| The current rules for the "529 Plans" specifically allow the distributions from the plan for Qualified Education Expenses. These so called "qualified education expenses" include the following:
1. expenses required for the designated beneficiary's enrollment in and attendance at an eligible school.
2. tuition and fees.
3. books, supplies and equipment.
4. academic tutoring.
5. room and board.
6. uniforms.
7. transportation.
8. expenses of a special needs beneficiary that are necessary for that person's enrollment or attendance at an eligible educational institution.
Thus, any distributions for any of the above qualified expenses will result in the non-taxability of the distributions. Thus, any gains from the earnings from the 529 Plans will not result in any tax liability.
The Transportation expenses are listed as Item number 7 and thus in your case this item would be a qualified item and thus there is no tax liability from any distributions from the 529 Plans used to pay for these expenses (assuming of course they were incurred for your child;s transportation resulting from travel to and from college). | 
