§ 529. Qualified tuition programs

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1996

   Small Business Job Protection Act of 1996

   Pub. L. 104–188 title I § 1806(a) · 110 Stat. 1755

   Enacted · 26 U.S.C. § 529

   Added Pub. L. 104–188, title I, § 1806(a), Aug. 20, 1996, 110 Stat. 1895

   Source evidence

   Code source credit
   Added Pub. L. 104–188, title I, § 1806(a), Aug. 20, 1996, 110 Stat. 1895

   Enacted provision · exact public law section
   (a) In General.— Subchapter F of chapter 1 (relating to exempt organizations) is amended by adding at the end the following new part: “PART VIII— QUALIFIED STATE TUITION PROGRAMS “Sec. 629. Qualified State tuition programs. “SEC. 529. QUALIFIED STATE TUITION PROGRAMS. “(a) General Rule.— A qualified State tuition program shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such program shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations). “(b) Qualified state tuition program.— For purposes of this section— “(1) In general.— The term ‘qualified State tuition program’ means a program established and maintained by a State or agency or instrumentality thereof— “(A) under which a person— “(i) may purchase tuition credits or certificates on behalf of a designated beneficiary which entitle the beneficiary to the waiver or payment of qualified higher education expenses of the beneficiary, or “(ii) may make contributions to an account which is established for the purpose of meeting the qualified higher education expenses of the designated beneficiary of the account, and “(B) which meets the other requirements of this subsection. “(2) Cash contributions.— A program shall not be treated as a qualified State tuition program unless it provides that purchases or contributions may only be made in cash. “(3) Refunds.— A program shall not be treated as a qualified State tuition program unless it imposes a more than de minimis penalty on any refund of earnings from the account which are not— “(A) used for qualified higher education expenses of the designated beneficiary, “(B) made on account of the death or disability of the designated beneficiary, or “(C) made on account of a scholarship (or allowance or payment described in section 135(d)(1)(B) or (C)) received by the designated beneficiary to the extent the amount of the refund does not exceed the amount of the scholarship, allowance, or payment. “(4) Separate accounting.— A program shall not be treated as a qualified State tuition program unless it provides separate accounting for each designated beneficiary. “(5) No investment direction.— A program shall not be treated as a qualified State tuition program unless it provides that any contributor to, or designated beneficiary under, such program may not direct the investment of any contributions to the program (or any earnings thereon). “(6) No pledging of interest as security.— A program shall not be treated as a qualified State tuition program if it allows any interest in the program or any portion thereof to be used as security for a loan. “(7) Prohibition on excess contributions.— A program shall not be treated as a qualified State tuition program unless it provides adequate safeguards to prevent contributions on behalf of a designated beneficiary in excess of those necessary to provide for the qualified higher education expenses of the beneficiary. “(c) Tax Treatment of Designated Beneficiaries and Contributors.— “(1) In general.— Except as otherwise provided in this subsection, no amount shall be includible in gross income of— “(A) a designated beneficiary under a qualified State tuition program, or “(B) a contributor to such program on behalf of a designated beneficiary, with respect to any distribution or earnings under such program. “(2) Contributions.— In no event shall a contribution to a qualified State tuition program on behalf of a designated beneficiary be treated as a taxable gift for purposes of chapter 12. “(3) Distributions.— “(A) In general.— Any distribution under a qualified State tuition program shall be includible in the gross income of the distributee in the manner as provided under section 72 to the extent not excluded from gross income under any other provision of this chapter. “(B) In-kind distributions.— Any benefit furnished to a designated beneficiary under a qualified State tuition program shall be treated as a distribution to the beneficiary. “(C) Change in beneficiaries.— “(i) Rollovers.— Subparagraph (A) shall not apply to that portion of any distribution which, within 60 days of such distribution, is transferred to the credit of another designated beneficiary under a qualified State tuition program who is a member of the family of the designated beneficiary with respect to which the distribution was made. “(ii) Change in designated beneficiaries.— Any change in the designated beneficiary of an interest in a qualified State tuition program shall not be treated as a distribution for purposes of subparagraph (A) if the new beneficiary is a member of the family of the old beneficiary. “(D) Operating rules.— For purposes of applying section 72— “(i) to the extent provided by the Secretary, all qualified State tuition programs of which an individual is a designated beneficiary shall be treated as one program, “(ii) all distributions during a taxable year shall be treated as one distribution, and “(iii) the value of the contract, income on the contract, and investment in the contract shall be computed as of the close of the calendar year in which the taxable year begins. “(4) Estate tax inclusion.— The value of any interest in any qualified State tuition program which is attributable to contributions made by an individual to such program on behalf of any designated beneficiary shall be includible in the gross estate of the contributor for purposes of chapter 11. “(5) Special rule for applying section 2503(e).— For purposes of section 2503(e), the waiver (or payment to an educational institution) of qualified higher education expenses of a designated beneficiary under a qualified State tuition program shall be treated as a qualified transfer. (d) Reporting requirements.— “(1) In general.— If there is a distribution to any individual with respect to an interest in a qualified State tuition program during any calendar year, each officer or employee having control of the qualified State tuition program or their designee shall make such reports as the Secretary may require regarding such distribution to the Secretary and to the designated beneficiary or the individual to whom the distribution was made. Any such report shall include such information as the Secretary may prescribe. “(2) Timing of reports.— Any report required by this subsection— “(A) shall be filed at such time and in such matter as the Secretary prescribes, and “(B) shall be furnished to individuals not later than January 31 of the calendar year following the calendar year to which such report relates. “(e) Other Definitions and Special Rules.— For purposes of this section— “(1) Designated beneficiary.— The term ‘designated beneficiary’ means— “(A) the individual designated at the commencement of participation in the qualified State tuition program as the beneficiary of amounts paid (or to be paid) to the program, “(B) in the case of a change in beneficiaries described in subsection (c)(2)(C), the individual who is the new beneficiary, and “(C) in the case of an interest in a qualified State tuition program purchased by a State or local government or an organization described in section 501(c)(3) and exempt from taxation under section 501(a) as part of a scholarship program operated by such government or organization, the individual receiving such interest as a scholarship. “(2) Member of family.— The term ‘member of the family’ has the same meaning given such term as section 2032A(e)(2). “(3) Qualified higher education expenses.— The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution (as defined in section 135(c)(3)). “(4) Application of section 514.— An interest in a qualified State tuition program shall not be treated as debt for purposes of section 514.”.

2. 1997

   Pub. L. 105–34 § 211(b)(4) · 111 Stat. 788

   Inserted · 26 U.S.C. § 529(b)(5)

   Pub. L. 105–34, § 211(b)(4), inserted “directly or indirectly” after “may not”

   Source evidence

   Code amendment note
   Subsec. (b)(5). Pub. L. 105–34, § 211(b)(4), inserted “directly or indirectly” after “may not”.

