II 

115TH CONGRESS 

2D SESSION S. 2687 

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

individual tax provisions of the tax reform law, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 17, 2018 

Mr. CRUZ introduced the following bill; which was read twice and referred to 

the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

permanent the individual tax provisions of the tax reform 

law, 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. PERMANENT MODIFICATION OF INDIVIDUAL 

4 RATE BRACKETS. 

5 (a) MARRIED INDIVIDUALS FILING JOINT RETURNS

6 AND SURVIVING SPOUSES.—The table contained in subVerDate Sep 11 2014 00:06 Apr 20, 2018 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2687.IS S2687

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1 section (a) of section 1 of the Internal Revenue Code of 

2 1986 is amended to read as follows: 

‘‘If taxable income is: The tax is: 

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

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.’’. 

3 (b) HEADS OF HOUSEHOLDS.—The table contained 

4 in subsection (b) of section 1 of the Internal Revenue Code 

5 of 1986 is amended to read as follows: 

‘‘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.’’. 

6 (c) UNMARRIED INDIVIDUALS OTHER THAN SUR7 VIVING SPOUSES AND HEADS OF HOUSEHOLDS.—The 


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1 table contained in subsection (c) of section 1 of the Inter2 nal Revenue Code of 1986 is amended to read as follows: 

‘‘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 $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.’’. 

3 (d) MARRIED INDIVIDUALS FILING SEPARATE RE4 TURNS.—The table contained in subsection (d) of section 

5 1 of the Internal Revenue Code of 1986 is amended to 

6 read as follows: 

‘‘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.’’. 


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1 (e) ESTATES AND TRUSTS.—The table contained in 

2 subsection (e) of section 1 of the Internal Revenue Code 

3 of 1986 is amended to read as follows: 

‘‘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.’’. 

4 (f) ADJUSTMENT FOR INFLATION.—Subsection (f) of 

5 section 1 of the Internal Revenue Code of 1986 is amend6 ed— 

7 (1) by striking ‘‘1993’’ in paragraph (1) and in8 serting ‘‘2018’’, 

9 (2) by striking ‘‘determined—’’ and all that fol10 lows in paragraph (2)(A) and inserting ‘‘determined 

11 by substituting ‘2017’ for ‘2016’ in paragraph 

12 (3)(A)(ii),’’, 

13 (3) by striking ‘‘a married individual filing a 

14 separate return’’ in paragraph (7)(B) and inserting 

15 ‘‘any unmarried individual other than a surviving 

16 spouse or head of household’’, 

17 (4) by striking ‘‘MARRIED INDIVIDUALS FILING

18 SEPARATELY’’ in the heading of subparagraph (B) of 

19 paragraph (7) and inserting ‘‘CERTAIN UNMARRIED

20 INDIVIDUALS’’, and 


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1 (5) by striking paragraph (8). 

2 (g) SPECIAL RULES FOR CERTAIN CHILDREN WITH

3 UNEARNED INCOME.—Subsection (g) of section 1 of the 

4 Internal Revenue Code of 1986 is amended— 

5 (1) by striking paragraphs (1), (3), and (5), 

6 (2) by redesignating paragraphs (4), (6), and 

7 (7) as paragraphs (5), (7), and (8), respectively, 

8 (3) by redesignating paragraph (2) as para9 graph (6) and by moving such paragraph to the po10 sition between paragraphs (5) and (7) (as so redes11 ignated), 

12 (4) by inserting before paragraph (5) (as so re13 designated) the following new paragraphs: 

14 ‘‘(1) IN GENERAL.—In the case of a child to 

15 whom this subsection applies for the taxable year, 

16 the amount of tax imposed by this section on such 

17 child shall be determined as provided in paragraphs 

18 (2) and (3). 

19 ‘‘(2) MODIFICATIONS TO APPLICABLE RATE

20 BRACKETS.—The income tax table otherwise applica21 ble under this section to the child shall be applied 

22 with the following modifications: 

23 ‘‘(A) 24-PERCENT BRACKET.—The max24 imum taxable income which is taxed at a rate 


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1 below 24 percent shall not be more than the 

2 sum of— 

3 ‘‘(i) the earned taxable income of such 

4 child, plus 

5 ‘‘(ii) the minimum taxable income for 

6 the 24-percent bracket in the table under 

7 subsection (e) (as adjusted under sub8 section (f)) for the taxable year. 

9 ‘‘(B) 35-PERCENT BRACKET.—The max10 imum taxable income which is taxed at a rate 

11 below 35 percent shall not be more than the 

12 sum of— 

13 ‘‘(i) the earned taxable income of such 

14 child, plus 

15 ‘‘(ii) the minimum taxable income for 

16 the 35-percent bracket in the table under 

17 subsection (e) (as adjusted under sub18 section (f)) for the taxable year. 

19 ‘‘(C) 37-PERCENT BRACKET.—The max20 imum taxable income which is taxed at a rate 

21 below 37 percent shall not be more than the 

22 sum of— 

23 ‘‘(i) the earned taxable income of such 

24 child, plus 


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1 ‘‘(ii) the minimum taxable income for 

2 the 37-percent bracket in the table under 

3 subsection (e) (as adjusted under sub4 section (f)) for the taxable year. 

5 ‘‘(3) COORDINATION WITH CAPITAL GAINS

6 RATES.—For purposes of applying subsection (h)— 

7 ‘‘(A) the maximum zero rate amount shall 

8 not be more than the sum of— 

9 ‘‘(i) the earned taxable income of such 

10 child, plus 

11 ‘‘(ii) the amount in effect under sub12 section (h)(12)(A)(iv) for the taxable year, 

13 and 

14 ‘‘(B) the maximum 15-percent rate 

15 amount shall not be more than the sum of— 

16 ‘‘(i) the earned taxable income of such 

17 child, plus 

18 ‘‘(ii) the amount in effect under sub19 section (h)(12)(B)(iv) for the taxable year. 

20 ‘‘(4) EARNED TAXABLE INCOME.—For purposes 

21 of this subsection, the term ‘earned taxable income’ 

22 means, with respect to any child for any taxable 

23 year, the taxable income of such child reduced (but 

24 not below zero) by the net unearned income of such 

25 child.’’, and 


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1 (5) by striking ‘‘paragraph (4)(A)(ii)(I)’’ each 

2 place it appears in subparagraphs (A)(ii), (B)(i), 

3 and (B)(ii)(II) of paragraph (8) (as so redesignated) 

4 and inserting ‘‘paragraph (5)(A)(ii)(I)’’. 

