The Evolution Of Hr 529: Law In Action

H.R. 529 refers to a number of bills introduced in the U.S. House of Representatives. The most recent, introduced on April 2, 2024, is the Extending Limits of U.S. Customs Waters Act, which seeks to change the limit of U.S. customs waters from 12 miles to 24 miles, effectively doubling the operational distance of Customs and Border Protection from the shore. Previous bills with the same designation include the 529 and ABLE Account Improvement Act of 2017, which aimed to amend the Internal Revenue Code to improve 529 plans and ABLE accounts, and the Protecting Sensitive Locations Act, which was introduced in 2021 to prohibit immigration enforcement actions within 1,000 feet of designated sensitive locations.

H.R. 529 and ABLE Account Improvement Act of 2017

The bill proposed several modifications to the tax treatment of 529 plans and ABLE accounts. Firstly, it excluded from gross income a fringe benefit of up to $100 per year (adjusted for inflation after 2017) in employer contributions to an employee's 529 or ABLE account. This benefit was intended for the employee or a member of their family and was linked to a payroll deduction contribution program set up by the employer. Secondly, the bill expanded the tax credit for small employer pension plan startup costs to cover the costs of establishing a payroll deduction contribution program for 529 and ABLE accounts. Thirdly, it allowed 529 funds to be used for education loan payments or charitable contributions without incurring an additional tax for distributions not used for qualified higher education expenses. Lastly, it permitted tax-free rollovers of funds between 529 and ABLE accounts for the same beneficiary or a family member.

The bill also addressed restrictions on the frequency of investment directions for 529 and ABLE accounts. It clarified that rebalancing investments among broad-based investment strategies within the program did not constitute an investment direction unless specific investments within those strategies were specified by the beneficiary or contributor.

Changes to tax treatment of qualified tuition programs

The 529 and ABLE Account Improvement Act of 2017 was a bill introduced to amend the Internal Revenue Code of 1986 and make improvements to the rules related to qualified tuition programs and qualified ABLE programs. The bill did not become law.

The proposed changes to the tax treatment of qualified tuition programs (QTPs) included:

• Excluding from gross income a fringe benefit of up to $100 per year (adjusted for inflation after 2017) of employer contributions to an employee's 529 or ABLE account. This applied when the designated beneficiary was the employee or a member of the employee's family and when the contribution was made in connection with a payroll deduction contribution program.
• Expanding the tax credit for small employer pension plan startup costs to include the costs of establishing a payroll deduction contribution program for 529 plans and ABLE accounts.
• Permitting the use of 529 funds for education loan payments or charitable contributions without being subject to the additional tax for distributions that are not used for qualified higher education expenses.
• Permitting tax-free rollovers of funds between 529 and ABLE accounts for the benefit of the same beneficiary or a family member of the beneficiary.
• Allowing rebalancing of investments among broad-based investment strategies without counting towards the limit on the frequency of investment directions.

Qualified tuition programs, also known as 529 plans, are established and maintained by a state, agency, or instrumentality of a state. They allow contributors to prepay a beneficiary's qualified higher education expenses or contribute to an account for paying those expenses. Qualified higher education expenses include tuition, fees, books, supplies, equipment, and room and board for enrollment or attendance at eligible educational institutions.

QTP contributions on behalf of any beneficiary cannot exceed the amount necessary for qualified higher education expenses. Earnings on QTP accounts generally accumulate tax-free, and distributions are not taxable when used for qualified expenses. Amounts can also be withdrawn tax-free to pay the principal or interest on a designated beneficiary's or their sibling's student loan, up to a lifetime limit of $10,000.

Amendments to the Internal Revenue Code of 1986

H.R. 529 is a bill that was introduced to the 114th US Congress on January 26, 2015, by Rep. Lynn Jenkins of Kansas. The bill aimed to amend the Internal Revenue Code of 1986 to improve 529 plans, which are college savings plans.

