; and (B) any law of the United States applicable only to the District of Columbia. I Tax Treatment of a Qualified ISA 101. Tax treatment of proceeds and payments of future income For purposes of the Internal Revenue Code of 1986: (1) Funding excluded from gross income In the case of an individual, gross income shall not include the amount of any income-share funding that is credited toward the tuition or other obligations of, or paid to or on behalf of, such individual under a Qualified ISA. (2) Difference in repayment not included as gross income In the case of a Qualified ISA under which the income-share funding exceeds the total income-share payments (in any period over the life of the contract), the individual’s gross income shall not include the amount of such excess. (3) Treatment of payments of future income The amount of any income-share payments under a Qualified ISA shall be treated— (A) first, with respect to so much of such amount as does not exceed the income-share funding under such Qualified ISA, as a recovery of investment (with a corresponding reduction in basis) in the contract