   Enacted provision · exact public law section
   (4) Prohibition against investment direction.—Section 529(b)(5) is amended by inserting “directly or indirectly” after “may not”.

3. 1997

   Pub. L. 105–34 § 211(b)(3)(A)(i) · 111 Stat. 788

   Amended · 26 U.S.C. § 529(c)(2)

   Pub. L. 105–34, § 211(b)(3)(A)(i), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In no event shall a contribution to a qualified State tuition program on behalf of a designated beneficiary be treated as a taxable gift for purposes of chapter 12.”

   Source evidence

   Code amendment note
   Subsec. (c)(2). Pub. L. 105–34, § 211(b)(3)(A)(i), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In no event shall a contribution to a qualified State tuition program on behalf of a designated beneficiary be treated as a taxable gift for purposes of chapter 12.”

   Enacted provision · exact public law section
   (i) Paragraph (2) of section 529(c) is amended to read as follows: “(2) Gift tax treatment of contributions.— For purposes of chapters 12 and 13— “(A) In general.— Any contribution to a qualified tuition program on behalf of any designated beneficiary— “(i) shall be treated as a completed gift to such beneficiary which is not a future interest in property, and “(ii) shall not be treated as a qualified transfer under section 2503(e). “(B) Treatment of excess contributions.— If the aggregate amount of contributions described in subparagraph (A) during the calendar year by a donor exceeds the limitation for such year under section 2503(b), such aggregate amount shall, at the election of the donor, be taken into account for purposes of such section ratably over the 5-year period beginning with such calendar year.”.

4. 1997

   Pub. L. 105–34 § 211(d) · 111 Stat. 788

   Substituted · 26 U.S.C. § 529(c)(3)(A)

   Pub. L. 105–34, § 211(d), substituted “section 72(b)” for “section 72”

   Source evidence

   Code amendment note
   Subsec. (c)(3)(A). Pub. L. 105–34, § 211(d), substituted “section 72(b)” for “section 72”.

   Enacted provision · exact public law section
   (d) Clarification of Taxation of Distributions— Subparagraph (A) of section 529(c)(3) is amended by striking “section 72” and inserting “section 72(b)”.

5. 1997

   Pub. L. 105–34 § 211(b)(3)(B) · 111 Stat. 788

   Amended · 26 U.S.C. § 529(c)(4)

   Pub. L. 105–34, § 211(b)(3)(B), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “The value of any interest in any qualified State tuition program which is attributable to contributions made by an individual to such program on behalf of any designated beneficiary shall be includible in the gross estate of the contributor for purposes of chapter 11.”

   Source evidence

   Code amendment note
   Subsec. (c)(4). Pub. L. 105–34, § 211(b)(3)(B), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “The value of any interest in any qualified State tuition program which is attributable to contributions made by an individual to such program on behalf of any designated beneficiary shall be includible in the gross estate of the contributor for purposes of chapter 11.”

   Enacted provision · exact public law section
   (B) Estate tax treatment.— Paragraph (4) of section 529(c) is amended to read as follows: “(4) Estate tax treatment.— “(A) In general.— No amount shall be includible in the gross estate of any individual for purposes of chapter 11 by reason of an interest in a qualified tuition program. “(B) Amounts includible in estate of designated beneficiary in certain cases.— Subparagraph (A) shall not apply to amounts distributed on account of the death of a beneficiary. “(C) Amounts includible in estate of donor making excess contributions.— In the case of a donor who makes the election described in paragraph (2)(B) and who dies before the close of the 5-year period referred to in such paragraph, notwithstanding subparagraph (A), the gross estate of the donor shall include the portion of such contributions properly allocable to periods after the date of death of the donor.”.

6. 1997

   Pub. L. 105–34 § 211(b)(3)(A)(ii) · 111 Stat. 788

   Amended · 26 U.S.C. § 529(c)(5)

   Pub. L. 105–34, § 211(b)(3)(A)(ii), amended heading and text of par. (5) generally. Prior to amendment, text read as follows: “For purposes of section 2503(e), the waiver (or payment to an educational institution) of qualified higher education expenses of a designated beneficiary under a qualified State tuition program shall be treated as a qualified transfer.”

   Source evidence

   Code amendment note
   Subsec. (c)(5). Pub. L. 105–34, § 211(b)(3)(A)(ii), amended heading and text of par. (5) generally. Prior to amendment, text read as follows: “For purposes of section 2503(e), the waiver (or payment to an educational institution) of qualified higher education expenses of a designated beneficiary under a qualified State tuition program shall be treated as a qualified transfer.”

   Enacted provision · exact public law section
   (ii) Paragraph (5) of section 529(c) is amended to read as follows: “(5) Other gift tax rules.— For purposes of chapters 12 and 13— “(A) Treatment of distributions— Except as provided in subparagraph (B), in no event shall a distribution from a qualified tuition program be treated as a taxable gift. “(B) Treatment of designation of new beneficiary.— The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) only if the new beneficiary is a generation below the generation of the old beneficiary (determined in accordance with section 2651).”.

7. 1997

   Pub. L. 105–34 § 211(e)(2)(A) · 111 Stat. 788

   Amended · 26 U.S.C. § 529(d)

   Pub. L. 105–34, § 211(e)(2)(A), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows:

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 105–34, § 211(e)(2)(A), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows:

   “(d) Reporting Requirements.— “(1) In general.—If there is a distribution to any individual with respect to an interest in a qualified State tuition program during any calendar year, each officer or employee having control of the qualified State tuition program or their designee shall make such reports as the Secretary may require regarding such distribution to the Secretary and to the designated beneficiary or the individual to whom the distribution was made. Any such report shall include such information as the Secretary may prescribe. “(2) Timing of reports.—Any report required by this subsection— “(A) shall be filed at such time and in such matter as the Secretary prescribes, and “(B) shall be furnished to individuals not later than January 31 of the calendar year following the calendar year to which such report relates.”

   Enacted provision · exact public law section
   (A) Section 529(d) is amended to read as follows: “(d) Reports.— Each officer or employee having control of the qualified State tuition program or their designee shall make such reports regarding such program to the Secretary and to designated beneficiaries with respect to contributions, distributions, and such other matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the Secretary.”.

8. 1997

   Pub. L. 105–34 § 1601(h)(1)(A) · 111 Stat. 788

   Substituted · 26 U.S.C. § 529(e)(1)(B)

   Pub. L. 105–34, § 1601(h)(1)(A), substituted “subsection (c)(3)(C)” for “subsection (c)(2)(C)”

   Source evidence

   Code amendment note
   Subsec. (e)(1)(B). Pub. L. 105–34, § 1601(h)(1)(A), substituted “subsection (c)(3)(C)” for “subsection (c)(2)(C)”.