Expansion of Qualifying Expenses

The bill proposed to expand the qualifying expenses that could be covered by 529 plans. Under the current law, income earned in 529 accounts accumulates tax-free, and distributions are not taxed as long as they are used for certain higher education expenses. H.R. 529 sought to include certain computer and related expenses as qualifying expenses. This included expenses for the purchase of computer technology, equipment, software, and internet access, as long as they were to be used primarily by the beneficiary during their enrollment at an eligible educational institution.

Modification of Taxable Distribution Computation

H.R. 529 also proposed to modify the computation of the taxable portion of a distribution when the contributor has established multiple accounts for the student. This would provide clarity and potentially reduce the tax burden on beneficiaries.

Recontribution of Refunded Amounts

The bill included a provision that would allow beneficiaries to pay no tax if they received a refund from the educational institution and contributed the refunded amount back to the 529 savings plan within 60 days. This provision would apply to refunds of qualified higher education expenses received after December 31, 2014.

Elimination of Distribution Aggregation Requirements

H.R. 529 proposed to eliminate certain distribution aggregation requirements for 529 plans. This would simplify the process of taking distributions from these college savings plans.

It is important to note that while H.R. 529 passed the House on February 25, 2015, it is unclear from the available information whether it was ultimately enacted into law. The bill was introduced and considered by Congress, but the outcome of its progression through the legislative process is not mentioned in the sources provided.

Extending limits of US Customs Waters Act

The H.R. 529 bill, or the Extending Limits of U.S. Customs Waters Act, was introduced to the House of Representatives on January 25, 2023, by Mr. Waltz, Mr. McCaul, Ms. Salazar, and Mr. Mast. The bill aims to change the current limit of U.S. "customs waters" from 12 miles to 24 miles, which would double the distance from the shore that Customs and Border Protection could operate. This change would bring U.S. customs authorisations in line with Presidential Proclamations from 1988 and 1999.

The bill has had several versions and sponsors since its introduction. On April 2, 2024, it was reported by the House Committee, and on April 5, 2024, it had a preprint (Rule). The bill passed the House on April 30, 2024.

The Extending Limits of U.S. Customs Waters Act seeks to amend the Tariff Act of 1930 and the Anti-Smuggling Act. Specifically, it proposes to change the definition of "customs waters" to include the territorial sea and contiguous zone of the United States, as permitted by international law and in accordance with the aforementioned Presidential Proclamations.

The bill has received support from additional sponsors, including representatives from Florida, North Carolina, Louisiana, and other states. It is worth noting that H.R. 529 is not the first version of this bill; there was an H.R. 529 bill in the 115th Congress (2017-2018) and the 117th Congress (2021-2022) that addressed different issues.

Protecting Sensitive Locations Act

The Protecting Sensitive Locations Act, or H.R.529, was introduced to the House of Representatives on January 28, 2021, by Rep. Espaillat, Adriano [D-NY-13]. This bill aimed to safeguard specific sensitive locations from immigration enforcement actions by imposing restrictions on such activities within 1,000 feet of these designated areas.

The bill defines sensitive locations to include a range of essential facilities and services, such as healthcare facilities, schools, and school bus stops. It also covers places that provide assistance to vulnerable groups like children, pregnant women, and victims of abuse, as well as those offering disaster or emergency services. Courthouses, lawyers' offices, and public assistance offices are also included in this designation.

The Protecting Sensitive Locations Act places limitations on the officers and agents of the Department of Homeland Security, as well as state employees, from carrying out immigration enforcement actions within the defined sensitive areas. To perform any enforcement actions within these locations, exigent circumstances must exist, and prior written approval must be obtained from the specified officials.

Additionally, the bill outlines consequences for any enforcement actions carried out in violation of the prohibition. Firstly, any information obtained from such an action cannot be entered into the record of the resulting removal proceeding. Secondly, the affected non-citizen may request the immediate termination of the proceeding.

The Act also mandates that U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection submit annual reports to Congress, detailing the enforcement actions undertaken at sensitive locations during the previous year.

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