; and (2) by inserting after subsection (o) the following new subsection: (p) Special rule for gifts to institutions of higher education (1) In general In the case of contributions by an individual to a institution of higher education (as defined in subsection section 4968(e))— (A) if the use of any such amounts are restricted by the taxpayer to a use other than scholarships, no deduction shall be allowed for so much of the aggregate of such restricted contributions for the taxable year as exceeds $5,000, (B) if the use of such amounts are unrestricted, the amount taken into account under this section for the taxable year shall include an allowance equal to 25 percent of the aggregate amount of such unrestricted contributions, and (C) if the use of any such amounts are restricted by the taxpayer to scholarships for working-family students (as defined in section 4968(e)(5)(B)), the amount taken into account under this section for the taxable year shall include an allowance equal to 50 percent of the aggregate amount of such scholarship restricted contributions. Any such allowance shall be taken into account under this section in the same manner as the contribution with respect to which such allowance was determined, except that the limitation with respect to an individual for any taxable year under subsection (b)(1)(A) shall be increased by the amount of any allowances allowed under paragraphs (B) or (C) for such taxable year. (2) Institution of higher education For purposes of this subsection, the term educational institution means an institution that is described in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ). . (c) Requirements for tax exempt status of qualified institutions of higher education Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (s) Additional requirements for institutions of higher education (1) Five-year plan An institution of higher education (as defined in section 170(p)(2)) shall not be treated as described