II 

116TH CONGRESS 

1ST SESSION S. 1162 

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 11, 2019 

Mr. CRUZ (for himself, Ms. ERNST, Mrs. BLACKBURN, Mr. CRAMER, 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) SPECIAL RULES FOR CERTAIN CHILDREN WITH

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

21 Internal Revenue Code of 1986 is amended— 

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

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

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


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1 (3) by redesignating paragraph (2) as para2 graph (6) and by moving such paragraph to the po3 sition between paragraphs (5) and (7) (as so redes4 ignated), 

5 (4) by inserting before paragraph (5) (as so re6 designated) the following new paragraphs: 

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

8 whom this subsection applies for the taxable year, 

9 the amount of tax imposed by this section on such 

10 child shall be determined as provided in paragraphs 

11 (2) and (3). 

12 ‘‘(2) MODIFICATIONS TO APPLICABLE RATE

13 BRACKETS.—The income tax table otherwise applica14 ble under this section to the child shall be applied 

15 with the following modifications: 

16 ‘‘(A) 24-PERCENT BRACKET.—The max17 imum taxable income which is taxed at a rate 

18 below 24 percent shall not be more than the 

19 sum of— 

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

21 child, plus 

22 ‘‘(ii) the minimum taxable income for 

23 the 24-percent bracket in the table under 

24 subsection (e) (as adjusted under sub25 section (f)) for the taxable year. 


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1 ‘‘(B) 35-PERCENT BRACKET.—The max2 imum taxable income which is taxed at a rate 

3 below 35 percent shall not be more than the 

4 sum of— 

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

6 child, plus 

7 ‘‘(ii) the minimum taxable income for 

8 the 35-percent bracket in the table under 

9 subsection (e) (as adjusted under sub10 section (f)) for the taxable year. 

11 ‘‘(C) 37-PERCENT BRACKET.—The max12 imum taxable income which is taxed at a rate 

13 below 37 percent shall not be more than the 

14 sum of— 

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

16 child, plus 

17 ‘‘(ii) the minimum taxable income for 

18 the 37-percent bracket in the table under 

19 subsection (e) (as adjusted under sub20 section (f)) for the taxable year. 

21 ‘‘(3) COORDINATION WITH CAPITAL GAINS

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

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

24 not be more than the sum of— 


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

2 child, plus 

3 ‘‘(ii) the amount in effect under sub4 section (h)(12)(A)(iv) for the taxable year, 

5 and 

6 ‘‘(B) the maximum 15-percent rate 

7 amount shall not be more than the sum of— 

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

9 child, plus 

10 ‘‘(ii) the amount in effect under sub11 section (h)(12)(B)(iv) for the taxable year. 

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

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

14 means, with respect to any child for any taxable 

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

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

17 child.’’, and 

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

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

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

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

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

23 section 1 of the Internal Revenue Code of 1986 is amend24 ed— 


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

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

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

4 maximum zero rate amount’’, 

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

6 this paragraph) be taxed at a rate below 39.6 per7 cent’’ in paragraph (1)(C)(ii)(I) and inserting 

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

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

10 paragraph: 

11 ‘‘(12) MAXIMUM AMOUNTS DEFINED.—For pur12 poses of this subsection— 

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

14 maximum zero rate amount shall be— 

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

16 surviving spouse, $77,200, 

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

18 is a head of household (as defined in sec19 tion 2(b)), $51,700, 

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

amount equal to 1 22 ⁄2 of the amount in effect 

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

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

25 $2,600. 


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1 ‘‘(B) MAXIMUM 15-PERCENT RATE

2 AMOUNT.—The maximum 15-percent rate 

3 amount shall be— 

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

surviving spouse, $479,000 (1 5 ⁄2 such 

6 amount in the case of a married individual 

7 filing a separate return), 

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

9 is the head of a household (as defined in 

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

11 ‘‘(iii) in the case of any other indi12 vidual (other than an estate or trust), 

13 $425,800, and 

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

15 $12,700. 

