I 

118TH CONGRESS 

1ST SESSION H. R. 976 

To amend the Internal Revenue Code of 1986 to make permanent certain 

provisions of the Tax Cuts and Jobs Act affecting individuals, families, 

and small businesses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 10, 2023 

Mr. BUCHANAN (for himself, Mr. PERRY, Mr. JOYCE of Ohio, Mr. HERN, Mr. 

KELLY of Pennsylvania, Ms. VAN DUYNE, Mrs. MILLER of West Virginia, 

Mr. ARRINGTON, Mr. SMITH of Nebraska, Mr. FERGUSON, Mr. 

FEENSTRA, Ms. TENNEY, Mr. KUSTOFF, Mr. AMODEI, Mr. MEUSER, Mr. 

CRAWFORD, Mrs. MILLER-MEEKS, Mr. RESCHENTHALER, Mr. GAETZ, 

Mrs. CAMMACK, Mr. STEIL, Mr. HIGGINS of Louisiana, Mr. MCCAUL, 

Mr. BALDERSON, Mr. MOOLENAAR, Mrs. WAGNER, Mr. GRAVES of Louisiana, Mr. TIMMONS, Mr. LATURNER, Mr. JOHNSON of Louisiana, Ms. 

SALAZAR, Mr. KELLY of Mississippi, Mr. WALTZ, Mr. MOONEY, Mr. 

BISHOP of North Carolina, Mr. WILLIAMS of New York, Mr. JOHNSON

of Ohio, Mrs. LUNA, Mr. FITZGERALD, Mr. OWENS, Mr. MOORE of Alabama, Mr. FINSTAD, Mr. CAREY, Mr. ALLEN, Mr. EMMER, Mr. MILLER

of Ohio, Mr. DONALDS, Mr. JACKSON of Texas, Mr. VAN DREW, Mr. 

MOYLAN, Mr. GIMENEZ, Mr. MORAN, Mr. BOST, Mr. AUSTIN SCOTT of 

Georgia, Mr. MANN, Mr. MOORE of Utah, Mr. MAST, Mrs. FISCHBACH, 

Mr. NUNN of Iowa, Mr. RUTHERFORD, Mr. EZELL, Mr. DUARTE, Mr. 

GOODEN of Texas, Mr. BUCSHON, Mr. OGLES, Ms. LEE of Florida, Mr. 

POSEY, Mr. ELLZEY, Mr. GUEST, Mr. ESTES, Mr. CARTER of Georgia, 

Mr. WILLIAMS of Texas, and Mrs. MILLER of Illinois) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

permanent certain provisions of the Tax Cuts and Jobs 


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Act affecting individuals, families, and small businesses, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘TCJA Permanency Act’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 

10 shall be considered to be made to a section or other provi11 sion of the Internal Revenue Code of 1986. 

12 (c) REFERENCES TO THE TAX CUTS AND JOBS

13 ACT.—Title I of Public Law 115–97 may be cited as the 

14 ‘‘Tax Cuts and Jobs Act’’. 

15 (d) TABLE OF CONTENTS.—The table of contents of 

16 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—INDIVIDUAL REFORM MADE PERMANENT 

Subtitle A—Rate Reform 

Sec. 101. Modification of rates. 

Subtitle B—Deduction for Qualified Business Income of Pass-Thru Entities 

Sec. 111. Deduction for qualified business income. 

Sec. 112. Limitation on losses for taxpayers other than corporations. 

Subtitle C—Tax Benefits for Families and Individuals 

Sec. 121. Increase in standard deduction. 

Sec. 122. Increase in and modification of child tax credit. 

Sec. 123. Increased limitation for certain charitable contributions. 


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Sec. 124. Increased contributions to ABLE accounts. 

Sec. 125. Rollovers to ABLE programs from 529 programs. 

Sec. 126. Treatment of certain individuals performing services in the Sinai Peninsula of Egypt. 

Subtitle D—Education 

Sec. 131. Treatment of student loan discharges. 

Sec. 132. 529 account funding for homeschool and additional elementary and 

secondary expenses. 

Subtitle E—Deductions and Exclusions 

Sec. 141. Repeal of deduction for personal exemptions. 

Sec. 142. Limitation on deduction for State and local, etc., taxes. 

Sec. 143. Limitation on deduction for qualified residence interest. 

Sec. 144. Modification of deduction for personal casualty losses. 

Sec. 145. Termination of miscellaneous itemized deductions. 

Sec. 146. Repeal of overall limitation on itemized deductions. 

Sec. 147. Termination of exclusion for qualified bicycle commuting reimbursement. 

Sec. 148. Qualified moving expense reimbursement exclusion limited to members of Armed Forces. 

Sec. 149. Deduction for moving expenses limited to members of Armed Forces. 

Sec. 150. Limitation on wagering losses. 

Subtitle F—Increase in Estate and Gift Tax Exemption 

Sec. 151. Increase in estate and gift tax exemption. 

TITLE II—INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM 

TAX MADE PERMANENT 

Sec. 201. Increased exemption for individuals. 

1 TITLE I—INDIVIDUAL REFORM 

2 MADE PERMANENT 

3 Subtitle A—Rate Reform 

4 SEC. 101. MODIFICATION OF RATES. 

5 (a) MARRIED INDIVIDUALS FILING JOINT RETURNS

6 AND SURVIVING SPOUSES.—Section 1(a) is amended by 

7 striking the table contained therein and inserting the fol8 lowing: 

‘‘If taxable income is: The tax is: 

Not over $19,050 ...................................... 10% of taxable income. 


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‘‘If taxable income is: The tax is: 

Over $19,050 but not over $77,400 .......... $1,905, plus 12% of the excess over 

$19,050. 

Over $77,400 but not over $165,000 ........ $8,907, plus 22% of the excess over 

$77,400. 

Over $165,000 but not over $315,000 ...... $28,179, plus 24% of the excess 

over $165,000. 

Over $315,000 but not over $400,000 ...... $64,179, plus 32% of the excess 

over $315,000. 

Over $400,000 but not over $600,000 ...... $91,379, plus 35% of the excess 

over $400,000. 

Over $600,000 ........................................... $161,379, plus 37% of the excess 

over $600,000.’’. 

1 (b) HEADS OF HOUSEHOLDS.—Section 1(b) is 

2 amended by striking the table contained therein and in3 serting the following: 

‘‘If taxable income is: The tax is: 

Not over $13,600 ...................................... 10% of taxable income. 

Over $13,600 but not over $51,800 .......... $1,360, plus 12% of the excess over 

$13,600. 

Over $51,800 but not over $82,500 .......... $5,944, plus 22% of the excess over 

$51,800. 

Over $82,500 but not over $157,500 ........ $12,698, plus 24% of the excess 

over $82,500. 

Over $157,500 but not over $200,000 ...... $30,698, plus 32% of the excess 

over $157,500. 

Over $200,000 but not over $500,000 ...... $44,298, plus 35% of the excess 

over $200,000. 

Over $500,000 ........................................... $149,298, plus 37% of the excess 

over $500,000.’’. 

4 (c) UNMARRIED INDIVIDUALS OTHER THAN SUR5 VIVING SPOUSES AND HEADS OF HOUSEHOLDS.—Section 

6 1(c) is amended by striking the table contained therein 

7 and inserting the following: 

‘‘If taxable income is: The tax is: 

Not over $9,525 ........................................ 10% of taxable income. 

Over $9,525 but not over $38,700 ............ $952.50, plus 12% of the excess 

over $9,525. 

Over $38,700 but not over $82,500 .......... $4,453.50, plus 22% of the excess 

over $38,700. 


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‘‘If taxable income is: The tax is: 

Over $82,500 but not over $157,500 ........ $14,089.50, plus 24% of the excess 

over $82,500. 

Over $157,500 but not over $200,000 ...... $32,089.50, plus 32% of the excess 

over $157,500. 

Over $200,000 but not over $500,000 ...... $45,689.50, plus 35% of the excess 

over $200,000. 

Over $500,000 ........................................... $150,689.50, plus 37% of the excess over $500,000.’’. 

1 (d) MARRIED INDIVIDUALS FILING SEPARATE RE2 TURNS.—Section 1(d) is amended by striking the table 

3 contained therein and inserting the following: 

‘‘If taxable income is: The tax is: 

Not over $9,525 ........................................ 10% of taxable income. 

Over $9,525 but not over $38,700 ............ $952.50, plus 12% of the excess 

over $9,525. 

Over $38,700 but not over $82,500 .......... $4,453.50, plus 22% of the excess 

over $38,700. 

Over $82,500 but not over $157,500 ........ $14,089.50, plus 24% of the excess 

over $82,500. 

Over $157,500 but not over $200,000 ...... $32,089.50, plus 32% of the excess 

over $157,500. 

Over $200,000 but not over $300,000 ...... $45,689.50, plus 35% of the excess 

over $200,000. 

Over $300,000 ........................................... $80,689.50, plus 37% of the excess 

over $300,000.’’. 

4 (e) ESTATES AND TRUSTS.—Section 1(e) is amended 

5 by striking the table contained therein and inserting the 

6 following: 

‘‘If taxable income is: The tax is: 

Not over $2,550 ........................................ 10% of taxable income. 

Over $2,550 but not over $9,150 .............. $255, plus 24% of the excess over 

$2,550. 

Over $9,150 but not over $12,500 ............ $1,839, plus 35% of the excess over 

$9,150. 

Over $12,500 ............................................. $3,011.50, plus 37% of the excess 

over $12,500.’’. 


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1 (f) INFLATION ADJUSTMENTS.—Section 1(f) is 

2 amended— 

3 (1) by amending paragraph (2)(A) to read as 

4 follows: 

5 ‘‘(A) by increasing the minimum and max6 imum dollar amounts for each bracket for 

7 which a tax is imposed under such table by the 

8 cost-of-living adjustment for such calendar year, 

9 determined under this subsection for such cal10 endar year by substituting ‘2017’ for ‘2016’ in 

11 paragraph (3)(A)(ii),’’, 

12 (2) by amending paragraph (7) to read as fol13 lows: 

14 ‘‘(7) ROUNDING.— 

15 ‘‘(A) IN GENERAL.—Except as provided in 

16 subparagraph (B), if any increase determined 

17 under paragraph (2)(A) is not a multiple of 

18 $25, such increase shall be rounded to the next 

19 lowest multiple of $25. 

