section shall apply to contributions made during taxable years beginning after the date of the enactment of this Act. 3. Additional tax for distributions not used for qualified purposes (a) Qualified tuition programs (1) In general The first sentence of section 529(c)(6) of the Internal Revenue Code of 1986 is amended by striking the period at the end and inserting , except that the rate of such tax shall be determined under subparagraph (B) of this paragraph. . (2) Rate Paragraph (6) of section 529(c) of such Code, as amended by subsection (a), is amended— (A) by striking The tax and inserting (A) In general The tax , and (B) by adding at the end the following: (B) Rate For purposes of subparagraph (A), the tax rate determined under this subparagraph is the greater of— (i) 10 percent, and (ii) the highest rate of income tax applicable to such person under this title. . (b) Qualified ABLE programs (1) In general Subparagraph (A) of section 529A(c)(3) of the Internal Revenue Code of 1986 is amended by striking 10 percent and inserting the applicable percentage . (2) Applicable percentage Paragraph (3) of section 529A(c) of such Code is amended by adding at the end the following: (D) Applicable percentage For purposes of this paragraph, the term applicable percentage means the greater of— (i) 10 percent, and (ii) the highest rate of income tax applicable to such person under this title. . (c) Effective date The amendments made by this section shall apply to distributions made during taxable years beginning after the date of the enactment of this Act.