; and (D) if the participant provides income information more than 1 year after the ISA provider first assigned income to the income share agreement of the participant, may, but shall not be obligated to, update each prior instance in which assigned income was applied using the income information provided by the participant. (3) Records retention An ISA provider that assigns income to an income share agreement shall retain all applicable records relating to the method and data sources used to make such estimation for 3 years after the end of that income share agreement. II Tax treatment of income share agreements 201. Tax treatment (a) In general Subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following: XII Rules relating to qualified educational income sharing agreements Sec. 293. Rules related to qualified educational ISAs. 293. Rules related to qualified educational ISAs (a) In general For purposes of this title, an educational ISA shall not be treated as indebtedness. (b) Treatment of ISA recipient (1) Income exclusion In the case of an individual— (A) In general Gross income shall not include so much of the amount received under an educational ISA as does not exceed amounts paid or credited to such individual under such qualified educational ISA for costs and expenses described in section 2(13)(A)(ii)(II) of the ISA Student Protection Act of 2023 . (B) Difference in payments In any case in which the amount provided to the individual under the educational ISA exceeds the total payments made by the individual under the educational ISA, gross income shall not include the amount of such excess. (2) Certain amounts treated as interest on qualified education loans (A) In general For purposes of section 221, the amount described in subparagraph (B) with respect to any educational ISA shall be treated as interest paid by the taxpayer during the taxable year on a qualified education loan. (B) Amount described The amount described in this subparagraph with respect to