20 ‘‘(B) JOINT RETURNS, ETC.—In the case 

21 of a table prescribed under subsection (a), sub22 paragraph (A) shall be applied by substituting 

23 ‘$50’ for ‘$25’ both places it appears.’’, 

24 (3) by striking paragraph (8), and 


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1 (4) in the heading, by striking ‘‘PHASEOUT OF

2 MARRIAGE PENALTY IN 15-PERCENT BRACKET; AD3 JUSTMENTS’’ and inserting ‘‘ADJUSTMENTS’’. 

4 (g) APPLICATION OF INCOME TAX BRACKETS TO

5 CAPITAL GAINS BRACKETS.—Section 1(h) is amended— 

6 (1) in paragraph (1)(B)(i), by striking ‘‘25 per7 cent’’ and inserting ‘‘22 percent’’, 

8 (2) in paragraph (1)(C)(ii)(I), by striking 

9 ‘‘which would (without regard to this paragraph) be 

10 taxed at a rate below 39.6 percent’’ and inserting 

11 ‘‘below the maximum 15-percent rate amount’’, and 

12 (3) by adding at the end the following new 

13 paragraphs: 

14 ‘‘(12) MAXIMUM 15-PERCENT RATE AMOUNT

15 DEFINED.—For purposes of this subsection, the 

16 maximum 15-percent rate amount shall be— 

17 ‘‘(A) in the case of a joint return or sur18 viving spouse (as defined in section 2(a)), 

$479,000 (1 19 ⁄2 such amount in the case of a 

20 married individual filing a separate return), 

21 ‘‘(B) in the case of an individual who is a 

22 head of household (as defined in section 2(b)), 

23 $452,400, 

24 ‘‘(C) in the case of any other individual 

25 (other than an estate or trust), $425,800, and 


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1 ‘‘(D) in the case of an estate or trust, 

2 $12,700. 

3 ‘‘(13) DETERMINATION OF 0 PERCENT RATE

4 BRACKET FOR ESTATES AND TRUSTS.—In the case 

5 of any estate or trust, paragraph (1)(B) shall be ap6 plied by treating the amount determined in clause (i) 

7 thereof as being equal to $2,600. 

8 ‘‘(14) INFLATION ADJUSTMENT.— 

9 ‘‘(A) IN GENERAL.—Each of the dollar 

10 amounts in paragraphs (12) and (13) shall be 

11 increased by an amount equal to— 

12 ‘‘(i) such dollar amount, multiplied by 

13 ‘‘(ii) the cost-of-living adjustment de14 termined under subsection (f)(3) for the 

15 calendar year in which the taxable year be16 gins, determined by substituting ‘calendar 

17 year 2017’ for ‘calendar year 2016’ in sub18 paragraph (A)(ii) thereof. 

19 ‘‘(B) ROUNDING.—If any increase under 

20 subparagraph (A) is not a multiple of $50, such 

21 increase shall be rounded to the next lowest 

22 multiple of $50.’’. 

23 (h) CONFORMING AMENDMENTS.— 

24 (1) Section 1 is amended by striking sub25 sections (i) and (j). 


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1 (2) Section 3402(q)(1) is amended by striking 

2 ‘‘third lowest’’ and inserting ‘‘fourth lowest’’. 

3 (i) APPLICATION OF SECTION 15.— 

4 (1) IN GENERAL.—Subsection (a) of section 15 

5 is amended by striking ‘‘If any rate of tax’’ and in6 serting ‘‘In the case of a corporation, if any rate of 

7 tax’’. 

8 (2) CONFORMING AMENDMENTS.— 

9 (A) Section 15 is amended by striking sub10 sections (d) and (f). 

11 (B) Section 6013(c) is amended by strik12 ing ‘‘sections 15, 443, and 7851(a)(1)(A)’’ and 

13 inserting ‘‘section 443’’. 

14 (C) The heading of section 15 is amended 

15 by inserting ‘‘ON CORPORATIONS’’ after ‘‘EF16 FECT OF CHANGES’’. 

17 (D) The table of sections for part III of 

18 subchapter A of chapter 1 is amended by strik19 ing the item relating to section 15 and inserting 

20 the following new item: 

‘‘Sec. 15. Effect of changes on corporations.’’. 

21 (j) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—The amendments made by 

23 this section shall apply to taxable years beginning 

24 after the date of the enactment of this Act. 


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1 (2) APPLICATION OF SECTION 15.—Section 15 

2 of the Internal Revenue Code of 1986 shall not 

3 apply to any change in a rate of tax by reason of— 

4 (A) section 1(j) of such Code (as in effect 

5 before its repeal by this section), or 

6 (B) any amendment made by this Act. 

7 Subtitle B—Deduction for Quali8 fied Business Income of Pass9 Thru Entities 

10 SEC. 111. DEDUCTION FOR QUALIFIED BUSINESS INCOME. 

11 (a) IN GENERAL.—Section 199A is amended by 

12 striking subsection (i). 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

16 SEC. 112. LIMITATION ON LOSSES FOR TAXPAYERS OTHER 

17 THAN CORPORATIONS. 

18 (a) IN GENERAL.—Section 461 is amended— 

19 (1) by amending subsection (l)(1) to read as 

20 follows: 

21 ‘‘(1) LIMITATION.—In the case of a taxpayer 

22 other than a corporation, any excess business loss of 

23 the taxpayer for the taxable year shall not be al24 lowed.’’, and 


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1 (2) by striking subsection (j) and redesignating 

2 subsections (k) and (l) (as amended) as subsections 

3 (j) and (k), respectively. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Section 58(a)(2)(A) is amended by striking 

6 ‘‘461(k)’’ and inserting ‘‘461(j)’’. 

7 (2) Section 461(i)(4) is amended by striking 

8 ‘‘subsection (k)’’ and inserting ‘‘subsection (j)’’. 

9 (3) Section 464(d)(2)(B)(iii) is amended by 

10 striking ‘‘section 461(k)(2)(E)’’ and inserting ‘‘sec11 tion 461(j)(2)(E)’’. 

12 (4) Subparagraphs (B) and (C) of section 

13 1256(e)(3) are each amended by striking ‘‘section 

14 461(k)(4)’’ and inserting ‘‘section 461(j)(4)’’. 

15 (5) Section 1258(d)(5)(C) is amended by strik16 ing ‘‘section 461(k)(4)’’ and inserting ‘‘section 

17 461(j)(4)’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 the date of the enactment of this Act. 

21 Subtitle C—Tax Benefits for 

22 Families and Individuals 

23 SEC. 121. INCREASE IN STANDARD DEDUCTION. 

24 (a) IN GENERAL.—Section 63(c)(2) is amended— 


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1 (1) by striking ‘‘$4,400’’ in subparagraph (B) 

2 and inserting ‘‘$18,000’’, and 

3 (2) by striking ‘‘$3,000’’ in subparagraph (C) 

4 and inserting ‘‘$12,000’’. 

5 (b) INFLATION ADJUSTMENT.—Section 63(c)(4) is 

6 amended to read as follows: 

7 ‘‘(4) ADJUSTMENTS FOR INFLATION.— 

8 ‘‘(A) IN GENERAL.—Each dollar amount in 

9 paragraph (2)(B), (2)(C), or (5) or subsection 

10 (f) shall be increased by an amount equal to— 

11 ‘‘(i) such dollar amount, multiplied by 

12 ‘‘(ii) the cost-of-living adjustment de13 termined under section 1(f)(3) for the cal14 endar year in which the taxable year be15 gins, determined by substituting for ‘2016’ 

16 in subparagraph (A)(ii) thereof— 

17 ‘‘(I) in the case of the dollar 

18 amounts contained in paragraph 

19 (2)(B) or (2)(C), ‘2017’, 

20 ‘‘(II) in the case of the dollar 

21 amounts contained in paragraph 

22 (5)(A) or subsection (f), ‘1987’, and 

23 ‘‘(III) in the case of the dollar 

24 amount contained in paragraph 

25 (5)(B), ‘1997’. 


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1 ‘‘(B) ROUNDING.—If any increase under 

2 subparagraph (A) is not a multiple of $50, such 

3 increase shall be rounded to the next lowest 

4 multiple of $50.’’. 

5 (c) CONFORMING AMENDMENT.—Section 63(c) is 

6 amended by striking paragraph (7). 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 the date of the enactment of this Act. 

10 SEC. 122. INCREASE IN AND MODIFICATION OF CHILD TAX 

11 CREDIT. 

12 (a) IN GENERAL.—Section 24 is amended by striking 

13 subsections (a), (b), and (c) and inserting the following 

14 new subsections: 

15 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al16 lowed as a credit against the tax imposed by this chapter 

17 for the taxable year an amount equal to the sum of— 

18 ‘‘(1) $2,000 for each qualifying child of the tax19 payer, and 

20 ‘‘(2) $500 for each qualifying dependent (other 

21 than a qualifying child) of the taxpayer. 

22 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN23 COME.—The amount of the credit allowable under sub24 section (a) shall be reduced (but not below zero) by $50 

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1 payer’s modified adjusted gross income exceeds $400,000 

2 in the case of a joint return ($200,000 in any other case). 

3 For purposes of the preceding sentence, the term ‘‘modi4 fied adjusted gross income’’ means adjusted gross income 

5 increased by any amount excluded from gross income 

6 under section 911, 931, or 933. 

7 ‘‘(c) QUALIFYING CHILD; QUALIFYING DEPEND8 ENT.—For purposes of this section— 

9 ‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 

10 child’ means any qualifying dependent of the tax11 payer— 

12 ‘‘(A) who is a qualifying child (as defined 

13 in section 7706(c)) of the taxpayer, 

14 ‘‘(B) who has not attained age 17 at the 

15 close of the calendar year in which the taxable 

16 year of the taxpayer begins, and 

17 ‘‘(C) whose name and social security num18 ber are included on the taxpayer’s return of tax 

19 for the taxable year. 

20 ‘‘(2) QUALIFYING DEPENDENT.—The term 

21 ‘qualifying dependent’ means any dependent of the 

22 taxpayer (as defined in section 7706 without regard 

23 to all that follows ‘resident of the United States’ in 

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1 cluded on the taxpayer’s return of tax for the tax2 able year. 