   Enacted provision · exact public law section
   (A) Subparagraph (B) of section 529(e)(1) is amended by striking “subsection (c)(2)(C)” and inserting “subsection (c)(3)(C)”.

9. 1997

   Pub. L. 105–34 § 1601(h)(1)(B) · 111 Stat. 788

   Inserted · 26 U.S.C. § 529(e)(1)(C)

   Pub. L. 105–34, § 1601(h)(1)(B), inserted “(or agency or instrumentality thereof)” after “local government”

   Source evidence

   Code amendment note
   Subsec. (e)(1)(C). Pub. L. 105–34, § 1601(h)(1)(B), inserted “(or agency or instrumentality thereof)” after “local government”.

   Enacted provision · exact public law section
   (B) Subparagraph (C) of section 529(e)(1) is amended by inserting “(or agency or instrumentality thereof)” after “local government”.

10. 1997

    Pub. L. 105–34 § 211(b)(1) · 111 Stat. 788

    Amended · 26 U.S.C. § 529(e)(2)

    Pub. L. 105–34, § 211(b)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘member of the family’ has the same meaning given such term as section 2032A(e)(2).”

    Source evidence

    Code amendment note
    Subsec. (e)(2). Pub. L. 105–34, § 211(b)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘member of the family’ has the same meaning given such term as section 2032A(e)(2).”

    Enacted provision · exact public law section
    (1) Member of family.— Paragraph (2) of section 529(e) (relating to other definitions and special rules) is amended to read as follows: “(2) Member of family.— The term ‘member of the family’ means— “(A) an individual who bears a relationship to another individual which is a relationship described in paragraphs (1) through (8) of section 152(a), and “(B) the spouse of any individual described in subparagraph (A).”.

11. 1997

    Pub. L. 105–34 § 211(a) · 111 Stat. 788

    Amended · 26 U.S.C. § 529(e)(3)

    Pub. L. 105–34, § 211(a), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution (as defined in section 135(c)(3)).”

    Source evidence

    Code amendment note
    Subsec. (e)(3). Pub. L. 105–34, § 211(a), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution (as defined in section 135(c)(3)).”

    Enacted provision · exact public law section
    (a) Qualified Higher Education Expenses To Include Room and Board.— Paragraph (3) of section 529(e) (defining qualified higher education expenses) is amended to read as follows: “(3) Qualified higher education expenses.— “(A) In general.— The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution. “(B) Room and board included for students under guaranteed plans who are at least half-time.— “(i) In general.— In the case of an individual who is an eligible student (as defined in section 25A(b)(3)) for any academic period, such term shall also include reasonable costs for such period (as determined under the qualified State tuition program) incurred by the designated beneficiary for room and board while attending such institution. For purposes of subsection (b)(7), a designated beneficiary shall be treated as meeting the requirements of this clause. “(ii) Limitation.— The amount treated as qualified higher education expenses by reason of the preceding sentence shall not exceed the minimum amount (applicable to the student) included for room and board for such period in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 108711, as in effect on the date of the enactment of this paragraph) for the eligible educational institution for such period.”.

12. 1997

    Pub. L. 105–34 § 211(b)(2) · 111 Stat. 788

    Added · 26 U.S.C. § 529(e)(5)

    Pub. L. 105–34, § 211(b)(2), added par. (5)

    Source evidence

    Code amendment note
    Subsec. (e)(5). Pub. L. 105–34, § 211(b)(2), added par. (5).

    Enacted provision · exact public law section
    (2) Eligible educational institution.— Section 529(e) is amended by adding at the end the following: “(5) Eligible educational institution.— The term ‘eligible educational institution’ means an institution— “(A) which is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this paragraph, and “(B) which is eligible to participate in a program under title IV of such Act.”.

13. 1998

    Internal Revenue Service Restructuring and Reform Act of 1998

    Pub. L. 105–206 § 6004(c)(2) · 112 Stat. 685

    Substituted · 26 U.S.C. § 529(c)(3)(A)

    Pub. L. 105–206, § 6004(c)(2), substituted “section 72” for “section 72(b)”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(A). Pub. L. 105–206, § 6004(c)(2), substituted “section 72” for “section 72(b)”.

    Enacted provision · exact public law section
    (2) Subparagraph (A) of section 529(c)(3) of the 1986 Code is amended by striking “section 72(b)” and inserting “section 72”.

14. 1998

    Internal Revenue Service Restructuring and Reform Act of 1998

    Pub. L. 105–206 § 6004(c)(3) · 112 Stat. 685

    Amended · 26 U.S.C. § 529(e)(2)

    Pub. L. 105–206, § 6004(c)(3), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘member of the family’ means—

    Source evidence

    Code amendment note
    Subsec. (e)(2). Pub. L. 105–206, § 6004(c)(3), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘member of the family’ means—

    “(A) an individual who bears a relationship to another individual which is a relationship described in paragraphs (1) through (8) of section 152(a), and “(B) the spouse of any individual described in subparagraph (A).”

    Enacted provision · exact public law section
    (3) Paragraph (2) of section 529(e) of the 1986 Code is amended to read as follows: “(2) Member of family.— The term ‘member of the family’ means, with respect to any designated beneficiary— “(A) the spouse of such beneficiary; “(B) an individual who bears a relationship to such beneficiary which is described in paragraphs (1) through (8) of section 152(a); and “(C) the spouse of any individual described in subparagraph (B).”.

15. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tIII)(s319)(5) · 114 Stat. 2763

    Struck · 26 U.S.C. § 529(e)(3)(B)

    Pub. L. 106–554 struck out “under guaranteed plans” after “students” in heading

    Source evidence

    Code amendment note
    Subsec. (e)(3)(B). Pub. L. 106–554 struck out “under guaranteed plans” after “students” in heading.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

16. 2001

    Pub. L. 107–16 § 402(a)(4)(D) · 115 Stat. 38

    Struck · 26 U.S.C. § 529

    Pub. L. 107–16, § 402(a)(4)(D), struck out “State” before “tuition” in section catchline

    Source evidence

    Code amendment note
    Pub. L. 107–16, § 402(a)(4)(D), struck out “State” before “tuition” in section catchline.

    Enacted provision · exact public law section
    (D) The heading for section 529 is amended by striking “state”.

17. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(a)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

18. 2001

    Pub. L. 107–16 § 402(a)(4)(C) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(b)

    Pub. L. 107–16, § 402(a)(4)(C), substituted “Qualified tuition” for “Qualified State tuition” in heading

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 107–16, § 402(a)(4)(C), substituted “Qualified tuition” for “Qualified State tuition” in heading.

    Enacted provision · exact public law section
    (C) The headings for sections 529(b) and 530(b)(2)(B) are amended by striking “Qualified state tuition” each place it appears and inserting “Qualified tuition”.

