similar to the rules of paragraphs (2) and (4) of section 408(e) shall apply to small business emergency savings accounts, and any amount treated as distributed under such rules shall be treated as not used to pay qualified disaster and public health emergency expenses. (f) Tax treatment of distributions (1) Amounts used for qualified disaster and public health emergency expenses Any amount paid or distributed out of a small business emergency savings account which is used exclusively to pay qualified disaster and public health emergency expenses of any account beneficiary shall not be includible in gross income. (2) Inclusion of amounts not used for qualified disaster and public health emergency expenses Any amount paid or distributed out of a small business emergency savings account which is not used exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary shall be included in the gross income of such beneficiary. (3) Excess contributions returned before due date of return (A) In general If any excess contribution is contributed for a taxable year to any small business emergency savings account of an eligible business, paragraph (2) shall not apply to distributions from the small business emergency savings accounts of such eligible business (to the extent such distributions do not exceed the aggregate excess contributions to all such accounts of such eligible business for such year) if— (i) such distribution is received by the eligible business on or before the last day prescribed by law (including extensions of time) for filing such eligible business’s return for such taxable year, and (ii) such distribution is accompanied by the amount of net income attributable to such excess contribution. Any net income described in clause (ii) shall be included in the gross income of the eligible business for the taxable year in which it is received. (B) Excess contribution For purposes of subparagraph (A), the term excess contribution means any contribution (other than a