To amend the Internal Revenue Code of 1986 to modify the tax treatment of qualified State tuition programs.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code, with respect to qualified State tuition programs to, among other things: (1) provide for the exclusion from gross income of distributions used for qualified higher education expenses; (2) include room and board in the definition of qualified higher education expenses; and (3) permit income from redeemed U.S. savings bonds to be used to contribute, without including such income in gross income (subject to income limitations), to a qualified State tuition program.…