Higher Education Funding Act

[AI summary unavailable — showing source text] Higher Education Funding Act - Authorizes an income tax deduction for contributions to a qualified higher education fund established by the taxpayer for the purposes of funding the higher education of his dependent children, nephews and nieces. Limits the amount of the deduction to the lesser of: (1) $500 times the number of qualified beneficiaries; (2) ten percent of the taxpayer's adjusted gross income; or (3) $2,500. Requires that a qualified education fund must be established by the taxpayer pursuant to a written plan: (1) solely for the purpose of defraying the cost of room, board, and tuition at an institution of higher education of one or more eligible beneficiaries; (2) which provides that no distribution shall be made by the fund (except upon termination thereof) other than to, or on behalf of, eligible beneficiaries; (3) which provides that upon termination of the fund all assets of the funds shall be distributed to the taxpayer or to his estate; (4) which prohibits contributions to the fund in excess of amounts deductible; and (5) under which the taxpayer consents to specified income tax treatment upon termination of the fund. Defines "institution of higher education" as…