PUBLIC LAW 107-16^JUNE 7, 2001 115 STAT. 57 "(M) the entry on the return claiming the credit under section 32 with respect to a child if, according to the Federal Case Registry of Child Support Orders established under section 453(h) of the Social Security Act, the taxpayer is a noncustodial parent of such child.". (h) CLERICAL AMENDMENT. — Subparagraph (E) of section 32(c)(3) is amended by striking "subparagraphs (A)(ii) and 26 USC 32. (B)(iii)(II)" and inserting "subparagraph (A)(ii)". (i) EFFECTIVE DATES. — 26 USC 32 note. (1) IN GENERAL.— Except as provided in paragraph (2), the Applicability. amendments made by this section shall apply to taxable years beginning after December 31, 2001. (2) SUBSECTION (g).— The amendment made by subsection (g) shall take effect on January 1, 2004. TITLE IV—AFFORDABLE EDUCATION PROVISIONS Subtitle A—Education Savings Incentives SEC. 401. MODIFICATIONS TO EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS. (a) MAXIMUM ANNUAL CONTRIBUTIONS.— (1) IN GENERAL.— Section 530(b)(l)(A)(iii) (defining education individual retirement account) is amended by striking "$500" and inserting "$2,000". (2) CONFORMING AMENDMENT.— Section 4973(e)(1)(A) is amended by striking "$500" and inserting "$2,000". (b) MODIFICATION OF AGI LIMITS TO REMOVE MARRIAGE PEN- ALTY.— Section 530(c)(1) (relating to reduction in permitted contributions based on adjusted gross income) is amended— (1) by striking "$150,000" in subparagraph (A)(ii) and inserting "$190,000", and (2) by striking "$10,000" in subparagraph (B) and inserting "$30,000 ". (c) TAX-FREE EXPENDITURES FOR ELEMENTARY AND SECONDARY SCHOOL EXPENSES. — (1) IN GENERAL.— Section 530(b)(2) (defining quahfied higher education expenses) is amended to read as follows: " (2) QUALIFIED EDUCATION EXPENSES.— "(A) IN GENERAL. —The term 'qualified education expenses' means— "(i) qualified higher education expenses (as defined in section 529(e)(3)), and "(ii) qualified elementary and secondary education expenses (as defined in paragraph (4)). "(B) QUALIFIED STATE TUITION PROGRAMS.—Such term shall include any contribution to a qualified State tuition program (as defined in section 529(b)) on behalf of the designated beneficiary (as defined in section 529(e)(1)); but there shall be no increase in the investment in the contract for purposes of applying section 72 by reason of any portion of such contribution which is not includible in gross income by reason of subsection (d)(2).".
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