Page:United States Statutes at Large Volume 111 Part 1.djvu/836

 Ill STAT. 812 PUBLIC LAW 105-34—AUG. 5, 1997 "(C) CONTRIBUTIONS TO QUALIFIED STATE TUITION PRO- GRAM.— Such term shall include any contribution to a qualified State tuition program (as defined in section 529) on behalf of a designated beneficiary (as defined in such section) who is an individual described in subparagraph (A); but there shall be no increase in the investment in the contract for purposes of applying section 529(c)(3)(A) by reason of any portion of such contribution which is not includible in gross income by reason of this subparagraph.". (d) CLARIFICATION OF TAXATION OF DISTRIBUTIONS. — Subparagraph (A) of section 529(c)(3) is amended by striking "section 72" and inserting "section 72(b)". (e) TECHNICAL AMENDMENTS.— (1)(A) The heading for part VIII of subchapter F of chapter 1 is amended to read as follows: "PART VIII—HIGHER EDUCATION SAVINGS ENTITIES". (B) The table of parts for subchapter F of chapter 1 is amended by striking the item relating to part VIII and inserting: " Part VIII. Higher education savings entities. ". (2)(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.". (B) Paragraph (2) of section 6693(a) (relating to failure to provide reports on individual retirement accounts or annuities) is amended by striking "and" at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ", and", and by adding at the end the following new subparagraph: "(C) Section 529(d) (relating to qualified State tuition programs).". (C) The section heading for section 6693 is amended by striking "INDIVIDUAL RETIREMENT" and inserting "CERTAIN TAX- FAVORED", (D) The item relating to section 6693 in the table of sections for part I of subchapter B of chapter 68 is amended by striking "individual retirement" and inserting "certain tax-favored". 26 USC 529 note. (f) EFFECTIVE DATES.— (1) IN GENERAL.— Except as otherwise provided in this subsection, the amendments made by this section shall take effect on January 1, 1998. (2) EXPENSES TO INCLUDE ROOM AND BOARD. —The amendment made by subsection (a) shall take effect as if included in the amendments made by section 1806 of the Small Business Job Protection Act of 1996. (3) ELIGIBLE EDUCATIONAL INSTITUTION.—The amendment made by subsection (b)(2) shall apply to distributions after

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