3 ‘‘(3) SOCIAL SECURITY NUMBER DEFINED.— 

4 For purposes of this subsection, the term ‘social se5 curity number’ means, with respect to a return of 

6 tax, a social security number issued to an individual 

7 by the Social Security Administration, but only if 

8 the social security number is issued— 

9 ‘‘(A) to a citizen of the United States or 

10 pursuant to subclause (I) (or that portion of 

11 subclause (III) that relates to subclause (I)) of 

12 section 205(c)(2)(B)(i) of the Social Security 

13 Act, and 

14 ‘‘(B) on or before the due date of filing 

15 such return.’’. 

16 (b) PORTION OF CREDIT REFUNDABLE.— 

17 (1) IN GENERAL.—Section 24(d)(1)(A) is 

18 amended to read as follows: 

19 ‘‘(A) the credit which would be allowed 

20 under this section determined— 

21 ‘‘(i) by substituting ‘$1,400’ for 

22 ‘$2,000’ in subsection (a)(1), 

23 ‘‘(ii) without regard to subsection 

24 (a)(2), and 


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1 ‘‘(iii) without regard to this subsection 

2 (other than this subparagraph) and the 

3 limitation under section 26(a), or’’. 

4 (2) MODIFICATION OF LIMITATION BASED ON

5 EARNED INCOME.—Section 24(d)(1)(B)(i) is amend6 ed by striking ‘‘$3,000’’ and inserting ‘‘$2,500’’. 

7 (3) INFLATION ADJUSTMENT.—Section 24(d) is 

8 amended by inserting after paragraph (3) the fol9 lowing new paragraph: 

10 ‘‘(4) ADJUSTMENT FOR INFLATION.— 

11 ‘‘(A) IN GENERAL.—The $1,400 amount in 

12 paragraph (1)(A)(i) shall be increased by an 

13 amount equal to— 

14 ‘‘(i) such dollar amount, multiplied by 

15 ‘‘(ii) the cost-of-living adjustment de16 termined under section 1(f)(3) for the cal17 endar year in which the taxable year be18 gins, determined by substituting ‘2017’ for 

19 ‘2016’ in subparagraph (A)(ii) thereof. 

20 ‘‘(B) ROUNDING.—If any increase under 

21 subparagraph (A) is not a multiple of $100, 

22 such increase shall be rounded to the next low23 est multiple of $100. 

24 ‘‘(C) LIMITATION.—The amount of any in25 crease under subparagraph (A) (after the appliVerDate Sep 11 2014 05:50 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H976.IH H976

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1 cation of subparagraph (B)) shall not exceed 

2 $600.’’. 

3 (4) CONFORMING AMENDMENTS.— 

4 (A) Section 24(e) is amended to read as 

5 follows: 

6 ‘‘(e) TAXPAYER IDENTIFICATION REQUIREMENT.— 

7 No credit shall be allowed under this section if the identi8 fying number of the taxpayer was issued after the due date 

9 for filing the return of tax for the taxable year.’’. 

10 (B) Section 24 is amended by striking sub11 section (h). 

12 (c) REPEAL OF CERTAIN LATER ENACTED PROVI13 SIONS.— 

14 (1) Section 24 is amended by striking sub15 sections (i), (j), and (k). 

16 (2) Chapter 77 is amended by striking section 

17 7527A (and by striking the item relating to section 

18 7527A in the table of sections for such chapter). 

19 (3) Section 26(b)(2) is amended by inserting 

20 ‘‘and’’ at the end of subparagraph (X), by striking 

21 ‘‘, and’’ at the end of subparagraph (Y) and insert22 ing a period, and by striking subparagraph (Z). 

23 (4) Section 3402(f)(1)(C) is amended by strik24 ing ‘‘section 24 (determined after application of sub25 section (j) thereof)’’ and inserting ‘‘section 24(a)’’. 


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1 (5) Section 6211(b)(4)(A) is amended— 

2 (A) by striking ‘‘24 by reason of sub3 sections (d) and (i)(1) thereof’’ and inserting 

4 ‘‘24(d)’’, and 

5 (B) by striking ‘‘6428B, and 7527A’’ and 

6 inserting ‘‘and 6428B’’. 

7 (6) Paragraph (2) of section 1324(b) of title 

8 31, United States Code, is amended by striking 

9 ‘‘6431, or 7527A’’ and inserting ‘‘or 6431’’. 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 the date of the enactment of this Act. 

13 SEC. 123. INCREASED LIMITATION FOR CERTAIN CHARI14 TABLE CONTRIBUTIONS. 

15 (a) IN GENERAL.—Section 170(b)(1)(G) is amended 

16 to read as follows: 

17 ‘‘(G) CASH CONTRIBUTIONS.— 

18 ‘‘(i) IN GENERAL.—Any contribution 

19 of cash to an organization described in 

20 subparagraph (A) shall be allowed to the 

21 extent that the aggregate of such contribu22 tions does not exceed 60 percent of the 

23 taxpayer’s contribution base for the taxable 

24 year, reduced by the aggregate amount of 


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1 contributions allowable under subpara2 graph (A) for such taxpayer for such year. 

3 ‘‘(ii) CARRYOVER.—If the aggregate 

4 amount of contributions described in clause 

5 (i) exceeds the limitation of clause (i), such 

6 excess shall be treated (in a manner con7 sistent with the rules of subsection (d)(1)) 

8 as a charitable contribution to which clause 

9 (i) applies in each of the 5 succeeding 

10 years in order of time.’’. 

11 (b) COORDINATION WITH LIMITATIONS ON OTHER

12 CONTRIBUTIONS.— 

13 (1) COORDINATION WITH 50 PERCENT LIMITA14 TION.—Section 170(b)(1)(A) is amended by striking 

15 ‘‘Any charitable contribution’’ and inserting ‘‘Any 

16 charitable contribution other than a contribution de17 scribed in subparagraph (G)’’. 

18 (2) COORDINATION WITH 30 PERCENT LIMITA19 TION.—Section 170(b)(1)(B) is amended— 

20 (A) in the matter preceding clause (i), by 

21 striking ‘‘to which subparagraph (A) applies’’ 

22 and inserting ‘‘to which subparagraph (A) or 

23 (G) applies’’, 

24 (B) by amending clause (ii) to read as fol25 lows: 


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1 ‘‘(ii) the excess of— 

2 ‘‘(I) the sum of 50 percent of the 

3 taxpayer’s contribution base for the 

4 taxable year, plus so much of the 

5 amount of charitable contributions al6 lowable under subparagraph (G) as 

7 does not exceed 10 percent of such 

8 contribution base, over 

9 ‘‘(II) the amount of charitable 

10 contributions allowable under sub11 paragraphs (A) and (G) (determined 

12 without regard to subparagraph 

13 (C)).’’, and 

14 (C) in the matter following clause (ii), by 

15 striking ‘‘(to which subparagraph (A) does not 

16 apply)’’ and inserting ‘‘(to which neither sub17 paragraph (A) nor (G) applies)’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to contributions made in taxable 

20 years beginning after the date of the enactment of this 

21 Act. 

22 SEC. 124. INCREASED CONTRIBUTIONS TO ABLE AC23 COUNTS. 

24 (a) INCREASE IN LIMITATION FOR CONTRIBUTIONS

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1 ITIES.—Section 529A(b)(2)(B)(ii) is amended by striking 

2 ‘‘before January 1, 2026’’. 

3 (b) ALLOWANCE OF SAVER’S CREDIT FOR ABLE 

4 CONTRIBUTIONS BY ACCOUNT HOLDER.—Section 

5 25B(d)(1)(D) is amended by striking ‘‘made before Janu6 ary 1, 2026,’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 the date of the enactment of this Act. 

10 SEC. 125. ROLLOVERS TO ABLE PROGRAMS FROM 529 PRO11 GRAMS. 

12 (a) IN GENERAL.—Section 529(c)(3)(C)(i)(III) is 

13 amended by striking ‘‘before January 1, 2026,’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to distributions after the date of 

16 the enactment of this Act. 

17 SEC. 126. TREATMENT OF CERTAIN INDIVIDUALS PER18 FORMING SERVICES IN THE SINAI PENIN19 SULA OF EGYPT. 

20 (a) IN GENERAL.—Section 112(c)(2) is amended— 

21 (1) by striking ‘‘means any area’’ and inserting 

22 ‘‘means— 

23 ‘‘(A) any area’’, and 

24 (2) by striking the period at the end and insert25 ing ‘‘, and 


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1 ‘‘(B) the Sinai Peninsula of Egypt.’’. 

2 (b) PERIOD OF TREATMENT.—Section 112(c)(3) is 

3 amended— 

4 (1) by striking ‘‘only if performed’’ and insert5 ing ‘‘only if— 

6 ‘‘(A) in the case of an area described in 

7 paragraph (2)(A), such service is performed’’, 

8 and 

9 (2) by striking the period at the end and insert10 ing ‘‘, and 

11 ‘‘(B) in the case of the area described in 

12 paragraph (2)(B), such service is performed 

13 during any period with respect to which one or 

14 more members of the Armed Forces of the 

15 United States are entitled to special pay under 

16 section 310 of title 37, United States Code (re17 lating to special pay; duty subject to hostile fire 

18 or imminent danger), for service performed in 

19 such area.’’. 

20 (c) CONFORMING AMENDMENT.—The Tax Cuts and 

21 Jobs Act is amended by striking section 11026. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply with respect to services performed 

24 on or after the date of the enactment of this Act. 


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1 Subtitle D—Education 

2 SEC. 131. TREATMENT OF STUDENT LOAN DISCHARGES. 

3 (a) SUNSET OF SPECIAL RULE FOR DISCHARGES OF

4 CERTAIN LOANS.—Section 108(f)(5) is amended— 

5 (1) in the heading, by striking ‘‘2025’’ and in6 serting ‘‘2024’’, and 

7 (2) by striking ‘‘January 1, 2026’’ and insert8 ing ‘‘January 1, 2025’’. 

