II 

118TH CONGRESS 

1ST SESSION S. 1226 

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 20, 2023 

Mr. CRUZ (for himself and Mr. BRAUN) 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 sub7 section (a) of section 1 of the Internal Revenue Code of 

8 1986 is amended to read as follows: 


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‘‘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.’’. 

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

2 in subsection (b) 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 $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.—The 

6 table contained in subsection (c) of section 1 of the Inter7 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. 


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‘‘If taxable income is: The tax is: 

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.’’. 

1 (d) MARRIED INDIVIDUALS FILING SEPARATE RE2 TURNS.—The table contained in subsection (d) of section 

3 1 of the Internal Revenue Code of 1986 is amended to 

4 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.’’. 

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

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

7 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.’’. 


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

2 section 1 of the Internal Revenue Code of 1986 is amend3 ed— 

4 (1) by striking ‘‘1993’’ in paragraph (1) and in5 serting ‘‘2018’’, 

6 (2) by striking ‘‘determined—’’ and all that fol7 lows in paragraph (2)(A) and inserting ‘‘determined 

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

9 (3)(A)(ii),’’, 

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

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

12 ‘‘any unmarried individual other than a surviving 

13 spouse or head of household’’, 

14 (4) by striking ‘‘MARRIED INDIVIDUALS FILING

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

16 paragraph (7) and inserting ‘‘CERTAIN UNMARRIED

17 INDIVIDUALS’’, and 

18 (5) by striking paragraph (8). 

19 (g) CAPITAL GAINS BRACKETS.—Subsection (h) of 

20 section 1 of the Internal Revenue Code of 1986 is amend21 ed— 

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

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

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

25 maximum zero rate amount’’, 


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

2 this paragraph) be taxed at a rate below 39.6 per3 cent’’ in paragraph (1)(C)(ii)(I) and inserting 

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

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

6 paragraph: 

7 ‘‘(12) MAXIMUM AMOUNTS DEFINED.—For pur8 poses of this subsection— 

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

10 maximum zero rate amount shall be— 

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

12 surviving spouse, $77,200, 

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

14 is a head of household (as defined in sec15 tion 2(b)), $51,700, 

16 ‘‘(iii) in the case of any other indi17 vidual (other than an estate or trust), an 

amount equal to 1 18 ⁄2 of the amount in effect 

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

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

21 $2,600. 

22 ‘‘(B) MAXIMUM 15-PERCENT RATE

23 AMOUNT.—The maximum 15-percent rate 

24 amount shall be— 


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

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

3 amount in the case of a married individual 

4 filing a separate return), 

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

6 is the head of a household (as defined in 

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

8 ‘‘(iii) in the case of any other indi9 vidual (other than an estate or trust), 

10 $425,800, and 

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

12 $12,700. 

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

14 case of any taxable year beginning after 2018, 

15 each of the dollar amounts in subparagraphs 

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

17 equal to— 

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

19 ‘‘(ii) the cost-of-living adjustment de20 termined under subsection (f)(3) for the 

21 calendar year in which the taxable year be22 gins, determined by substituting ‘calendar 

23 year 2017’ for ‘calendar year 2016’ in sub24 paragraph (A)(ii) thereof. 


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1 If any increase under this subparagraph is not 

2 a multiple of $50, such increase shall be round3 ed to the next lowest multiple of $50.’’. 

4 (h) CONFORMING AMENDMENTS.— 

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

6 1986 is amended by striking subsections (i) and (j). 

7 (2) Section 3402(q)(1) of such Code is amend8 ed by striking ‘‘third lowest’’ and inserting ‘‘fourth 

9 lowest’’. 

10 (i) SECTION 15 NOT TO APPLY.—Section 15 of the 

11 Internal Revenue Code of 1986 shall not apply to any 

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

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2022. 

16 SEC. 2. PERMANENT EXTENSION OF DEDUCTION FOR 

17 QUALIFIED BUSINESS INCOME OF PASS-THRU 

18 ENTITIES. 

19 (a) IN GENERAL.—Section 199A of the Internal Rev20 enue Code of 1986 is amended by striking subsection (i). 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2022. 


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1 SEC. 3. PERMANENT EXTENSION OF LIMITATION ON 

2 LOSSES FOR TAXPAYERS OTHER THAN COR3 PORATIONS. 

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

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

6 as follows: 

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

8 of a taxpayer other than a corporation, any excess 

9 business loss of the taxpayer for the taxable year 

10 shall not be allowed.’’. 

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

12 Internal Revenue Code of 1986 is amended by striking 

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

14 of certain taxpayers). 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2022. 

18 SEC. 4. PERMANENT EXTENSION OF INCREASE IN STAND19 ARD DEDUCTION. 

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

21 Revenue Code of 1986 is amended— 

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

23 and inserting ‘‘$18,800’’, and 

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

25 and inserting ‘‘$12,000’’. 


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1 (b) INFLATION ADJUSTMENT.—Paragraph (4) of sec2 tion 63(c) of the Internal Revenue Code of 1986 is amend3 ed to read as follows: 

4 ‘‘(4) ADJUSTMENTS FOR INFLATION.— 

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

6 taxable year beginning in a calendar year after 

7 2018, the $18,000 and $12,000 amounts in 

8 paragraph (2) shall each be increased by an 

9 amount equal to— 

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

11 ‘‘(ii) the cost-of-living adjustment de12 termined under section 1(f)(3) for the cal13 endar year in which the taxable year be14 gins, by substituting ‘2017’ for ‘2016’ in 

15 subparagraph (A)(ii) thereof. 

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

17 any taxable year beginning in a calendar year 

18 after 1988, each dollar amount contained in 

19 paragraph (5) or subsection (f) shall be in20 creased by an amount equal to— 

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

22 ‘‘(ii) the cost-of-living adjustment de23 termined under section 1(f)(3) for the cal24 endar year in which the taxable year beVerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226

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1 gins, by substituting for ‘calendar year 

2 2016’ in subparagraph (A)(ii) thereof— 

3 ‘‘(I) ‘calendar year 1987’ in the 

4 case of the dollar amounts contained 

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

6 and 

7 ‘‘(II) ‘calendar year 1997’ in the 

8 case of the dollar amount contained in 

9 paragraph (5)(B).’’. 

