The age limitations in subparagraph (A)(ii), subparagraph (E) of section 530(b)(1), and paragraphs (5) and (6) of section 530(d), shall not apply to any designated beneficiary with special needs (as determined under regulations prescribed by the Secretary). (2) Qualified individual The term qualified individual means any individual whose principal residence (within the meaning of section 121) is located in an Economic Freedom Zone (as defined in section 1400V–6). (c) Deduction for contributions (1) In general There shall be allowed as a deduction under part VII of subchapter B of this chapter an amount equal to the aggregate amount of contributions made by the taxpayer to any Economic Freedom Zone educational savings account during the taxable year. (2) Limitation The amount of the deduction allowed under paragraph (1) for any taxpayer for any taxable year shall not exceed $40,000. (3) No deduction for rollover contributions No deduction shall be allowed under paragraph (1) for any rollover contribution described in section 530(d)(5). (d) Other rules (1) No income limit In the case of an Economic Freedom Zone educational savings account, subsection (c) of section 530 shall not apply. (2) Change in beneficiaries Notwithstanding paragraph (6) of section 530(b), a change in the beneficiary of an Economic Freedom Zone education savings account shall be treated as a distribution unless the new beneficiary is a qualified individual. . (b) Clerical amendment The table of sections for part VIII of subchapter F of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 530A. Economic Freedom Zone educational savings accounts. . VI Community assistance and rebuilding 601. Nonapplication of Davis-Bacon The wage rate requirements of subchapter IV of chapter 31 of title 40, United States Code (commonly referred to as the Davis-Bacon Act ), shall not apply with respect to any area designated as an Economic Freedom Zone under this Act. 602. Economic Freedom Zone charitable tax credit (a) In general