1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in inheritance tax, further providing for
11transfers not subject to tax.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 2111(c) of the act of March 4, 1971 
15(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
16by adding a subclause to read:

17Section 2111. Transfers Not Subject to Tax.--* * *

1(c) Transfers of property to or for the use of any of the
2following are exempt from inheritance tax:

3* * *

4(1.1) Any account in a qualified tuition program which has
5as its designated beneficiary a lineal descendant of the
6decedent. For the purposes of this subclause, the terms
7"qualified tuition program" and "designated beneficiary" shall
8have the same meanings as provided in section 303(a.7)(4).

9* * *

10Section 2. This act shall take effect in 60 days.