5 (h) CAPITAL GAINS BRACKETS.—Subsection (h) of 

6 section 1 of the Internal Revenue Code of 1986 is amend7 ed— 

8 (1) by striking ‘‘which would (without regard to 

9 this paragraph) be taxed at a rate below 25 percent’’ 

10 in paragraph (1)(B)(i) and inserting ‘‘below the 

11 maximum zero rate amount’’, 

12 (2) by striking ‘‘which would (without regard to 

13 this paragraph) be taxed at a rate below 39.6 per14 cent’’ in paragraph (1)(C)(ii)(I) and inserting 

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

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

17 paragraph: 

18 ‘‘(12) MAXIMUM AMOUNTS DEFINED.—For pur19 poses of this subsection— 

20 ‘‘(A) MAXIMUM ZERO RATE AMOUNT.—The 

21 maximum zero rate amount shall be— 

22 ‘‘(i) in the case of a joint return or 

23 surviving spouse, $77,200, 


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1 ‘‘(ii) in the case of an individual who 

2 is a head of household (as defined in sec3 tion 2(b)), $51,700, 

4 ‘‘(iii) in the case of any other indi5 vidual (other than an estate or trust), an 

amount equal to 1 6 ⁄2 of the amount in effect 

7 for the taxable year under clause (i), and 

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

9 $2,600. 

10 ‘‘(B) MAXIMUM 15-PERCENT RATE

11 AMOUNT.—The maximum 15-percent rate 

12 amount shall be— 

13 ‘‘(i) in the case of a joint return or 

surviving spouse, $479,000 (1 14 ⁄2 such 

15 amount in the case of a married individual 

16 filing a separate return), 

17 ‘‘(ii) in the case of an individual who 

18 is the head of a household (as defined in 

19 section 2(b)), $452,400, 

20 ‘‘(iii) in the case of any other indi21 vidual (other than an estate or trust), 

22 $425,800, and 

23 ‘‘(iv) in the case of an estate or trust, 

24 $12,700. 


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1 ‘‘(C) INFLATION ADJUSTMENT.—In the 

2 case of any taxable year beginning after 2018, 

3 each of the dollar amounts in subparagraphs 

4 (A) and (B) shall be increased by an amount 

5 equal to— 

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

7 ‘‘(ii) the cost-of-living adjustment de8 termined under subsection (f)(3) for the 

9 calendar year in which the taxable year be10 gins, determined by substituting ‘calendar 

11 year 2017’ for ‘calendar year 2016’ in sub12 paragraph (A)(ii) thereof. 

13 If any increase under this subparagraph is not 

14 a multiple of $50, such increase shall be round15 ed to the next lowest multiple of $50.’’. 

16 (i) CONFORMING AMENDMENTS.— 

17 (1) Section 1 of the Internal Revenue Code of 

18 1986 is amended by striking subsections (i) and (j). 

19 (2) Section 3402(q)(1) of such Code is amend20 ed by striking ‘‘third lowest’’ and inserting ‘‘fourth 

21 lowest’’. 

22 (j) SECTION 15 NOT TO APPLY.—Section 15 of the 

23 Internal Revenue Code of 1986 shall not apply to any 

24 change in a rate of tax by reason of this section. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2018. 

4 SEC. 2. PERMANENT EXTENSION OF DEDUCTION FOR 

5 QUALIFIED BUSINESS INCOME OF PASS-THRU 

6 ENTITIES. 

7 (a) IN GENERAL.—Section 199A of the Internal Rev8 enue Code of 1986 is amended by striking subsection (i). 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2017. 

12 SEC. 3. PERMANENT EXTENSION OF LIMITATION ON 

13 LOSSES FOR TAXPAYERS OTHER THAN COR14 PORATIONS. 

15 (a) IN GENERAL.—Paragraph (1) of section 461(l) 

16 of the Internal Revenue Code of 1986 is amended to read 

17 as follows: 

18 ‘‘(1) LIMITATION.—In the case of taxable year 

19 of a taxpayer other than a corporation, any excess 

20 business loss of the taxpayer for the taxable year 

21 shall not be allowed.’’. 

22 (b) CONFORMING AMENDMENT.—Section 461 of the 

23 Internal Revenue Code of 1986 is amended by striking 

24 subsection (j) (relating to limitation on excess farm losses 

25 of certain taxpayers). 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2017. 

4 SEC. 4. PERMANENT EXTENSION OF INCREASE IN STAND5 ARD DEDUCTION. 

6 (a) IN GENERAL.—Section 63(c)(2) of the Internal 

7 Revenue Code of 1986 is amended— 

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

9 and inserting ‘‘$18,800’’, and 

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

11 and inserting ‘‘$12,000’’. 

12 (b) INFLATION ADJUSTMENT.—Paragraph (4) of sec13 tion 63(c) of the Internal Revenue Code of 1986 is amend14 ed to read as follows: 

15 ‘‘(4) ADJUSTMENTS FOR INFLATION.— 

16 ‘‘(A) IN GENERAL.—In the case of any 

17 taxable year beginning in a calendar year after 

18 2018, the $18,000 and $12,000 amounts in 

19 subparagraph (A) shall each be increased by an 

20 amount equal to— 

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

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1 gins, by substituting ‘2017’ for ‘2016’ in 

2 subparagraph (A)(ii) thereof. 

3 ‘‘(B) CERTAIN AMOUNTS.—In the case of 

4 any taxable year beginning in a calendar year 

5 after 1988, each dollar amount contained in 

6 paragraph (5) or subsection (f) shall be in7 creased by an amount equal to— 

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

9 ‘‘(ii) the cost-of-living adjustment de10 termined under section 1(f)(3) for the cal11 endar year in which the taxable year be12 gins, by substituting for ‘calendar year 

13 2016’ in subparagraph (A)(ii) thereof— 

14 ‘‘(I) ‘calendar year 1987’ in the 

15 case of the dollar amounts contained 

16 in paragraph (5)(A) or subsection (f), 

17 and 

18 ‘‘(II) ‘calendar year 1997’ in the 

19 case of the dollar amount contained in 

20 paragraph (5)(B).’’. 

21 (c) CONFORMING AMENDMENT.—Section 63(c) of the 

22 Internal Revenue Code of 1986 is amended by striking 

23 paragraph (7). 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2017. 

4 SEC. 5. PERMANENT INCREASE AND MODIFICATION OF 

5 CHILD TAX CREDIT. 

6 (a) INCREASE IN CREDIT AMOUNT.—Section 24(a) of 

7 the Internal Revenue Code of 1986 is amended by striking 

8 ‘‘$1,000’’ and inserting ‘‘$2,000’’. 

9 (b) LIMITATION.—Paragraph (2) of section 24(b) of 

10 the Internal Revenue Code of 1986 is amended to read 

11 as follows: 

12 ‘‘(2) THRESHOLD AMOUNT.—For purposes of 

13 paragraph (1), the term ‘threshold amount’ means— 

14 ‘‘(A) $400,000 in the case of a joint re15 turn, and 

16 ‘‘(B) $200,000 in any other case.’’. 