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

11 Internal Revenue Code of 1986 is amended by striking 

12 paragraph (7). 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2022. 

16 SEC. 5. PERMANENT INCREASE AND MODIFICATION OF 

17 CHILD TAX CREDIT. 

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

19 the Internal Revenue Code of 1986 is amended by striking 

20 ‘‘$1,000’’ and inserting ‘‘$2,000’’. 

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

22 the Internal Revenue Code of 1986 is amended to read 

23 as follows: 

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

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


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1 ‘‘(A) $400,000 in the case of a joint re2 turn, and 

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

4 (c) PARTIAL CREDIT ALLOWED FOR CERTAIN

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

6 the Internal Revenue Code of 1986 is amended to read 

7 as follows: 

8 ‘‘(h) PARTIAL CREDIT ALLOWED FOR CERTAIN

9 OTHER DEPENDENTS.— 

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

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

12 each dependent of the taxpayer (as defined in sec13 tion 7706) other than a qualifying child described in 

14 subsection (c). 

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

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

17 individual who would not be a dependent if subpara18 graph (A) of section 7706(b)(3) were applied with19 out regard to all that follows ‘resident of the United 

20 States’. 

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

22 case of any qualifying child with respect to whom a 

23 credit is not allowed under this section by reason of 

24 subsection (e)(1), such child shall be treated as a de25 pendent to whom subparagraph (A) applies.’’. 


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1 (d) MAXIMUM AMOUNT OF REFUNDABLE CREDIT.— 

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

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

4 following new paragraph: 

5 ‘‘(3) LIMITATION.— 

6 ‘‘(A) IN GENERAL.—The amount deter7 mined under paragraph (1)(A) with respect to 

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

9 and such paragraph shall be applied without re10 gard to subsection (h). 

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

12 the case of a taxable year beginning after 2018, 

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

14 be increased by an amount equal to— 

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

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘2017’ for 

20 ‘2016’ in subparagraph (A)(ii) thereof. 

21 If any increase under this clause is not a mul22 tiple of $100, such increase shall be rounded to 

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

24 (e) EARNED INCOME THRESHOLD FOR REFUNDABLE

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


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1 Code of 1986 is amended by striking ‘‘$3,000’’ and insert2 ing ‘‘$2,500’’. 

3 (f) SOCIAL SECURITY NUMBER REQUIRED.—Para4 graph (1) of section 24(e) of the Internal Revenue Code 

5 of 1986 is amended to read as follows: 

6 ‘‘(1) QUALIFYING CHILD SOCIAL SECURITY

7 NUMBER REQUIREMENT.—No credit shall be allowed 

8 under this section to a taxpayer with respect to any 

9 qualifying child unless the taxpayer includes the 

10 name and social security number of such child on 

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

12 of the preceding sentence, the term ‘social security 

13 number’ means a social security number issued to an 

14 individual by the Social Security Administration, but 

15 only if the social security number is issued— 

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

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

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

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

20 Act, and 

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

22 (g) REPEAL OF DEADWOOD.— 

23 (1) IN GENERAL.—Section 24 of the Internal 

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1 sections (i) and (j) and by redesignating subsection 

2 (k) as subsection (i). 

3 (2) CONFORMING AMENDMENTS.—Subsection 

4 (i) of section 24 of such Code, as redesignated by 

5 paragraph (1), is amended— 

6 (A) by striking paragraph (2)(A), 

7 (B) in paragraph (2)(B)— 

8 (i) by striking and all that precedes 

9 ‘‘In the case’’, and 

10 (ii) by redesignating clauses (i) and 

11 (ii) as subparagraphs (A) and (B), respec12 tively, and by moving such subparagraphs 

13 2 ems to the left, 

14 (C) in paragraph (3)(A), by striking ‘‘and 

15 without regard to the application of this section 

16 to bona fide residents of Puerto Rico under 

17 subsection (i)(1)’’, and 

18 (D) in paragraph (3)(C)(ii)— 

19 (i) by striking ‘‘under subparagraph 

20 (B)’’ and all that follows through ‘‘Decem21 ber 31, 2021,’’ and inserting ‘‘under sub22 paragraph (B),’’, and 

23 (ii) by striking ‘‘paragraph (2)(B)’’ 

24 and inserting ‘‘paragraph (2)’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2022. 

4 SEC. 6. PERMANENT EXTENSION OF INCREASED LIMITA5 TION FOR CERTAIN CHARITABLE CONTRIBU6 TIONS. 

7 (a) IN GENERAL.—Section 170(b)(1)(G) of the Inter8 nal Revenue Code of 1986 is amended— 

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

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

11 2026,’’ in clause (i), 

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

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

14 (3) by striking ‘‘For each taxable year de15 scribed in clause (i), and each taxable year to which 

16 any contribution under this subparagraph is carried 

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

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

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

20 this section shall apply to contributions in taxable years 

21 beginning after December 31, 2025. 


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1 SEC. 7. PERMANENT EXTENSION OF INCREASED CON2 TRIBUTIONS TO ABLE ACCOUNTS. 

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

4 Internal Revenue Code of 1986 is amended by striking 

5 ‘‘before January 1, 2026’’. 

6 (b) ALLOWANCE OF SAVERS CREDIT.—Section 

7 25B(d)(1)(D) of the Internal Revenue Code of 1986 is 

8 amended by striking ‘‘before January 1, 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. 8. PERMANENT EXTENSION OF ROLLOVERS TO ABLE 

13 PROGRAMS FROM 529 PROGRAMS. 

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

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

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

17 this section shall apply to distributions made after the 

18 date of the enactment of this Act. 

19 SEC. 9. PERMANENT EXTENSION OF TREATMENT OF CER20 TAIN INDIVIDUALS PERFORMING SERVICES 

21 IN THE SINAI PENINSULA OF EGYPT. 

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

23 of Public Law 115–97 is amended— 

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

25 2026’’ in paragraph (1)(B), and 


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

2 2026’’ in paragraph (2)(B). 

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

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

5 of this Act. 