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

17 case of any taxable year beginning after 2018, 

18 each of the dollar amounts in subparagraphs 

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

20 equal to— 

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

22 ‘‘(ii) the cost-of-living adjustment de23 termined under subsection (f)(3) for the 

24 calendar year in which the taxable year be25 gins, determined by substituting ‘calendar 


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1 year 2017’ for ‘calendar year 2016’ in sub2 paragraph (A)(ii) thereof. 

3 If any increase under this subparagraph is not 

4 a multiple of $50, such increase shall be round5 ed to the next lowest multiple of $50.’’. 

6 (i) CONFORMING AMENDMENTS.— 

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

8 1986 is amended by striking subsections (i) and (j). 

9 (2) Section 3402(q)(1) of such Code is amend10 ed by striking ‘‘third lowest’’ and inserting ‘‘fourth 

11 lowest’’. 

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

13 Internal Revenue Code of 1986 shall not apply to any 

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

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2018. 

18 SEC. 2. PERMANENT EXTENSION OF DEDUCTION FOR 

19 QUALIFIED BUSINESS INCOME OF PASS-THRU 

20 ENTITIES. 

21 (a) IN GENERAL.—Section 199A of the Internal Rev22 enue Code of 1986 is amended by striking subsection (i). 

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

24 this section shall apply to taxable years beginning after 

25 December 31, 2017. 


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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, 2017. 

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 subparagraph (A) 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 21:27 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1162.IS S1162

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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, 2017. 

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) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2017. 


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1 SEC. 6. PERMANENT EXTENSION OF INCREASED LIMITA2 TION FOR CERTAIN CHARITABLE CONTRIBU3 TIONS. 

4 (a) IN GENERAL.—Section 170(b)(1)(G) of the Inter5 nal Revenue Code of 1986 is amended— 

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

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

8 2026,’’ in clause (i), 

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

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

11 (3) by striking ‘‘For each taxable year de12 scribed in clause (i), and each taxable year to which 

13 any contribution under this subparagraph is carried 

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

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

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

17 this section shall apply to contributions in taxable years 

18 beginning after December 31, 2025. 

19 SEC. 7. PERMANENT EXTENSION OF INCREASED CON20 TRIBUTIONS TO ABLE ACCOUNTS. 

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

22 Internal Revenue Code of 1986 is amended by striking 

23 ‘‘before January 1, 2026’’. 

24 (b) ALLOWANCE OF SAVERS CREDIT.—Section 

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

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


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1 (c) 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. 8. PERMANENT EXTENSION OF ROLLOVERS TO ABLE 

5 PROGRAMS FROM 529 PROGRAMS. 

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

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

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

9 this section shall apply to distributions made after the 

10 date of the enactment of this Act. 

11 SEC. 9. PERMANENT EXTENSION OF TREATMENT OF CER12 TAIN INDIVIDUALS PERFORMING SERVICES 

13 IN THE SINAI PENINSULA OF EGYPT. 

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

15 of Public Law 115–97 is amended— 

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

17 2026’’ in paragraph (1)(B), and 

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

19 2026’’ in paragraph (2)(B). 

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

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

22 of this Act. 

23 SEC. 10. PERMANENT EXTENSION OF REDUCTION IN MED24 ICAL EXPENSE DEDUCTION FLOOR. 

25 (a) REDUCTION.— 


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1 (1) IN GENERAL.—Section 213(a) of the Inter2 nal Revenue Code of 1986 is amended by striking 

3 ‘‘10 percent’’ and inserting ‘‘7.5 percent’’. 

4 (2) CONFORMING AMENDMENT.—Section 213 

5 of the Internal Revenue Code of 1986 is amended by 

6 striking subsection (f). 

7 (b) REPEAL OF MINIMUM TAX PREFERENCE.—Sec8 tion 56(b)(1) of the Internal Revenue Code of 1986 is 

9 amended by striking subparagraph (B). 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2016. 

13 SEC. 11. PERMANENT EXTENSION OF TREATMENT OF STU14 DENT LOANS DISCHARGED ON ACCOUNT OF 

15 DEATH OR DISABILITY. 

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

17 108(f)(5) of the Internal Revenue Code of 1986 is amend18 ed by striking ‘‘and before January 1, 2026,’’. 

