I 

119TH CONGRESS 

1ST SESSION H. R. 137 

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

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

and small businesses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 3, 2025 

Mr. BUCHANAN (for himself, Mr. SMITH of Nebraska, Mr. LAHOOD, Mr. 

ESTES, Mrs. MILLER of West Virginia, Mr. KUSTOFF, Ms. TENNEY, Ms. 

VAN DUYNE, Mr. FEENSTRA, Mr. CAREY, Mr. YAKYM, Mr. MORAN, Mr. 

MILLER of Ohio, Mr. RUTHERFORD, Mr. CRENSHAW, Mr. GUEST, Mr. 

MOOLENAAR, Mr. AMODEI of Nevada, Mr. FULCHER, Mr. ELLZEY, Mr. 

GROTHMAN, Mr. MEUSER, Mr. CLYDE, Mr. ROUZER, Mrs. HINSON, Mr. 

RULLI, Mr. EZELL, Mr. BOST, Mr. BARR, Mr. WEBER of Texas, and Mr. 

CARTER of Georgia) introduced the following bill; which was referred to 

the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

permanent certain provisions of the Tax Cuts and Jobs 

Act affecting individuals, families, and small businesses, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE, ETC. 

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

5 ‘‘TCJA Permanency Act’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

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

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

7 (c) REFERENCES TO THE TAX CUTS AND JOBS

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

9 ‘‘Tax Cuts and Jobs Act’’. 

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

11 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—INDIVIDUAL REFORM MADE PERMANENT 

Subtitle A—Rate Reform 

Sec. 101. Modification of rates. 

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

Sec. 111. Deduction for qualified business income. 

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

Subtitle C—Tax Benefits for Families and Individuals 

Sec. 121. Increase in standard deduction. 

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

Sec. 123. Increased limitation for certain charitable contributions. 

Sec. 124. Increased contributions to ABLE accounts. 

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

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

Subtitle D—Education 

Sec. 131. Treatment of student loan discharges. 

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

secondary expenses. 

Subtitle E—Deductions and Exclusions 

Sec. 141. Repeal of deduction for personal exemptions. 

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

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


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

Sec. 145. Termination of miscellaneous itemized deductions. 

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

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

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

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

Sec. 150. Limitation on wagering losses. 

Subtitle F—Increase in Estate and Gift Tax Exemption 

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

TITLE II—INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM 

TAX MADE PERMANENT 

Sec. 201. Increased exemption for individuals. 

1 TITLE I—INDIVIDUAL REFORM 

2 MADE PERMANENT 

3 Subtitle A—Rate Reform 

4 SEC. 101. MODIFICATION OF RATES. 

5 (a) MARRIED INDIVIDUALS FILING JOINT RETURNS

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

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

‘‘If taxable income is: The tax is: 

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

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.’’. 


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

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

‘‘If taxable income is: The tax is: 

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

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

$13,600. 

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

$51,800. 

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

over $82,500. 

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

over $157,500. 

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

over $200,000. 

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

over $500,000.’’. 

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

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

7 and inserting the following: 

‘‘If taxable income is: The tax is: 

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

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

over $9,525. 

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

over $38,700. 

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.’’. 

8 (d) MARRIED INDIVIDUALS FILING SEPARATE RE9 TURNS.—Section 1(d) is amended by striking the table 

10 contained therein and inserting the following: 


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‘‘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.’’. 

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

2 by striking the table contained therein and inserting the 

3 following: 

‘‘If taxable income is: The tax is: 

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

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

$2,550. 

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

$9,150. 

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

over $12,500.’’. 

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

5 amended— 

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

7 follows: 

8 ‘‘(A) by increasing the minimum and max9 imum dollar amounts for each bracket for 

10 which a tax is imposed under such table by the 

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

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1 endar year by substituting ‘2017’ for ‘2016’ in 

2 paragraph (3)(A)(ii),’’, 

3 (2) by amending paragraph (7) to read as fol4 lows: 

5 ‘‘(7) ROUNDING.— 

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

7 subparagraph (B), if any increase determined 

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

9 $25, such increase shall be rounded to the next 

10 lowest multiple of $25. 

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

12 of a table prescribed under subsection (a), sub13 paragraph (A) shall be applied by substituting 

14 ‘$50’ for ‘$25’ both places it appears.’’, 

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

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

17 MARRIAGE PENALTY IN 15-PERCENT BRACKET; AD18 JUSTMENTS’’ and inserting ‘‘ADJUSTMENTS’’. 

19 (g) APPLICATION OF INCOME TAX BRACKETS TO

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

21 (1) in paragraph (1)(B)(i), by striking ‘‘25 per22 cent’’ and inserting ‘‘22 percent’’, 

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

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


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

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

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

4 paragraphs: 

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

6 DEFINED.—For purposes of this subsection, the 

7 maximum 15-percent rate amount shall be— 

8 ‘‘(A) in the case of a joint return or sur9 viving spouse (as defined in section 2(a)), 

$479,000 (1 10 ⁄2 such amount in the case of a 

11 married individual filing a separate return), 

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

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

14 $452,400, 

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

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

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

18 $12,700. 

