Trade education becomes eligible for 529 savings plans, following advocacy by the College Educational Debt Advocacy (CEDIA).
In a significant move that will reshape the educational landscape, the "Freedom to Invest in Tomorrow's Workforce Act" has been signed into law, expanding the eligible uses of 529 savings plans to include expenses for trade education, skills training programs, and industry-recognised credentials in non-traditional fields such as the smart home industry. This legislative change, primarily driven by industry groups like CEDIA, aims to make technical career education more accessible and affordable, opening up affordable pathways into high-demand technical careers like smart home integration.
The Act, which is part of the federal tax legislation H.R. 1, was discussed during CEDIA on the Hill Day on March 27, 2025, and was the culmination of four months of lobbying efforts by CEDIA. The new law allows families to use 529 plans to pay for trade education certifications and credentials, like those supported by CEDIA, thereby enhancing workforce development and expanding the talent pool for the smart home industry.
This shift in policy reflects a broader trend that places skilled trades and hands-on technical careers on par with traditional white-collar professions, elevating the legitimacy and appeal of smart home and related technical fields as long-term career paths. Furthermore, the expansion aligns with the importance placed by employers on accredited industry certifications over traditional degrees for many technical roles, supporting more targeted workforce preparation.
However, it is important to note that state tax treatment of 529 plans may not automatically align, so benefits could vary based on state policies. Nonetheless, the passage of H.R. 1 is expected to make careers in the smart home industry more attractive to young people, potentially leading to an increase in the number of people pursuing careers in this sector.
In an exclusive letter detailing the implications of the new legislation for CEDIA members and their businesses, CEDIA global president and CEO, Daryl Friedman, highlighted the potential increase in opportunities for CEDIA members and their businesses due to the passage of H.R. 1 and the expansion of 529 savings plans to include trade education. The letter underscores the removal of financial barriers for those pursuing careers in the smart home industry due to the expansion of 529 savings plans, thereby broadening the talent pipeline for integrators.
In conclusion, the "Freedom to Invest in Tomorrow's Workforce Act" is a significant step forward in making technical career education more accessible and affordable, particularly in the smart home industry. By investing in education savings for high-demand, well-paying roles in this sector, families can now help their children pursue exciting and rewarding careers in this growing field. For more information about the implications of the new legislation for CEDIA members and their businesses, visit cedia.org.
- This law expansion of 529 savings plans now allows families to invest in their children's education for careers in the smart home industry, demonstrating a shift towards making technical fields like finance, personal-finance, education-and-self-development, and career-development, including smart home integration, more accessible and appealing as long-term career paths.
- The "Freedom to Invest in Tomorrow's Workforce Act" makes it possible for families to use 529 plans to cover expenses for various educational pursuits, such as smart home trade education, skills training programs, and relevant certifications, thereby opening up new avenues for career growth and personal development within the smart home sector.
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