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

20 this section shall apply to discharges of indebtedness after 

21 December 31, 2017. 

22 SEC. 12. REPEAL OF DEDUCTION FOR PERSONAL EXEMP23 TIONS. 

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

25 1 of the Internal Revenue Code of 1986 is hereby repealed. 


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1 (b) DEFINITION OF DEPENDENT RETAINED.—Sec2 tion 152 of the Internal Revenue Code of 1986, prior to 

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

4 7706 of such Code and moved to the end of chapter 79 

5 of such Code. 

6 (c) APPLICATION TO ESTATES AND TRUSTS.—Sub7 paragraph (C) of section 642(b)(2) of the Internal Rev8 enue Code of 1986 is amended— 

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

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

11 and 

12 (2) by striking clause (iii) and inserting the fol13 lowing: 

14 ‘‘(iii) INFLATION ADJUSTMENT.—In 

15 the case of any taxable year beginning in 

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

17 amount in clause (i) shall be increased by 

18 an amount equal to— 

19 ‘‘(I) such dollar amount, multi20 plied by 

21 ‘‘(II) the cost-of-living adjust22 ment determined under section 1(f)(3) 

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1 stituting ‘2017’ for ‘2016’ in subpara2 graph (A)(ii) thereof. 

3 If any increase determined under the pre4 ceding sentence is not a multiple of $100, 

5 such increase shall be rounded to the next 

6 lowest multiple of $100.’’. 

7 (d) APPLICATION TO NONRESIDENT ALIENS.—Sec8 tion 873(b) of the Internal Revenue Code of 1986 is 

9 amended by striking paragraph (3). 

10 (e) MODIFICATION OF RETURN REQUIREMENT.— 

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

12 Revenue Code of 1986 is amended— 

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

14 (a) and inserting the following: 

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

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

17 required of— 

18 ‘‘(A) an individual who is not married (de19 termined by applying section 7703) and who 

20 has gross income for the taxable year which 

21 does not exceed the standard deduction applica22 ble to such individual for such taxable year 

23 under section 63, or 

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

25 return if— 


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1 ‘‘(i) the gross income of such indi2 vidual, when combined with the gross in3 come of such individual’s spouse, for the 

4 taxable year does not exceed the standard 

5 deduction which would be applicable to the 

6 taxpayer for such taxable year under sec7 tion 63 if such individual and such individ8 ual’s spouse made a joint return, 

9 ‘‘(ii) such individual and such individ10 ual’s spouse have the same household as 

11 their home at the close of the taxable year, 

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

13 make a separate return, and 

14 ‘‘(iv) neither such individual nor such 

15 individual’s spouse is an individual de16 scribed in section 63(c)(2) who has income 

17 (other than earned income) in excess of the 

18 amount in effect under section 

19 63(c)(2)(A).’’, and 

20 (B) by striking subsection (f). 

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

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

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

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


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1 inserting ‘‘the standard deduction in effect under 

2 section 63(c)(1)(B)’’. 

3 (f) CONFORMING AMENDMENTS.— 

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

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

6 and all that follows through ‘‘section 151’’ and in7 serting ‘‘a dependent who (within the meaning of 

8 section 7706, determined without regard to sub9 sections (b)(1), (b)(2), and (d)(1)(B) thereof) is a 

10 son, stepson, daughter, or stepdaughter of the tax11 payer’’. 

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

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

14 ‘‘section 7706’’. 

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

16 amended by striking ‘‘unless a deduction is allowed 

17 under section 151 for the taxable year with respect 

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

19 inserting ‘‘unless the taxpayer has a dependent for 

20 the taxable year’’. 

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

22 amended by striking ‘‘with respect to whom a deduc23 tion under section 151 is allowable to another tax24 payer’’ and inserting ‘‘who is a dependent of another 

25 taxpayer’’. 


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

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

3 whom the taxpayer is allowed a deduction under sec4 tion 151 (relating to allowance of deduction for per5 sonal exemptions) for the taxable year’’ and insert6 ing ‘‘the sum of 1 (2 in the case of a joint return) 

7 plus the number of the taxpayer’s dependents for 

8 the taxable year’’. 

