H.R. 6272: Early Education Savings Program Act

This bill is called the Early Education Savings Program Act and it aims to amend the Internal Revenue Code. The primary purpose of this bill is to allow certain child care expenses to be considered qualified higher education expenses under section 529 of the Internal Revenue Code.

Key Provisions

• Amendment to Section 529: The bill would expand the definition of "qualified higher education expense" in section 529 to include amounts paid for qualified child care for children under the age of 5.
• Definition of Qualified Child Care: The bill specifies that qualified child care must be provided by:
  • A center-based child care provider,
  • A family child care provider, or
  • Another provider of child care services who is compensated and provides care regularly.
  Additionally, the provider must be licensed, regulated, or registered under state law and cannot be an individual related to the children receiving care.
• Effective Date: The changes proposed in the bill would apply to any expenses paid or incurred after the bill is enacted.

The overall intent of the legislation is to provide families with more flexibility in using savings from section 529 plans to cover the costs of child care, with a focus on early childhood education.

Relevant Companies

• None found