9 (b) REINSTATEMENT OF RULE FOR DISCHARGES ON

10 ACCOUNT OF DEATH OR DISABILITY AFTER 2024.—Sec11 tion 108(f) is amended by adding at the end the following 

12 new paragraph: 

13 ‘‘(6) DISCHARGES ON ACCOUNT OF DEATH OR

14 DISABILITY AFTER 2024.— 

15 ‘‘(A) IN GENERAL.—In the case of an indi16 vidual, gross income does not include any 

17 amount which (but for this subsection) would 

18 be includible in gross income for such taxable 

19 year by reasons of the discharge (in whole or in 

20 part) of any loan described in subparagraph 

21 (B) after December 31, 2024, if such discharge 

22 was— 

23 ‘‘(i) pursuant to subsection (a) or (d) 

24 of section 437 of the Higher Education 

25 Act of 1965 or the parallel benefit under 


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1 part D of title IV of such Act (relating to 

2 the repayment of loan liability), 

3 ‘‘(ii) pursuant to section 464(c)(1)(F) 

4 of such Act, or 

5 ‘‘(iii) otherwise discharged on account 

6 of the death or total and permanent dis7 ability of the student. 

8 ‘‘(B) LOANS DESCRIBED.—A loan is de9 scribed in this subparagraph if such loan is— 

10 ‘‘(i) a student loan (as defined in 

11 paragraph (2)), or 

12 ‘‘(ii) a private education loan (as de13 fined in section 140(7) of the Consumer 

14 Credit Protection Act (15 U.S.C. 

15 1650(7))).’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to discharges of indebtedness after 

18 December 31, 2024. 

19 SEC. 132. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND 

20 ADDITIONAL ELEMENTARY AND SECONDARY 

21 EXPENSES. 

22 (a) IN GENERAL.—Section 529(c)(7) of the Internal 

23 Revenue Code of 1986 is amended to read as follows: 

24 ‘‘(7) TREATMENT OF ELEMENTARY AND SEC25 ONDARY TUITION.—Any reference in this section to 


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1 the term ‘qualified higher education expense’ shall 

2 include a reference to the following expenses in con3 nection with enrollment or attendance at, or for stu4 dents enrolled at or attending, an elementary or sec5 ondary public, private, or religious school: 

6 ‘‘(A) Tuition. 

7 ‘‘(B) Curriculum and curricular materials. 

8 ‘‘(C) Books or other instructional mate9 rials. 

10 ‘‘(D) Online educational materials. 

11 ‘‘(E) Tuition for tutoring or educational 

12 classes outside of the home, including at a tu13 toring facility, but only if the tutor or instruc14 tor is not related to the student and— 

15 ‘‘(i) is licensed as a teacher in any 

16 State, 

17 ‘‘(ii) has taught at an eligible edu18 cational institution, or 

19 ‘‘(iii) is a subject matter expert in the 

20 relevant subject. 

21 ‘‘(F) Fees for a nationally standardized 

22 norm-referenced achievement test, an advanced 

23 placement examination, or any examinations re24 lated to college or university admission. 


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1 ‘‘(G) Fees for dual enrollment in an insti2 tution of higher education. 

3 ‘‘(H) Educational therapies for students 

4 with disabilities provided by a licensed or ac5 credited practitioner or provider, including oc6 cupational, behavioral, physical, and speech-lan7 guage therapies. 

8 Such term shall include expenses for the purposes 

9 described in subparagraphs (A) through (H) in con10 nection with a homeschool (whether treated as a 

11 homeschool or a private school for purposes of appli12 cable State law).’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to distributions made after the 

15 date of the enactment of this Act. 

16 Subtitle E—Deductions and 

17 Exclusions 

18 SEC. 141. REPEAL OF DEDUCTION FOR PERSONAL EXEMP19 TIONS. 

20 (a) IN GENERAL.—Part V of subchapter B of chapter 

21 1 is hereby repealed. 

22 (b) DEFINITION OF DEPENDENT RETAINED.—Sec23 tion 152, prior to the repeal made by subsection (a), is 

24 hereby redesignated as section 7706 and moved to the end 

25 of chapter 79. 


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1 (c) APPLICATION TO TRUSTS AND ESTATES.—Sec2 tion 642(b) is amended— 

3 (1) in paragraph (2)(C)— 

4 (A) in clause (i), by striking ‘‘the exemp5 tion amount under section 151(d)’’ and all that 

6 follows through the period at the end and in7 serting ‘‘the dollar amount in effect under sec8 tion 7706(d)(1)(B).’’, and 

9 (B) by striking clause (iii), 

10 (2) by striking paragraph (3), and 

11 (3) by striking ‘‘DEDUCTION FOR PERSONAL

12 EXEMPTION’’ in the heading thereof and inserting 

13 ‘‘BASIC DEDUCTION’’. 

14 (d) APPLICATION TO NONRESIDENT ALIENS.—Sec15 tion 873(b) is amended by striking paragraph (3). 

16 (e) MODIFICATION OF RETURN REQUIREMENT.— 

17 (1) IN GENERAL.—Section 6012(a)(1) is 

18 amended to read as follows: 

19 ‘‘(1) Every individual who has gross income for 

20 the taxable year, except that a return shall not be 

21 required of— 

22 ‘‘(A) an individual who is not married (de23 termined by applying section 7703) and who 

24 has gross income for the taxable year which 

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1 ble to such individual for such taxable year 

2 under section 63, or 

3 ‘‘(B) an individual entitled to make a joint 

4 return if— 

5 ‘‘(i) the gross income of such indi6 vidual, when combined with the gross in7 come of such individual’s spouse, for the 

8 taxable year does not exceed the standard 

9 deduction which would be applicable for 

10 such taxable year under section 63 if such 

11 individual and such individual’s spouse 

12 made a joint return, 

13 ‘‘(ii) such individual’s spouse does not 

14 make a separate return, and 

15 ‘‘(iii) neither such individual nor such 

16 individual’s spouse is an individual de17 scribed in section 63(c)(4) who has income 

18 (other than earned income) in excess of the 

19 amount in effect under section 

20 63(c)(4)(A).’’. 

21 (2) BANKRUPTCY ESTATES.—Section 

22 6012(a)(8) is amended by striking ‘‘the sum of the 

23 exemption amount plus the basic standard deduction 

24 under section 63(c)(2)(C)’’ and inserting ‘‘the stand25 ard deduction in effect under section 63(c)(1)(B)’’. 


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1 (3) CONFORMING AMENDMENT.—Section 6012 

2 is amended by striking subsection (f). 

3 (f) CONFORMING AMENDMENTS.— 

4 (1) Section 1(g)(5)(A) is amended by striking 

5 ‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 

6 (2) Section 2(a)(1)(B) is amended— 

7 (A) by striking ‘‘section 152’’ and insert8 ing ‘‘section 7706’’, and 

9 (B) by striking ‘‘with respect to whom the 

10 taxpayer is entitled to a deduction for the tax11 able year under section 151’’ and inserting 

12 ‘‘whose TIN is included on the taxpayer’s re13 turn of tax for the taxable year’’. 

14 (3) Section 2(b)(1)(A)(i) is amended— 

15 (A) in the matter preceding subclause 

16 (I)— 

17 (i) by striking ‘‘section 152(c)’’ and 

18 inserting ‘‘section 7706(c)’’, and 

19 (ii) by striking ‘‘section 152(e)’’ and 

20 inserting ‘‘section 7706(e)’’, and 

21 (B) in subclause (II), by striking ‘‘section 

22 152(b)(2) or 152(b)(3)’’ and inserting ‘‘section 

23 7706(b)(2) or 7706(b)(3)’’. 

24 (4) Section 2(b)(1)(A)(ii) is amended by strik25 ing ‘‘if the taxpayer is entitled to a deduction for the 


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1 taxable year for such person under section 151’’ and 

2 inserting ‘‘if the taxpayer included such person’s 

3 TIN on the return of tax for the taxable year’’. 

4 (5) Section 2(b)(1)(B) is amended by striking 

5 ‘‘if the taxpayer is entitled to a deduction for the 

6 taxable year for such father or mother under section 

7 151’’ and inserting ‘‘if such father or mother is a 

8 dependent of the taxpayer and the taxpayer included 

9 such father or mother’s TIN on the return of tax for 

10 the taxable year’’. 

11 (6) Section 2(b)(3)(B) is amended— 

12 (A) by striking ‘‘section 152(d)(2)’’ in 

13 clause (i) and inserting ‘‘section 7706(d)(2)’’, 

14 and 

15 (B) by striking ‘‘section 152(d)’’ in clause 

16 (ii) and inserting ‘‘section 7706(d)’’. 

17 (7) Section 21(b)(1)(A) is amended by striking 

18 ‘‘section 152(a)(1)’’ and inserting ‘‘section 

19 7706(a)(1)’’. 

20 (8) Section 21(b)(1)(B) is amended by striking 

21 ‘‘section 152’’ and inserting ‘‘section 7706’’. 

22 (9) Section 21(e)(5)(A) is amended by striking 

23 ‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 

24 (10) Section 21(e)(5) is amended by striking 

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1 paragraph (B) and inserting ‘‘section 

2 7706(e)(4)(A)’’. 

3 (11) Section 21(e)(6)(A) is amended to read as 

4 follows: 

5 ‘‘(A) who is a dependent of either the tax6 payer or the taxpayer’s spouse for the taxable 

7 year, or’’. 

8 (12) Section 21(e)(6)(B) is amended by striking 

9 ‘‘section 152(f)(1)’’ and inserting ‘‘section 

10 7706(f)(1)’’. 

11 (13) Section 25A(f)(1)(A)(iii) is amended by 

12 striking ‘‘with respect to whom the taxpayer is al13 lowed a deduction under section 151’’. 

14 (14) Section 25A(g)(3) is amended by striking 

15 ‘‘If a deduction under section 151 with respect to an 

16 individual is allowed to another taxpayer’’ and in17 serting ‘‘If an individual is a dependent of another 

18 taxpayer’’. 

19 (15) Section 25B(c)(2)(A) is amended by strik20 ing ‘‘any individual with respect to whom a deduc21 tion under section 151 is allowed to another tax22 payer’’ and inserting ‘‘any individual who is a de23 pendent of another taxpayer’’. 


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1 (16) Section 25B(c)(2)(B) is amended by strik2 ing ‘‘section 152(f)(2)’’ and inserting ‘‘section 

3 7706(f)(2)’’. 

4 (17) Section 32(c)(1)(A)(ii)(III) is amended by 

5 striking ‘‘a dependent for whom a deduction is al6 lowable under section 151 to another taxpayer’’ and 

7 inserting ‘‘a dependent of another taxpayer’’. 

