Ill STAT. 810 PUBLIC LAW 105-34—AUG. 5, 1997 Subtitle B—Expanded Education Investment Savings Opportunities PART I—QUALIFIED TUITION PROGRAMS SEC. 211. MODIFICATIONS OF QUALIFIED STATE TUITION PROGRAMS. (a) QUALIFIED HIGHER EDUCATION EXPENSES TO INCLUDE ROOM AND BOARD.—Paragraph (3) of section 529(e) (defining qualified higher education expenses) is amended to read as follows: "(3) QUALIFIED HIGHER EDUCATION EXPENSES.— "(A) IN GENERAL.—The term 'qualified higher education expenses' means tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution. " (B) ROOM AND BOARD INCLUDED FOR STUDENTS UNDER GUARANTEED PLANS WHO ARE AT LEAST HALF-TIME.— "(i) IN GENERAL.— In the case of an individual who is an eligible student (as defined in section 25A(b)(3)) for any academic period, such term shall also include reasonable costs for such period (as determined under the qualified State tuition program) incurred by the designated beneficiary for room and board while attending such institution. For purposes of subsection (b)(7), a designated beneficiary shall be treated as meeting the requirements of this clause. "(ii) LIMITATION.— The amount treated as qualified higher education expenses by reason of the preceding sentence shall not exceed the minimum amount (applicable to the student) included for room and board for such period in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 108711, as in effect on the date of the enactment of this paragraph) for the eligible educational institution for such period.". (b) ADDITIONAL MODIFICATIONS. — (1) MEMBER OF FAMILY.— Paragraph (2) of section 529(e) (relating to other definitions and special rules) is amended to read as follows: "(2) MEMBER OF FAMILY.— The term 'member of the family' means— "(A) an individual who bears a relationship to another individual which is a relationship described in paragraphs (1) through (8) of section 152(a), and "(B) the spouse of any individual described in subparagraph (A).". (2) ELIGIBLE EDUCATIONAL INSTITUTION.— Section 529(e) is amended by adding at the end the following: "(5) ELIGIBLE EDUCATIONAL INSTITUTION. —The term 'eligible educational institution' means an institution— "(A) which is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this paragraph, and "(B) which is eligible to participate in a program under title IV of such Act.". (3) ESTATE AND GIFT TAX TREATMENT. — (A) GIFT TAX TREATMENT. —
�
