Achieving Choice in Education Act or the ACE ActThis bill expands the expenses that may be paid for with tax-free distributions from a qualified tuition program (known as a 529 plan) to include certain elementary, secondary, and homeschool education&nbsp;expenses and makes other changes related to 529 plans. The bill also limits the tax exclusion&nbsp;for interest on state or local bonds.Under current law, 529 plan distributions are excluded from gross income if they are used to pay for qualified higher education expenses, which includes up to $10,000 (per year and per beneficiary) for tuition at an elementary or secondary public, private, or religious school.The bill expands the expenses that may be paid for with tax-free 529 plan distributions to include homeschooling tuition and the following expenses related to elementary, secondary, and homeschool education:<ul><li>curriculum,</li><li>books,</li><li>instructional and online educational materials,</li><li>tutoring or educational classes outside the home,</li><li>testing fees,</li><li>fees for dual enrollment in a&nbsp;higher education institution, and</li><li>educational therapies for disabled&nbsp;students.</li></ul>The bill also increases the amount of tax-free 529 plan distributions that may be used to pay for elementary, secondary, and homeschool education expenses to $20,000.The bill increases the annual gift tax exclusion by $20,000 for contributions made to a 529 plan. (Under current law, up to $19,000 may be excluded from taxable gifts in 2025.)Finally, the bill limits the tax exclusion for interest on state or local bonds to bonds issued by&nbsp;states that meet minimum school choice requirements or political subdivisions of such states.