6 SEC. 10. PERMANENT EXTENSION OF TREATMENT OF STU7 DENT LOANS DISCHARGED ON ACCOUNT OF 

8 DEATH OR DISABILITY. 

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

10 108(f)(5) of the Internal Revenue Code of 1986 is amend11 ed by striking ‘‘and before January 1, 2026,’’. 

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

13 this section shall apply to discharges of indebtedness after 

14 December 31, 2022. 

15 SEC. 11. REPEAL OF DEDUCTION FOR PERSONAL EXEMP16 TIONS. 

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

18 1 of the Internal Revenue Code of 1986 is hereby repealed. 

19 (b) DEFINITION OF DEPENDENT RETAINED.—Sec20 tion 152 of the Internal Revenue Code of 1986, prior to 

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

22 7706 of such Code and moved to the end of chapter 79 

23 of such Code. 


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1 (c) APPLICATION TO ESTATES AND TRUSTS.—Sub2 paragraph (C) of section 642(b)(2) of the Internal Rev3 enue Code of 1986 is amended— 

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

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

6 and 

7 (2) by striking clause (iii) and inserting the fol8 lowing: 

9 ‘‘(iii) INFLATION ADJUSTMENT.—In 

10 the case of any taxable year beginning in 

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

12 amount in clause (i) shall be increased by 

13 an amount equal to— 

14 ‘‘(I) such dollar amount, multi15 plied by 

16 ‘‘(II) the cost-of-living adjust17 ment determined under section 1(f)(3) 

18 for the calendar year in which the tax19 able begins, determined by sub20 stituting ‘2017’ for ‘2016’ in subpara21 graph (A)(ii) thereof. 

22 If any increase determined under the pre23 ceding sentence is not a multiple of $100, 

24 such increase shall be rounded to the next 

25 lowest multiple of $100.’’. 


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1 (d) APPLICATION TO NONRESIDENT ALIENS.—Sec2 tion 873(b) of the Internal Revenue Code of 1986 is 

3 amended by striking paragraph (3). 

4 (e) MODIFICATION OF RETURN REQUIREMENT.— 

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

6 Revenue Code of 1986 is amended— 

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

8 (a) and inserting the following: 

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

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

11 required of— 

12 ‘‘(A) an individual who is not married (de13 termined by applying section 7703) and who 

14 has gross income for the taxable year which 

15 does not exceed the standard deduction applica16 ble to such individual for such taxable year 

17 under section 63, or 

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

19 return if— 

20 ‘‘(i) the gross income of such indi21 vidual, when combined with the gross in22 come of such individual’s spouse, for the 

23 taxable year does not exceed the standard 

24 deduction which would be applicable to the 

25 taxpayer for such taxable year under secVerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226

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1 tion 63 if such individual and such individ2 ual’s spouse made a joint return, 

3 ‘‘(ii) such individual and such individ4 ual’s spouse have the same household as 

5 their home at the close of the taxable year, 

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

7 make a separate return, and 

8 ‘‘(iv) neither such individual nor such 

9 individual’s spouse is an individual de10 scribed in section 63(c)(2) who has income 

11 (other than earned income) in excess of the 

12 amount in effect under section 

13 63(c)(2)(A).’’, and 

14 (B) by striking subsection (f). 

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

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

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

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

19 inserting ‘‘the standard deduction in effect under 

20 section 63(c)(1)(B)’’. 

21 (f) CONFORMING AMENDMENTS.— 

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

23 Code of 1986 is amended— 


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1 (A) by striking ‘‘section 151(d)(4)’’ in sub2 paragraph (A) and inserting ‘‘section 

3 7706(d)(6)’’, and 

4 (B) by striking ‘‘151(d)(4)’’ in subpara5 graph (B) and inserting ‘‘7706(d)(6)’’. 

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

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

8 and all that follows through ‘‘section 151’’ and in9 serting ‘‘a dependent who (within the meaning of 

10 section 7706, determined without regard to sub11 sections (b)(1), (b)(2), and (d)(1)(B) thereof) is a 

12 son, stepson, daughter, or stepdaughter of the tax13 payer’’. 

14 (3) Section 21 of such Code is amended— 

15 (A) in subsection (b)(1)(A), by striking 

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

17 7706(a)(1)’’, 

18 (B) in subsection (b)(1)(B), by striking 

19 ‘‘section 152’’ and inserting ‘‘section 7706’’, 

20 (C) in subsection (e)(5)— 

21 (i) by striking ‘‘section 152(e)’’ in 

22 subparagraph (A) and inserting ‘‘section 

23 7706(e)’’, and 

24 (ii) by striking ‘‘section 152(e)(4)(A)’’ 

25 and inserting ‘‘section 7706(e)(4)(A)’’, and 


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1 (D) in subsection (e)(6)(B), by striking 

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

3 7706(f)(1)’’. 

4 (4) Section 24(a) of such Code is amended by 

5 striking ‘‘for which the taxpayer is allowed a deduc6 tion under section 151’’ and inserting ‘‘which is a 

7 dependent of the taxpayer’’. 

8 (5) Section 24(c) of such Code is amended— 

9 (A) in paragraph (1), by striking ‘‘section 

10 152(c)’’ and inserting ‘‘section 7706(c)’’, and 

11 (B) in paragraph (2), by striking ‘‘section 

12 152(b)(3)’’ and inserting ‘‘section 7706(b)(3)’’. 

13 (6) Section 25A(f)(1)(A)(iii) of such Code is 

14 amended by striking ‘‘with respect to whom the tax15 payer is allowed a deduction under section 151’’. 

16 (7) Section 25A(g)(3) of such Code is amended 

17 by striking ‘‘If a deduction under section 151 with 

18 respect to an individual is allowed to another tax19 payer’’ and inserting ‘‘If an individual is a depend20 ent (as defined in section 7706) of another tax21 payer’’. 

22 (8) Section 25B(c)(2) of such Code is amend23 ed— 

24 (A) in subparagraph (A), by striking ‘‘with 

25 respect to whom a deduction under section 151 


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1 is allowed to another taxpayer’’ and inserting 

2 ‘‘who is a dependent of another taxpayer’’, and 

3 (B) in subparagraph (B), by striking ‘‘sec4 tion 152(f)(2)’’ and inserting ‘‘section 

5 7706(f)(2)’’. 