17 (c) PARTIAL CREDIT ALLOWED FOR CERTAIN

18 OTHER DEPENDENTS.—Subsection (h) of section 24 of 

19 the Internal Revenue Code of 1986 is amended to read 

20 as follows: 

21 ‘‘(h) PARTIAL CREDIT ALLOWED FOR CERTAIN

22 OTHER DEPENDENTS.— 

23 ‘‘(1) IN GENERAL.—The credit determined 

24 under subsection (a) shall be increased by $500 for 

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1 tion 7706) other than a qualifying child described in 

2 subsection (c). 

3 ‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— 

4 Paragraph (1) shall not apply with respect to any 

5 individual who would not be a dependent if subpara6 graph (A) of section 7706(b)(3) were applied with7 out regard to all that follows ‘resident of the United 

8 States’. 

9 ‘‘(3) CERTAIN QUALIFYING CHILDREN.—In the 

10 case of any qualifying child with respect to whom a 

11 credit is not allowed under this section by reason of 

12 subsection (e)(1), such child shall be treated as a de13 pendent to whom subparagraph (A) applies.’’. 

14 (d) MAXIMUM AMOUNT OF REFUNDABLE CREDIT.— 

15 Subsection (d) of section 24 of the Internal Revenue Code 

16 of 1986 is amended by inserting after paragraph (2) the 

17 following new paragraph: 

18 ‘‘(3) LIMITATION.— 

19 ‘‘(A) IN GENERAL.—The amount deter20 mined under paragraph (1)(A) with respect to 

21 any qualifying child shall not exceed $1,400, 

22 and such paragraph shall be applied without re23 gard to subsection (h). 

24 ‘‘(B) ADJUSTMENT FOR INFLATION.—In 

25 the case of a taxable year beginning after 2018, 


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1 the $1,400 amount in subparagraph (A) shall 

2 be increased by an amount equal to— 

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

4 ‘‘(ii) the cost-of-living adjustment de5 termined under section 1(f)(3) for the cal6 endar year in which the taxable year be7 gins, determined by substituting ‘2017’ for 

8 ‘2016’ in subparagraph (A)(ii) thereof. 

9 If any increase under this clause is not a mul10 tiple of $100, such increase shall be rounded to 

11 the next lowest multiple of $100.’’. 

12 (e) EARNED INCOME THRESHOLD FOR REFUNDABLE

13 CREDIT.—Section 24(d)(1)(B) of the Internal Revenue 

14 Code of 1986 is amended by striking ‘‘$3,000’’ and insert15 ing ‘‘$2,500’’. 

16 (f) SOCIAL SECURITY NUMBER REQUIRED.—Para17 graph (1) of section 24(e) of the Internal Revenue Code 

18 of 1986 is amended to read as follows: 

19 ‘‘(1) QUALIFYING CHILD SOCIAL SECURITY

20 NUMBER REQUIREMENT.—No credit shall be allowed 

21 under this section to a taxpayer with respect to any 

22 qualifying child unless the taxpayer includes the 

23 name and social security number of such child on 

24 the return of tax for the taxable year. For purposes 

25 of the preceding sentence, the term ‘social security 


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1 number’ means a social security number issued to an 

2 individual by the Social Security Administration, but 

3 only if the social security number is issued— 

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

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

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

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

8 Act, and 

9 ‘‘(B) before the due date for such return.’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2017. 

13 SEC. 6. PERMANENT EXTENSION OF INCREASED LIMITA14 TION FOR CERTAIN CHARITABLE CONTRIBU15 TIONS. 

16 (a) IN GENERAL.—Section 170(b)(1)(G) of the Inter17 nal Revenue Code of 1986 is amended— 

18 (1) by striking ‘‘for any taxable year beginning 

19 after December 31, 2017, and before January 1, 

20 2026,’’ in clause (i), 

21 (2) by striking ‘‘for any taxable year described 

22 in such clause’’ in clause (ii), and 

23 (3) by striking ‘‘For each taxable year de24 scribed in clause (i), and each taxable year to which 

25 any contribution under this subparagraph is carried 


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1 over under clause (ii), subparagraph (A)’’ in clause 

2 (iii) and inserting ‘‘Subparagraph (A)’’. 

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

4 this section shall apply to contributions in taxable years 

5 beginning after December 31, 2025. 

6 SEC. 7. PERMANENT EXTENSION OF INCREASED CON7 TRIBUTIONS TO ABLE ACCOUNTS. 

8 (a) IN GENERAL.—Section 529A(b)(2)(B)(ii) of the 

9 Internal Revenue Code of 1986 is amended by striking 

10 ‘‘before January 1, 2026’’. 

11 (b) ALLOWANCE OF SAVERS CREDIT.—Section 

12 25B(d)(1)(D) of the Internal Revenue Code of 1986 is 

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

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. 8. PERMANENT EXTENSION OF ROLLOVERS TO ABLE 

18 PROGRAMS FROM 529 PROGRAMS. 

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

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

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

22 this section shall apply to distributions made after the 

23 date of the enactment of this Act. 


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1 SEC. 9. PERMANENT EXTENSION OF TREATMENT OF CER2 TAIN INDIVIDUALS PERFORMING SERVICES 

3 IN THE SINAI PENINSULA OF EGYPT. 

4 (a) IN GENERAL.—Subsection (c) of section 11026 

5 of Public Law 115–97 is amended— 

6 (1) by striking ‘‘beginning before January 1, 

7 2026’’ in paragraph (1)(B), and 

8 (2) by striking ‘‘beginning before January 1, 

9 2026’’ in paragraph (2)(B). 

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

11 this section shall take effect on the date of the enactment 

12 of this Act. 

13 SEC. 10. PERMANENT EXTENSION OF REDUCTION IN MED14 ICAL EXPENSE DEDUCTION FLOOR. 

15 (a) REDUCTION.— 

16 (1) IN GENERAL.—Section 213(a) of the Inter17 nal Revenue Code of 1986 is amended by striking 

18 ‘‘10 percent’’ and inserting ‘‘7.5 percent’’. 

19 (2) CONFORMING AMENDMENT.—Section 213 

20 of the Internal Revenue Code of 1986 is amended by 

21 striking subsection (f). 

22 (b) REPEAL OF MINIMUM TAX PREFERENCE.—Sec23 tion 56(b)(1) of the Internal Revenue Code of 1986 is 

24 amended by striking subparagraph (B). 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2016. 