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

10 by striking ‘‘1 or more individuals for whom a tax11 payer is allowed a deduction under section 151 (re12 lating to allowance of deduction for personal exemp13 tions) for the taxable year (including the taxpayer or 

14 his spouse)’’ and inserting ‘‘1 or more of the tax15 payer, the taxpayer’s spouse, or any dependent of 

16 the taxpayer’’. 

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

18 amended— 

19 (A) by striking ‘‘section 152’’ and insert20 ing ‘‘section 7706’’, and 

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

22 inserting a comma. 

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

24 striking ‘‘minus—’’ and all that follows and insert25 ing ‘‘minus the standard deduction.’’. 


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

2 striking ‘‘other than—’’ and all that follows and in3 serting ‘‘other than the deductions allowable in ar4 riving at adjusted gross income.’’. 

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

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

7 ‘‘section 7706’’. 

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

9 amended by striking ‘‘section 152(f)(1)’’ and insert10 ing ‘‘section 7706(f)(1)’’. 

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

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

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

14 (B) by striking ‘‘section 152(f)(1)’’ and in15 serting ‘‘section 7706(f)(1)’’, and 

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

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

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

20 7706’’. 

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

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

23 ‘‘section 7706’’. 

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


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

2 such taxable year, a deduction is allowable 

3 under section 151(c) (relating to personal ex4 emptions for dependents) to’’ in paragraph (1) 

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

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

7 paragraph (2) and inserting ‘‘section 

8 7706(f)(1)’’. 

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

10 amended— 

11 (A) by striking ‘‘section 152(f)(1)’’ and in12 serting ‘‘section 7706(f)(1)’’, and 

13 (B) by striking ‘‘section 152(e)’’ and in14 serting ‘‘section 7706(e)’’. 

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

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

17 ‘‘section 7706’’. 

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

19 amended by striking ‘‘section 152(f)(1)’’ and insert20 ing ‘‘section 7706(f)(1)’’. 

21 (19) Section 170(g)(1) of such Code is amend22 ed by striking ‘‘section 152’’ and inserting ‘‘section 

23 7706’’. 


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1 (20) Section 170(g)(3) of such Code is amend2 ed by striking ‘‘section 152(d)(2)’’ and inserting 

3 ‘‘section 7706(d)(2)’’. 

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

5 by striking paragraph (3). 

6 (22) Section 220(b)(6) of such Code is amend7 ed by striking ‘‘with respect to whom a deduction 

8 under section 151 is allowable to’’ and inserting 

9 ‘‘who is a dependent of’’. 

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

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

12 ‘‘section 7706’’. 

13 (24) Section 223(b)(6) of such Code is amend14 ed by striking ‘‘with respect to whom a deduction 

15 under section 151 is allowable to’’ and inserting 

16 ‘‘who is a dependent of’’. 

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

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

19 ‘‘section 7706’’. 

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

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

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

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

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

25 ‘‘section 7706’’. 


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

2 is amended by striking ‘‘section 152(a)’’ and insert3 ing ‘‘section 7706(a)’’. 

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

5 by striking ‘‘section 152(f)(1)’’ and inserting ‘‘sec6 tion 7706(f)(1)’’. 

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

8 amended by striking ‘‘section 152(d)(2)’’ and insert9 ing ‘‘section 7706(d)(2)’’. 

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

11 by striking subparagraph (A) and by redesignating 

12 subparagraphs (B) through (F) as subparagraphs 

13 (A) through (E), respectively. 

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

15 striking subsection (b) and by redesignating sub16 section (c) as subsection (b). 

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

18 striking ‘‘under section 151 and’’. 

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

20 by striking paragraph (1). 

21 (35) Section 931(b)(1) of such Code is amend22 ed by striking ‘‘(other than the deduction under sec23 tion 151, relating to personal exemptions)’’. 

24 (36) 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 (37) 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 (38) 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 (39) Section 1402(a) of such Code is amended 

16 by striking paragraph (7). 

17 (40) 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 (41) Section 3402(m)(1) of such Code is 

21 amended by striking ‘‘other than the deductions re22 ferred to in section 151 and’’. 

