ACE Act

This bill changes the rules for 529 education savings plans, which let people save money for school expenses without paying taxes on the earnings. It would allow families to use 529 plan money tax-free for more types of expenses, including homeschooling costs, books, tutoring, testing fees, and educational therapy for students with disabilities, and it raises the yearly limit for elementary, secondary, and homeschool spending from $10,000 to $20,000. The bill also increases the amount of money someone can give to a 529 plan each year without paying gift taxes by $20,000. Finally, it would limit the tax break on interest earned from state or local government bonds, only allowing it for bonds from states that meet certain school choice requirements.

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