6 (9) Section 25E(c)(3)(C) is amended by strik7 ing ‘‘with respect to whom no deduction is allowable 

8 with respect to another taxpayer under section 151’’ 

9 and inserting ‘‘who is a dependent (as defined in 

10 section 7706) of another taxpayer’’. 

11 (10) Section 32(c)(1)(A)(iii) of such Code is 

12 amended by striking ‘‘for whom a deduction is allow13 able under section 151 to’’ and inserting ‘‘of’’. 

14 (11) Section 32(c)(3) of such Code is amend15 ed— 

16 (A) in subparagraph (A)— 

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)’’, 

21 (B) in subparagraph (B), by striking ‘‘un22 less the taxpayer is entitled to a deduction 

23 under section 151 for such taxable year with re24 spect to such individual (or would be so entitled 

25 but for section 152(e))’’ and inserting ‘‘unless 


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1 such individual is a dependent (as defined in 

2 section 7706) of such taxpayer for such taxable 

3 year (or would be a dependent bu for section 

4 7706(e)’’, and 

5 (C) in subparagraph (C), by striking ‘‘sec6 tion 152(c)(1)(B)’’ and inserting ‘‘section 

7 7706(c)(1)(B)’’. 

8 (12) Section 35(d)(1) of such Code is amended 

9 by striking ‘‘with respect to whom the taxpayer is 

10 entitled to a deduction under section 151(c)’’. 

11 (13) Section 35(d)(2) of such Code is amend12 ed— 

13 (A) by striking ‘‘section 152(e)’’ and in14 serting ‘‘section 7706(e)’’, and 

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

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

17 (14) Section 35(g)(4) of such Code is amended 

18 by striking ‘‘with respect to whom a deduction under 

19 section 151 is allowable to’’ and inserting ‘‘is a de20 pendent (as defined in section 7706) of’’. 

21 (15) Section 35(g)(10)(C)(ii) of such Code is 

22 amended by striking ‘‘the taxpayer to whom the de23 duction under section 151 is allowable’’ and insert24 ing ‘‘the taxpayer of whom such individual is a de25 pendent of’’. 


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1 (16) Section 36(d)(3) of such Code is amended 

2 by striking ‘‘a deduction under section 151 with re3 spect to such taxpayer is allowable to another tax4 payer for such taxable year’’ and inserting ‘‘such 

5 taxpayer is a dependent of another taxpayer for such 

6 taxable year’’. 

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

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

9 ‘‘section 7706’’. 

10 (18) Section 36B(b)(3)(B) of such Code is 

11 amended— 

12 (A) by striking ‘‘who is not allowed a de13 duction under section 151 for the taxable year 

14 with respect to a dependent’’ and inserting 

15 ‘‘who does not have any dependents for the tax16 able year’’, and 

17 (B) by striking ‘‘unless a deduction is al18 lowed under section 151 for the taxable year 

19 with respect to a dependent’’ in the flush mat20 ter at the end and inserting ‘‘unless the tax21 payer has a dependent for the taxable year’’. 

22 (19) Section 36B(c)(1)(D) of such Code is 

23 amended by striking ‘‘with respect to whom a deduc24 tion under section 151 is allowable to another taxVerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226

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1 payer’’ and inserting ‘‘who is a dependent of another 

2 taxpayer’’. 

3 (20) Section 36B(d)(1) of such Code is amend4 ed by striking ‘‘equal to the number of individuals 

5 for whom the taxpayer is allowed a deduction under 

6 section 151 (relating to allowance of deduction for 

7 personal exemptions) for the taxable year’’ and in8 serting ‘‘the sum of 1 (2 in the case of a joint re9 turn) plus the number of the taxpayer’s dependents 

10 for the taxable year’’. 

11 (21) Section 36B(e)(1) of such Code is amend12 ed by striking ‘‘1 or more individuals for whom a 

13 taxpayer is allowed a deduction under section 151 

14 (relating to allowance of deduction for personal ex15 emptions) for the taxable year (including the tax16 payer or his spouse)’’ and inserting ‘‘1 or more of 

17 the taxpayer, the taxpayer’s spouse, or any depend18 ent of the taxpayer’’. 

19 (22) Section 42(i)(3)(D)(ii)(I) of such Code is 

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

21 ‘‘section 7706’’. 

22 (23) Section 45R(e)(1)(A)(iv) of such Code is 

23 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 (24) Section 51(i)(1) of such Code is amend4 ed— 

5 (A) by striking ‘‘section 152(d)(2)’’ each 

6 place it appears and inserting ‘‘section 

7 7706(d)(2)’’, and 

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

9 subparagraph (C) thereof and inserting ‘‘section 

10 7706(d)(2)(H)’’. 

11 (25) Section 56(b)(1)(D) of such Code is 

12 amended by striking ‘‘, the deduction for personal 

13 exemptions under section 151,’’. 

14 (26) Section 63(b) of such Code is amended by 

15 striking paragraph (2) and by redesignating para16 graphs (3) and (4) as paragraphs (2) and (3), re17 spectively. 

18 (27) Section 63(c)(5) is amended by striking 

19 ‘‘with respect to whom a deduction under section 

20 151 is allowable to’’ and inserting ‘‘who is a depend21 ent of’’. 

22 (28) Subparagraph (B) of section 63(f)(1) of 

23 such Code is amended to read as follows: 

24 ‘‘(B) for the spouse of the taxpayer if— 


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•S 1226 IS

1 ‘‘(i) the spouse has attained age 65 

2 before the close of the taxable year, and 

3 ‘‘(ii) a joint return is not made by the 

4 taxpayer and his spouse, and the spouse, 

5 for the calendar year in which the taxable 

6 year of the taxpayer begins, has no gross 

7 income and is not the dependent of an8 other taxpayer.’’. 