8 (18) Section 32(c)(3) is amended— 

9 (A) in subparagraph (A)— 

10 (i) by striking ‘‘section 152(c)’’ and 

11 inserting ‘‘section 7706(c)’’, and 

12 (ii) by striking ‘‘section 152(e)’’ and 

13 inserting ‘‘section 7706(e)’’, 

14 (B) in subparagraph (B), by striking ‘‘un15 less the taxpayer is entitled to a deduction 

16 under section 151 for such taxable year with re17 spect to such individual (or would be so entitled 

18 but for section 152(e)’’ and inserting ‘‘if such 

19 individual is not treated as a dependent of such 

20 taxpayer for such taxable year by reason of sec21 tion 7706(b)(2) (determined without regard to 

22 section 7706(e))’’, and 

23 (C) in subparagraph (C), by striking ‘‘sec24 tion 152(c)(1)(B)’’ and inserting ‘‘section 

25 7706(c)(1)(B)’’. 


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1 (19) Section 35(d)(1)(B) is amended by strik2 ing ‘‘with respect to whom the taxpayer is entitled 

3 to a deduction under section 151(c)’’ and inserting 

4 ‘‘if the taxpayer included such person’s TIN on the 

5 return of tax for the taxable year’’. 

6 (20) Section 35(d)(2) is amended— 

7 (A) by striking ‘‘section 152(e)’’ and in8 serting ‘‘section 7706(e)’’, and 

9 (B) by striking ‘‘section 152(e)(4)(A)’’ and 

10 inserting ‘‘section 7706(e)(4)(A)’’. 

11 (21) Section 36B(b)(2)(A) is amended by strik12 ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 

13 (22) Section 36B(b)(3)(B) is amended— 

14 (A) in clause (ii)(I)(aa), by striking ‘‘who 

15 is not allowed a deduction under section 151 for 

16 the taxable year with respect to a dependent’’ 

17 and inserting ‘‘who does not have any depend18 ents for the taxable year’’, and 

19 (B) in the flush matter at the end, by 

20 striking ‘‘unless a deduction is allowed under 

21 section 151 for the taxable year with respect to 

22 a dependent’’ and inserting ‘‘unless the tax23 payer has a dependent for the taxable year (and 

24 the taxpayer included such dependent’s TIN on 

25 the return of tax for the taxable year)’’. 


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1 (23) Section 36B(c)(1)(D) is amended by strik2 ing ‘‘with respect to whom a deduction under section 

3 151 is allowable to another taxpayer’’ and inserting 

4 ‘‘who is a dependent of another taxpayer’’. 

5 (24) Section 36B(d)(1) is amended by striking 

6 ‘‘equal to the number of individuals for whom the 

7 taxpayer is allowed a deduction under section 151 

8 (relating to allowance of deduction for personal ex9 emptions) for the taxable year’’ and inserting ‘‘the 

10 sum of 1 (2 in the case of a joint return) plus the 

11 number of individuals who are dependents of the 

12 taxpayer for the taxable year’’. 

13 (25) Section 36B(e)(1) is amended by striking 

14 ‘‘1 or more individuals for whom a taxpayer is al15 lowed a deduction under section 151 (relating to al16 lowance of deduction for personal exemptions) for 

17 the taxable year (including the taxpayer or his 

18 spouse)’’ and inserting ‘‘1 or more of the taxpayer, 

19 the taxpayer’s spouse, or any dependent of the tax20 payer’’. 

21 (26) Section 42(i)(3)(D)(ii)(I) is amended by 

22 striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 

23 (27) Section 45R(e)(1)(A)(iv) is amended— 

24 (A) by striking ‘‘section 152(d)(2)’’ and in25 serting ‘‘section 7706(d)(2)’’, and 


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1 (B) by striking ‘‘section 152(d)(2)(H)’’ 

2 and inserting ‘‘section 7706(d)(2)(H)’’. 

3 (28) Section 51(i)(1) is amended— 

4 (A) by striking ‘‘section 152(d)(2)’’ in sub5 paragraphs (A) and (B) and inserting ‘‘section 

6 7706(d)(2)’’, and 

7 (B) by striking ‘‘section 152(d)(2)(H)’’ in 

8 subparagraph (C) and inserting ‘‘section 

9 7706(d)(2)(H)’’. 

10 (29) Section 56(b)(1)(D) is amended— 

11 (A) by striking ‘‘, the deduction for per12 sonal exemptions under section 151,’’, and 

13 (B) by striking ‘‘AND DEDUCTION FOR

14 PERSONAL EXEMPTIONS’’ in the heading there15 of. 

16 (30) Section 63(b) is amended by adding ‘‘and’’ 

17 at the end of paragraph (1), by striking paragraph 

18 (2), and by redesignating paragraph (3) as para19 graph (2). 

20 (31) Section 63(c), as amended by section 121, 

21 is amended by striking paragraph (3) and redesig22 nating paragraphs (4), (5), and (6) as paragraphs 

23 (3), (4), and (5), respectively. 

24 (32) Section 63(c)(4), as redesignated, is 

25 amended— 


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1 (A) by striking ‘‘with respect to whom a 

2 deduction under section 151 is allowable to’’ 

3 and inserting ‘‘who is a dependent of’’, and 

4 (B) by striking ‘‘CERTAIN’’ in the heading 

5 thereof. 

6 (33) Section 63(f) is amended by striking all 

7 that precedes paragraph (3) and inserting the fol8 lowing: 

9 ‘‘(f) ADDITIONAL STANDARD DEDUCTION FOR THE

10 AGED AND BLIND.— 

11 ‘‘(1) IN GENERAL.—For purposes of subsection 

12 (c)(1), the additional standard deduction is, with re13 spect to a taxpayer for a taxable year, the sum of— 

14 ‘‘(A) $600 if the taxpayer has attained age 

15 65 before the close of such taxable year, and 

16 ‘‘(B) $600 if the taxpayer is blind as of 

17 the close of such taxable year. 

18 ‘‘(2) APPLICATION TO MARRIED INDIVID19 UALS.— 

20 ‘‘(A) JOINT RETURNS.—In the case of a 

21 joint return, paragraph (1) shall be applied sep22 arately with respect to each spouse. 

23 ‘‘(B) CERTAIN MARRIED INDIVIDUALS FIL24 ING SEPARATELY.—In the case of a married in25 dividual filing a separate return, if— 


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1 ‘‘(i) the spouse of such individual has 

2 no gross income for the calendar year in 

3 which the taxable year of such individual 

4 begins, 

5 ‘‘(ii) such spouse is not the dependent 

6 of another taxpayer for a taxable year be7 ginning in the calendar year in which such 

8 individual’s taxable year begins, and 

9 ‘‘(iii) the TIN of such spouse is in10 cluded on such individual’s return of tax 

11 for the taxable year, 

12 the additional standard deduction shall be de13 termined in the same manner as if such indi14 vidual and such individual’s spouse filed a joint 

15 return.’’. 

16 (34) Section 63(f)(3) is amended by striking 

17 ‘‘paragraphs (1) and (2)’’ and inserting ‘‘subpara18 graphs (A) and (B) of paragraph (1)’’. 

19 (35) Section 72(t)(2)(D)(i)(III) is amended by 

20 striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 

21 (36) Section 72(t)(7)(A)(iii) is amended by 

22 striking ‘‘section 152(f)(1)’’ and inserting ‘‘section 

23 7706(f)(1)’’. 

24 (37) Section 105(b) is amended— 


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1 (A) by striking ‘‘as defined in section 152’’ 

2 and inserting ‘‘as defined in section 7706’’, 

3 (B) by striking ‘‘section 152(f)(1)’’ and in4 serting ‘‘section 7706(f)(1)’’, and 

5 (C) by striking ‘‘section 152(e)’’ and in6 serting ‘‘section 7706(e)’’. 

7 (38) Section 105(c)(1) is amended by striking 

8 ‘‘section 152’’ and inserting ‘‘section 7706’’. 

9 (39) Section 125(e)(1)(D) is amended by strik10 ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 

11 (40) Section 129(c)(1) is amended to read as 

12 follows: 

13 ‘‘(1) who is a dependent of such employee or of 

14 such employee’s spouse, or’’. 

15 (41) Section 129(c)(2) is amended by striking 

16 ‘‘section 152(f)(1)’’ and inserting ‘‘section 

17 7706(f)(1)’’. 

18 (42) Section 132(h)(2)(B) is amended— 

19 (A) by striking ‘‘section 152(f)(1)’’ and in20 serting ‘‘section 7706(f)(1)’’, and 

21 (B) by striking ‘‘section 152(e)’’ and in22 serting ‘‘section 7706(e)’’. 

23 (43) Section 139D(c)(5) is amended by striking 

24 ‘‘section 152’’ and inserting ‘‘section 7706’’. 


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1 (44) Section 139E(c)(2) is amended by striking 

2 ‘‘section 152’’ and inserting ‘‘section 7706’’. 

3 (45) Section 162(l)(1)(D) is amended by strik4 ing ‘‘section 152(f)(1)’’ and inserting ‘‘section 

5 7706(f)(1)’’. 

6 (46) Section 170(g)(1) is amended by striking 

7 ‘‘section 152’’ and inserting ‘‘section 7706’’. 

8 (47) Section 170(g)(3) is amended by striking 

9 ‘‘section 152(d)(2)’’ and inserting ‘‘section 

10 7706(d)(2)’’. 

11 (48) Section 172(d) is amended by striking 

12 paragraph (3). 

13 (49) Section 213(a) is amended by striking 

14 ‘‘section 152’’ and inserting ‘‘section 7706’’. 

15 (50) Section 213(d)(5) is amended by striking 

16 ‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 

17 (51) Section 213(d)(11) is amended by striking 

18 ‘‘section 152(d)(2)’’ in the matter following subpara19 graph (B) and inserting ‘‘section 7706(d)(2)’’. 

20 (52) Section 220(b)(6) is amended by striking 

21 ‘‘with respect to whom a deduction under section 

22 151 is allowable to’’ and inserting ‘‘who is a depend23 ent of’’. 

24 (53) Section 220(d)(2)(A) is amended by strik25 ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 


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1 (54) Section 221(d)(4) is amended by striking 

2 ‘‘section 152’’ and inserting ‘‘section 7706’’. 