19 ‘‘(13) DETERMINATION OF 0 PERCENT RATE

20 BRACKET FOR ESTATES AND TRUSTS.—In the case 

21 of any estate or trust, paragraph (1)(B) shall be ap22 plied by treating the amount determined in clause (i) 

23 thereof as being equal to $2,600. 

24 ‘‘(14) INFLATION ADJUSTMENT.— 


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

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

3 increased by an amount equal to— 

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

5 ‘‘(ii) the cost-of-living adjustment de6 termined under subsection (f)(3) for the 

7 calendar year in which the taxable year be8 gins, determined by substituting ‘calendar 

9 year 2017’ for ‘calendar year 2016’ in sub10 paragraph (A)(ii) thereof. 

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

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

13 increase shall be rounded to the next lowest 

14 multiple of $50.’’. 

15 (h) CONFORMING AMENDMENTS.— 

16 (1) Section 1 is amended by striking sub17 sections (i) and (j). 

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

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

20 (i) APPLICATION OF SECTION 15.— 

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

22 is amended by striking ‘‘If any rate of tax’’ and in23 serting ‘‘In the case of a corporation, if any rate of 

24 tax’’. 

25 (2) CONFORMING AMENDMENTS.— 


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1 (A) Section 15 is amended by striking sub2 sections (d) and (f). 

3 (B) Section 6013(c) is amended by strik4 ing ‘‘sections 15, 443, and 7851(a)(1)(A)’’ and 

5 inserting ‘‘section 443’’. 

6 (C) The heading of section 15 is amended 

7 by inserting ‘‘ON CORPORATIONS’’ after ‘‘EF8 FECT OF CHANGES’’. 

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

10 subchapter A of chapter 1 is amended by strik11 ing the item relating to section 15 and inserting 

12 the following new item: 

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

13 (j) EFFECTIVE DATE.— 

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

15 this section shall apply to taxable years beginning 

16 after the date of the enactment of this Act. 

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

18 of the Internal Revenue Code of 1986 shall not 

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

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

21 before its repeal by this section), or 

22 (B) any amendment made by this Act. 


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1 Subtitle B—Deduction for Quali2 fied Business Income of Pass3 Thru Entities 

4 SEC. 111. DEDUCTION FOR QUALIFIED BUSINESS INCOME. 

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

6 striking subsection (i). 

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

8 this section shall apply to taxable years beginning after 

9 the date of the enactment of this Act. 

10 SEC. 112. LIMITATION ON LOSSES FOR TAXPAYERS OTHER 

11 THAN CORPORATIONS. 

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

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

14 follows: 

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

16 other than a corporation, any excess business loss of 

17 the taxpayer for the taxable year shall not be al18 lowed.’’, and 

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

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

21 (j) and (k), respectively. 

22 (b) CONFORMING AMENDMENTS.— 

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

24 ‘‘461(k)’’ and inserting ‘‘461(j)’’. 


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

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

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

4 striking ‘‘section 461(k)(2)(E)’’ and inserting ‘‘sec5 tion 461(j)(2)(E)’’. 

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

7 1256(e)(3) are each amended by striking ‘‘section 

8 461(k)(4)’’ and inserting ‘‘section 461(j)(4)’’. 

9 (5) Section 1258(d)(5)(C) is amended by strik10 ing ‘‘section 461(k)(4)’’ and inserting ‘‘section 

11 461(j)(4)’’. 

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

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

15 Subtitle C—Tax Benefits for 

16 Families and Individuals 

17 SEC. 121. INCREASE IN STANDARD DEDUCTION. 

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

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

20 and inserting ‘‘$18,000’’, and 

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

22 and inserting ‘‘$12,000’’. 

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

24 amended to read as follows: 

25 ‘‘(4) ADJUSTMENTS FOR INFLATION.— 


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

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

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

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

5 ‘‘(ii) the cost-of-living adjustment de6 termined under section 1(f)(3) for the cal7 endar year in which the taxable year be8 gins, determined by substituting for ‘2016’ 

9 in subparagraph (A)(ii) thereof— 

10 ‘‘(I) in the case of the dollar 

11 amounts contained in paragraph 

12 (2)(B) or (2)(C), ‘2017’, 

13 ‘‘(II) in the case of the dollar 

14 amounts contained in paragraph 

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

16 ‘‘(III) in the case of the dollar 

17 amount contained in paragraph 

18 (5)(B), ‘1997’. 

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

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

21 increase shall be rounded to the next lowest 

22 multiple of $50.’’. 

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

24 amended by striking 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 the date of the enactment of this Act. 