9 (29) Subparagraph (B) of section 63(f)(2) of 

10 such Code is amended to read as follows: 

11 ‘‘(B) for the spouse of the taxpayer if— 

12 ‘‘(i) the spouse is blind as of the close 

13 of the taxable year, and 

14 ‘‘(ii) a joint return is not made by the 

15 taxpayer and his spouse, and the spouse, 

16 for the calendar year in which the taxable 

17 year of the taxpayer begins, has no gross 

18 income and is not the dependent of an19 other taxpayer.’’. 

20 (30) Section 72(t)(2)(D)(i)(III) of such Code is 

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

22 ‘‘section 7706’’. 

23 (31) Section 72(t)(7)(A)(iii) of such Code is 

24 amended by striking ‘‘section 152(f)(1)’’ and insert25 ing ‘‘section 7706(f)(1)’’. 


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1 (32) Section 105(b) of such Code is amended— 

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

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

4 (B) by striking ‘‘section 152(f)(1)’’ and in5 serting ‘‘section 7706(f)(1)’’, and 

6 (C) by striking ‘‘section 152(e)’’ and in7 serting ‘‘section 7706(e)’’. 

8 (33) Section 105(c)(1) of such Code is amended 

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

10 7706’’. 

11 (34) Section 125(e)(1)(D) of such Code is 

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

13 ‘‘section 7706’’. 

14 (35) Section 129(c) of such Code is amended— 

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

16 such taxable year, a deduction is allowable 

17 under section 151(c) (relating to personal ex18 emptions for dependents) to’’ in paragraph (1) 

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

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

21 paragraph (2) and inserting ‘‘section 

22 7706(f)(1)’’. 

23 (36) Section 132(h)(2)(B) of such Code is 

24 amended— 


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1 (A) by striking ‘‘section 152(f)(1)’’ and in2 serting ‘‘section 7706(f)(1)’’, and 

3 (B) by striking ‘‘section 152(e)’’ and in4 serting ‘‘section 7706(e)’’. 

5 (37) Section 135(c)(2)(A)(iii) is amended by 

6 striking ‘‘with respect to whom the taxpayer is al7 lowed a deduction under section 151’’. 

8 (38) Section 139D(c)(5) of such Code is 

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

10 ‘‘section 7706’’. 

11 (39) Section 139E(c)(2) of such Code is 

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

13 ‘‘section 7706’’. 

14 (40) Section 162(l)(1)(D) of such Code is 

15 amended by striking ‘‘section 152(f)(1)’’ and insert16 ing ‘‘section 7706(f)(1)’’. 

17 (41) Section 170(g)(1) of such Code is amend18 ed by striking ‘‘section 152’’ and inserting ‘‘section 

19 7706’’. 

20 (42) Section 170(g)(3) of such Code is amend21 ed by striking ‘‘section 152(d)(2)’’ and inserting 

22 ‘‘section 7706(d)(2)’’. 

23 (43) Section 172(d) of such Code is amended 

24 by striking paragraph (3). 


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1 (44) Section 213(a) of such Code is amended 

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

3 7706’’. 

4 (45) Section 213(d)(5) of such Code is amend5 ed by striking ‘‘section 152(e)’’ and inserting ‘‘sec6 tion 7706(e)’’. 

7 (46) Section 213(e)(11) of such Code is amend8 ed by striking ‘‘section 152(d)(2)’’ and inserting 

9 ‘‘section 7706(d)(2)’’. 

10 (47) Section 220(b)(6) of such Code is amend11 ed by striking ‘‘with respect to whom a deduction 

12 under section 151 is allowable to’’ and inserting 

13 ‘‘who is a dependent of’’. 

14 (48) Section 220(d)(2)(A) of such Code is 

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

16 ‘‘section 7706’’. 

17 (49) Section 221(c) of such Code is amended by 

18 striking ‘‘a deduction under section 151 with respect 

19 to such individual is allowed to’’ and inserting ‘‘such 

20 individual is a dependent of’’. 

21 (50) Section 221(d)(4) of such Code is amend22 ed by striking ‘‘section 152’’ and inserting ‘‘section 

23 7706’’. 

24 (51) Section 223(b)(6) of such Code is amend25 ed by striking ‘‘with respect to whom a deduction 


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1 under section 151 is allowable to’’ and inserting 

2 ‘‘who is a dependent of’’. 

3 (52) Section 223(d)(2)(A) of such Code is 

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

5 ‘‘section 7706’’. 

6 (53) Section 401(h) of such Code is amended 

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

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

9 (54) Section 402(l)(4)(D) of such Code is 

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

11 ‘‘section 7706’’. 

12 (55) Section 409A(a)(2)(B)(ii)(I) of such Code 

13 is amended by striking ‘‘section 152(a)’’ and insert14 ing ‘‘section 7706(a)’’. 

15 (56) Section 443 is amended by striking sub16 section (c). 

17 (57) Section 501(c)(9) of such Code is amended 

18 by striking ‘‘section 152(f)(1)’’ and inserting ‘‘sec19 tion 7706(f)(1)’’. 

20 (58) Section 529(c)(9)(C)(iii) of such Code is 

21 amended by striking ‘‘section 152(d)(2)(B)’’ and in22 serting ‘‘section 7706(d)(2)(B)’’. 

23 (59) 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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1 (60) Section 529A(e)(4) of such Code is amend2 ed— 

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

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

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

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

7 (61) Section 703(a)(2) of such Code is amended 

8 by striking subparagraph (A) and by redesignating 

9 subparagraphs (B) through (F) as subparagraphs 

10 (A) through (E), respectively. 

11 (62) Section 873(b) is amended by striking 

12 paragraph (3). 

13 (63) Section 874 of such Code is amended by 

14 striking subsection (b) and by redesignating sub15 section (c) as subsection (b). 

16 (64) Section 891 of such Code is amended by 

17 striking ‘‘under section 151 and’’. 

18 (65) Section 904(b) of such Code is amended 

19 by striking paragraph (1). 

20 (66) Section 931(b)(1) of such Code is amend21 ed by striking ‘‘(other than the deduction under sec22 tion 151, relating to personal exemptions)’’. 

23 (67) Section 933 of such Code is amended— 


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

2 under section 151, relating to personal exemp3 tions)’’ in paragraph (1), and 

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

5 for personal exemptions under section 151)’’ in 

6 paragraph (2). 