3 (55) Section 223(b)(6) is amended by striking 

4 ‘‘with respect to whom a deduction under section 

5 151 is allowable to’’ and inserting ‘‘who is a depend6 ent of’’. 

7 (56) Section 223(d)(2)(A) is amended by strik8 ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 

9 (57) Section 401(h) is amended by striking 

10 ‘‘section 152(f)(1)’’ in the last sentence and insert11 ing ‘‘section 7706(f)(1)’’. 

12 (58) Section 402(l)(4)(D) is amended by strik13 ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 

14 (59) Section 409A(a)(2)(B)(ii)(I) is amended 

15 by striking ‘‘section 152(a)’’ and inserting ‘‘section 

16 7706(a)’’. 

17 (60) Section 441(f)(2)(B)(iii) is amended by 

18 striking ‘‘, but only the adjusted amount of the de19 ductions for personal exemptions as described in sec20 tion 443(c)’’. 

21 (61) Section 443 is amended— 

22 (A) in subsection (b)— 

23 (i) by striking paragraph (3), and 


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1 (ii) by striking ‘‘modified taxable in2 come’’ and inserting ‘‘taxable income’’ each 

3 place such term appears, 

4 (B) by striking subsection (c), and 

5 (C) by redesignating subsections (d) and 

6 (e) as subsections (c) and (d), respectively. 

7 (62) Section 501(c)(9) is amended by striking 

8 ‘‘section 152(f)(1)’’ and inserting ‘‘section 

9 7706(f)(1)’’. 

10 (63) Section 529(e)(2)(B) is amended by strik11 ing ‘‘section 152(d)(2)’’ and inserting ‘‘section 

12 7706(d)(2)’’. 

13 (64) Section 529A(e)(4) is amended— 

14 (A) by striking ‘‘section 152(d)(2)(B)’’ and 

15 inserting ‘‘section 7706(d)(2)(B)’’, and 

16 (B) by striking ‘‘section 152(f)(1)(B)’’ and 

17 inserting ‘‘section 7706(f)(1)(B)’’. 

18 (65) Section 643(a)(2) is amended— 

19 (A) by striking ‘‘(relating to deduction for 

20 personal exemptions)’’ and inserting ‘‘(relating 

21 to basic deduction)’’, and 

22 (B) by striking ‘‘DEDUCTION FOR PER23 SONAL EXEMPTION’’ in the heading thereof and 

24 inserting ‘‘BASIC DEDUCTION’’. 


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1 (66) Section 703(a)(2) is amended by striking 

2 subparagraph (A) and by redesignating subpara3 graphs (B) through (F) as subparagraphs (A) 

4 through (E), respectively. 

5 (67) Section 874 is amended by striking sub6 section (b) and by redesignating subsection (c) as 

7 subsection (b). 

8 (68) Section 891 is amended by striking ‘‘under 

9 section 151 and’’. 

10 (69) Section 904(b)(1) is amended to read as 

11 follows: 

12 ‘‘(1) DEDUCTION FOR ESTATES AND TRUSTS.— 

13 For purposes of subsection (a), the taxable income 

14 of an estate or trust shall be computed without any 

15 deduction under section 642(b).’’. 

16 (70) Section 931(b)(1) is amended to read as 

17 follows: 

18 ‘‘(1) any deduction from gross income, or’’. 

19 (71) Section 933 is amended— 

20 (A) by striking ‘‘as a deduction from his 

21 gross income any deductions (other than the de22 duction under section 151, relating to personal 

23 exemptions)’’ in paragraph (1) and inserting 

24 ‘‘any deduction from gross income’’, and 


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1 (B) by striking ‘‘as a deduction from his 

2 gross income any deductions (other than the de3 duction for personal exemptions under section 

4 151)’’ in paragraph (2) and inserting ‘‘any de5 duction from gross income’’. 

6 (72) Section 1212(b)(2)(B)(ii) is amended to 

7 read as follows: 

8 ‘‘(ii) in the case of an estate or trust, 

9 the deduction allowed for such year under 

10 section 642(b).’’. 

11 (73) Section 1361(c)(1)(C) is amended by strik12 ing ‘‘section 152(f)(1)(C)’’ and inserting ‘‘section 

13 7706(f)(1)(C)’’. 

14 (74) Section 1402(a) is amended by striking 

15 paragraph (7). 

16 (75) Section 2032A(c)(7)(D) is amended by 

17 striking ‘‘section 152(f)(2)’’ and inserting ‘‘section 

18 7706(f)(2)’’. 

19 (76) Section 3402(f)(1)(A) is amended by strik20 ing ‘‘for whom a deduction is allowable with respect 

21 to another taxpayer under section 151’’ and insert22 ing ‘‘who is a dependent of another taxpayer’’. 

23 (77) Section 3402(m)(1) is amended by striking 

24 ‘‘other than the deductions referred to in section 

25 151 and’’. 


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1 (78) Section 3402(m)(3) is amended by striking 

2 ‘‘section 63(c)(3)’’ and inserting ‘‘section 63(f)’’. 

3 (79) Section 3402(r)(2) is amended by striking 

4 ‘‘the sum of—’’ and all that follows and inserting 

5 ‘‘the basic standard deduction (as defined in section 

6 63(c)) for an individual to whom section 63(c)(2)(C) 

7 applies.’’. 

8 (80) Section 5000A(b)(3)(A) is amended by 

9 striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 

10 (81) Section 5000A(c)(4)(A) is amended by 

11 striking ‘‘the number of individuals for whom the 

12 taxpayer is allowed a deduction under section 151 

13 (relating to allowance of deduction for personal ex14 emptions) for the taxable year’’ and inserting ‘‘the 

15 sum of 1 (2 in the case of a joint return) plus the 

16 number of the taxpayer’s dependents for the taxable 

17 year’’. 

18 (82) Section 6013(b)(3)(A) is amended— 

19 (A) by striking ‘‘had less than the exemp20 tion amount of gross income’’ in clause (ii) and 

21 inserting ‘‘had no gross income’’, 

22 (B) by striking ‘‘had gross income of the 

23 exemption amount or more’’ in clause (iii) and 

24 inserting ‘‘had any gross income’’, and 


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1 (C) by striking the flush language fol2 lowing clause (iii). 

3 (83) Section 6014(a) is amended by striking 

4 ‘‘section 6012(a)(1)(C)(i)’’ and inserting ‘‘section 

5 6012(a)(1)(B)(iii)’’. 

6 (84) Section 6014(b)(4) is amended by striking 

7 ‘‘63(c)(5)’’ and inserting ‘‘63(c)(4)’’. 

8 (85) Section 6103(l)(13) is amended— 

9 (A) in subparagraph (A), by striking 

10 clause (iv) and redesignating clauses (v) and 

11 (vi) as clauses (iv) and (v), respectively, and 

12 (B) in subparagraph (C)(i), by striking 

13 ‘‘clauses (i) through (iv)’’ and inserting 

14 ‘‘clauses (i) through (iii)’’. 

15 (86) Section 6103(l)(21)(A)(iii) is amended to 

16 read as follows: 

17 ‘‘(iii) the number of the taxpayer’s de18 pendents,’’. 

19 (87) Section 6213(g)(2)(H) is amended by 

20 striking ‘‘section 21 (relating to expenses for house21 hold and dependent care services necessary for gain22 ful employment) or section 151 (relating to allow23 ance of deductions for personal exemptions)’’ and in24 serting ‘‘subsection (a)(1)(B), (b)(1)(A)(ii), or 


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1 (b)(1)(B) of section 2 or section 21, 35(d)(1)(B), 

2 36B(b)(3)(B), or 63(f)(2)(B)’’. 

3 (88) Section 6334(d) is amended— 

4 (A) by amending paragraph (2) to read as 

5 follows: 

6 ‘‘(2) EXEMPT AMOUNT.— 

7 ‘‘(A) IN GENERAL.—For purposes of para8 graph (1), the term ‘exempt amount’ means an 

9 amount equal to— 

10 ‘‘(i) the sum of the amount deter11 mined under subparagraph (B) and the 

12 standard deduction, divided by 

13 ‘‘(ii) 52. 

14 ‘‘(B) AMOUNT DETERMINED.—For pur15 poses of subparagraph (A), the amount deter16 mined under this subparagraph is— 

17 ‘‘(i) the dollar amount in effect under 

18 section 7706(d)(1)(B), multiplied by 

19 ‘‘(ii) the number of the taxpayer’s de20 pendents for the taxable year in which the 

21 levy occurs. 

22 ‘‘(C) VERIFIED STATEMENT.—Unless the 

23 taxpayer submits to the Secretary a written and 

24 properly verified statement specifying the facts 

25 necessary to determine the proper amount 


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1 under subparagraph (A), subparagraph (A) 

2 shall be applied as if the taxpayer were a mar3 ried individual filing a separate return with no 

4 dependents.’’, and 

5 (B) by striking paragraph (4). 

6 (89) Section 7702B(f)(2)(C)(iii) is amended by 

7 striking ‘‘section 152(d)(2)’’ and inserting ‘‘section 

8 7706(d)(2)’’. 

9 (90) Section 7703(a) is amended by striking 

10 ‘‘part V of subchapter B of chapter 1 and’’. 

11 (91) Section 7703(b)(1) is amended by striking 

12 ‘‘section 152(f)(1))’’ and all that follows and insert13 ing ‘‘section 7706(f)(1)) who is a dependent of such 

14 individual for the taxable year (or would be but for 

15 section 7706(e)),’’. 

16 (92) Section 7706(a), as redesignated by this 

17 section, is amended by striking ‘‘this subtitle’’ and 

18 inserting ‘‘this title’’. 

19 (93)(A) Section 7706(d)(1)(B), as redesignated 

20 by this section, is amended by striking ‘‘the exemp21 tion amount (as defined in section 151(d))’’ and in22 serting ‘‘$4,150’’. 

23 (B) Section 7706(d), as redesignated by this 

24 section, is amended by adding at the end the fol25 lowing new paragraph: 


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1 ‘‘(6) INFLATION ADJUSTMENT.—The $4,150 

2 amount in paragraph (1)(B) shall be increased by an 

3 amount equal to— 

4 ‘‘(A) such dollar amount, multiplied by 

5 ‘‘(B) the cost-of-living adjustment deter6 mined under section 1(f)(3) for the calendar 

7 year in which such taxable year begins, deter8 mined by substituting ‘calendar year 2017’ for 

9 ‘calendar year 2016’ in subparagraph (A)(ii) 

10 thereof. 

