The Senate Finance Committee plans to mark up on Wednesday S. 335, which modernizes 529 college savings plan rules in three ways, including designating computers as a qualified educational expense.
The Senate bill is companion legislation to H.R. 529, which passed the House in late February.
Senate Finance Committee Chairman Orrin Hatch, R-Utah, said the markup "comes at a time when the high cost of education is creating a burden for many of our nation's young people."
The college savings plans, Hatch said, "have a proven track record of helping more families save for college and invest in their children's future." The legislation, "which has garnered bipartisan support, will build upon this success and expands the use of this important savings tool. I am pleased there is strong support on the committee to promote savings through the tax code and look forward to a productive markup of this common-sense bill."
Joe Hurley, CEO of SavingforCollege.com, told ThinkAdvisor in an email that the Senate markup of S. 335 is "good news," adding that if the Senate passes the bill, it would "likely get signed into law."
The Financial Services Institute applauded Senate consideration of the bill as well, stating Tuesday that by clarifying that computers are qualified educational expenses, S. 335 would allow families "to use their savings to purchase an essential tool for today's college student, thus reducing the burden being placed on a family's pocketbook as a child begins his/her college experience."