4 SEC. 11. PERMANENT EXTENSION OF TREATMENT OF STU5 DENT LOANS DISCHARGED ON ACCOUNT OF 

6 DEATH OR DISABILITY. 

7 (a) IN GENERAL.—Subparagraph (A) of section 

8 108(f)(5) of the Internal Revenue Code of 1986 is amend9 ed by striking ‘‘and before January 1, 2026,’’. 

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

11 this section shall apply to discharges of indebtedness after 

12 December 31, 2017. 

13 SEC. 12. REPEAL OF DEDUCTION FOR PERSONAL EXEMP14 TIONS. 

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

16 1 of the Internal Revenue Code of 1986 is hereby repealed. 

17 (b) DEFINITION OF DEPENDENT RETAINED.—Sec18 tion 152 of the Internal Revenue Code of 1986, prior to 

19 repeal by subsection (a), is hereby redesignated as section 

20 7706 of such Code and moved to the end of chapter 79 

21 of such Code. 

22 (c) APPLICATION TO ESTATES AND TRUSTS.—Sub23 paragraph (C) of section 642(b)(2) of the Internal Rev24 enue Code of 1986 is amended— 


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1 (1) by striking ‘‘the exemption amount under 

2 section 151(d)’’ in clause (i) and inserting ‘‘$4,150’’, 

3 and 

4 (2) by striking clause (iii) and inserting the fol5 lowing: 

6 ‘‘(iii) INFLATION ADJUSTMENT.—In 

7 the case of any taxable year beginning in 

8 a calendar year after 2018, the $4,150 

9 amount in clause (i) shall be increased by 

10 an amount equal to— 

11 ‘‘(I) such dollar amount, multi12 plied by 

13 ‘‘(II) the cost-of-living adjust14 ment determined under section 1(f)(3) 

15 for the calendar year in which the tax16 able begins, determined by sub17 stituting ‘2017’ for ‘2016’ in subpara18 graph (A)(ii) thereof. 

19 If any increase determined under the pre20 ceding sentence is not a multiple of $100, 

21 such increase shall be rounded to the next 

22 lowest multiple of $100.’’. 

23 (d) APPLICATION TO NONRESIDENT ALIENS.—Sec24 tion 873(b) of the Internal Revenue Code of 1986 is 

25 amended by striking paragraph (3). 


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1 (e) MODIFICATION OF RETURN REQUIREMENT.— 

2 (1) IN GENERAL.—Section 6012 of the Internal 

3 Revenue Code of 1986 is amended— 

4 (A) by striking paragraph (1) of subsection 

5 (a) and inserting the following: 

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

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

8 required of— 

9 ‘‘(A) an individual who is not married (de10 termined by applying section 7703) and who 

11 has gross income for the taxable year which 

12 does not exceed the standard deduction applica13 ble to such individual for such taxable year 

14 under section 63, or 

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

16 return if— 

17 ‘‘(i) the gross income of such indi18 vidual, when combined with the gross in19 come of such individual’s spouse, for the 

20 taxable year does not exceed the standard 

21 deduction which would be applicable to the 

22 taxpayer for such taxable year under sec23 tion 63 if such individual and such individ24 ual’s spouse made a joint return, 


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•S 2687 IS

1 ‘‘(ii) such individual and such individ2 ual’s spouse have the same household as 

3 their home at the close of the taxable year, 

4 ‘‘(iii) such individual’s spouse does not 

5 make a separate return, and 

6 ‘‘(iv) neither such individual nor such 

7 individual’s spouse is an individual de8 scribed in section 63(c)(2) who has income 

9 (other than earned income) in excess of the 

10 amount in effect under section 

11 63(c)(2)(A).’’, and 

12 (B) by striking subsection (f). 

13 (2) BANKRUPTCY ESTATES.—Paragraph (8) of 

14 section 6012(a) of such Code is amended by striking 

15 ‘‘the sum of the exemption amount plus the basic 

16 standard deduction under section 63(c)(2)(D)’’ and 

17 inserting ‘‘the standard deduction in effect under 

18 section 63(c)(1)(B)’’. 

19 (f) CONFORMING AMENDMENTS.— 

20 (1) Section 2(a)(1)(B) of the Internal Revenue 

21 Code of 1986 is amended by striking ‘‘a dependent’’ 

22 and all that follows through ‘‘section 151’’ and in23 serting ‘‘a dependent who (within the meaning of 

24 section 7706, determined without regard to sub25 sections (b)(1), (b)(2) and (d)(1)(B) thereof) is a 


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•S 2687 IS

1 son, stepson, daughter, or stepdaughter of the tax2 payer’’. 

3 (2) Section 36B(b)(2)(A) of such Code is 

4 amended by striking ‘‘section 152’’ and inserting 

5 ‘‘section 7706’’. 

6 (3) Section 36B(b)(3)(B) of such Code is 

7 amended by striking ‘‘unless a deduction is allowed 

8 under section 151 for the taxable year with respect 

9 to a dependent’’ in the flush matter at the end and 

10 inserting ‘‘unless the taxpayer has a dependent for 

11 the taxable year’’. 

12 (4) Section 36B(c)(1)(D) of such Code is 

13 amended by striking ‘‘with respect to whom a deduc14 tion under section 151 is allowable to another tax15 payer’’ and inserting ‘‘who is a dependent of another 

16 taxpayer’’. 

17 (5) Section 36B(d)(1) of such Code is amended 

18 by striking ‘‘equal to the number of individuals for 

19 whom the taxpayer is allowed a deduction under sec20 tion 151 (relating to allowance of deduction for per21 sonal exemptions) for the taxable year’’ and insert22 ing ‘‘the sum of 1 (2 in the case of a joint return) 

23 plus the number of the taxpayer’s dependents for 

24 the taxable year’’. 


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•S 2687 IS

1 (6) Section 36B(e)(1) of such Code is amended 

2 by striking ‘‘1 or more individuals for whom a tax3 payer is allowed a deduction under section 151 (re4 lating to allowance of deduction for personal exemp5 tions) for the taxable year (including the taxpayer or 

6 his spouse)’’ and inserting ‘‘1 or more of the tax7 payer, the taxpayer’s spouse, or any dependent of 

8 the taxpayer’’. 

9 (7) Section 42(i)(3)(D)(ii)(I) of such Code is 

10 amended— 

11 (A) by striking ‘‘section 152’’ and insert12 ing ‘‘section 7706’’, and 

13 (B) by striking the period at the end and 

14 inserting a comma. 

15 (8) Section 63(b) of such Code is amended by 

16 striking ‘‘minus—’’ and all that follows and insert17 ing ‘‘minus the standard deduction.’’. 

18 (9) Section 63(d) of such Code is amended by 

19 striking ‘‘other than—’’ and all that follows and in20 serting ‘‘other than the deductions allowable in ar21 riving at adjusted gross income.’’. 

