A simple roll-back of state tax breaks, and/or direct investment in school choice end up as the most straightforward ways to achieve these goals. We discuss some ways that states might respond to promote progressive tax policy and expand private school choice. Our overall assessment of the likely impact in these three areas is that the 529 expansion to private K-12 schools will primarily benefit affluent families, produce limited incentives for promoting private school choice, and come at a nontrivial cost to states. In this paper, we examine the potential impact of the 529 expansion on the distribution of benefits across families, on the promotion of private school choice, and on possible fiscal implications for individual states. This federal change in the definition of qualified expenses will impact many states, particularly those that offer 529 tax deductions and credits. In an effort to promote school choice, the Act expanded the list of eligible 529 expenses to include K-12 private school tuition. The Tax Cuts and Jobs Act substantively changed 529 college savings plans. Senior Research Assistant Executive Summary
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