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

5 CREDIT. 

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

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

8 new subsections: 

9 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al10 lowed as a credit against the tax imposed by this chapter 

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

12 ‘‘(1) $2,000 for each qualifying child of the tax13 payer, and 

14 ‘‘(2) $500 for each qualifying dependent (other 

15 than a qualifying child) of the taxpayer. 

16 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN17 COME.—The amount of the credit allowable under sub18 section (a) shall be reduced (but not below zero) by $50 

19 for each $1,000 (or fraction thereof) by which the tax20 payer’s modified adjusted gross income exceeds $400,000 

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

22 For purposes of the preceding sentence, the term ‘‘modi23 fied adjusted gross income’’ means adjusted gross income 

24 increased by any amount excluded from gross income 

25 under section 911, 931, or 933. 


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1 ‘‘(c) QUALIFYING CHILD; QUALIFYING DEPEND2 ENT.—For purposes of this section— 

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

4 child’ means any qualifying dependent of the tax5 payer— 

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

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

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

9 close of the calendar year in which the taxable 

10 year of the taxpayer begins, and 

11 ‘‘(C) whose name and social security num12 ber are included on the taxpayer’s return of tax 

13 for the taxable year. 

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

15 ‘qualifying dependent’ means any dependent of the 

16 taxpayer (as defined in section 7706 without regard 

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

18 section 7706(b)(3)(A)) whose name and TIN are in19 cluded on the taxpayer’s return of tax for the tax20 able year. 

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

22 For purposes of this subsection, the term ‘social se23 curity number’ means, with respect to a return of 

24 tax, a social security number issued to an individual 


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1 by the Social Security Administration, but only if 

2 the social security number is issued— 

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

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

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

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

7 Act, and 

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

9 such return.’’. 

10 (b) PORTION OF CREDIT REFUNDABLE.— 

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

12 amended to read as follows: 

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

14 under this section determined— 

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

16 ‘$2,000’ in subsection (a)(1), 

17 ‘‘(ii) without regard to subsection 

18 (a)(2), and 

19 ‘‘(iii) without regard to this subsection 

20 (other than this subparagraph) and the 

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

22 (2) MODIFICATION OF LIMITATION BASED ON

23 EARNED INCOME.—Section 24(d)(1)(B)(i) is amend24 ed by striking ‘‘$3,000’’ and inserting ‘‘$2,500’’. 


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

2 amended by inserting after paragraph (3) the fol3 lowing new paragraph: 

4 ‘‘(4) ADJUSTMENT FOR INFLATION.— 

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

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

7 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, determined by substituting ‘2017’ for 

13 ‘2016’ in subparagraph (A)(ii) thereof. 

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

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

16 such increase shall be rounded to the next low17 est multiple of $100. 

18 ‘‘(C) LIMITATION.—The amount of any in19 crease under subparagraph (A) (after the appli20 cation of subparagraph (B)) shall not exceed 

21 $600.’’. 

22 (4) CONFORMING AMENDMENTS.— 

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

24 follows: 


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1 ‘‘(e) TAXPAYER IDENTIFICATION REQUIREMENT.— 

2 No credit shall be allowed under this section if the identi3 fying number of the taxpayer was issued after the due date 

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

5 (B) Section 24 is amended by striking sub6 section (h). 

7 (c) REPEAL OF CERTAIN LATER ENACTED PROVI8 SIONS.— 

9 (1) Section 24 is amended by striking sub10 sections (i), (j), and (k). 

11 (2) Chapter 77 is amended by striking section 

12 7527A (and by striking the item relating to section 

13 7527A in the table of sections for such chapter). 

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

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

16 ‘‘, and’’ at the end of subparagraph (Y) and insert17 ing a period, and by striking subparagraph (Z). 

18 (4) Section 3402(f)(1)(C) is amended by strik19 ing ‘‘section 24 (determined after application of sub20 section (j) thereof)’’ and inserting ‘‘section 24(a)’’. 

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

22 (A) by striking ‘‘24 by reason of sub23 sections (d) and (i)(1) thereof’’ and inserting 

24 ‘‘24(d)’’, and 


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

2 inserting ‘‘and 6428B’’. 

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

4 31, United States Code, is amended by striking 

5 ‘‘6431, or 7527A’’ and inserting ‘‘or 6431’’. 

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

7 this section shall apply to taxable years beginning after 

8 the date of the enactment of this Act. 

9 SEC. 123. INCREASED LIMITATION FOR CERTAIN CHARI10 TABLE CONTRIBUTIONS. 

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

12 to read as follows: 

13 ‘‘(G) CASH CONTRIBUTIONS.— 

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

15 of cash to an organization described in 

16 subparagraph (A) shall be allowed to the 

17 extent that the aggregate of such contribu18 tions does not exceed 60 percent of the 

19 taxpayer’s contribution base for the taxable 

20 year, reduced by the aggregate amount of 

21 contributions allowable under subpara22 graph (A) for such taxpayer for such year. 