22 (10) Section 72(t)(2)(D)(i)(III) of such Code is 

23 amended by striking ‘‘section 152’’ and inserting 

24 ‘‘section 7706’’. 


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•S 2687 IS

1 (11) Section 72(t)(7)(A)(iii) of such Code is 

2 amended by striking ‘‘section 152(f)(1)’’ and insert3 ing ‘‘section 7706(f)(1)’’. 

4 (12) Section 105(b) of such Code is amended— 

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

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

7 (B) by striking ‘‘section 152(f)(1)’’ and in8 serting ‘‘section 7706(f)(1)’’, and 

9 (C) by striking ‘‘section 152(e)’’ and in10 serting ‘‘section 7706(e)’’. 

11 (13) Section 105(c)(1) of such Code is amended 

12 by striking ‘‘section 152’’ and inserting ‘‘section 

13 7706’’. 

14 (14) Section 125(e)(1)(D) of such Code is 

15 amended by striking ‘‘section 152’’ and inserting 

16 ‘‘section 7706’’. 

17 (15) Section 129(c) of such Code is amended— 

18 (A) by striking ‘‘with respect to whom, for 

19 such taxable year, a deduction is allowable 

20 under section 151(c) (relating to personal ex21 emptions for dependents) to’’ in paragraph (1) 

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

23 (B) by striking ‘‘section 152(f)(1)’’ in 

24 paragraph (2) and inserting ‘‘section 

25 7706(f)(1)’’. 


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1 (16) Section 132(h)(2)(B) of such Code is 

2 amended— 

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

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

7 (17) Section 139D(c)(5) of such Code is 

8 amended by striking ‘‘section 152’’ and inserting 

9 ‘‘section 7706’’. 

10 (18) Section 162(l)(1)(D) of such Code is 

11 amended by striking ‘‘section 152(f)(1)’’ and insert12 ing ‘‘section 7706(f)(1)’’. 

13 (19) Section 170(g)(1) of such Code is amend14 ed by striking ‘‘section 152’’ and inserting ‘‘section 

15 7706’’. 

16 (20) Section 170(g)(3) of such Code is amend17 ed by striking ‘‘section 152(d)(2)’’ and inserting 

18 ‘‘section 7706(d)(2)’’. 

19 (21) Section 172(d) of such Code is amended 

20 by striking paragraph (3). 

21 (22) Section 220(b)(6) of such Code is amend22 ed by striking ‘‘with respect to whom a deduction 

23 under section 151 is allowable to’’ and inserting 

24 ‘‘who is a dependent of’’. 


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•S 2687 IS

1 (23) Section 220(d)(2)(A) of such Code is 

2 amended by striking ‘‘section 152’’ and inserting 

3 ‘‘section 7706’’. 

4 (24) Section 223(b)(6) of such Code is amend5 ed by striking ‘‘with respect to whom a deduction 

6 under section 151 is allowable to’’ and inserting 

7 ‘‘who is a dependent of’’. 

8 (25) Section 223(d)(2)(A) of such Code is 

9 amended by striking ‘‘section 152’’ and inserting 

10 ‘‘section 7706’’. 

11 (26) Section 401(h) of such Code is amended 

12 by striking ‘‘section 152(f)(1)’’ in the last sentence 

13 and inserting ‘‘section 7706(f)(1)’’. 

14 (27) Section 402(l)(4)(D) of such Code is 

15 amended by striking ‘‘section 152’’ and inserting 

16 ‘‘section 7706’’. 

17 (28) Section 409A(a)(2)(B)(ii)(I) of such Code 

18 is amended by striking ‘‘section 152(a)’’ and insert19 ing ‘‘section 7706(a)’’. 

20 (29) Section 501(c)(9) of such Code is amended 

21 by striking ‘‘section 152(f)(1)’’ and inserting ‘‘sec22 tion 7706(f)(1)’’. 

23 (30) Section 529(e)(2)(B) of such Code is 

24 amended by striking ‘‘section 152(d)(2)’’ and insert25 ing ‘‘section 7706(d)(2)’’. 


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•S 2687 IS

1 (31) Section 703(a)(2) of such Code is amended 

2 by striking subparagraph (A) and by redesignating 

3 subparagraphs (B) through (F) as subparagraphs 

4 (A) through (E), respectively. 

5 (32) Section 874 of such Code is amended by 

6 striking subsection (b) and by redesignating sub7 section (c) as subsection (b). 

8 (33) Section 891 of such Code is amended by 

9 striking ‘‘under section 151 and’’. 

10 (34) Section 904(b) of such Code is amended 

11 by striking paragraph (1). 

12 (35) Section 931(b)(1) of such Code is amend13 ed by striking ‘‘(other than the deduction under sec14 tion 151, relating to personal exemptions)’’. 

15 (36) Section 933 of such Code is amended— 

16 (A) by striking ‘‘(other than the deduction 

17 under section 151, relating to personal exemp18 tions)’’ in paragraph (1), and 

19 (B) by striking ‘‘(other than the deduction 

20 for personal exemptions under section 151)’’ in 

21 paragraph (2). 

22 (37) Section 1212(b)(2)(B)(ii) of such Code is 

23 amended to read as follows: 


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•S 2687 IS

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

2 the deduction allowed for such year under 

3 section 642(b).’’. 

4 (38) Section 1361(c)(1)(C) of such Code is 

5 amended by striking ‘‘section 152(f)(1)(C)’’ and in6 serting ‘‘section 7706(f)(1)(C)’’. 

7 (39) Section 1402(a) of such Code is amended 

8 by striking paragraph (7). 

9 (40) Section 2032A(c)(7)(D) of such Code is 

10 amended by striking ‘‘section 152(f)(2)’’ and insert11 ing ‘‘section 7706(f)(2)’’. 

12 (41) Section 3402(m)(1) of such Code is 

13 amended by striking ‘‘other than the deductions re14 ferred to in section 151 and’’. 

15 (42) Section 3402(r)(2) of such Code is amend16 ed by striking ‘‘the sum of—’’ and all that follows 

17 and inserting ‘‘the standard deduction in effect 

18 under section 63(c)(1)(B).’’. 

19 (43) Section 5000A(b)(3)(A) of such Code is 

20 amended by striking ‘‘section 152’’ and inserting 

21 ‘‘section 7706’’. 

22 (44) Section 5000A(c)(4)(A) of such Code is 

23 amended by striking ‘‘the number of individuals for 

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1 sonal exemptions) for the taxable year’’ and insert2 ing ‘‘the sum of 1 (2 in the case of a joint return) 

3 plus the number of the taxpayer’s dependents for 

4 the taxable year’’. 

