529 Plan Expansion Includes Professional Certifications

The Towing and Recovery Association of America (TRAA) and fellow members of the Professional Certification Coalition (PCC) are celebrating a key legislative win as language from the Freedom to Invest in Tomorrow’s Workforce Act (H.R.1151) has been included in the House Ways and Means Committee’s new tax package. If enacted, the bill would expand the use of 529 savings accounts—traditionally reserved for college expenses—to cover costs associated with obtaining and maintaining professional certifications.

While not specific to the towing industry, TRAA says this change would benefit future tow operators by rebranding 529s as “career savings plans” and helping young people afford the credentials needed for trades and technical professions. TRAA and the PCC have pushed for this shift since 2019, aiming to support pathways into skilled careers that don’t require traditional college degrees. Source: TRAA Newsletter