7 (68) Section 1212(b)(2)(B)(ii) of such Code is 

8 amended to read as follows: 

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

10 the deduction allowed for such year under 

11 section 642(b).’’. 

12 (69) Section 1361(c)(1)(C) of such Code is 

13 amended by striking ‘‘section 152(f)(1)(C)’’ and in14 serting ‘‘section 7706(f)(1)(C)’’. 

15 (70) Section 1402(a) of such Code is amended 

16 by striking paragraph (7). 

17 (71) Section 2032A(c)(7)(D) of such Code is 

18 amended by striking ‘‘section 152(f)(2)’’ and insert19 ing ‘‘section 7706(f)(2)’’. 

20 (72) Section 3402(f)(1)(A) of such Code is 

21 amended by striking ‘‘for whom a deduction is al22 lowed with respect to another taxpayer under section 

23 151’’ and inserting ‘‘who is a dependent of another 

24 taxpayer’’. 


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1 (73) Section 3402(m)(1) of such Code is 

2 amended by striking ‘‘other than the deductions re3 ferred to in section 151 and’’. 

4 (74) Section 3402(r)(2) of such Code is amend5 ed by striking ‘‘the sum of—’’ and all that follows 

6 and inserting ‘‘the standard deduction in effect 

7 under section 63(c)(1)(B).’’. 

8 (75) Section 5000A(b)(3)(A) of such Code is 

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

10 ‘‘section 7706’’. 

11 (76) Section 5000A(c)(4)(A) of such Code is 

12 amended by striking ‘‘the number of individuals for 

13 whom the taxpayer is allowed a deduction under sec14 tion 151 (relating to allowance of deduction for per15 sonal exemptions) for the taxable year’’ and insert16 ing ‘‘the sum of 1 (2 in the case of a joint return) 

17 plus the number of the taxpayer’s dependents for 

18 the taxable year’’. 

19 (77) Section 6013(b)(3)(A) of such Code is 

20 amended— 

21 (A) by striking ‘‘had less than the exemp22 tion amount of gross income’’ in clause (ii) and 

23 inserting ‘‘had no gross income’’, 


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

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

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

4 (C) by striking the flush language fol5 lowing clause (iii). 

6 (78) Section 6103(l)(21)(A)(iii) of such Code is 

7 amended to read as follows: 

8 ‘‘(iii) the number of the taxpayer’s de9 pendents,’’. 

10 (79) Section 6213(g)(2)(H) of such Code is 

11 amended by striking ‘‘or section 151 (relating to al12 lowance of deductions for personal exemptions)’’. 

13 (80) Section 6334(d)(2) of such Code is amend14 ed to read as follows: 

15 ‘‘(2) EXEMPT AMOUNT.— 

16 ‘‘(A) IN GENERAL.—For purposes of para17 graph (1), the term ‘exempt amount’ means an 

18 amount equal to— 

19 ‘‘(i) the sum of the amount deter20 mined under subparagraph (B) and the 

21 standard deduction, divided by 

22 ‘‘(ii) 52. 

23 ‘‘(B) AMOUNT DETERMINED.—For pur24 poses of subparagraph (A), the amount deter25 mined under this subparagraph is $4,150 multiVerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226

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1 plied by the number of the taxpayer’s depend2 ents for the taxable year in which the levy oc3 curs. 

4 ‘‘(C) INFLATION ADJUSTMENT.—In the 

5 case of any taxable year beginning after 2018, 

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

7 be increased 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 ‘calendar year 2017’ 

13 for ‘calendar year 2016’ in subparagraph 

14 (A) thereof. 

15 If any increase determined under the preceding 

16 sentence is not a multiple of $100, such in17 crease shall be rounded to the next lowest mul18 tiple of $100. 

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

20 taxpayer submits to the Secretary a written and 

21 properly verified statement specifying the facts 

22 necessary to determine the proper amount 

23 under subparagraph (A), subparagraph (A) 

24 shall be applied as if the taxpayer were a marVerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226

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1 ried individual filing a separate return with no 

2 dependents.’’. 

3 (81) Section 6334(d) of such Code is amended 

4 by striking paragraph (4). 

5 (82) Section 7702B(f)(2)(C)(iii) of such Code is 

6 amended by striking ‘‘section 152(d)(2)’’ and insert7 ing ‘‘section 7706(d)(2)’’. 

8 (83) Section 7703(a) of such Code is amended 

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

10 and’’. 

11 (84) Section 7703(b)(1) of such Code is amend12 ed— 

13 (A) by striking ‘‘section 152(f)(1)’’ and all 

14 that follows and inserting ‘‘section 7706(f)(1),’’, 

15 and 

16 (B) by striking ‘‘section 152(e)’’ and in17 serting ‘‘section 7706(e)’’. 

18 (85) Section 7706(a) of such Code, as redesig19 nated by this section, is amended by striking ‘‘this 

20 subtitle’’ and inserting ‘‘subtitle A’’. 

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

22 redesignated by this section, is amended by striking 

23 ‘‘the exemption amount (as defined in section 

24 151(d))’’ and inserting ‘‘$4,150’’. 


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1 (B) Section 7706(d) of such Code, as redesig2 nated by this section, is amended by adding at the 

3 end the following new paragraph: 

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

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

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

7 amount equal to— 

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

9 ‘‘(B) the cost-of-living adjustment deter10 mined under section 1(f)(3) for such calendar 

11 year, determined by substituting ‘calendar year 

12 2017’ for ‘calendar year 2016’ in subparagraph 

13 (A)(ii) thereof. 

14 If any increase determined under the preceding sen15 tence is not a multiple of $100, such increase shall 

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

17 (87) The table of sections for chapter 79 of 

18 such Code is amended by adding at the end the fol19 lowing new item: 

‘‘Sec. 7706. Dependent defined.’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2022. 


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1 SEC. 12. PERMANENT EXTENSION OF LIMITATION ON DE2 DUCTION FOR STATE AND LOCAL, ETC., 

3 TAXES. 

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

5 of the Internal Revenue Code of 1986 is amended— 

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

7 and 

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

9 heading and inserting ‘‘AFTER 2017’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2022. 

