Child care expenses allowed as qualified higher education expenses for purposes of section 529

(a) In general Section 529(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Treatment of certain expenses associated with child care (A) In general Any reference in this subsection to the term qualified higher education expense shall include a reference to amounts paid for qualified child care of a designated beneficiary while such beneficiary is under 5 years of age. (B) Qualified child care For purposes of subparagraph (A), the term qualified child care means child care provided by a center-based child care provider, a family child care provider, or another provider of child care services for compensation and on a regular basis that— (i) is not an individual who is related to all children for whom child care services are provided, and (ii) is licensed, regulated, or registered under State law.. (b) Effective date The amendment made by this section shall apply to expenses paid or incurred after the date of the enactment of this Act.