19. 2001

    Pub. L. 107–16 § 402(a)(1) · 115 Stat. 38

    1. Substituted · 26 U.S.C. § 529(b)(1)

       Pub. L. 107–16, § 402(a)(1), (4)(A), in introductory provisions, substituted “qualified tuition” for “qualified State tuition”

    2. Inserted · 26 U.S.C. § 529(b)(1)

       Pub. L. 107–16, § 402(a)(1), (4)(A), in introductory provisions, inserted “or by 1 or more eligible educational institutions” after “thereof”

    3. Added · 26 U.S.C. § 529(b)(1)

       Pub. L. 107–16, § 402(a)(1), (4)(A), in introductory provisions, added concluding provisions

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 107–16, § 402(a)(1), (4)(A), in introductory provisions, substituted “qualified tuition” for “qualified State tuition” and inserted “or by 1 or more eligible educational institutions” after “thereof”, and added concluding provisions.

    Enacted provision · exact public law section
    (1) In general.— Section 529(b)(1) (defining qualified State tuition program) is amended— (A) by inserting “or by 1 or more eligible educational institutions” after “maintained by a State or agency or instrumentality thereof” in the matter preceding subparagraph (A), and (B) by adding at the end the following new flush sentence: “Except to the extent provided in regulations, a program established and maintained by 1 or more eligible educational institutions shall not be treated as a qualified tuition program unless such program provides that amounts are held in a qualified trust and such program has received a ruling or determination that such program meets the applicable requirements for a qualified tuition program. For purposes of the preceding sentence, the term ‘qualified trust’ means a trust which is created or organized in the United States for the exclusive benefit of designated beneficiaries and with respect to which the requirements of paragraphs (2) and (5) of section 408(a) are met.”.

20. 2001

    Pub. L. 107–16 § 402(a)(2) · 115 Stat. 38

    Inserted · 26 U.S.C. § 529(b)(1)(A)(ii)

    Pub. L. 107–16, § 402(a)(2), inserted “in the case of a program established and maintained by a State or agency or instrumentality thereof,” before “may make”

    Source evidence

    Code amendment note
    Subsec. (b)(1)(A)(ii). Pub. L. 107–16, § 402(a)(2), inserted “in the case of a program established and maintained by a State or agency or instrumentality thereof,” before “may make”.

    Enacted provision · exact public law section
    (2) Private qualified tuition programs limited to benefit plans.— Clause (ii) of section 529(b)(1)(A) is amended by inserting “in the case of a program established and maintained by a State or agency or instrumentality thereof,” before “may make”.

21. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(b)(2)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

22. 2001

    Pub. L. 107–16 § 402(a)(3)(A) · 115 Stat. 38

    1. Redesignated · 26 U.S.C. § 529(b)(3)(7)

       Pub. L. 107–16, § 402(a)(3)(A), (4)(A), redesignated pars. (4) to (7) as (3) to (6), respectively

    2. Substituted · 26 U.S.C. § 529(b)(3)(7)

       Pub. L. 107–16, § 402(a)(3)(A), (4)(A), substituted “qualified tuition” for “qualified State tuition” wherever appearing

    3. Struck · 26 U.S.C. § 529(b)(3)(7)

       Pub. L. 107–16, § 402(a)(3)(A), (4)(A), struck out heading and text of former par. (3). Text read as follows: “A program shall not be treated as a qualified State tuition program unless it imposes a more than de minimis penalty on any refund of earnings from the account which are not—

    Source evidence

    Code amendment note
    Subsec. (b)(3) to (7). Pub. L. 107–16, § 402(a)(3)(A), (4)(A), redesignated pars. (4) to (7) as (3) to (6), respectively, substituted “qualified tuition” for “qualified State tuition” wherever appearing, and struck out heading and text of former par. (3). Text read as follows: “A program shall not be treated as a qualified State tuition program unless it imposes a more than de minimis penalty on any refund of earnings from the account which are not—

    “(A) used for qualified higher education expenses of the designated beneficiary, “(B) made on account of the death or disability of the designated beneficiary, or “(C) made on account of a scholarship (or allowance or payment described in section 135(d)(1)(B) or (C)) received by the designated beneficiary to the extent the amount of the refund does not exceed the amount of the scholarship, allowance, or payment.”

    Enacted provision · exact public law section
    (A) by striking paragraph (3) of subsection (b) and by redesignating paragraphs (4), (5), (6), and (7) of such subsection as paragraphs (3), (4), (5), and (6), respectively, and

23. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(c)(1)(A); 26 U.S.C. § 529(c)(3)(A)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(A), (3)(A). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

24. 2001

    Pub. L. 107–16 § 402(b)(1) · 115 Stat. 38

    Amended · 26 U.S.C. § 529(c)(3)(B)

    Pub. L. 107–16, § 402(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “Any benefit furnished to a designated beneficiary under a qualified tuition program shall be treated as a distribution to the beneficiary.”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(B). Pub. L. 107–16, § 402(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “Any benefit furnished to a designated beneficiary under a qualified tuition program shall be treated as a distribution to the beneficiary.”

    Enacted provision · exact public law section
    (B) by adding at the end the following new flush sentence: “Except to the extent provided in regulations, a program established and maintained by 1 or more eligible educational institutions shall not be treated as a qualified tuition program unless such program provides that amounts are held in a qualified trust and such program has received a ruling or determination that such program meets the applicable requirements for a qualified tuition program. For purposes of the preceding sentence, the term ‘qualified trust’ means a trust which is created or organized in the United States for the exclusive benefit of designated beneficiaries and with respect to which the requirements of paragraphs (2) and (5) of section 408(a) are met.”.

25. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(c)(3)(B)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

26. 2001

    Pub. L. 107–16 § 402(c)(3) · 115 Stat. 38

    Inserted · 26 U.S.C. § 529(c)(3)(C)

    Pub. L. 107–16, § 402(c)(3), inserted “or programs” after “beneficiaries” in heading

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C). Pub. L. 107–16, § 402(c)(3), inserted “or programs” after “beneficiaries” in heading.

    Enacted provision · exact public law section
    (3) by inserting “OR PROGRAMS” after “beneficiaries” in the heading.

27. 2001

    Pub. L. 107–16 § 402(c)(1) · 115 Stat. 38

    1. Substituted · 26 U.S.C. § 529(c)(3)(C)(i)

       Pub. L. 107–16, § 402(c)(1), substituted “transferred—” for “transferred”

    2. Added · 26 U.S.C. § 529(c)(3)(C)(i)

       Pub. L. 107–16, § 402(c)(1), added subcl. (I)

    3. Amended · 26 U.S.C. § 529(c)(3)(C)(i)

       Pub. L. 107–16, § 402(c)(1), designated existing provisions “to the credit” as subcl. (II)

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C)(i). Pub. L. 107–16, § 402(c)(1), substituted “transferred—” for “transferred”, added subcl. (I), and designated existing provisions “to the credit” as subcl. (II).

