after the date of the enactment of this Act. 4. Increased additional tax on grants not used for educational purposes Section 529(c)(6) of the Internal Revenue Code of 1986 is amended— (1) by striking The tax and inserting the following: (A) In general Except as provided in subparagraph (B), the tax , and (2) by adding at the end the following new subparagraph: (B) Increased tax on amounts attributable to certain grants (i) In general In the case of any distribution from a qualified contribution program that includes amounts attributable to a qualified grant— (I) section 530(d)(4) shall be applied separately to amounts attributable to qualified grants and to other amounts, and (II) in applying such section to amounts attributable to qualified grants, such section shall be applied by substituting 100 percent for 10 percent . (ii) Attribution rules For purposes of this subparagraph— (I) any earnings on contributions from a qualified grant shall not be treated as attributed to a qualified grant, and (II) distributions from a qualified tuition program described in clause (i) shall be treated as distributed first from amounts other than amounts attributable to a qualified grant and then from amounts attributable to a qualified grant. (iii) Qualified grant For purposes of this subparagraph, the term qualified grant means any grant under section 8701 of the Elementary and Secondary Education Act of 1965. .