Senate tax writers vote to resurrect provision allowing Section 529 plans to cover computers

The Senate Finance Committee approved by voice vote a bill that allows Section 529 tuition plans to cover any expenses related to computer technology or Internet access.

The bill (S. 335) would essentially resurrect a provision that was in place in 2009 and 2010 before expiring. It is partly a political response to the administration’s failed initiative to curb Section 529 plans. The administration backtracked immediately on its proposal after an outcry, and Republicans have capitalized on the misstep by moving to enhance the plans.

The legislation stands a reasonable chance of becoming law. It costs only an estimated $51 million and the House approved identical legislation in a 401–20 vote in February.

Mel Schwarz
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