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Using 529 for Professional Credentials09-24-25 | News

Using 529 for Professional Credentials

H.R.1 Released Funds
by Rebecca Radtke, LASN

IA and CLARB released information about utilization of 529 funds for professional licensing.

After the passage of the 529 education savings plans through the One Big Beautiful Bill Act, many are asking how to use the 529 funds for professional credentials.

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The Irrigation Association in partnership with The Professional Certification Coalition published an FAQ detailing the expanded uses.

For example, the "legislation also includes provisions with implications for the irrigation sector: restoration of R&D expensing, permanent 100% bonus depreciation and expanded Section 179 expensing for equipment, reinstatement of an EBITDA-based interest deductibility limit, and permanent extension of the 199A deduction for pass-throughs."

These 529 education saving accounts were initially designed as a state-sponsored program offering tax advantages to help families save for education expenses from kindergarten through college. However, through this update, credentials and programs through the Workforce Innovation and Opportunity Act (WIOA), registered apprenticeship programs, licenses issued or recognized by a state or federal agency, Credentialing Opportunities On-Line (COOL).

The Council of Landscape Architectural Registration Boards (CLARB) also released information about the updates stating that "college savings 529 funds can now be used on qualified postsecondary credentialing expenses. These tax-free withdrawals may cover exam fees, books, license fees and continuing education related to your landscape architecture licensure."

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