11 If any increase determined under the preceding sen12 tence is not a multiple of $50, such increase shall 

13 be rounded to the next lowest multiple of $50.’’. 

14 (94) Section 7706(e)(3), as redesignated by this 

15 section, is amended by inserting ‘‘(as in effect before 

16 its repeal)’’ after ‘‘section 151’’. 

17 (95) Section 7706(f)(6)(B), as redesignated by 

18 this section, is amended by striking clause (i) and 

19 designating clauses (ii), (iii), and (iv) as clauses (i), 

20 (ii), and (iii), respectively. 

21 (96) The table of parts for subchapter B of 

22 chapter 1 is amended by striking the item relating 

23 to part V. 


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1 (97) The table of sections for chapter 79 is 

2 amended by adding at the end the following new 

3 item: 

‘‘Sec. 7706. Dependent defined.’’. 

4 (g) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 the date of the enactment of this Act. 

7 SEC. 142. LIMITATION ON DEDUCTION FOR STATE AND 

8 LOCAL, ETC., TAXES. 

9 (a) IN GENERAL.—Section 164(b)(6) is amended by 

10 striking all that precedes ‘‘The preceding sentence’’ and 

11 inserting the following: 

12 ‘‘(6) LIMITATION ON INDIVIDUAL DEDUC13 TIONS.—In the case of an individual— 

14 ‘‘(A) no deduction shall be allowed under 

15 this chapter for foreign real property taxes paid 

16 or accrued during the taxable year, and 

17 ‘‘(B) the aggregate amount of the deduc18 tion allowed under this chapter for taxes de19 scribed in paragraphs (1), (2), and (3) of sub20 section (a) and paragraph (5) of this subsection 

21 (and any tax described in any such paragraph 

22 taken into account under section 216(a)(1)) 

23 paid or accrued by the taxpayer during the tax24 able year shall not exceed $10,000 ($5,000 in 


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1 the case of a married individual filing a sepa2 rate return).’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 143. LIMITATION ON DEDUCTION FOR QUALIFIED RES7 IDENCE INTEREST. 

8 (a) INTEREST ON HOME EQUITY INDEBTEDNESS.— 

9 Section 163(h)(3)(A) is amended by striking ‘‘during the 

10 taxable year on’’ and all that follows through ‘‘residence 

11 of the taxpayer.’’ and inserting ‘‘during the taxable year 

12 on acquisition indebtedness with respect to any qualified 

13 residence of the taxpayer.’’. 

14 (b) LIMITATION ON ACQUISITION INDEBTEDNESS.— 

15 Section 163(h)(3)(B)(ii) is amended to read as follows: 

16 ‘‘(ii) LIMITATION.—The aggregate 

17 amount treated as acquisition indebtedness 

18 for any period shall not exceed the excess 

19 (if any) of— 

20 ‘‘(I) $750,000 ($375,000, in the 

21 case of a married individual filing a 

22 separate return), over 

23 ‘‘(II) the sum of the aggregate 

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1 graph (D)) plus the aggregate out2 standing pre-December 15, 2017, in3 debtedness (as defined in subpara4 graph (C)).’’. 

5 (c) TREATMENT OF INDEBTEDNESS INCURRED ON

6 OR BEFORE DECEMBER 15, 2017.—Section 163(h)(3)(C) 

7 is amended to read as follows: 

8 ‘‘(C) TREATMENT OF INDEBTEDNESS IN9 CURRED ON OR BEFORE DECEMBER 15, 2017.— 

10 ‘‘(i) IN GENERAL.—In the case of any 

11 pre-December 15, 2017, indebtedness, sub12 paragraph (B)(ii) shall not apply and the 

13 aggregate amount of such indebtedness 

14 treated as acquisition indebtedness for any 

15 period shall not exceed the excess (if any) 

16 of— 

17 ‘‘(I) $1,000,000 ($500,000, in 

18 the case of a married individual filing 

19 a separate return), over 

20 ‘‘(II) the aggregate outstanding 

21 pre-October 13, 1987, indebtedness 

22 (as defined in subparagraph (D)). 

23 ‘‘(ii) PRE-DECEMBER 15, 2017, IN24 DEBTEDNESS.—For purposes of this sub25 paragraph— 


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1 ‘‘(I) IN GENERAL.—The term 

2 ‘pre-December 15, 2017, indebted3 ness’ means indebtedness (other than 

4 pre-October 13, 1987, indebtedness) 

5 incurred on or before December 15, 

6 2017. 

7 ‘‘(II) BINDING WRITTEN CON8 TRACT EXCEPTION.—In the case of a 

9 taxpayer who enters into a written 

10 binding contract before December 15, 

11 2017, to close on the purchase of a 

12 principal residence before January 1, 

13 2018, and who purchases such resi14 dence before April 1, 2018, the term 

15 ‘pre-December 15, 2017, indebted16 ness’ shall include indebtedness se17 cured by such residence. 

18 ‘‘(iii) REFINANCING INDEBTED19 NESS.— 

20 ‘‘(I) IN GENERAL.—In the case 

21 of any indebtedness which is incurred 

22 to refinance indebtedness, such refi23 nanced indebtedness shall be treated 

24 for purposes of this subparagraph as 

25 incurred on the date that the original 


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1 indebtedness was incurred to the ex2 tent the amount of the indebtedness 

3 resulting from such refinancing does 

4 not exceed the amount of the refi5 nanced indebtedness. 

6 ‘‘(II) LIMITATION ON PERIOD OF

7 REFINANCING.—Subclause (I) shall 

8 not apply to any indebtedness after 

9 the expiration of the term of the origi10 nal indebtedness or, if the principal of 

11 such original indebtedness is not am12 ortized over its term, the expiration of 

13 the term of the 1st refinancing of 

14 such indebtedness (or if earlier, the 

15 date which is 30 years after the date 

16 of such 1st refinancing).’’. 

17 (d) COORDINATION WITH TREATMENT OF INDEBT18 EDNESS INCURRED ON OR BEFORE OCTOBER 13, 1987.— 

19 Section 163(h)(3)(D) is amended— 

20 (1) by striking clause (ii) and redesignating 

21 clauses (iii) and (iv) as clauses (ii) and (iii), respec22 tively, and 

23 (2) in clause (iii) (as so redesignated)— 


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1 (A) by striking ‘‘clause (iii)’’ in the matter 

2 preceding subclause (I) and inserting ‘‘clause 

3 (ii)’’, and 

4 (B) by striking ‘‘clause (iii)(I)’’ in sub5 clauses (I) and (II) and inserting ‘‘clause 

6 (ii)(I)’’. 

7 (e) COORDINATION WITH EXCLUSION OF INCOME

8 FROM DISCHARGE OF INDEBTEDNESS.—Section 

9 108(h)(2) is amended by striking ‘‘applied by substituting 

10 ‘$750,000 ($375,000’ for ‘$1,000,000 ($500,000’ in 

11 clause (ii) thereof and’’. 

12 (f) CONFORMING AMENDMENT.—Section 163(h)(3) 

13 is amended by striking subparagraph (F). 

14 (g) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 SEC. 144. MODIFICATION OF DEDUCTION FOR PERSONAL 

18 CASUALTY LOSSES. 

19 (a) IN GENERAL.—Section 165(h)(5)(A) is amended 

20 by striking ‘‘in a taxable year beginning after December 

21 31, 2017, and before January 1, 2026,’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 165(h)(5)(B) is amended by strik24 ing ‘‘for any taxable year to which subparagraph (A) 

25 applies’’. 


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1 (2) Section 165(h)(5) is amended by striking 

2 ‘‘FOR TAXABLE YEARS 2018 THROUGH 2025’’ in the 

3 heading thereof and inserting ‘‘TO LOSSES ATTRIB4 UTABLE TO FEDERALLY DECLARED DISASTERS’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to losses sustained in taxable years 

7 beginning after the date of the enactment of this Act. 

8 SEC. 145. TERMINATION OF MISCELLANEOUS ITEMIZED DE9 DUCTIONS. 

10 (a) IN GENERAL.—Section 67 is amended— 

11 (1) by amending subsection (a) to read as fol12 lows: 

13 ‘‘(a) IN GENERAL.—In the case of an individual, mis14 cellaneous itemized deductions shall not be allowed.’’, and 

15 (2) by striking subsection (g). 

16 (b) MOVEMENT OF DEFINITION OF ADJUSTED

17 GROSS INCOME FOR ESTATES AND TRUSTS.— 

18 (1) Section 67 is amended by striking sub19 section (e). 

20 (2) Section 641 is amended by adding at the 

21 end the following new subsection: 

22 ‘‘(d) COMPUTATION OF ADJUSTED GROSS INCOME.— 

23 For purposes of this title, the adjusted gross income of 

24 an estate or trust shall be computed in the same manner 

25 as in the case of an individual, except that— 


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1 ‘‘(1) the deductions for costs which are paid or 

2 incurred in connection with the administration of the 

3 estate or trust and which would not have been in4 curred if the property were not held in such trust or 

5 estate, and 

6 ‘‘(2) the deductions allowable under sections 

7 642(b), 651, and 661, 

8 shall be treated as allowable in arriving at adjusted gross 

9 income.’’. 

10 (c) CONFORMING AMENDMENTS.— 

11 (1) Section 56(b)(1)(A) is amended to read as 

12 follows: 

13 ‘‘(A) CERTAIN TAXES.—No deduction 

14 (other than a deduction allowable in computing 

15 adjusted gross income) shall be allowed for any 

16 taxes described in paragraph (1), (2), or (3) of 

17 section 164(a) or clause (ii) of section 

18 164(b)(5)(A).’’. 

19 (2) Section 56(b)(1)(C), as amended by the 

20 preceding provisions of this Act, is amended by 

21 striking ‘‘subparagraph (A)(ii)’’ and inserting ‘‘sub22 paragraph (A)’’. 

23 (3) Section 62(a) is amended by striking ‘‘sub24 title’’ in the matter preceding paragraph (1) and in25 serting ‘‘title’’. 


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1 (4) Section 641(c)(2)(E) is amended to read as 

2 follows: 

3 ‘‘(E) Section 642(c) shall not apply.’’. 

