shall apply to distributions made after the date of the enactment of this Act. 3. Increase in limitation on distributions from 529 plans for elementary and secondary school expenses (a) In general Section 529(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking $10,000 in the flush matter at the end and inserting $20,000 . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2023. 4. Gift tax exclusions (a) Gift tax exclusion for contributions to 529 plans Section 2503(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Exclusion for contributions to 529 plans The dollar amount in effect under paragraph (1) with respect to gifts (to which such paragraph applies) made to any person during any calendar year shall be increased (not in excess of $20,000) by the amount of such gifts made during such calendar year to qualified tuition programs (as defined in section 529) with respect to which such person is the designated beneficiary. . (b) Effective date The amendments made by this section shall apply to gifts made after December 31, 2023. 5. Tax-exempt bonds restricted to States that implement school choice laws (a) In general Section 103 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (d) Restriction to States that implement school choice laws (1) In general Subsection (a) shall not apply to any State or local bond unless such bond is issued by a minimum school choice State or a political subdivision of such a State. (2) Partial exclusion with respect to certain States (A) In general In the case of any State or local bond issued by a minimum school choice State which does not meet the requirements of subparagraph (B) (or issued by any political subdivision of such a State), subsection (a) shall be applied by substituting 50 percent of the interest for interest . (B) Requirements A minimum school choice State meets the requirements of this