To amend the Internal Revenue Code of 1986 to permit qualified distributions from section 529 plans for certain transportation and parking expenses.

This bill proposes to amend the Internal Revenue Code of 1986, specifically targeting the use of 529 education savings plans . Its primary purpose is to broaden the scope of expenses that can be covered by qualified distributions from these plans, making them more flexible for students and apprentices. One key provision expands the definition of qualified higher education expenses to include reasonable costs for transportation, such as parking, to an eligible educational institution. These expenses are limited to the transportation allowance determined by the institution's cost of attendance. Another significant change allows 529 funds to be used for reasonable transportation and parking expenses incurred in connection with participation in apprenticeship programs . These amendments will apply to all distributions made after the bill's enactment date.