Section 1 Distributions from 529 plans for certain early education expenses
“(C) Special rules permitting limited treatment of qualified early education expenses
“(i) In general—Except as provided in clause (ii), qualified early education expenses shall be treated as qualified higher education expenses.
“(ii) Limitation—If the aggregate amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary for qualified early education expenses during any taxable year exceeds $10,000, such excess shall be treated for purposes of subsection (c)(3) as distributions in excess of the qualified higher education expenses of the beneficiary.
“(iii) Qualified early education expenses—For purposes of this subparagraph, the term qualified early education expenses means expenses for providing educational and other care to a child under age 5 (including childcare provided before and after school), as determined under the law of the State, pursuant to attendance at a school or facility licensed in the State for such purpose.”