IMPROVEMENTS TO SECTION 529 ACCOUNTS.

SEC. 302. IMPROVEMENTS TO SECTION 529 ACCOUNTS. (a) Computer Technology and Equipment Permanently Allowed as a Qualified Higher Education Expense for Section 529 Accounts.— (1) [26 U.S.C. 529] In general.—Section 529(e)(3)(A)(iii) is amended to read as follows: “(iii) expenses for the purchase of computer or peripheral equipment (as defined in section 168(i)(2)(B)), computer software (as defined in section 197(e)(3)(B)), or Internet access and related services, if such equipment, software, or services are to be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution.” . (2) [26 U.S.C. 529 note] Effective Date.—The amendment made by this subsection shall apply to taxable years beginning after December 31, 2014. (b) Elimination of Distribution Aggregation Requirements.— (1) In general.—Section 529(c)(3) is amended by striking subparagraph (D). (2) [26 U.S.C. 529 note] Effective Date.—The amendment made by this subsection shall apply to distributions after December 31, 2014. (c) Recontribution of Refunded Amounts.— (1) In general.—Section 529(c)(3), as amended by subsection (b), is amended by adding at the end the following new subparagraph: “(D) Special rule for contributions of refunded amounts.—In the case of a beneficiary who receives a refund of any qualified higher education expenses from an eligible educational institution, subparagraph (A) shall not apply to that portion of any distribution for the taxable year which is recontributed to a qualified tuition program of which such individual is a beneficiary, but only to the extent such recontribution is made not later than 60 days after the date of such refund and does not exceed the refunded amount.” . (2) [26 U.S.C. 529 note] Effective Date.— (A) In general.—The amendment made by this subsection shall apply with respect to refunds of qualified higher education expenses after December 31, 2014. (B) Transition rule.—In the case of a refund of qualified higher education expenses received after December 31, 2014, and before the date of the enactment of this Act, section 529(c)(3)(D) of the Internal Revenue Code of 1986 (as added by this subsection) shall be applied by substituting “not later than 60 days after the date of the enactment of this subparagraph” for “not later than 60 days after the date of such refund”.