1. Short title This Act may be cited as the 529 Expansion and Modernization Act of 2018 . 2. Expansion of 529 program expenses (a) Distributions from qualified tuition programs for certain expenses associated with registered apprenticeship programs Section 529(e)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (C) Certain expenses associated with registered apprenticeship programs The term qualified higher education expenses shall include books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act ( 29 U.S.C. 50 ). . (b) Special rules for 529 programs with respect to qualified early education expenses Section 529(e)(3) of the Internal Revenue Code of 1986, as amended by subsection (c), is amended by adding at the end the following new subparagraph: (D) Special rules permitting limited treatment of qualified early education expenses (i) In general Except as provided in clause (ii), qualified early education expenses shall be treated as qualified higher education expenses. (ii) Limitation If the aggregate amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary for qualified early education expenses during any taxable year exceeds $10,000, such excess shall be treated for purposes of subsection (c)(3) as distributions in excess of the qualified higher education expenses of the beneficiary. (iii) Qualified early education expenses For purposes of this subparagraph, the term qualified early education expenses means expenses for providing educational and other care to a child under age 5 (including childcare provided before and after school), as determined under the law of the State, pursuant to attendance at a school or facility licensed in the State for such purpose. . (c) Career and technical education expenses