    Enacted provision · exact public law section
    (1) by striking “transferred to the credit” in clause (i) and inserting “transferred— “(I) to another qualified tuition program for the benefit of the designated beneficiary, or “(II) to the credit”,

28. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(c)(3)(C)(i)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

29. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(c)(3)(C)(ii)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C)(ii). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

30. 2001

    Pub. L. 107–16 § 402(c)(2) · 115 Stat. 38

    Added · 26 U.S.C. § 529(c)(3)(C)(iii)

    Pub. L. 107–16, § 402(c)(2), added cl. (iii)

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C)(iii). Pub. L. 107–16, § 402(c)(2), added cl. (iii).

    Enacted provision · exact public law section
    (2) by adding at the end the following new clause: “(iii) Limitation on certain rollovers.— Clause (i)(I) shall not apply to any transfer if such transfer occurs within 12 months from the date of a previous transfer to any qualified tuition program for the benefit of the designated beneficiary.”, and

31. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(c)(3)(D)(i)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(D)(i). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

32. 2001

    Pub. L. 107–16 § 402(g)(1) · 115 Stat. 38

    Inserted · 26 U.S.C. § 529(c)(3)(D)(ii)

    Pub. L. 107–16, § 402(g)(1), inserted “except to the extent provided by the Secretary,” before “all distributions”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(D)(ii). Pub. L. 107–16, § 402(g)(1), inserted “except to the extent provided by the Secretary,” before “all distributions”.

    Enacted provision · exact public law section
    (1) by inserting “except to the extent provided by the Secretary,” before “all distributions” in clause (ii), and

33. 2001

    Pub. L. 107–16 § 402(g)(2) · 115 Stat. 38

    Inserted · 26 U.S.C. § 529(c)(3)(D)(iii)

    Pub. L. 107–16, § 402(g)(2), inserted “except to the extent provided by the Secretary,” before “the value”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(D)(iii). Pub. L. 107–16, § 402(g)(2), inserted “except to the extent provided by the Secretary,” before “the value”.

    Enacted provision · exact public law section
    (2) by inserting “except to the extent provided by the Secretary,” before “the value” in clause (iii).

34. 2001

    Pub. L. 107–16 § 402(a)(3)(B) · 115 Stat. 38

    Added · 26 U.S.C. § 529(c)(6)

    Pub. L. 107–16, § 402(a)(3)(B), added par. (6)

    Source evidence

    Code amendment note
    Subsec. (c)(6). Pub. L. 107–16, § 402(a)(3)(B), added par. (6).

    Enacted provision · exact public law section
    (B) by adding at the end of subsection (c) the following new paragraph: “(6) Additional tax.— The tax imposed by section 530(d)(4) shall apply to any payment or distribution from a qualified tuition program in the same manner as such tax applies to a payment or distribution from an education individual retirement account. This paragraph shall not apply to any payment or distribution in any taxable year beginning before January 1, 2004, which is includible in gross income but used for qualified higher education expenses of the designated beneficiary.”.

35. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(d); 26 U.S.C. § 529(e)(1)(A); 26 U.S.C. § 529(C)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsecs. (d), (e)(1)(A), (C). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

36. 2001

    Pub. L. 107–16 § 402(d) · 115 Stat. 38

    Added · 26 U.S.C. § 529(e)(2)(D)

    Pub. L. 107–16, § 402(d), added subpar. (D)

    Source evidence

    Code amendment note
    Subsec. (e)(2)(D). Pub. L. 107–16, § 402(d), added subpar. (D).

    Enacted provision · exact public law section
    (d) Member of Family Includes First Cousin.— Section 529(e)(2) (defining member of family) is amended by striking “and” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and by inserting and", and by adding at the end the following new subparagraph: “(D) any first cousin of such beneficiary.”.

37. 2001

    Pub. L. 107–16 § 402(f) · 115 Stat. 38

    Amended · 26 U.S.C. § 529(e)(3)(A)

    Pub. L. 107–16, § 402(f), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.”

    Source evidence

    Code amendment note
    Subsec. (e)(3)(A). Pub. L. 107–16, § 402(f), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.”

    Enacted provision · exact public law section
    (f) Special Needs Services.— Subparagraph (A) of section 529(e)(3) (defining qualified higher education expenses) is amended 26 USC 529. to read as follows: “(A) In general.— The term ‘qualified higher education expenses’ means— “(i) tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution; and “(ii) expenses for special needs services in the case of a special needs beneficiary which are incurred in connection with such enrollment or attendance.”.

38. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(e)(3)(B)(i)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsec. (e)(3)(B)(i). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

39. 2001

    Pub. L. 107–16 § 402(e) · 115 Stat. 38

    Amended · 26 U.S.C. § 529(e)(3)(B)(ii)

    Pub. L. 107–16, § 402(e), reenacted heading without change and amended text of cl. (ii) generally. Prior to amendment, text read as follows: “The amount treated as qualified higher education expenses by reason of the preceding sentence shall not exceed the minimum amount (applicable to the student) included for room and board for such period in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll, as in effect on the date of the enactment of this paragraph) for the eligible educational institution for such period.”

    Source evidence

    Code amendment note
    Subsec. (e)(3)(B)(ii). Pub. L. 107–16, § 402(e), reenacted heading without change and amended text of cl. (ii) generally. Prior to amendment, text read as follows: “The amount treated as qualified higher education expenses by reason of the preceding sentence shall not exceed the minimum amount (applicable to the student) included for room and board for such period in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll, as in effect on the date of the enactment of this paragraph) for the eligible educational institution for such period.”

    Enacted provision · exact public law section
    (e) Adjustment of Limitation on Room and Board Distributions.— Section 529(e)(3)(B)(ii) is amended to read as follows: “(ii) Limitation.— The amount treated as qualified higher education expenses by reason of clause (i) shall not exceed— “(I) the allowance (applicable to the student) for room and board included in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 108711), as in effect on the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001) as determined by the eligible educational institution for such period, or “(II) if greater, the actual invoice amount the student residing in housing owned or operated by the eligible educational institution is charged by such institution for room and board costs for such period.”.

40. 2001

    Pub. L. 107–16 § 402(a)(4)(A) · 115 Stat. 38

    Substituted · 26 U.S.C. § 529(e)(4)

    Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”

    Source evidence

    Code amendment note
    Subsec. (e)(4). Pub. L. 107–16, § 402(a)(4)(A), substituted “qualified tuition” for “qualified State tuition”.

    Enacted provision · exact public law section
    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are amended by striking “qualified State tuition” each place it appears and inserting “qualified tuition”.

41. 2001

    Pub. L. 107–22 § 1(b)(3)(C) · 115 Stat. 196

    Substituted · 26 U.S.C. § 529(c)(3)(B)(vi)

    Pub. L. 107–22 substituted “Coverdell education savings” for “education individual retirement” in heading

    Source evidence

    Code amendment note
    Subsec. (c)(3)(B)(vi). Pub. L. 107–22 substituted “Coverdell education savings” for “education individual retirement” in heading.

