A bill to amend the Internal Revenue Code of 1986 to provide for the exemption from taxation of trusts established by an individual to provide care for a mentally or physically disabled dependent of such individual, to provide a deduction for contributions to such trusts, and for other purposes.

Amends the Internal Revenue Code to exempt from income taxes qualified child-care trusts established for the benefit of a disabled child. Allows a tax deduction for contributions to such trusts. Declares that amounts paid from such trusts shall not be taken into account for purposes of determining eligibility for other Federal assistance.