23 ‘‘(ii) CARRYOVER.—If the aggregate 

24 amount of contributions described in clause 

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


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1 excess shall be treated (in a manner con2 sistent with the rules of subsection (d)(1)) 

3 as a charitable contribution to which clause 

4 (i) applies in each of the 5 succeeding 

5 years in order of time.’’. 

6 (b) COORDINATION WITH LIMITATIONS ON OTHER

7 CONTRIBUTIONS.— 

8 (1) COORDINATION WITH 50 PERCENT LIMITA9 TION.—Section 170(b)(1)(A) is amended by striking 

10 ‘‘Any charitable contribution’’ and inserting ‘‘Any 

11 charitable contribution other than a contribution de12 scribed in subparagraph (G)’’. 

13 (2) COORDINATION WITH 30 PERCENT LIMITA14 TION.—Section 170(b)(1)(B) is amended— 

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

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

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

18 (G) applies’’, 

19 (B) by amending clause (ii) to read as fol20 lows: 

21 ‘‘(ii) the excess of— 

22 ‘‘(I) the sum of 50 percent of the 

23 taxpayer’s contribution base for the 

24 taxable year, plus so much of the 

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1 lowable under subparagraph (G) as 

2 does not exceed 10 percent of such 

3 contribution base, over 

4 ‘‘(II) the amount of charitable 

5 contributions allowable under sub6 paragraphs (A) and (G) (determined 

7 without regard to subparagraph 

8 (C)).’’, and 

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

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

11 apply)’’ and inserting ‘‘(to which neither sub12 paragraph (A) nor (G) applies)’’. 

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

14 this section shall apply to contributions made in taxable 

15 years beginning after the date of the enactment of this 

16 Act. 

17 SEC. 124. INCREASED CONTRIBUTIONS TO ABLE AC18 COUNTS. 

19 (a) INCREASE IN LIMITATION FOR CONTRIBUTIONS

20 FROM COMPENSATION OF INDIVIDUALS WITH DISABIL21 ITIES.—Section 529A(b)(2)(B)(ii) is amended by striking 

22 ‘‘before January 1, 2026’’. 

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

24 CONTRIBUTIONS BY ACCOUNT HOLDER.—Section 


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1 25B(d)(1)(D) is amended by striking ‘‘made before Janu2 ary 1, 2026,’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 125. ROLLOVERS TO ABLE PROGRAMS FROM 529 PRO7 GRAMS. 

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

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

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

11 this section shall apply to distributions after the date of 

12 the enactment of this Act. 

13 SEC. 126. TREATMENT OF CERTAIN INDIVIDUALS PER14 FORMING SERVICES IN THE SINAI PENIN15 SULA OF EGYPT. 

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

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

18 ‘‘means— 

19 ‘‘(A) any area’’, and 

20 (2) by striking the period at the end and insert21 ing ‘‘, and 

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

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

24 amended— 


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1 (1) by striking ‘‘only if performed’’ and insert2 ing ‘‘only if— 

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

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

5 and 

6 (2) by striking the period at the end and insert7 ing ‘‘, and 

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

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

10 during any period with respect to which one or 

11 more members of the Armed Forces of the 

12 United States are entitled to special pay under 

13 section 310 of title 37, United States Code (re14 lating to special pay; duty subject to hostile fire 

15 or imminent danger), for service performed in 

16 such area.’’. 

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

18 Jobs Act is amended by striking section 11026. 

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

20 this section shall apply with respect to services performed 

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

22 Subtitle D—Education 

23 SEC. 131. TREATMENT OF STUDENT LOAN DISCHARGES. 

24 (a) SUNSET OF SPECIAL RULE FOR DISCHARGES OF

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


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1 (1) in the heading, by striking ‘‘2025’’ and in2 serting ‘‘2024’’, and 

3 (2) by striking ‘‘January 1, 2026’’ and insert4 ing ‘‘January 1, 2025’’. 

5 (b) REINSTATEMENT OF RULE FOR DISCHARGES ON

6 ACCOUNT OF DEATH OR DISABILITY AFTER 2024.—Sec7 tion 108(f) is amended by adding at the end the following 

8 new paragraph: 

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

10 DISABILITY AFTER 2024.— 

11 ‘‘(A) IN GENERAL.—In the case of an indi12 vidual, gross income does not include any 

13 amount which (but for this subsection) would 

14 be includible in gross income for such taxable 

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

16 part) of any loan described in subparagraph 

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

18 was— 

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

20 of section 437 of the Higher Education 

21 Act of 1965 or the parallel benefit under 

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

23 the repayment of loan liability), 

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

25 of such Act, or 


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1 ‘‘(iii) otherwise discharged on account 

2 of the death or total and permanent dis3 ability of the student. 

4 ‘‘(B) LOANS DESCRIBED.—A loan is de5 scribed in this subparagraph if such loan is— 

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

7 paragraph (2)), or 

8 ‘‘(ii) a private education loan (as de9 fined in section 140(7) of the Consumer 

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

11 1650(7))).’’. 