    Enacted provision · exact public law section
    (C) Section 529(c)(3)(B)(vi).

42. 2002

    Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 title IV § 417(11) · 116 Stat. 21

    Substituted · 26 U.S.C. § 529(e)(3)(B)(i)

    Pub. L. 107–147 substituted “subsection (b)(6)” for “subsection (b)(7)”

    Source evidence

    Code amendment note
    Subsec. (e)(3)(B)(i). Pub. L. 107–147 substituted “subsection (b)(6)” for “subsection (b)(7)”.

    Enacted provision · exact public law section
    (11) Section 529(e)(3)(B)(i) is amended by striking “subsection (b)(7)” and inserting “subsection (b)(6)”.

43. 2004

    Working Families Tax Relief Act of 2004

    Pub. L. 108–311 § 406(a) · 118 Stat. 1166

    Amended · 26 U.S.C. § 529(c)(5)(B)

    Pub. L. 108–311, § 406(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) only if the new beneficiary is a generation below the generation of the old beneficiary (determined in accordance with section 2651).”

    Source evidence

    Code amendment note
    Subsec. (c)(5)(B). Pub. L. 108–311, § 406(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) only if the new beneficiary is a generation below the generation of the old beneficiary (determined in accordance with section 2651).”

    Enacted provision · exact public law section
    (a) Amendment Related to Section 211 of the Act.— Subparagraph (B) of section 529(c)(5) 26 USC 529. is amended to read as follows: “(B) Treatment of designation of new beneficiary.— The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) unless the new beneficiary is— “(i) assigned to the same generation as (or a higher generation than) the old beneficiary (determined in accordance with section 2651), and “(ii) a member of the family of the old beneficiary.” .

44. 2004

    Working Families Tax Relief Act of 2004

    Pub. L. 108–311 § 207(21) · 118 Stat. 1166

    Substituted · 26 U.S.C. § 529(e)(2)(B)

    Pub. L. 108–311, § 207(21), substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1) through (8) of section 152(a)”

    Source evidence

    Code amendment note
    Subsec. (e)(2)(B). Pub. L. 108–311, § 207(21), substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1) through (8) of section 152(a)”.

    Enacted provision · exact public law section
    (21) Section 529(e)(2)(B) is amended by striking “paragraphs (1) through (8) of section 152(a)” and inserting “subparagraphs (A) through (G) of section 152(d)(2)”.

45. 2005

    Tax Technical Corrections Act of 2005

    Pub. L. 109–135 title IV § 412(ee)(3) · 119 Stat. 2577

    Substituted · 26 U.S.C. § 529(c)(6)

    Pub. L. 109–135 substituted “Coverdell education savings account” for “education individual retirement account”

    Source evidence

    Code amendment note
    Subsec. (c)(6). Pub. L. 109–135 substituted “Coverdell education savings account” for “education individual retirement account”.

    Enacted provision · exact public law section
    (3) Paragraph (6) of section 529(c) is amended by striking “education individual retirement account” and inserting “Coverdell education savings account”.

46. 2006

    Pub. L. 109–280 title XIII § 1304(b) · 120 Stat. 780

    Amended · 26 U.S.C. § 529(f)

    Pub. L. 109–280, which directed the addition of subsec. (f) to section 529, without specifying the act to be amended, was executed by making the addition to this section, which is section 529 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 109–280, which directed the addition of subsec. (f) to section 529, without specifying the act to be amended, was executed by making the addition to this section, which is section 529 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.

    Enacted provision · exact public law section
    (b) Regulatory Authority To Prevent Abuse.— Section 529 (relating to qualified tuition programs) is amended by adding at the end the following new subsection: “(f) Regulations.— Notwithstanding any other provision of this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section and to prevent abuse of such purposes, including regulations under chapters 11, 12, and 13 of this title.” .

47. 2009

    American Recovery and Reinvestment Act of 2009

    Pub. L. 111–5 div. B title I § 1005(a) · 123 Stat. 115

    Added · 26 U.S.C. § 529(e)(3)(A)

    Pub. L. 111–5 added cl. (iii) and concluding provisions

    Source evidence

    Code amendment note
    Subsec. (e)(3)(A). Pub. L. 111–5 added cl. (iii) and concluding provisions.

    Enacted provision · exact public law section
    (a) In General.— Section 529(e)(3)(A) 26 USC 529. is amended by striking “and” at the end of clause (i), by striking the period at the end of clause (ii), and by adding at the end the following: “(iii) expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution. Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.” .

48. 2014

    Tax Increase Prevention Act of 2014

    Pub. L. 113–295 div. B title I § 105(a) · 128 Stat. 4010

    1. Substituted · 26 U.S.C. § 529(b)(4)

       Pub. L. 113–295 substituted “Limited” for “No” in text

    2. Substituted · 26 U.S.C. § 529(b)(4)

       Pub. L. 113–295 substituted “may, directly or indirectly, direct the investment of any contributions to the program (or any earnings thereon) no more than 2 times in any calendar year.” for “may not directly or indirectly direct the investment of any contributions to the program (or any earnings thereon).” in text

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 113–295 substituted “Limited” for “No” in heading and “may, directly or indirectly, direct the investment of any contributions to the program (or any earnings thereon) no more than 2 times in any calendar year.” for “may not directly or indirectly direct the investment of any contributions to the program (or any earnings thereon).” in text.

    Enacted provision · exact public law section
    (a) In General.— Subparagraph (I) of section 164(b)(5) is amended by striking “January 1, 2014” and inserting “January 1, 2015”.

49. 2015

    Energy and Water Development and Related Agencies Appropriations Act, 2016

    Pub. L. 114–113 § 302(c)(1) · 129 Stat. 2242

    Added · 26 U.S.C. § 529(c)(3)(D)

    Pub. L. 114–113, § 302(c)(1), added subpar. (D)

    Source evidence

    Code amendment note
    Subsec. (c)(3)(D). Pub. L. 114–113, § 302(c)(1), added subpar. (D).

    Enacted provision · exact public law section
    Sec. 302. The unexpended balances of prior appropriations provided for activities in this Act may be available to the same appropriation accounts for such activities established pursuant to this title. Available balances may be merged with funds in the applicable established accounts and thereafter may be accounted for as one fund for the same time period as originally enacted.