13 SEC. 13. PERMANENT EXTENSION OF LIMITATION ON DE14 DUCTION FOR QUALIFIED RESIDENCE INTER15 EST. 

16 (a) REPEAL OF HOME EQUITY INDEBTEDNESS.— 

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

18 Internal Revenue Code of 1986 is amended by strik19 ing ‘‘during the taxable year on’’ and all that follows 

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

21 the taxable year on acquisition indebtedness with re22 spect to any qualified principal residence of the tax23 payer. For purposes of’’. 

24 (2) CONFORMING AMENDMENT.—Section 

25 163(h)(3) of such Code is amended by striking sub26 paragraph (C). 


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1 (b) LIMITATION ON ACQUISITION INDEBTEDNESS.— 

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

3 the Internal Revenue Code of 1986 is amended by 

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

5 ‘‘$750,000 ($375,000’’. 

6 (2) TREATMENT OF INDEBTEDNESS INCURRED

7 ON OR BEFORE DECEMBER 31, 2017; 

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

9 Revenue Code of 1986, as amended by subsection 

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

11 (B) the following new subparagraph: 

12 ‘‘(C) TREATMENT OF INDEBTEDNESS IN13 CURRED ON OR BEFORE DECEMBER 15, 2017; 

14 REFINANCINGS.— 

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

16 indebtedness incurred on or before Decem17 ber 15, 2017, subparagraph (B)(ii) shall 

18 apply as in effect immediately before the 

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

20 in applying such subparagraph to any in21 debtedness incurred after such date, the 

22 limitation under such subparagraph shall 

23 be reduced (but not below zero) by the 

24 amount of any indebtedness incurred on or 

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1 ed as acquisition indebtedness for purposes 

2 of this subsection for the taxable year. 

3 ‘‘(ii) BINDING CONTRACT EXCEP4 TION.—In the case of a taxpayer who en5 ters into a written binding contract before 

6 December 15, 2017, to close on the pur7 chase of a principal residence before Janu8 ary 1, 2018, and who purchases such resi9 dence before April 1, 2018, subclause (III) 

10 shall be applied by substituting ‘April 1, 

11 2018’ for ‘December 15, 2017’. 

12 ‘‘(iii) TREATMENT OF REFINANCINGS

13 OF INDEBTEDNESS.— 

14 ‘‘(I) IN GENERAL.—In the case 

15 of any indebtedness which is incurred 

16 to refinance indebtedness, such refi17 nanced indebtedness shall be treated 

18 for purposes of clause (i) as incurred 

19 on the date that the original indebted20 ness was incurred to the extent the 

21 amount of the indebtedness resulting 

22 from such refinancing does not exceed 

23 the amount of the refinanced indebt24 edness. 


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1 ‘‘(II) LIMITATION ON PERIOD OF

2 REFINANCING.—Subclause (I) shall 

3 not apply to any indebtedness after 

4 the expiration of the term of the origi5 nal indebtedness or, if the principal of 

6 such original indebtedness is not am7 ortized over its term, the expiration of 

8 the term of the 1st refinancing of 

9 such indebtedness (or if earlier, the 

10 date which is 30 years after the date 

11 of such 1st refinancing).’’. 

12 (c) COORDINATION WITH EXCLUSION OF INCOME

13 FROM DISCHARGE OF INDEBTEDNESS.—Section 

14 108(h)(2) of the Internal Revenue Code of 1986 is amend15 ed by striking ‘‘, applied by substituting’’ and all that fol16 lows through ‘‘section 163(h)(3)(F)(i)(II)’’. 

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

18 of the Internal Revenue Code of 1986 is amended— 

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

20 striking ‘‘$1,000,000’’, and 

21 (2) by striking subparagraph (F). 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2022. 


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1 SEC. 14. PERMANENT EXTENSION OF MODIFICATIONS TO 

2 DEDUCTION FOR PERSONAL CASUALTY 

3 LOSSES. 

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

5 of the Internal Revenue Code of 1986 is amended— 

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

7 in subparagraph (A), and 

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

9 heading and inserting ‘‘AFTER 2017’’. 

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

11 this section shall apply to losses incurred in taxable years 

12 beginning after December 31, 2022. 

13 SEC. 15. REPEAL OF MISCELLANEOUS ITEMIZED DEDUC14 TIONS. 

15 (a) IN GENERAL.—Section 67 of the Internal Rev16 enue Code of 1986 is amended— 

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

18 following: 

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

20 deduction shall be allowed for any taxable year beginning 

21 after December 31, 2017.’’, 

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

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

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

25 (b) CONFORMING AMENDMENT.—The table of sec26 tions for part I of subchapter B of chapter 1 of the InterVerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226

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•S 1226 IS

1 nal Revenue Code of 1986 is amended by striking ‘‘2-per2 cent floor on’’ in the item relating to section 67 and insert3 ing ‘‘Treatment of’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2022. 

7 SEC. 16. REPEAL OF OVERALL LIMITATION ON ITEMIZED 

8 DEDUCTIONS. 

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

10 1 of the Internal Revenue Code of 1986 is amended by 

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

12 in the table of sections for such part). 

13 (b) CONFORMING AMENDMENTS.— 

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

15 Code of 1986, as amended by this Act, is amended 

16 by striking ‘‘section 63(c)(4), or section 68(b)(2)’’ 

17 and inserting ‘‘or section 63(c)(4)’’. 

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

19 by striking subparagraph (E). 

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

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

22 date of the enactment of the Tax Cuts and Jobs 

23 Act)’’ after ‘‘68(b)’’. 

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

25 amended by striking ‘‘as an individual described in 


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•S 1226 IS

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

2 who is not married and who is not a surviving 

3 spouse or head of household’’. 

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

5 amended by striking clause (i) and redesignating 

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

7 respectively. 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2022. 

11 SEC. 17. REPEAL OF EXCLUSION FOR QUALIFIED BICYCLE 

12 COMMUTING REIMBURSEMENT. 

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

14 Revenue Code of 1986 is amended by striking subpara15 graph (D). 

16 (b) CONFORMING AMENDMENTS.— 

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

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

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

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

21 by striking subparagraph (C). 