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

13 this section shall apply to discharges of indebtedness after 

14 December 31, 2024. 

15 SEC. 132. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND 

16 ADDITIONAL ELEMENTARY AND SECONDARY 

17 EXPENSES. 

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

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

20 ‘‘(7) TREATMENT OF ELEMENTARY AND SEC21 ONDARY TUITION.—Any reference in this section to 

22 the term ‘qualified higher education expense’ shall 

23 include a reference to the following expenses in con24 nection with enrollment or attendance at, or for stuVerDate Sep 11 2014 06:07 Jan 29, 2025 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H137.IH H137

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1 dents enrolled at or attending, an elementary or sec2 ondary public, private, or religious school: 

3 ‘‘(A) Tuition. 

4 ‘‘(B) Curriculum and curricular materials. 

5 ‘‘(C) Books or other instructional mate6 rials. 

7 ‘‘(D) Online educational materials. 

8 ‘‘(E) Tuition for tutoring or educational 

9 classes outside of the home, including at a tu10 toring facility, but only if the tutor or instruc11 tor is not related to the student and— 

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

13 State, 

14 ‘‘(ii) has taught at an eligible edu15 cational institution, or 

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

17 relevant subject. 

18 ‘‘(F) Fees for a nationally standardized 

19 norm-referenced achievement test, an advanced 

20 placement examination, or any examinations re21 lated to college or university admission. 

22 ‘‘(G) Fees for dual enrollment in an insti23 tution of higher education. 

24 ‘‘(H) Educational therapies for students 

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1 credited practitioner or provider, including oc2 cupational, behavioral, physical, and speech-lan3 guage therapies. 

4 Such term shall include expenses for the purposes 

5 described in subparagraphs (A) through (H) in con6 nection with a homeschool (whether treated as a 

7 homeschool or a private school for purposes of appli8 cable State law).’’. 

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

10 this section shall apply to distributions made after the 

11 date of the enactment of this Act. 

12 Subtitle E—Deductions and 

13 Exclusions 

14 SEC. 141. REPEAL OF DEDUCTION FOR PERSONAL EXEMP15 TIONS. 

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

17 1 is hereby repealed. 

18 (b) DEFINITION OF DEPENDENT RETAINED.—Sec19 tion 152, prior to the repeal made by subsection (a), is 

20 hereby redesignated as section 7706 and moved to the end 

21 of chapter 79. 

22 (c) APPLICATION TO TRUSTS AND ESTATES.—Sec23 tion 642(b) is amended— 

24 (1) in paragraph (2)(C)— 


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1 (A) in clause (i), by striking ‘‘the exemp2 tion amount under section 151(d)’’ and all that 

3 follows through the period at the end and in4 serting ‘‘the dollar amount in effect under sec5 tion 7706(d)(1)(B).’’, and 

6 (B) by striking clause (iii), 

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

8 (3) by striking ‘‘DEDUCTION FOR PERSONAL

9 EXEMPTION’’ in the heading thereof and inserting 

10 ‘‘BASIC DEDUCTION’’. 

11 (d) APPLICATION TO NONRESIDENT ALIENS.—Sec12 tion 873(b) is amended by striking paragraph (3). 

13 (e) MODIFICATION OF RETURN REQUIREMENT.— 

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

15 amended to read as follows: 

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

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

18 required of— 

19 ‘‘(A) an individual who is not married (de20 termined by applying section 7703) and who 

21 has gross income for the taxable year which 

22 does not exceed the standard deduction applica23 ble to such individual for such taxable year 

24 under section 63, or 


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

2 return if— 

3 ‘‘(i) the gross income of such indi4 vidual, when combined with the gross in5 come of such individual’s spouse, for the 

6 taxable year does not exceed the standard 

7 deduction which would be applicable for 

8 such taxable year under section 63 if such 

9 individual and such individual’s spouse 

10 made a joint return, 

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

12 make a separate return, and 

13 ‘‘(iii) neither such individual nor such 

14 individual’s spouse is an individual de15 scribed in section 63(c)(4) who has income 

16 (other than earned income) in excess of the 

17 amount in effect under section 

18 63(c)(4)(A).’’. 

19 (2) BANKRUPTCY ESTATES.—Section 

20 6012(a)(8) is amended by striking ‘‘the sum of the 

21 exemption amount plus the basic standard deduction 

22 under section 63(c)(2)(C)’’ and inserting ‘‘the stand23 ard deduction in effect under section 63(c)(1)(B)’’. 

24 (3) CONFORMING AMENDMENT.—Section 6012 

25 is amended by striking subsection (f). 


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1 (f) CONFORMING AMENDMENTS.— 

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

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

4 (2) Section 2(a)(1)(B) is amended— 

5 (A) by striking ‘‘section 152’’ and insert6 ing ‘‘section 7706’’, and 

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

8 taxpayer is entitled to a deduction for the tax9 able year under section 151’’ and inserting 

10 ‘‘whose TIN is included on the taxpayer’s re11 turn of tax for the taxable year’’. 

