Page:United States Statutes at Large Volume 115 Part 1.djvu/85

 PUBLIC LAW 107-16—JUNE 7, 2001 115 STAT. 63 the eligible educational institution is charged by such institution for room and board costs for such period.". (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.". (g) TECHNICAL AMENDMENTS.— Section 529(c)(3)(D) is amended— (1) by inserting "except to the extent provided by the Secretary," before "all distributions" in clause (ii), and (2) by inserting "except to the extent provided by the Secretary," before "the value" in clause (iii). (h) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2001. Applicability. 26 USC 72 note. Subtitle B—Educational Assistance SEC. 411. EXTENSION OF EXCLUSION FOR EMPLOYER-PROVIDED EDU- CATIONAL ASSISTANCE. (a) IN GENERAL. —Section 127 (relating to exclusion for educational assistance programs) is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d). (b) REPEAL OF LIMITATION ON GRADUATE EDUCATION.— The last sentence of section 127(c)(1) is amended by striking ", and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree". (c) CONFORMING AMENDMENT. —Section 51A(b)(5)(B)(iii) is amended by striking "or would be so excludable but for section 127(d)". (d) EFFECTIVE DATE. —The amendments made by this section shall apply with respect to expenses relating to courses beginning after December 31, 2001. Applicability. 26 USC 5 lA note. SEC. 412. ELIMINATION OF 60-MONTH LIMIT AND INCREASE IN INCOME LIMITATION ON STUDENT LOAN INTEREST DEDUCTION. (a) ELIMINATION OF 60-MONTH LIMIT. — (1) IN GENERAL.— Section 221 (relating to interest on education loans), as amended by section 402(b)(2)(B), is amended by striking subsection (d) and by redesignating subsections (e), (f), and (g) as subsections (d), (e), and (f), respectively. (2) CONFORMING AMENDMENT.—Section 6050S(e) is amended by striking "section 221(e)(1)" and inserting "section 221(d)(1)".

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