS.