Allows a tax deduction for contributions to a qualified tuition program (known as 529 plans) up to $10,000 in a taxable year.

Section 529 of the Internal Revenue Code of 1986 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

In the case of an eligible individual, there shall be allowed as a deduction for the taxable year an amount equal to so much of the sum of the aggregate contributions made to a qualified tuition program as does not exceed $10,000.

For purposes of this subsection, the term eligible individual means an individual whose adjusted gross income for the taxable year does not exceed $200,000.

The amendments made by this section shall apply to amounts contributed after the date of the enactment of this Act.