‘‘(A) IN
GENERAL.—The amount of the
credit under this subsection shall reduce the
amount of the credit otherwise allowable under
section 24, but the amount of the credit under
this subsection (and such reduction) shall not
otherwise be taken into account in determining
the amount of any other credit allowable under
this part.
‘‘(B) TREATMENT OF CREDIT UNDER SEC-
TION 24(d).—For purposes of this subsection,
the credit determined under section 24(d) shall
be treated as not allowed under section 24.’’
SEC. 4. AMENDMENTS RELATED TO TITLE II OF 1997 ACT.
(a) AMENDMENTS RELATED TO SECTION 201 OF
1997 ACT.—
(1) Subparagraph (B) of section 25A(h)(1) of
the 1986 Code is amended by striking ‘‘$1,000’’
each place it appears and inserting ‘‘$100’’.
(2) The item relating to section 25A in the
table of sections for subpart A of part IV of sub-
chapter A of chapter 1 of the 1986 Code is amended
to read as follows:
‘‘Sec. 25A. Hope and Lifetime Learning credits.’’
(3) Subsection (a) of section 6050S of the 1986
Code is amended to read as follows:
‘‘(a) IN GENERAL.—Any person—
‘‘(1) which is an eligible educational institu-
tion—
‘‘(A) which receives payments for qualified
tuition and related expenses with respect to any
individual for any calendar year, or
‘‘(B) which makes reimbursements or re-
funds (or similar amounts) to any individual of
qualified tuition and related expenses,
‘‘(2) which is engaged in a trade or business of
making payments to any individual under an insur-
ance arrangement as reimbursements or refunds (or
similar amounts) of qualified tuition and related ex-
penses, or
‘‘(3) except as provided in regulations, any per-
son which is engaged in a trade or business and, in
the course of which, receives from any individual in-
terest aggregating $600 or more for any calendar
year on 1 or more qualified education loans,
shall make the return described in subsection (b) with re-
spect to the individual at such time as the Secretary may
by regulations prescribe.’’
(4) Subparagraph (A) of section 201(c)(2) of
the 1997 Act is amended to read as follows:
‘‘(A) 
Subparagraph 
(B) 
of 
section
6724(d)(1) (relating to definitions) is amended
by redesignating clauses (x) through (xv) as
clauses (xi) through (xvi), respectively, and by
inserting after clause (ix) the following new
clause:
‘‘ ‘(x) section 6050S (relating to re-
turns relating to payments for qualified
tuition and related expenses),’ ’’.
(b) AMENDMENTS RELATED TO SECTION 211 OF
1997 ACT.—
(1) Paragraph (3) of section 135(c) of the 1986
Code is amended to read as follows:
‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.—
The term ‘eligible educational institution’ has the
meaning given such term by section 529(e)(5).’’.
(2) Subparagraph (A) of section 529(c)(3) of
the 1986 Code is amended by striking ‘‘section
72(b)’’ and inserting ‘‘section 72’’.
(c) AMENDMENTS RELATED TO SECTION 213 OF
1997 ACT.—
(1)(A) Section 530(b)(1)(E) of the 1986 Code
(defining education individual retirement account) is
amended to read as follows:
‘‘(E) Any balance to the credit of the des-
ignated beneficiary on the date on which the
beneficiary attains age 30 shall be distributed
within 30 days after such date to the bene-
ficiary or, if the beneficiary dies before attain-
ing age 30, shall be distributed within 30 days
after the date of death to the estate of such
beneficiary.’’
(B) Subsection (d) of section 530 of the 1986
Code is amended by adding at the end the following
new paragraph:
‘‘(8) DEEMED
DISTRIBUTION
ON
REQUIRED
DISTRIBUTION DATE.—In any case in which a dis-
tribution is required under subsection (b)(1)(E), any
balance to the credit of a designated beneficiary as
of the close of the 30-day period referred to in such
subsection for making such distribution shall be
deemed distributed at the close of such period.’’
(2)(A) Paragraph (1) of section 530(d) of the
1986 Code is amended by striking ‘‘section 72(b)’’
and inserting ‘‘section 72’’.
(B) Subsection (e) of section 72 of the 1986
Code is amended by inserting after paragraph (8)
the following new paragraph:
‘‘(9) EXTENSION
OF
PARAGRAPH
(2)(B)
TO
QUALIFIED
STATE
TUITION
PROGRAMS
AND
EDU-
CATIONAL
INDIVIDUAL
RETIREMENT
ACCOUNTS.—
Notwithstanding any other provision of this sub-
section, paragraph (2)(B) shall apply to amounts re-
ceived under a qualified State tuition program (as
defined in section 529(b)) or under an education in-
dividual retirement account (as defined in section
530(b)). The rule of paragraph (8)(B) shall apply
for purposes of this paragraph.’’
(3) So much of section 530(d)(4)(C) of the
1986 Code as precedes clause (ii) thereof is amended
to read as follows:
‘‘(C) CONTRIBUTIONS RETURNED BEFORE
DUE
DATE
OF
RETURN.—Subparagraph (A)
shall not apply to the distribution of any con-
tribution made during a taxable year on behalf
of the designated beneficiary if—
‘‘(i) such distribution is made on or
before the day prescribed by law (including
extensions of time) for filing the bene-
ficiary’s return of tax for the taxable year
or, if the beneficiary is not required to file
such a return, the 15th day of the 4th
month of the taxable year following the
taxable year, and’’.
(4) Subparagraph (C) of section 135(c)(2) of
the 1986 Code is amended—
(A) by inserting ‘‘AND EDUCATION INDI-
VIDUAL RETIREMENT ACCOUNTS’’ in the head-
ing after ‘‘PROGRAM’’, and
(B) by striking ‘‘section 529(c)(3)(A)’’ and
inserting ‘‘section 72’’.
(5) Subparagraph (A) of section 4973(e)(1) of
the 1986 Code is amended by inserting before the
comma ‘‘(or, if less, the sum of the maximum
amounts permitted to be contributed under section
530(c) by the contributors to such accounts for such
year)’’.
(d) AMENDMENT RELATED
TO SECTION 224 OF
1997 ACT.—Section 170(e)(6)(F) of the 1986 Code (relat-
ing to termination) is amended by striking ‘‘1999’’ and
inserting ‘‘2000’’.
(e) AMENDMENTS RELATED TO SECTION 225 OF
1997 ACT.—
(1) The last sentence of section 108(f)(2) of the
1986 Code is amended to read as follows:
‘‘The term ‘student loan’ includes any loan made by
an educational organization described in section
170(b)(1)(A)(ii) or by an organization exempt from
tax under section 501(a) to refinance a loan to an
individual to assist the individual in attending any
such educational organization but only if the refi-