50. 2015

    Energy and Water Development and Related Agencies Appropriations Act, 2016

    Pub. L. 114–113 § 302(b)(1) · 129 Stat. 2242

    Struck · 26 U.S.C. § 529(c)(3)(D)

    Pub. L. 114–113, § 302(b)(1), struck out subpar. (D). Text read as follows: “For purposes of applying section 72—

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 114–113, § 302(b)(1), struck out subpar. (D). Text read as follows: “For purposes of applying section 72—

    “(i) to the extent provided by the Secretary, all qualified tuition programs of which an individual is a designated beneficiary shall be treated as one program, “(ii) except to the extent provided by the Secretary, all distributions during a taxable year shall be treated as one distribution, and “(iii) except to the extent provided by the Secretary, the value of the contract, income on the contract, and investment in the contract shall be computed as of the close of the calendar year in which the taxable year begins.”

    Enacted provision · exact public law section
    Sec. 302. The unexpended balances of prior appropriations provided for activities in this Act may be available to the same appropriation accounts for such activities established pursuant to this title. Available balances may be merged with funds in the applicable established accounts and thereafter may be accounted for as one fund for the same time period as originally enacted.

51. 2015

    Energy and Water Development and Related Agencies Appropriations Act, 2016

    Pub. L. 114–113 § 302(a)(1) · 129 Stat. 2242

    Amended · 26 U.S.C. § 529(e)(3)(A)(iii)

    Pub. L. 114–113, § 302(a)(1), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution.”

    Source evidence

    Code amendment note
    Subsec. (e)(3)(A)(iii). Pub. L. 114–113, § 302(a)(1), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution.”

    Enacted provision · exact public law section
    Sec. 302. The unexpended balances of prior appropriations provided for activities in this Act may be available to the same appropriation accounts for such activities established pursuant to this title. Available balances may be merged with funds in the applicable established accounts and thereafter may be accounted for as one fund for the same time period as originally enacted.

52. 2017

    Pub. L. 115–97 § 11025(a) · 131 Stat. 2054

    1. Added · 26 U.S.C. § 529(c)(3)(C)(i)

       Pub. L. 115–97, § 11025(a), added subcl. (III)

    2. Inserted · 26 U.S.C. § 529(c)(3)(C)(i)

       Pub. L. 115–97, § 11025(a), inserted concluding provisions

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C)(i). Pub. L. 115–97, § 11025(a), added subcl. (III) and inserted concluding provisions.

    Enacted provision · exact public law section
    (a) In General.— Clause (i) of section 529(c)(3)(C) 26 USC 529. is amended by striking “or” at the end of subclause (I), by striking the period at the end of subclause (II) and inserting “, or”, and by adding at the end the following: “(III) before January 1, 2026, to an ABLE account (as defined in section 529A(e)(6)) of the designated beneficiary or a member of the family of the designated beneficiary. Subclause (III) shall not apply to so much of a distribution which, when added to all other contributions made to the ABLE account for the taxable year, exceeds the limitation under section 529A(b)(2)(B)(i).” .

53. 2017

    Pub. L. 115–97 § 11032(a)(1) · 131 Stat. 2054

    Added · 26 U.S.C. § 529(c)(7)

    Pub. L. 115–97, § 11032(a)(1), added par. (7)

    Source evidence

    Code amendment note
    Subsec. (c)(7). Pub. L. 115–97, § 11032(a)(1), added par. (7).

    Enacted provision · exact public law section
    (1) In general.— Section 529(c) is amended by adding at the end the following new paragraph: “(7) Treatment of elementary and secondary tuition.— Any reference in this subsection to the term ‘qualified higher education expense’ shall include a reference to expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.” .

54. 2017

    Pub. L. 115–97 § 11032(a)(2) · 131 Stat. 2054

    Inserted · 26 U.S.C. § 529(e)(3)(A)

    Pub. L. 115–97, § 11032(a)(2), inserted at end of concluding provisions “The amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary during any taxable year shall, in the aggregate, include not more than $10,000 in expenses described in subsection (c)(7) incurred during the taxable year.”

    Source evidence

    Code amendment note
    Subsec. (e)(3)(A). Pub. L. 115–97, § 11032(a)(2), inserted at end of concluding provisions “The amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary during any taxable year shall, in the aggregate, include not more than $10,000 in expenses described in subsection (c)(7) incurred during the taxable year.”

    Enacted provision · exact public law section
    (2) Limitation.— Section 529(e)(3)(A) 26 USC 529. is amended by adding at the end the following: “The amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary during any taxable year shall, in the aggregate, include not more than $10,000 in expenses described in subsection (c)(7) incurred during the taxable year.”.

55. 2018

    Department of Commerce Appropriations Act, 2018

    Pub. L. 115–141 § 101 · 132 Stat. 348

    Substituted · 26 U.S.C. § 529(c)(3)(B)(v)

    Pub. L. 115–141, § 101(l)(15), substituted “American Opportunity” for “Hope” in heading

    Source evidence

    Code amendment note
    Subsec. (c)(3)(B)(v). Pub. L. 115–141, § 101(l)(15), substituted “American Opportunity” for “Hope” in heading.

    Enacted provision · exact public law section
    Sec. 101. During the current fiscal year, applicable appropriations and funds made available to the Department of Commerce by this Act shall be available for the activities specified in the Act of October 26, 1949 (15 U.S.C. 1514), to the extent and in the manner prescribed by the Act, and, notwithstanding 31 U.S.C. 3324, may be used for advanced payments not otherwise authorized only upon the certification of officials designated by the Secretary of Commerce that such payments are in the public interest.

56. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(127) · 132 Stat. 348

    Substituted · 26 U.S.C. § 529(c)(6)

    Pub. L. 115–141, § 401(a)(127), substituted “a Coverdell” for “an Coverdell”

    Source evidence

    Code amendment note
    Subsec. (c)(6). Pub. L. 115–141, § 401(a)(127), substituted “a Coverdell” for “an Coverdell”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

57. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(128) · 132 Stat. 348

    1. Substituted · 26 U.S.C. § 529(e)(3)(A)

       Pub. L. 115–141, § 401(a)(128), substituted comma for semicolon at end of cl. (i)

    2. Inserted · 26 U.S.C. § 529(e)(3)(A)

       Pub. L. 115–141, § 401(a)(128), inserted “, and” at end of cl. (ii)

    Source evidence

    Code amendment note
    Subsec. (e)(3)(A). Pub. L. 115–141, § 401(a)(128), substituted comma for semicolon at end of cl. (i) and inserted “, and” at end of cl. (ii).

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

58. 2019

    Department of Education Appropriations Act, 2020

    Pub. L. 116–94 § 302(a) · 133 Stat. 2534

    Added · 26 U.S.C. § 529(c)(8)

    Pub. L. 116–94, § 302(a), added par. (8)

    Source evidence

    Code amendment note
    Subsec. (c)(8). Pub. L. 116–94, § 302(a), added par. (8).

    Enacted provision · exact public law section
    Sec. 302. (transfer of funds) Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985) which are appropriated for the Department of Education in this Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such transfer: Provided, That the transfer authority granted by this section shall not be used to create any new program or to fund any project or activity for which no funds are provided in this Act: Provided further, Notification. Time period. That the Committees on Appropriations of the House of Representatives and the Senate are notified at least 15 days in advance of any transfer.

