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 any educational ISA is, for any taxable year, the excess of— (i) amounts paid by the taxpayer to another person under the terms of a qualified educational ISA during such taxable year, over (ii) the excess of— (I) the aggregate amount received under such qualified educational ISA during such taxable year and all preceding taxable years, over (II) the aggregate amounts paid by the taxpayer to another person under the terms of such qualified educational ISA during all preceding taxable years. (3) Amounts treated as educational assistance For purposes of section 127(c)(1)(B), amounts paid by an employer in satisfaction of obligations of an employee under a qualified educational ISA shall be treated in the same manner as a payment of principal or interest on a qualified education loan. (c) Treatment of ISA funder Gross income shall not include so much of any amount received as a payment from a recipient under an educational ISA funded by the taxpayer as does not exceed the excess of— (1) the aggregate amount of financing provided by the taxpayer under such educational ISA, over (2) the aggregate amount of such payments taken into account under this subsection by the taxpayer for all preceding taxable years. (d) Definitions For purposes of this section— (1) Educational ISA The term educational ISA has the meaning given such term under section 2 of the ISA Student Protection Act of 2023 . (2) Qualified educational ISA The term qualified educational ISA means an educational ISA that is extended for expenses at an institution of higher education that participates in a student financial assistance program under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ). . (b) Conforming amendment The table of parts for subchapter B of chapter 1 of the Internal