4 (5) Section 1411(a)(2) is amended by striking 

5 ‘‘(as defined in section 67(e))’’. 

6 (6) Section 6654(d)(1)(C) is amended by strik7 ing clause (iii). 

8 (7) Section 67 is amended in the heading, by 

9 striking ‘‘2-PERCENT FLOOR ON’’ and inserting 

10 ‘‘DENIAL OF’’. 

11 (8) The table of sections for part 1 of sub12 chapter B of chapter 1 is amended by striking the 

13 item relating to section 67 and inserting the fol14 lowing new item: 

‘‘Sec. 67. Denial of miscellaneous itemized deductions.’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

18 SEC. 146. REPEAL OF OVERALL LIMITATION ON ITEMIZED 

19 DEDUCTIONS. 

20 (a) IN GENERAL.—Part 1 of subchapter B of chapter 

21 1 is amended by striking section 68 (and the item relating 

22 to such section in the table of sections for such part). 

23 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 56(b)(1), as amended by the pre2 ceding provisions of this Act, is amended by striking 

3 subparagraph (E). 

4 (2) Section 164(b)(5)(H)(ii)(III) is amended by 

5 striking ‘‘(as determined under section 68(b))’’. 

6 (3) Section 164(b)(5)(H) is amended by adding 

7 at the end the following new clause: 

8 ‘‘(iii) APPLICABLE AMOUNT DE9 FINED.—For purposes of clause (ii), the 

10 term ‘applicable amount’ means— 

11 ‘‘(I) $300,000 in the case of a 

12 joint return or a surviving spouse, 

13 ‘‘(II) $275,000 in the case of a 

14 head of household, 

15 ‘‘(III) $250,000 in the case of an 

16 individual who is not married and who 

17 is not a surviving spouse or head of 

18 household, and 

‘‘(IV) 1 19 ⁄2 the amount applicable 

20 under subclause (I) in the case of a 

21 married individual filing a separate 

22 return. 

23 For purposes of this paragraph, marital 

24 status shall be determined under section 

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1 ginning in calendar years after the date of 

2 the enactment of this clause, each of the 

3 dollar amounts in this clause shall be in4 creased by an amount equal to such dollar 

5 amount, multiplied by the cost-of-living ad6 justment determined under section 1(f)(3) 

7 for the calendar year in which the taxable 

8 year begins, determined by substituting 

9 ‘2012’ for ‘2016’ in subparagraph (A)(ii) 

10 thereof. If any amount after adjustment 

11 under the preceding sentence is not a mul12 tiple of $50, such amount shall be rounded 

13 to the next lowest multiple of $50.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 SEC. 147. TERMINATION OF EXCLUSION FOR QUALIFIED BI18 CYCLE COMMUTING REIMBURSEMENT. 

19 (a) IN GENERAL.—Section 132(f)(1) is amended by 

20 striking subparagraph (D). 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 132(f)(2) is amended by adding 

23 ‘‘and’’ at the end of subparagraph (A), striking ‘‘, 

24 and’’ at the end of subparagraph (B) and inserting 

25 a period, and striking subparagraph (C). 


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1 (2) Section 132(f)(4) is amended by striking 

2 ‘‘(other than a qualified bicycle commuting reim3 bursement)’’. 

4 (3) Section 132(f) is amended by striking para5 graph (8). 

6 (4) Section 274(l)(2) is amended by striking 

7 ‘‘after December 31, 2017, and before January 1, 

8 2026’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

12 SEC. 148. QUALIFIED MOVING EXPENSE REIMBURSEMENT 

13 EXCLUSION LIMITED TO MEMBERS OF 

14 ARMED FORCES. 

15 (a) IN GENERAL.—Section 132(g) is amended— 

16 (1) by striking ‘‘by an individual’’ in paragraph 

17 (1) and inserting ‘‘by a qualified military indi18 vidual’’, and 

19 (2) by striking paragraph (2) and inserting the 

20 following new paragraph: 

21 ‘‘(2) QUALIFIED MILITARY INDIVIDUAL.—For 

22 purposes of this subsection, the term ‘qualified mili23 tary individual’ means a member of the Armed 

24 Forces of the United States on active duty who 


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1 moves pursuant to a military order and incident to 

2 a permanent change of station.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 149. DEDUCTION FOR MOVING EXPENSES LIMITED TO 

7 MEMBERS OF ARMED FORCES. 

8 (a) IN GENERAL.—Section 217 is amended— 

9 (1) by amending subsection (a) to read as fol10 lows: 

11 ‘‘(a) DEDUCTION ALLOWED.—There shall be allowed 

12 as a deduction moving expenses paid or incurred during 

13 the taxable year by a member of the Armed Forces of the 

14 United States on active duty who moves pursuant to a 

15 military order and incident to a permanent change of sta16 tion.’’, 

17 (2) by striking subsections (c), (d), (f), (g), and 

18 (k) and redesignating subsections (h), (i), and (j) as 

19 subsections (c), (d), and (f), respectively, and 

20 (3) by inserting after subsection (d), as so re21 designated, the following new subsection: 

22 ‘‘(e) EXPENSES FURNISHED IN-KIND.—Any moving 

23 and storage expenses which are furnished in-kind (or for 

24 which reimbursement or an allowance is provided, but only 

25 to the extent of the expenses paid or incurred)— 


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1 ‘‘(1) to a member described in subsection (a), 

2 or to such member’s spouse or dependents, shall not 

3 be includible in gross income, and no reporting with 

4 respect to such expenses shall be required by the 

5 Secretary of Defense or the Secretary of Transpor6 tation, as the case may be, and 

7 ‘‘(2) to the spouse and dependents of a member 

8 described in subsection (a) with regard to moving to 

9 a location other than the one to which such member 

10 moves (or from a location other than the one from 

11 which such member moves), this section shall apply 

12 with respect to the moving expenses of such spouse 

13 and dependents as if such spouse were a member de14 scribed in subsection (a).’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Subsections (d)(3)(C) and (e) of section 23 

17 are each amended by striking ‘‘section 217(h)(3)’’ 

18 and inserting ‘‘section 217(c)(3)’’. 

19 (2) Section 7872(f) is amended by striking 

20 paragraph (11). 

21 (3) Section 217 is amended in the heading by 

22 striking ‘‘MOVING EXPENSES’’ and inserting 

23 ‘‘CERTAIN MOVING EXPENSES OF MEMBERS OF

24 ARMED FORCES’’. 


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1 (4) The table of sections for part VII of sub2 chapter B of chapter 1 is amended by striking the 

3 item relating to section 217 and inserting the fol4 lowing new item: 

‘‘Sec. 217. Certain moving expenses of members of Armed Forces.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 the date of the enactment of this Act. 

8 SEC. 150. LIMITATION ON WAGERING LOSSES. 

9 (a) IN GENERAL.—Section 165(d) is amended by 

10 striking ‘‘in the case of taxable years beginning after De11 cember 31, 2017, and before January 1, 2026,’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

15 Subtitle F—Increase in Estate and 

16 Gift Tax Exemption 

17 SEC. 151. INCREASE IN ESTATE AND GIFT TAX EXEMPTION. 

18 (a) IN GENERAL.—Section 2010(c)(3) is amended in 

19 subparagraph (A), by striking ‘‘$5,000,000’’ and inserting 

20 ‘‘$10,000,000’’. 

21 (b) CONFORMING AMENDMENT.—Section 2010(c)(3) 

22 is amended by striking subparagraph (C). 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to estates of decedents dying and 

25 gifts made after the date of the enactment of this Act. 


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1 TITLE II—INCREASED EXEMP2 TION FOR ALTERNATIVE MIN3 IMUM TAX MADE PERMANENT 

4 SEC. 201. INCREASED EXEMPTION FOR INDIVIDUALS. 

5 (a) IN GENERAL.—Section 55(d)(1) is amended— 

6 (1) by striking ‘‘$78,750’’ in subparagraph (A) 

7 and inserting ‘‘$109,400’’, and 

8 (2) by striking ‘‘$50,600’’ in subparagraph (B) 

9 and inserting ‘‘$70,300’’. 

10 (b) PHASE-OUT OF EXEMPTION AMOUNT.—Section 

11 55(d)(2) is amended— 

12 (1) by striking ‘‘$150,000’’ in subparagraph 

13 (A) and inserting ‘‘$1,000,000’’, and 

14 (2) by striking subparagraphs (B) and (C) and 

15 by inserting the following new subparagraphs: 

16 ‘‘(B) 50 percent of the dollar amount ap17 plicable under subparagraph (A) in the case of 

18 a taxpayer described in paragraph (1)(B) or 

19 (1)(C), and 

20 ‘‘(C) $75,000 in the case of a taxpayer de21 scribed in paragraph (1)(D).’’. 

22 (c) INFLATION ADJUSTMENT.—Section 55(d)(3) is 

23 amended to read as follows: 

24 ‘‘(3) INFLATION ADJUSTMENT.—Each dollar 

25 amount described in clause (i) or (ii) of subparaVerDate Sep 11 2014 05:50 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H976.IH H976

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1 graph (B) shall be increased by an amount equal 

2 to— 

3 ‘‘(A) such dollar amount, multiplied by 

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar 

6 year in which the taxable year begins, deter7 mined by substituting— 

8 ‘‘(i) in the case of a dollar amount 

9 contained in paragraph (1)(D) or (2)(C) or 

10 in subsection (b)(1)(A), ‘calendar year 

11 2011’ for ‘calendar year 2016’ in subpara12 graph (A)(ii) thereof, and 

13 ‘‘(ii) in the case of a dollar amount 

14 contained in paragraph (1)(A), (1)(B), or 

15 (2)(A), ‘calendar year 2017’ for ‘calendar 

16 year 2016’ in subparagraph (A)(ii) thereof. 

17 Any increased amount determined under this para18 graph shall be rounded to the nearest multiple of 

19 $100 ($50 in the case of the dollar amount con20 tained in paragraph (2)(C)).’’. 

21 (d) REPEAL OF COORDINATION WITH RULES RELAT22 ING TO THE TAXATION OF UNEARNED CHILDREN.—Sec23 tion 59 is amended by striking subsection (j). 

24 (e) CONFORMING AMENDMENT.—Section 55(d) is 

25 amended by striking paragraph (4). 


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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

Æ 


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