Overview
Title
To amend the Internal Revenue Code of 1986 to allow qualified distributions from qualified tuition programs for certain aviation maintenance and commercial pilot courses.
ELI5 AI
H. R. 1818 wants to let people use special savings set aside for college, like 529 plans, to pay for learning how to fix airplanes or become a pilot. This change will only happen once the bill is officially made into law.
Summary AI
H. R. 1818, titled the “Aviation Workforce Development Act,” aims to change the Internal Revenue Code of 1986 so that certain aviation courses can qualify for tax-free savings. It allows money saved in qualified tuition programs, like 529 plans, to be used for expenses related to aviation maintenance or commercial pilot courses. These courses must meet specific federal regulations, ensuring they are credible programs. The changes will apply to distributions made after this bill becomes law.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
Overview of the Bill
H.R. 1818, known as the “Aviation Workforce Development Act,” proposes an amendment to the Internal Revenue Code of 1986. This legislative measure aims to expand the definition of "qualified higher education expenses" to include costs for specific aviation-related courses. Specifically, it allows funds from 529 education savings plans to be used for tuition, fees, books, and other necessary supplies associated with qualifying aviation maintenance and commercial pilot courses. This change would apply to distributions made after the bill becomes law.
Significant Issues Highlighted
One significant concern surrounding the bill is its apparent favoritism towards the fields of aviation maintenance and commercial piloting over others. The amendment specifically adjusts the definition of what constitutes a "qualified higher education expense" to benefit these fields without offering a rationale for this preference. This could lead to a perception of unfair treatment, especially from stakeholders in other vocational or technical fields seeking similar recognition and support.
Furthermore, the bill lacks clarity by relying on federal regulations (parts 147, 61, and 141 of title 14 in the Code of Federal Regulations) to define what constitutes eligible aviation maintenance and commercial pilot courses. Over time, changes or reinterpretations of these regulations could result in uncertainty about which courses qualify, potentially creating challenges for students and educators.
Additionally, the potential ambiguity extends to new or unconventional educational institutions that might not neatly fit within the specified regulations. This could inadvertently limit access for students attending emerging or non-traditional training providers if they don't conform to the referenced parts of the federal regulations.
The bill does not clearly outline its financial implications on government spending or budgeting. By expanding the potential uses of 529 funds, there may be increased distributions from these programs, possibly impacting broader educational funding structures. A detailed assessment of these financial impacts is absent from the bill, raising questions about its fiscal responsibility.
Implications for the Public and Specific Stakeholders
This legislation, if enacted, could significantly impact students pursuing careers in aviation maintenance or commercial piloting. It offers financial relief by broadening the use of 529 savings plans to cover certain program costs, potentially reducing student debt burdens for those in these fields. This could encourage more individuals to enter these high-demand industries, contributing to alleviating workforce shortages in aviation.
However, other educational sectors might view this targeted support as inequitable, particularly if similar initiatives for other fields are lacking. Educational institutions specializing in aviation might benefit from increased enrollment, while other vocational training programs may not experience the same growth incentives.
In conclusion, while the "Aviation Workforce Development Act" presents opportunities for enriching aviation career pathways, it encounters challenges related to fairness, clarity, and fiscal impact that require further examination and resolution to ensure equitable benefit across educational sectors.
Issues
The amendment to Section 529(c) of the Internal Revenue Code of 1986 introduces a new consideration for 'qualified higher education expense' by allowing distributions from tuition programs for aviation maintenance and commercial pilot courses. This change might raise concerns about fairness and equity, as it appears to favor these specific fields over others without providing sufficient justification for this preference. [Section 2]
The lack of a clear definition within the bill text for what constitutes a 'qualified aviation maintenance course' or 'qualified commercial pilot course' may lead to ambiguity. By relying solely on references to existing regulations, the bill leaves open the possibility of confusion, especially if there are changes or new interpretations in those regulations. [Section 2]
There is potential for ambiguity regarding how new or unconventional educational institutions will be treated if they are not covered explicitly under parts 147, 61, or 141 of title 14 in the Code of Federal Regulations. This could lead to unequal access or opportunities for students attending such institutions. [Section 2]
The impact of the amendment on government spending or budgeting is not clearly outlined. Specific attention to how the addition of aviation maintenance and commercial pilot courses as qualified expenses might affect overall distributions from tuition programs is lacking, which may have unforeseen financial implications. [Section 2]
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The “Aviation Workforce Development Act” is the name given to this legislative measure. This title provides a brief and formal reference to the act.
2. Qualified distributions from qualified tuition programs for certain aviation maintenance and commercial pilot courses Read Opens in new tab
Summary AI
The bill amends the tax code to allow money from certain education savings accounts to cover expenses for aviation maintenance and commercial pilot courses, defining which specific courses are eligible under federal regulations. This change applies to distributions made after the bill is enacted.