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

13 (A) in the matter preceding subclause 

14 (I)— 

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

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

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

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

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

20 152(b)(2) or 152(b)(3)’’ and inserting ‘‘section 

21 7706(b)(2) or 7706(b)(3)’’. 

22 (4) Section 2(b)(1)(A)(ii) is amended by strik23 ing ‘‘if the taxpayer is entitled to a deduction for the 

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


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

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

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

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

5 taxable year for such father or mother under section 

6 151’’ and inserting ‘‘if such father or mother is a 

7 dependent of the taxpayer and the taxpayer included 

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

9 the taxable year’’. 

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

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

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

13 and 

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

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

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

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

18 7706(a)(1)’’. 

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

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

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

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

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

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1 paragraph (B) and inserting ‘‘section 

2 7706(e)(4)(A)’’. 

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

4 follows: 

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

7 year, or’’. 

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

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

10 7706(f)(1)’’. 

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

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

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

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

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

18 taxpayer’’. 

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


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

3 7706(f)(2)’’. 

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

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

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

8 (18) Section 32(c)(3) is amended— 

9 (A) in subparagraph (A)— 

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

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

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

13 inserting ‘‘section 7706(e)’’, 

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

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

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

19 individual is not treated as a dependent of such 

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

22 section 7706(e))’’, and 

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

25 7706(c)(1)(B)’’. 


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

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

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

5 return of tax for the taxable year’’. 

6 (20) Section 35(d)(2) is amended— 

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

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

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

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

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

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

15 is not allowed a deduction under section 151 for 

16 the taxable year with respect to a dependent’’ 

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

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

20 striking ‘‘unless a deduction is allowed under 

21 section 151 for the taxable year with respect to 

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

24 the taxpayer included such dependent’s TIN on 

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


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

3 151 is allowable to another taxpayer’’ and inserting 

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

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

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

7 taxpayer is allowed a deduction under section 151 

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

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

11 number of individuals who are dependents of the 

12 taxpayer for the taxable year’’. 

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

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

17 the taxable year (including the taxpayer or his 

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

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

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

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

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

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


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

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

3 (28) Section 51(i)(1) is amended— 

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

6 7706(d)(2)’’, and 

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

8 subparagraph (C) and inserting ‘‘section 

9 7706(d)(2)(H)’’. 

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

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

13 (B) by striking ‘‘AND DEDUCTION FOR

14 PERSONAL EXEMPTIONS’’ in the heading there15 of. 

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

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

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

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

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

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

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

25 amended— 


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

2 deduction under section 151 is allowable to’’ 

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

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

5 thereof. 

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

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

9 ‘‘(f) ADDITIONAL STANDARD DEDUCTION FOR THE

10 AGED AND BLIND.— 

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

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

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

15 65 before the close of such taxable year, and 

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

17 the close of such taxable year. 

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

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

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

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


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

2 no gross income for the calendar year in 

3 which the taxable year of such individual 

4 begins, 

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

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

8 individual’s taxable year begins, and 

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

11 for the taxable year, 

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

15 return.’’. 

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

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

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

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

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

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

23 7706(f)(1)’’. 

24 (37) Section 105(b) is amended— 


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

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

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

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

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

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

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

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

12 follows: 

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

14 such employee’s spouse, or’’. 

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

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

17 7706(f)(1)’’. 

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

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

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

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

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


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

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

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

5 7706(f)(1)’’. 

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

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

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

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

10 7706(d)(2)’’. 

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

12 paragraph (3). 

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

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

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

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

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

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

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

21 ‘‘with respect to whom a deduction under section 

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

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


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

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

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

4 ‘‘with respect to whom a deduction under section 

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

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

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

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

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

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

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

16 7706(a)’’. 

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

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

21 (61) Section 443 is amended— 

22 (A) in subsection (b)— 

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


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

3 place such term appears, 

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

5 (C) by redesignating subsections (d) and 

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

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

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

9 7706(f)(1)’’. 

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

12 7706(d)(2)’’. 

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

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

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

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

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

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

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

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

21 to basic deduction)’’, and 

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

24 inserting ‘‘BASIC DEDUCTION’’. 


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

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

4 through (E), respectively. 

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

7 subsection (b). 

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

9 section 151 and’’. 

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

11 follows: 

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

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

14 of an estate or trust shall be computed without any 

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

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

17 follows: 

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

19 (71) Section 933 is amended— 

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

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

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

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


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

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

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

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

7 read as follows: 

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

9 the deduction allowed for such year under 

10 section 642(b).’’. 

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

13 7706(f)(1)(C)’’. 

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

15 paragraph (7). 

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

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

18 7706(f)(2)’’. 

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

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

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

24 ‘‘other than the deductions referred to in section 

25 151 and’’. 


