Israeli-Palestinian Peace Enhancement Act of 2004

Israeli-Palestinian Peace Enhancement Act of 2004 - Calls for: (1) any new Palestinian authority to take security-related steps to implement a road map to resolve the Israeli-Palestinian conflict; and (2) the U.S. Administration to work toward the two states living in peace within secure and internationally recognized boundaries.

Expresses the sense of Congress that a Palestinian State should not be recognized until the President makes specified determinations, including that new leadership of a Palestinian governing entity, not compromised by terrorism, has been elected and has taken measures to counter terrorism and terrorist financing in the West Bank and Gaza.

Amends the Foreign Assistance Act of 1961 to allow U.S. assistance to be provided to a Palestinian state only: (1) during the effective period of a presidential certification that a Palestinian state exists that has been recognized by the United States and Israel and admitted to the United Nations, that a binding international peace agreement exists between Israel and the Palestinian state, and that the new Palestinian Government has been democratically elected, has renounced violence against Israel, has dismantled any group that conducts terrorism against Israel, has instituted clearly agreed upon limits on its military, and has no agreements that threaten Israel's security; and (2) if the President has provided advance notice to Congress.

Authorizes the President to provide assistance to a Palestinian State to improve the economy and living conditions of the Palestinians.

Directs the Secretary of State to coordinate a program of international economic assistance to the Palestinians.