59. 2019

    Department of Education Appropriations Act, 2020

    Pub. L. 116–94 § 302(b)(1) · 133 Stat. 2534

    Added · 26 U.S.C. § 529(c)(9)

    Pub. L. 116–94, § 302(b)(1), added par. (9)

    Source evidence

    Code amendment note
    Subsec. (c)(9). Pub. L. 116–94, § 302(b)(1), added par. (9).

    Enacted provision · exact public law section
    Sec. 302. (transfer of funds) Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985) which are appropriated for the Department of Education in this Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such transfer: Provided, That the transfer authority granted by this section shall not be used to create any new program or to fund any project or activity for which no funds are provided in this Act: Provided further, Notification. Time period. That the Committees on Appropriations of the House of Representatives and the Senate are notified at least 15 days in advance of any transfer.

60. 2022

    Department of the Treasury Appropriations Act, 2023

    Pub. L. 117–328 § 126(a) · 136 Stat. 4459

    Added · 26 U.S.C. § 529(c)(3)(E)

    Pub. L. 117–328, § 126(a), added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (c)(3)(E). Pub. L. 117–328, § 126(a), added subpar. (E).

    Enacted provision · exact public law section
    Sec. 126. In addition to amounts otherwise available, there is appropriated to the Special Inspector General for Pandemic Recovery, $12,000,000, to remain available until expended, for necessary expenses in carrying out section 4018 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136).

61. 2022

    Department of the Treasury Appropriations Act, 2023

    Pub. L. 117–328 § 126(c) · 136 Stat. 4459

    1. Amended · 26 U.S.C. § 529(d)

       Pub. L. 117–328, § 126(c), designated existing provisions as par. (1)

    2. Inserted · 26 U.S.C. § 529(d)

       Pub. L. 117–328, § 126(c), inserted heading

    3. Substituted · 26 U.S.C. § 529(d)

       Pub. L. 117–328, § 126(c), substituted “by this paragraph” for “by this subsection”

    4. Added · 26 U.S.C. § 529(d)

       Pub. L. 117–328, § 126(c), added par. (2)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 117–328, § 126(c), designated existing provisions as par. (1), inserted heading, substituted “by this paragraph” for “by this subsection”, and added par. (2).

    Enacted provision · exact public law section
    Sec. 126. In addition to amounts otherwise available, there is appropriated to the Special Inspector General for Pandemic Recovery, $12,000,000, to remain available until expended, for necessary expenses in carrying out section 4018 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136).

62. 2025

    Pub. L. 119–21 § 70117(a) · 139 Stat. 167

    Struck · 26 U.S.C. § 529(c)(3)(C)(i)(III)

    Pub. L. 119–21, § 70117(a), struck out “before January 1, 2026,” before “to an ABLE account”

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (c)(3)(C)(i)(III). Pub. L. 119–21, § 70117(a), struck out “before January 1, 2026,” before “to an ABLE account”.

    Effective date note
    Pub. L. 119–21, title VII, § 70117(b), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70413(a)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].” Pub. L. 119–21, title VII, § 70413(b)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70414(c), July 4, 2025, 139 Stat. 221, provided that: “The amendments made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].”

63. 2025

    Pub. L. 119–21 § 70413(a)(1) · 139 Stat. 167

    Amended · 26 U.S.C. § 529(c)(7)

    Pub. L. 119–21, § 70413(a)(1), amended par. (7) generally. Prior to amendment, text read as follows: “Any reference in this subsection to the term ‘qualified higher education expense’ shall include a reference to expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.”

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (c)(7). Pub. L. 119–21, § 70413(a)(1), amended par. (7) generally. Prior to amendment, text read as follows: “Any reference in this subsection to the term ‘qualified higher education expense’ shall include a reference to expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.”

    Effective date note
    Pub. L. 119–21, title VII, § 70117(b), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70413(a)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].” Pub. L. 119–21, title VII, § 70413(b)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70414(c), July 4, 2025, 139 Stat. 221, provided that: “The amendments made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].”

64. 2025

    Pub. L. 119–21 § 70413(b)(1) · 139 Stat. 167

    Substituted · 26 U.S.C. § 529(e)(3)(A)

    Pub. L. 119–21, § 70413(b)(1), which directed that the “last sentence of section 529(e)(3)” be amended by substituting “$20,000” for “$10,000”, was executed by making the substitution in the concluding provisions of subpar. (A) of par. (3), to reflect the probable intent of Congress

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (e)(3)(A). Pub. L. 119–21, § 70413(b)(1), which directed that the “last sentence of section 529(e)(3)” be amended by substituting “$20,000” for “$10,000”, was executed by making the substitution in the concluding provisions of subpar. (A) of par. (3), to reflect the probable intent of Congress.

    Effective date note
    Pub. L. 119–21, title VII, § 70117(b), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70413(a)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].” Pub. L. 119–21, title VII, § 70413(b)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70414(c), July 4, 2025, 139 Stat. 221, provided that: “The amendments made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].”

65. 2025

    Pub. L. 119–21 § 70414(a) · 139 Stat. 167

    Added · 26 U.S.C. § 529(e)(3)(C)

    Pub. L. 119–21, § 70414(a), added subpar. (C)

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (e)(3)(C). Pub. L. 119–21, § 70414(a), added subpar. (C).

    Effective date note
    Pub. L. 119–21, title VII, § 70117(b), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70413(a)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].” Pub. L. 119–21, title VII, § 70413(b)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70414(c), July 4, 2025, 139 Stat. 221, provided that: “The amendments made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].”

66. 2025

    Pub. L. 119–21 § 70414(b) · 139 Stat. 167

    1. Added · 26 U.S.C. § 529(f); 26 U.S.C. § 529(g)

       Pub. L. 119–21, § 70414(b), added subsec. (f)

    2. Redesignated · 26 U.S.C. § 529(f); 26 U.S.C. § 529(g)

       Pub. L. 119–21, § 70414(b), redesignated former subsec. (f) as (g)

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsecs. (f), (g). Pub. L. 119–21, § 70414(b), added subsec. (f) and redesignated former subsec. (f) as (g).

    Effective date note
    Pub. L. 119–21, title VII, § 70117(b), July 4, 2025, 139 Stat. 167, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70413(a)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].” Pub. L. 119–21, title VII, § 70413(b)(2), July 4, 2025, 139 Stat. 219, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2025.” Pub. L. 119–21, title VII, § 70414(c), July 4, 2025, 139 Stat. 221, provided that: “The amendments made by this section [amending this section] shall apply to distributions made after the date of the enactment of this Act [July 4, 2025].”

73 of 79 references resolved to an enrolled provision · 6 unresolved