5 (45) Section 6013(b)(3)(A) of such Code is 

6 amended— 

7 (A) by striking ‘‘had less than the exemp8 tion amount of gross income’’ in clause (ii) and 

9 inserting ‘‘had no gross income’’, 

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

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

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

13 (C) by striking the flush language fol14 lowing clause (iii). 

15 (46) Section 6103(l)(21)(A)(iii) of such Code is 

16 amended to read as follows: 

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

19 (47) Section 6213(g)(2) of such Code is amend20 ed by striking subparagraph (H). 

21 (48) Section 6334(d)(2) of such Code is amend22 ed to read as follows: 

23 ‘‘(2) EXEMPT AMOUNT.— 


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1 ‘‘(A) IN GENERAL.—For purposes of para2 graph (1), the term ‘exempt amount’ means an 

3 amount equal to— 

4 ‘‘(i) the sum of the amount deter5 mined under subparagraph (B) and the 

6 standard deduction, divided by 

7 ‘‘(ii) 52. 

8 ‘‘(B) AMOUNT DETERMINED.—For pur9 poses of subparagraph (A), the amount deter10 mined under this subparagraph is $4,150 multi11 plied by the number of the taxpayer’s depend12 ents for the taxable year in which the levy oc13 curs. 

14 ‘‘(C) INFLATION ADJUSTMENT.—In the 

15 case of any taxable year beginning after 2018, 

16 the $4,150 amount in subparagraph (B) shall 

17 be increased by an amount equal to— 

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

19 ‘‘(ii) the cost-of-living adjustment de20 termined under section 1(f)(3) for the cal21 endar year in which the taxable year be22 gins, by substituting ‘calendar year 2017’ 

23 for ‘calendar year 2016’ in subparagraph 

24 (A) thereof. 


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1 If any increase determined under the preceding 

2 sentence is not a multiple of $100, such in3 crease shall be rounded to the next lowest mul4 tiple of $100. 

5 ‘‘(D) VERIFIED STATEMENT.—Unless the 

6 taxpayer submits to the Secretary a written and 

7 properly verified statement specifying the facts 

8 necessary to determine the proper amount 

9 under subparagraph (A), subparagraph (A) 

10 shall be applied as if the taxpayer were a mar11 ried individual filing a separate return with no 

12 dependents.’’. 

13 (49) Section 7702B(f)(2)(C)(iii) of such Code is 

14 amended by striking ‘‘section 152(d)(2)’’ and insert15 ing ‘‘section 7706(d)(2)’’. 

16 (50) Section 7703(a) of such Code is amended 

17 by striking ‘‘part V of subchapter B of chapter 1 

18 and’’. 

19 (51) Section 7703(b)(1) of such Code is amend20 ed by striking ‘‘section 152(f)(1)’’ and all that fol21 lows and inserting ‘‘section 7706(f)(1),’’. 

22 (52) Section 7706(a) of such Code, as redesig23 nated by this section, is amended by striking ‘‘this 

24 subtitle’’ and inserting ‘‘subtitle A’’. 


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1 (53)(A) Section 7706(d)(1)(B) of such Code, as 

2 redesignated by this section, is amended by striking 

3 ‘‘the exemption amount (as defined in section 

4 151(d))’’ and inserting ‘‘$4,150’’. 

5 (B) Section 7706(d) of such Code, as redesig6 nated by this section, is amended by adding at the 

7 end the following new paragraph: 

8 ‘‘(6) INFLATION ADJUSTMENT.—In the case of 

9 any calendar year beginning after 2018, the $4,150 

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

11 amount equal to— 

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

13 ‘‘(B) the cost-of-living adjustment deter14 mined under section 1(f)(3) for such calendar 

15 year, determined by substituting ‘calendar year 

16 2017’ for ‘calendar year 2016’ in subparagraph 

17 (A)(ii) thereof. 

18 If any increase determined under the preceding sen19 tence is not a multiple of $100, such increase shall 

20 be rounded to the next lowest multiple of $100.’’. 

21 (54) The table of sections for chapter 79 of 

22 such Code is amended by adding at the end the fol23 lowing new item: 

‘‘Sec. 7706. Dependent defined.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2017. 

4 SEC. 13. PERMANENT EXTENSION OF LIMITATION ON DE5 DUCTION FOR STATE AND LOCAL, ETC., 

6 TAXES. 

7 (a) IN GENERAL.—Paragraph (6) of section 164(b) 

8 of the Internal Revenue Code of 1986 is amended— 

9 (1) by striking ‘‘, and before January 1, 2026’’, 

10 and 

11 (2) by striking ‘‘2018 THROUGH 2025’’ in the 

12 heading and inserting ‘‘AFTER 2017’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2016. 

16 SEC. 14. PERMANENT EXTENSION OF LIMITATION ON DE17 DUCTION FOR QUALIFIED RESIDENCE INTER18 EST. 

19 (a) REPEAL OF HOME EQUITY INDEBTEDNESS.— 

20 (1) IN GENERAL.—Section 163(h)(3)(A) of the 

21 Internal Revenue Code of 1986 is amended by strik22 ing ‘‘during the taxable year on’’ and all that follows 

23 through ‘‘For purposes of’’ and inserting ‘‘during 

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1 spect to any qualified principal residence of the tax2 payer. For purposes of’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 163(h)(3) of such Code is amended by striking sub5 paragraph (C). 

6 (b) LIMITATION ON ACQUISITION INDEBTEDNESS.— 

7 (1) IN GENERAL.—Section 163(h)(3)(B)(ii) of 

8 the Internal Revenue Code of 1986 is amended by 

9 striking ‘‘$1,000,000 ($500,000’’ and inserting 

10 ‘‘$750,000 ($375,000’’. 

11 (2) TREATMENT OF INDEBTEDNESS INCURRED

12 ON OR BEFORE DECEMBER 31, 2017; 

13 REFINANCINGS.—Section 163(h)(3) of the Internal 

14 Revenue Code of 1986, as amended by subsection 

15 (a)(2), is amended by inserting after subparagraph 

16 (B) the following new subparagraph: 

17 ‘‘(C) TREATMENT OF INDEBTEDNESS IN18 CURRED ON OR BEFORE DECEMBER 15, 2017; 

19 REFINANCINGS.— 

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

21 indebtedness incurred on or before Decem22 ber 15, 2017, subparagraph (B)(ii) shall 

23 apply as in effect immediately before the 

24 enactment of the Public Law 115–97, and, 

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1 debtedness incurred after such date, the 

2 limitation under such subparagraph shall 

3 be reduced (but not below zero) by the 

4 amount of any indebtedness incurred on or 

5 before December 15, 2017, which is treat6 ed as acquisition indebtedness for purposes 

7 of this subsection for the taxable year. 

