The Senate Finance Committee has unanimously approved a package of education-related tax changes including an expansion of "Education IRAs" or "Education Savings Accounts." Among other things, the bill would:

• Rename "Education IRAs" as "Education Savings Accounts;"
• Clarify that corporations and other entities (including tax-exempt) may make contributions to education savings accounts regardless of the entity’s income;
• Increase the income range over which the maximum contribution phases down;
• Expand the definition of "qualified tuition program" under §529 to include prepaid tuition programs established by private institutions;
• Expand the list of private activities for which tax-exempt bonds may be issued to include elementary and secondary public school facilities that are owned by private, for-profit corporations pursuant to public-private partnership agreements with a state or local educational agency.