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

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

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

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

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

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

7 applies.’’. 

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

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

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

11 striking ‘‘the number of individuals for whom the 

12 taxpayer is allowed a deduction under section 151 

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

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

16 number of the taxpayer’s dependents for the taxable 

17 year’’. 

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

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

21 inserting ‘‘had no gross income’’, 

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

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

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


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

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

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

5 6012(a)(1)(B)(iii)’’. 

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

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

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

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

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

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

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

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

14 ‘‘clauses (i) through (iii)’’. 

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

16 read as follows: 

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

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

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


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

2 36B(b)(3)(B), or 63(f)(2)(B)’’. 

3 (88) Section 6334(d) is amended— 

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

5 follows: 

6 ‘‘(2) EXEMPT AMOUNT.— 

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

9 amount equal to— 

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

12 standard deduction, divided by 

13 ‘‘(ii) 52. 

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

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

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

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

21 levy occurs. 

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

23 taxpayer submits to the Secretary a written and 

24 properly verified statement specifying the facts 

25 necessary to determine the proper amount 


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1 under subparagraph (A), subparagraph (A) 

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

4 dependents.’’, and 

5 (B) by striking paragraph (4). 

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

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

8 7706(d)(2)’’. 

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

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

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

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

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

15 section 7706(e)),’’. 

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

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

18 inserting ‘‘this title’’. 

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

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

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

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


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

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

3 amount equal to— 

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

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

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

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

10 thereof. 

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

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

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

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

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

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

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

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

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

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

22 chapter 1 is amended by striking the item relating 

23 to part V. 


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

2 amended by adding at the end the following new 

3 item: 

‘‘Sec. 7706. Dependent defined.’’. 

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

5 this section shall apply to taxable years beginning after 

6 the date of the enactment of this Act. 

7 SEC. 142. LIMITATION ON DEDUCTION FOR STATE AND 

8 LOCAL, ETC., TAXES. 

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

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

11 inserting the following: 

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

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

15 this chapter for foreign real property taxes paid 

16 or accrued during the taxable year, and 

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

21 (and any tax described in any such paragraph 

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

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


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

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

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

8 (a) INTEREST ON HOME EQUITY INDEBTEDNESS.— 

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

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

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

12 on acquisition indebtedness with respect to any qualified 

13 residence of the taxpayer.’’. 

14 (b) LIMITATION ON ACQUISITION INDEBTEDNESS.— 

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

16 ‘‘(ii) LIMITATION.—The aggregate 

17 amount treated as acquisition indebtedness 

18 for any period shall not exceed the excess 

19 (if any) of— 

20 ‘‘(I) $750,000 ($375,000, in the 

21 case of a married individual filing a 

22 separate return), over 

23 ‘‘(II) the sum of the aggregate 

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

5 (c) TREATMENT OF INDEBTEDNESS INCURRED ON

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

7 is amended to read as follows: 

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

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

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

13 aggregate amount of such indebtedness 

14 treated as acquisition indebtedness for any 

15 period shall not exceed the excess (if any) 

16 of— 

17 ‘‘(I) $1,000,000 ($500,000, in 

18 the case of a married individual filing 

19 a separate return), over 

20 ‘‘(II) the aggregate outstanding 

21 pre-October 13, 1987, indebtedness 

22 (as defined in subparagraph (D)). 

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


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1 ‘‘(I) IN GENERAL.—The term 

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

4 pre-October 13, 1987, indebtedness) 

5 incurred on or before December 15, 

6 2017. 

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

9 taxpayer who enters into a written 

10 binding contract before December 15, 

11 2017, to close on the purchase of a 

12 principal residence before January 1, 

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

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

18 ‘‘(iii) REFINANCING INDEBTED19 NESS.— 

20 ‘‘(I) IN GENERAL.—In the case 

21 of any indebtedness which is incurred 

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

24 for purposes of this subparagraph as 

25 incurred on the date that the original 


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

3 resulting from such refinancing does 

4 not exceed the amount of the refi5 nanced indebtedness. 

6 ‘‘(II) LIMITATION ON PERIOD OF

7 REFINANCING.—Subclause (I) shall 

8 not apply to any indebtedness after 

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

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

13 the term of the 1st refinancing of 

14 such indebtedness (or if earlier, the 

15 date which is 30 years after the date 

16 of such 1st refinancing).’’. 

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

19 Section 163(h)(3)(D) is amended— 

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

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

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


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

2 preceding subclause (I) and inserting ‘‘clause 

3 (ii)’’, and 

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

6 (ii)(I)’’. 

7 (e) COORDINATION WITH EXCLUSION OF INCOME

8 FROM DISCHARGE OF INDEBTEDNESS.—Section 

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

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

11 clause (ii) thereof and’’. 

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

13 is amended by striking subparagraph (F). 