8 ‘‘(ii) BINDING CONTRACT EXCEP9 TION.—In the case of a taxpayer who en10 ters into a written binding contract before 

11 December 15, 2017, to close on the pur12 chase of a principal residence before Janu13 ary 1, 2018, and who purchases such resi14 dence before April 1, 2018, subclause (III) 

15 shall be applied by substituting ‘April 1, 

16 2018’ for ‘December 15, 2017’. 

17 ‘‘(iii) TREATMENT OF REFINANCINGS

18 OF INDEBTEDNESS.— 

19 ‘‘(I) IN GENERAL.—In the case 

20 of any indebtedness which is incurred 

21 to refinance indebtedness, such refi22 nanced indebtedness shall be treated 

23 for purposes of clause (i) as incurred 

24 on the date that the original indebted25 ness was incurred to the extent the 


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1 amount of the indebtedness resulting 

2 from such refinancing does not exceed 

3 the amount of the refinanced indebt4 edness. 

5 ‘‘(II) LIMITATION ON PERIOD OF

6 REFINANCING.—Subclause (I) shall 

7 not apply to any indebtedness after 

8 the expiration of the term of the origi9 nal indebtedness or, if the principal of 

10 such original indebtedness is not am11 ortized over its term, the expiration of 

12 the term of the 1st refinancing of 

13 such indebtedness (or if earlier, the 

14 date which is 30 years after the date 

15 of such 1st refinancing).’’. 

16 (c) COORDINATION WITH EXCLUSION OF INCOME

17 FROM DISCHARGE OF INDEBTEDNESS.—Section 

18 108(h)(2) of the Internal Revenue Code of 1986 is amend19 ed by striking ‘‘$1,000,000 ($500,000’’ and inserting 

20 ‘‘$750,000 ($375,000’’. 

21 (d) CONFORMING AMENDMENTS.—Section 163(h)(3) 

22 of the Internal Revenue Code of 1986 is amended— 

23 (1) in the heading of subparagraph (D)(ii), by 

24 striking ‘‘$1,000,000’’, and 

25 (2) by striking subparagraph (F). 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2017. 

4 SEC. 15. PERMANENT EXTENSION OF MODIFICATIONS TO 

5 DEDUCTION FOR PERSONAL CASUALTY 

6 LOSSES. 

7 (a) IN GENERAL.—Paragraph (5) of section 165(h) 

8 of the Internal Revenue Code of 1986 is amended— 

9 (1) by striking ‘‘, and before January 1, 2026’’ 

10 in subparagraph (A), and 

11 (2) by striking ‘‘2018 THROUGH 2025’’ in the 

12 heading and inserting ‘‘AFTER 2017’’. 

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

14 this section shall apply to losses incurred in taxable years 

15 beginning after December 31, 2017. 

16 SEC. 16. REPEAL OF MISCELLANEOUS ITEMIZED DEDUC17 TIONS. 

18 (a) IN GENERAL.—Section 67 of the Internal Rev19 enue Code of 1986 is amended— 

20 (1) by striking subsection (a) and inserting the 

21 following: 

22 ‘‘(a) GENERAL RULE.—No miscellaneous itemized 

23 deduction shall be allowed for any taxable year beginning 

24 after December 31, 2017.’’. 

25 (2) by striking subsection (g), and 


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•S 2687 IS

1 (3) by striking ‘‘2-PERCENT FLOOR ON’’ in 

2 the heading and inserting ‘‘TREATMENT OF’’. 

3 (b) CONFORMING AMENDMENT.—The table of sec4 tions for part I of subchapter B of chapter 1 of the Inter5 nal Revenue Code of 1986 is amended by striking ‘‘2-per6 cent floor on’’ in the item relating to section 67 and insert7 ing ‘‘Treatment of’’. 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2017. 

11 SEC. 17. REPEAL OF OVERALL LIMITATION ON ITEMIZED 

12 DEDUCTIONS. 

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

14 1 of the Internal Revenue Code of 1986 is amended by 

15 striking section 68 (and the item relating to such section 

16 in the table of sections for such part). 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) Section 1(f)(7) of the Internal Revenue 

19 Code of 1986 is amended by striking ‘‘section 

20 68(b)(2),’’. 

21 (2) Section 56(b)(1) of such Code is amended 

22 by striking subparagraph (F). 

23 (3) Section 164(b)(5)(H)(ii)(III) of such Code 

24 is amended by inserting ‘‘(as in effect before the 


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•S 2687 IS

1 date of the enactment of the Tax Cuts and Jobs 

2 Act)’’ after ‘‘68(b)’’. 

3 (4) Section 642(b)(2)(C)(i)(I) of such Code is 

4 amended by striking ‘‘as an individual described in 

5 section 68(b)(1)(C)’’ and inserting ‘‘as an individual 

6 who is not married and who is not a surviving 

7 spouse or head of household’’. 

8 (5) Section 773(a)(3)(B) of such Code is 

9 amended by striking clause (i) and redesignating 

10 clauses (ii) through (iv) as clauses (i) through (iii), 

11 respectively. 

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

13 this section shall apply to taxable years beginning after 

14 December 31, 2017. 

15 SEC. 18. REPEAL OF EXCLUSION FOR QUALIFIED BICYCLE 

16 COMMUTING REIMBURSEMENT. 

17 (a) IN GENERAL.—Section 132(f)(1) of the Internal 

18 Revenue Code of 1986 is amended by striking subpara19 graph (D). 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Section 132(f)(2) of the Internal Revenue 

22 Code of 1986 is amended by inserting ‘‘and’’ at the 

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

24 end of subparagraph (B) and inserting a period, and 

25 by striking subparagraph (C). 


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1 (2) Section 132(f)(4) of such Code is amended 

2 by striking ‘‘(other than a qualified bicycle com3 muting reimbursement)’’. 

4 (3) Section 132(f)(5) of such Code is amended 

5 by striking subparagraph (F). 

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

7 this section shall apply to taxable years beginning after 

8 December 31, 2017. 

9 SEC. 19. PERMANENT EXTENSION OF MODIFICATION OF EX10 CLUSION FOR QUALIFIED MOVING EXPENSE 

11 REIMBURSEMENT. 

12 (a) IN GENERAL.—Section 132(g) of the Internal 

13 Revenue Code of 1986 is amended— 

14 (1) in paragraph (1), by striking ‘‘individual’’ 

15 and inserting ‘‘qualified military member’’, and 

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

17 following: 

18 ‘‘(2) QUALIFIED MILITARY MEMBER.—For pur19 poses of paragraph (1), the term ‘qualified military 

20 member’ means a member of the Armed Forces of 

21 the United States on active duty who moves pursu22 ant to a military order and incident to a permanent 

23 change of station.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2017. 

