A bill to amend the Internal Revenue Code of 1954 to provide for the establishment of, and the deduction of contributions to, education savings accounts.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow an income tax deduction for cash and other contributions to a savings account created or organized exclusively for the purpose of paying the higher or vocational educational expenses of an eligible beneficiary. Limits the amount of such deduction to $1,000 per year, adjusted for inflation. Prohibits an individual from being the beneficiary of more than one account. Disallows such deduction after the beneficiary attains age 19. Exempts such accounts from taxation. Excludes distributions from such an account from the gross income of the payee so long as such distributions are used to defray the beneficiary's tuition, fees, books and supplies, and reasonable living expenses at an institution of higher education or a vocational school. Specifies penalties for the use of account funds for other than such educational purposes. Treats qualified distributions as income to the beneficiary for the taxable year in which the beneficiary attains age 27, and for each of the following nine years, in successive apportionments equal to ten percent of the total amount of such distributions.…