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

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 SEC. 144. MODIFICATION OF DEDUCTION FOR PERSONAL 

18 CASUALTY LOSSES. 

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

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

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

22 (b) CONFORMING AMENDMENTS.— 

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

25 applies’’. 


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

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

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

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

6 this section shall apply to losses sustained in taxable years 

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

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

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

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

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

15 (2) by striking subsection (g). 

16 (b) MOVEMENT OF DEFINITION OF ADJUSTED

17 GROSS INCOME FOR ESTATES AND TRUSTS.— 

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

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

21 end the following new subsection: 

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

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

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

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


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

2 incurred in connection with the administration of the 

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

5 estate, and 

6 ‘‘(2) the deductions allowable under sections 

7 642(b), 651, and 661, 

8 shall be treated as allowable in arriving at adjusted gross 

9 income.’’. 

10 (c) CONFORMING AMENDMENTS.— 

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

12 follows: 

13 ‘‘(A) CERTAIN TAXES.—No deduction 

14 (other than a deduction allowable in computing 

15 adjusted gross income) shall be allowed for any 

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

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

18 164(b)(5)(A).’’. 

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

20 preceding provisions of this Act, is amended by 

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

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


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

2 follows: 

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

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

5 ‘‘(as defined in section 67(e))’’. 

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

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

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

10 ‘‘DENIAL OF’’. 

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

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

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

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

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

18 SEC. 146. REPEAL OF OVERALL LIMITATION ON ITEMIZED 

19 DEDUCTIONS. 

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

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

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

23 (b) CONFORMING AMENDMENTS.— 


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

3 subparagraph (E). 

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

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

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

7 at the end the following new clause: 

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

10 term ‘applicable amount’ means— 

11 ‘‘(I) $300,000 in the case of a 

12 joint return or a surviving spouse, 

13 ‘‘(II) $275,000 in the case of a 

14 head of household, 

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

16 individual who is not married and who 

17 is not a surviving spouse or head of 

18 household, and 

‘‘(IV) 1 19 ⁄2 the amount applicable 

20 under subclause (I) in the case of a 

21 married individual filing a separate 

22 return. 

23 For purposes of this paragraph, marital 

24 status shall be determined under section 

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1 ginning in calendar years after the date of 

2 the enactment of this clause, each of the 

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

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

7 for the calendar year in which the taxable 

8 year begins, determined by substituting 

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

10 thereof. If any amount after adjustment 

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

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

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

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

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

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

20 striking subparagraph (D). 

21 (b) CONFORMING AMENDMENTS.— 

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

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

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

25 a period, and striking subparagraph (C). 


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

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

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

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

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

8 2026’’. 

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

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

12 SEC. 148. QUALIFIED MOVING EXPENSE REIMBURSEMENT 

13 EXCLUSION LIMITED TO MEMBERS OF 

14 ARMED FORCES. 

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

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

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

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

20 following new paragraph: 

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

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

24 Forces of the United States on active duty who 


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1 moves pursuant to a military order and incident to 

2 a permanent change of station.’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 149. DEDUCTION FOR MOVING EXPENSES LIMITED TO 

7 MEMBERS OF ARMED FORCES. 

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

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

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

12 as a deduction moving expenses paid or incurred during 

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

14 United States on active duty who moves pursuant to a 

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

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

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

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

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

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

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

24 which reimbursement or an allowance is provided, but only 

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


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

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

3 be includible in gross income, and no reporting with 

4 respect to such expenses shall be required by the 

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

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

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

9 a location other than the one to which such member 

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

11 which such member moves), this section shall apply 

12 with respect to the moving expenses of such spouse 

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

15 (b) CONFORMING AMENDMENTS.— 

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

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

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

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

20 paragraph (11). 

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

22 striking ‘‘MOVING EXPENSES’’ and inserting 

23 ‘‘CERTAIN MOVING EXPENSES OF MEMBERS OF

24 ARMED FORCES’’. 


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

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

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

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

6 this section shall apply to taxable years beginning after 

7 the date of the enactment of this Act. 

8 SEC. 150. LIMITATION ON WAGERING LOSSES. 

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

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

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

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

15 Subtitle F—Increase in Estate and 

16 Gift Tax Exemption 

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

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

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

20 ‘‘$10,000,000’’. 

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

22 is amended by striking subparagraph (C). 

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

24 this section shall apply to estates of decedents dying and 

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


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

4 SEC. 201. INCREASED EXEMPTION FOR INDIVIDUALS. 

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

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

7 and inserting ‘‘$109,400’’, and 

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

9 and inserting ‘‘$70,300’’. 

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

11 55(d)(2) is amended— 

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

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

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

15 by inserting the following new subparagraphs: 

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

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

19 (1)(C), and 

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

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

23 amended to read as follows: 

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

25 amount described in clause (i) or (ii) of subparaVerDate Sep 11 2014 06:07 Jan 29, 2025 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H137.IH H137

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

2 to— 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

25 amended by striking paragraph (4). 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

Æ 


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