religious school organized for the purpose of providing elementary or secondary education, or both, without regard to the religious nature, character, affiliation, mission, beliefs, or exercise of such school. (d) Adjustment for coverdell savings account distributions The amount of qualified education expenses taken into account under subsection (a) with respect to an individual for a taxable year shall be reduced (before the application of subsection (b)) by the sum of any amounts not includible in gross income under section 530(d)(2) for such taxable year by reason of the qualified elementary and secondary education expenses (as defined in section 530(b)(3)) of such individual for such taxable year. . (b) Technical amendments (1) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36D, after 36B, . (2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36C the following new item: Sec. 36D. Elementary and secondary education expenses. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.