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

23 by striking ‘‘(other than a qualified bicycle com24 muting reimbursement)’’. 


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•S 1226 IS

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

2 by striking subparagraph (F). 

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

4 striking paragraph (8). 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2022. 

8 SEC. 18. PERMANENT EXTENSION OF MODIFICATION OF EX9 CLUSION FOR QUALIFIED MOVING EXPENSE 

10 REIMBURSEMENT. 

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

12 Revenue Code of 1986 is amended— 

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

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

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

16 following: 

17 ‘‘(2) QUALIFIED MILITARY MEMBER.—For pur18 poses of paragraph (1), the term ‘qualified military 

19 member’ means a member of the Armed Forces of 

20 the United States on active duty who moves pursu21 ant to a military order and incident to a permanent 

22 change of station.’’. 

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

24 this section shall apply to taxable years beginning after 

25 December 31, 2022. 


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•S 1226 IS

1 SEC. 19. REPEAL OF DEDUCTION FOR MOVING EXPENSES. 

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

3 the Internal Revenue Code of 1986 is amended to read 

4 as follows: 

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

6 as a deduction moving expenses paid or incurred during 

7 the taxable year in connection with the commencement of 

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

9 States on active duty who moves pursuant to a military 

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

11 (b) CONFORMING AMENDMENTS.— 

12 (1) Section 217 of the Internal Revenue Code 

13 of 1986 is amended— 

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

15 and (i), 

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

17 and (j) as subsections (c), (d), and (e), respec18 tively, and 

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

20 (i) by striking paragraph (1) and re21 designating paragraphs (2) and (3) as 

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

23 (ii) in paragraph (2) (as so redesig24 nated), by striking ‘‘moving expenses of his 

25 spouse and dependents’’ and all that fol26 lows and inserting ‘‘moving expenses of his 


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•S 1226 IS

1 spouse and dependents as if his spouse 

2 commenced work as an employee at a new 

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

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

5 striking ‘‘217(h)(3)’’ each place it appears in sub6 sections (d)(3) and (e) and inserting ‘‘217(d)(3)’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2022. 

10 SEC. 20. PERMANENT EXTENSION OF LIMITATION ON WA11 GERING LOSSES. 

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

13 165(d) of the Internal Revenue Code of 1986 is amended 

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

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

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

17 this section shall not apply to taxable years beginning 

18 after December 31, 2022. 

19 SEC. 21. INCREASE IN ESTATE AND GIFT TAX EXEMPTION 

20 MADE PERMANENT. 

21 (a) IN GENERAL.—Section 2010(c)(3)(A) of the In22 ternal Revenue Code of 1986 is amended by striking 

23 ‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 

24 (b) CONFORMING AMENDMENTS.— 


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•S 1226 IS

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

2 Code of 1986 is amended by striking subparagraph 

3 (C). 

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

5 is amended to read as follows: 

6 ‘‘(g) MODIFICATIONS TO GIFT TAX PAYABLE TO RE7 FLECT DIFFERENT TAX RATES.—For purposes of apply8 ing subsection (b)(2) with respect to 1 or more gifts, the 

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

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

11 of such gifts, be used both to compute— 

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

13 to such gifts, and 

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

15 section 2505, including in computing— 

16 ‘‘(A) the applicable credit amount under 

17 section 2505(a)(1), and 

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

19 credit for all preceding periods under section 

20 2505(a)(2).’’. 

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

22 this section shall apply to estates of decedents dying and 

23 gifts made after December 31, 2022. 


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1 SEC. 22. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMP2 TION MADE PERMANENT. 

3 (a) IN GENERAL.—Section 55(d) of the Internal Rev4 enue Code of 1986 is amended— 

5 (1) in paragraph (1)— 

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

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

8 (B) by striking ‘‘$50,600’’ in subpara9 graph (B) and inserting ‘‘$70,300’’, and 

10 (2) in paragraph (2)— 

11 (A) by striking ‘‘$150,000’’ in subpara12 graph (A) and inserting ‘‘$1,000,000’’, and 

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

14 and inserting the following: 

15 ‘‘(B) 50 percent of the dollar amount ap16 plicable under subparagraph (A) in the case of 

17 a taxpayer described in subparagraph (B) or 

18 (C) of paragraph (1), and 

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

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

21 (b) INFLATION ADJUSTMENT.— 

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

23 the Internal Revenue Code of 1986 is amended to 

24 read as follows: 

25 ‘‘(ii) the cost-of-living adjustment de26 termined under section 1(f)(3) for the calVerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226

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1 endar year in which the taxable year be2 gins, by substituting for ‘calendar year 

3 2016’ in subparagraph (A)(ii) thereof— 

4 ‘‘(I) ‘calendar year 2011’ in the 

5 case of the dollar amounts described 

6 in clauses (i), (iv), and (v) of subpara7 graph (B), and 

8 ‘‘(II) ‘calendar year 2017’ in the 

9 case of the dollar amounts described 

10 in clauses (ii) and (iii) of subpara11 graph (B).’’. 

12 (2) CONFORMING AMENDMENTS.—Section 

13 55(d)(3)(B) of such Code is amended— 

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

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

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

17 paragraph (1),’’, 

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

19 (B) of paragraph (2).’’ in clause (iii) and in20 serting ‘‘paragraph (2)(A),’’, and 

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

22 ‘‘(iv) the dollar amount contained in 

23 paragraph (1)(D), and 

24 ‘‘(v) the dollar amount contained in 

25 paragraph (2)(C).’’. 


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1 (c) TREATMENT OF UNEARNED INCOME OF MINOR

2 CHILDREN.—Section 59 of the Internal Revenue Code of 

3 1986 is amended by striking subsection (j). 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2022. 

7 SEC. 23. TECHNICAL AMENDMENT. 

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

9 redesignating subsection (a) as subsection (b) and by in10 serting before subsection (b) (as so redesignated) the fol11 lowing new subsection: 

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

13 ‘Tax Cuts and Jobs Act’.’’. 

Æ 


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