4 SEC. 20. REPEAL OF DEDUCTION FOR MOVING EXPENSES. 

5 (a) IN GENERAL.—Subsection (a) of section 217 of 

6 the Internal Revenue Code of 1986 is amended to read 

7 as follows: 

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

9 as a deduction moving expenses paid or incurred during 

10 the taxable year in connection with the commencement of 

11 work by a member of the Armed Forces of the United 

12 States on active duty who moves pursuant to a military 

13 order and incident to a permanent change of station.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Section 217 of the Internal Revenue Code 

16 of 1986 is amended— 

17 (A) by striking subsections (c), (d), (f), 

18 and (i), 

19 (B) by redesignating subsections (g), (h), 

20 and (j) as subsections (c), (d), and (e), respec21 tively, and 

22 (C) in subsection (c), as so redesignated— 

23 (i) by striking paragraph (1) and re24 designating paragraphs (2) and (3) as 

25 paragraphs (1) and (2), respectively, and 


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1 (ii) in paragraph (2) (as so redesig2 nated), by striking ‘‘moving expenses of his 

3 spouse and dependents’’ and all that fol4 lows and inserting ‘‘moving expenses of his 

5 spouse and dependents as if his spouse 

6 commenced work as an employee at a new 

7 principal place of work at such location.’’. 

8 (2) Section 23 of such Code is amended by 

9 striking ‘‘217(h)(3)’’ each place it appears in sub10 sections (d)(3) and (e) and inserting ‘‘217(d)(3)’’. 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2017. 

14 SEC. 21. PERMANENT EXTENSION OF LIMITATION ON WA15 GERING LOSSES. 

16 (a) IN GENERAL.—The second sentence of section 

17 164(d) of the Internal Revenue Code of 1986 is amended 

18 by striking ‘‘in the case of taxable years beginning after 

19 December 31, 2017, and before January 1, 2026,’’. 

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

21 this section shall not apply to taxable years beginning 

22 after December 31, 2017. 


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•S 2687 IS

1 SEC. 22. INCREASE IN ESTATE AND GIFT TAX EXEMPTION 

2 MADE PERMANENT. 

3 (a) IN GENERAL.—Section 2010(c)(3)(A) of the In4 ternal Revenue Code of 1986 is amended by striking 

5 ‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Section 2010(c)(3) of the Internal Revenue 

8 Code of 1986 is amended by striking subparagraph 

9 (C). 

10 (2) Subsection (g) of section 2001 of such Code 

11 is amended to read as follows: 

12 ‘‘(g) MODIFICATIONS TO GIFT TAX PAYABLE TO RE13 FLECT DIFFERENT TAX RATES.—For purposes of apply14 ing subsection (b)(2) with respect to 1 or more gifts, the 

15 rates of tax under subsection (c) in effect at the decedent’s 

16 death shall, in lieu of the rates of tax in effect at the time 

17 of such gifts, be used both to compute— 

18 ‘‘(1) the tax imposed by chapter 12 with respect 

19 to such gifts, and 

20 ‘‘(2) the credit allowed against such tax under 

21 section 2505, including in computing— 

22 ‘‘(A) the applicable credit amount under 

23 section 2505(a)(1), and 

24 ‘‘(B) the sum of the amounts allowed as a 

25 credit for all preceding periods under section 

26 2505(a)(2).’’. 


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•S 2687 IS

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

2 this section shall apply to estates of decedents dying and 

3 gifts made after December 31, 2017. 

4 SEC. 23. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMP5 TION MADE PERMANENT. 

6 (a) IN GENERAL.—Section 55(d) of the Internal Rev7 enue Code of 1986 is amended— 

8 (1) in paragraph (1)— 

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

10 (A) and inserting ‘‘$109,400’’, and 

11 (B) by striking ‘‘$50,600’’ in subpara12 graph (B) and inserting ‘‘$70,300’’, and 

13 (2) in paragraph (2)— 

14 (A) by striking ‘‘$150,000’’ in subpara15 graph (A) and inserting ‘‘$1,000,000’’, and 

16 (B) by striking subparagraphs (B) and (C) 

17 and inserting the following: 

18 ‘‘(B) 50 percent of the dollar amount ap19 plicable under subparagraph (A) in the case of 

20 a taxpayer described in subparagraph (B) or 

21 (C) of paragraph (1), and 

22 ‘‘(C) 50 percent of $150,000 in the case of 

23 a taxpayer described in paragraph (1)(D).’’. 

24 (b) INFLATION ADJUSTMENT.— 


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•S 2687 IS

1 (1) IN GENERAL.—Section 55(d)(3)(A)(ii) of 

2 the Internal Revenue Code of 1986 is amended to 

3 read as follows: 

4 ‘‘(ii) the cost-of-living adjustment de5 termined under section 1(f)(3) for the cal6 endar year in which the taxable year be7 gins, by substituting for ‘calendar year 

8 2016’ in subparagraph (A)(ii) thereof— 

9 ‘‘(I) ‘calendar year 2011’ in the 

10 case of the dollar amounts described 

11 in clauses (i), (iv), and (v) of subpara12 graph (B), and 

13 ‘‘(II) ‘calendar year 2017’ in the 

14 case of the dollar amounts described 

15 in clauses (ii) and (iii) of subpara16 graph (B).’’. 

17 (2) CONFORMING AMENDMENTS.—Section 

18 55(d)(3)(B) of such Code is amended— 

19 (A) by striking ‘‘subparagraphs (A), (B), 

20 and (D) of paragraph (1), and’’ in clause (ii) 

21 and inserting ‘‘subparagraphs (A) and (B) of 

22 paragraph (1),’’, 

23 (B) by striking ‘‘subparagraphs (A) and 

24 (B) of paragraph (2).’’ in clause (iii) and in25 serting ‘‘paragraph (2)(A),’’, and 


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•S 2687 IS

1 (C) by adding at the end the following: 

2 ‘‘(iv) the dollar amount contained in 

3 paragraph (1)(D), and 

4 ‘‘(v) the dollar amount contained in 

5 paragraph (2)(C).’’. 

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

7 this section shall apply to taxable years beginning after 

8 December 31, 2017. 

9 SEC. 24. TECHNICAL AMENDMENT. 

10 Section 11000 of Public Law 115–97 is amended by 

11 redesignating subsection (a) as subsection (b) and by in12 serting before subsection (b) (as so redesignated) the fol13 lowing new subsection: 

14 ‘‘(a) SHORT TITLE.—This title may be cited as the 

15 ‘Tax Cuts and Jobs Act’.’’. 

Æ 


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