ACE Act

This bill changes the rules for 529 education savings plans, which are tax-free accounts families use to save for education costs. Currently, money from these accounts can be used tax-free for college expenses and up to $10,000 per year for elementary and high school tuition. The bill expands what the money can be used for to include homeschooling costs, books, tutoring, testing fees, and educational therapy for disabled students, and increases the yearly limit to $20,000. The bill also increases how much money people can put into these accounts as gifts without paying gift taxes, and limits tax benefits on certain state and local bonds to states that meet school choice requirements.

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