‘‘(7) TREATMENT OF ELEMENTARY AND SEC-
ONDARY TUITION.—Any reference in this section to 
the term ‘qualified higher education expense’ shall 
include a reference to the following expenses in con-
nection with enrollment or attendance at, or for stu-
dents enrolled at or attending, an elementary or sec-
ondary public, private, or religious school: 
‘‘(A) Tuition. 
‘‘(B) Curriculum and curricular materials. 
‘‘(C) Books or other instructional mate-
rials. 
‘‘(D) Online educational materials. 
‘‘(E) Tuition for tutoring or educational 
classes outside of the home, including at a tu-
toring facility, but only if the tutor or instruc-
tor is not related to the student and— 
‘‘(i) is licensed as a teacher in any 
State, 
‘‘(ii) has taught at an eligible edu-
cational institution, or 
‘‘(iii) is a subject matter expert in the 
relevant subject. 
‘‘(F) Fees for a nationally standardized 
norm-referenced achievement test, an advanced 
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placement examination, or any examinations re-
lated to college or university admission. 
‘‘(G) Fees for dual enrollment in an insti-
tution of higher education. 
‘‘(H) Educational therapies for students 
with disabilities provided by a licensed or ac-
credited practitioner or provider, including oc-
cupational, behavioral, physical, and speech-lan-
guage therapies. 
Such term shall include expenses for the purposes 
described in subparagraphs (A) through (H) in con-
nection with a homeschool (whether treated as a 
homeschool or a private school for purposes of appli-
cable State law).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 3. INCREASE IN LIMITATION ON DISTRIBUTIONS 
FROM 529 PLANS FOR ELEMENTARY AND SEC-
ONDARY SCHOOL EXPENSES. 
(a) IN GENERAL.—Section 529(e)(3)(A) of the Inter-
nal Revenue Code of 1986 is amended by striking 
‘‘$10,000’’ in the flush matter at the end and inserting 
‘‘$20,000’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 4. GIFT TAX EXCLUSIONS. 
(a) GIFT TAX EXCLUSION FOR CONTRIBUTIONS TO 
529 PLANS.—Section 2503(b) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) EXCLUSION FOR CONTRIBUTIONS TO 529 
PLANS.—The dollar amount in effect under para-
graph (1) with respect to gifts (to which such para-
graph applies) made to any person during any cal-
endar year shall be increased (not in excess of 
$20,000) by the amount of such gifts made during 
such calendar year to qualified tuition programs (as 
defined in section 529) with respect to which such 
person is the designated beneficiary.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to gifts made after December 31, 
2024. 
SEC. 5. TAX-EXEMPT BONDS RESTRICTED TO STATES THAT 
IMPLEMENT SCHOOL CHOICE LAWS. 
(a) IN GENERAL.—Section 103 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
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‘‘(d) RESTRICTION TO STATES THAT IMPLEMENT 
SCHOOL CHOICE LAWS.— 
‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply to any State or local bond unless such bond 
is issued by a minimum school choice State or a po-
litical subdivision of such a State. 
‘‘(2) PARTIAL EXCLUSION WITH RESPECT TO 
CERTAIN STATES.— 
‘‘(A) IN
GENERAL.—In the case of any 
State or local bond issued by a minimum school 
choice State which does not meet the require-
ments of subparagraph (B) (or issued by any 
political subdivision of such a State), subsection 
(a) shall be applied by substituting ‘50 percent 
of the interest’ for ‘interest’. 
‘‘(B) REQUIREMENTS.—A minimum school 
choice State meets the requirements of this sub-
paragraph if the Secretary determines that— 
‘‘(i) at least 65 percent of the speci-
fied school age children are eligible for one 
or more of such State’s school choice pro-
grams, and 
‘‘(ii) the average amount spent by 
such State on the education of each speci-
fied school age child eligible for one or 
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more such State’s school choice programs 
is at least 75 percent of the average 
amount spent by such State on the edu-
cation of each specified school age child 
not eligible for one or more of such pro-
grams. 
‘‘(3) MINIMUM
SCHOOL
CHOICE
STATE.—For 
purposes of this subsection, the term ‘minimum 
school choice State’ means any State if the Sec-
retary determines that— 
‘‘(A) such State has enacted one or more 
school choice programs, 
‘‘(B) at least 40 percent of the specified 
school age children are eligible for one or more 
of such State’s school choice programs, and 
‘‘(C) the average amount spent by such 
State on the education of each specified school 
age child eligible for one or more such State’s 
school choice programs is at least 60 percent of 
the average amount spent by such State on the 
education of each specified school age child not 
eligible for one or more of such programs. 
‘‘(4) SCHOOL
CHOICE
PROGRAMS.—For pur-
poses of this subsection, the term ‘school choice pro-
gram’ means, with respect to any State, each of the 
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following with respect to elementary and secondary 
education in such State: 
‘‘(A) Tax credit scholarship programs. 
‘‘(B) Voucher programs. 
‘‘(C) Education savings account program. 
‘‘(D) Refundable tax credit for private edu-
cation expenses. 
‘‘(5) SPECIFIED SCHOOL AGE CHILD.—For pur-
poses of this subsection, the term ‘specified school 
age child’ means, with respect to any State, any in-
dividual residing in such State who has not attained 
age 18.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
Æ 
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