Amends the Internal Revenue Code to provide for tax-free expenditures from education savings accounts for elementary and secondary education expenses at home schools (currently the Code provides for tax-free treatment of expenses at public, private, and religious schools only).
Permits an exemption to the tax increase assessed to an individual for receiving a payment or distribution from an education individual retirement account which is includible in gross income if the payment or distribution is made on account of attendance of the account holder at a U.S. Military Academy. States that the exemption shall only apply to the extent that the amount of the payment or distribution does not exceed the costs of advanced education attributable to such attendance.