23 (42) Section 3402(r)(2) of such Code is amend24 ed by striking ‘‘the sum of—’’ and all that follows 


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1 and inserting ‘‘the standard deduction in effect 

2 under section 63(c)(1)(B).’’. 

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

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

5 ‘‘section 7706’’. 

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

7 amended by striking ‘‘the number of individuals for 

8 whom the taxpayer is allowed a deduction under sec9 tion 151 (relating to allowance of deduction for per10 sonal exemptions) for the taxable year’’ and insert11 ing ‘‘the sum of 1 (2 in the case of a joint return) 

12 plus the number of the taxpayer’s dependents for 

13 the taxable year’’. 

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

15 amended— 

16 (A) by striking ‘‘had less than the exemp17 tion amount of gross income’’ in clause (ii) and 

18 inserting ‘‘had no gross income’’, 

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

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

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

22 (C) by striking the flush language fol23 lowing clause (iii). 

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

25 amended to read as follows: 


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1 ‘‘(iii) the number of the taxpayer’s de2 pendents,’’. 

3 (47) Section 6213(g)(2) of such Code is amend4 ed by striking subparagraph (H). 

5 (48) Section 6334(d)(2) of such Code is amend6 ed to read as follows: 

7 ‘‘(2) EXEMPT AMOUNT.— 

8 ‘‘(A) IN GENERAL.—For purposes of para9 graph (1), the term ‘exempt amount’ means an 

10 amount equal to— 

11 ‘‘(i) the sum of the amount deter12 mined under subparagraph (B) and the 

13 standard deduction, divided by 

14 ‘‘(ii) 52. 

15 ‘‘(B) AMOUNT DETERMINED.—For pur16 poses of subparagraph (A), the amount deter17 mined under this subparagraph is $4,150 multi18 plied by the number of the taxpayer’s depend19 ents for the taxable year in which the levy oc20 curs. 

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

22 case of any taxable year beginning after 2018, 

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

24 be increased by an amount equal to— 

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


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1 ‘‘(ii) the cost-of-living adjustment de2 termined under section 1(f)(3) for the cal3 endar year in which the taxable year be4 gins, by substituting ‘calendar year 2017’ 

5 for ‘calendar year 2016’ in subparagraph 

6 (A) thereof. 

7 If any increase determined under the preceding 

8 sentence is not a multiple of $100, such in9 crease shall be rounded to the next lowest mul10 tiple of $100. 

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

12 taxpayer submits to the Secretary a written and 

13 properly verified statement specifying the facts 

14 necessary to determine the proper amount 

15 under subparagraph (A), subparagraph (A) 

16 shall be applied as if the taxpayer were a mar17 ried individual filing a separate return with no 

18 dependents.’’. 

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

20 amended by striking ‘‘section 152(d)(2)’’ and insert21 ing ‘‘section 7706(d)(2)’’. 

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

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

24 and’’. 


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1 (51) Section 7703(b)(1) of such Code is amend2 ed by striking ‘‘section 152(f)(1)’’ and all that fol3 lows and inserting ‘‘section 7706(f)(1),’’. 

4 (52) Section 7706(a) of such Code, as redesig5 nated by this section, is amended by striking ‘‘this 

6 subtitle’’ and inserting ‘‘subtitle A’’. 

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

8 redesignated by this section, is amended by striking 

9 ‘‘the exemption amount (as defined in section 

10 151(d))’’ and inserting ‘‘$4,150’’. 

11 (B) Section 7706(d) of such Code, as redesig12 nated by this section, is amended by adding at the 

13 end the following new paragraph: 

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

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

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

17 amount equal to— 

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

19 ‘‘(B) the cost-of-living adjustment deter20 mined under section 1(f)(3) for such calendar 

21 year, determined by substituting ‘calendar year 

22 2017’ for ‘calendar year 2016’ in subparagraph 

23 (A)(ii) thereof. 


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1 If any increase determined under the preceding sen2 tence is not a multiple of $100, such increase shall 

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

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

5 such Code is amended by adding at the end the fol6 lowing new item: 

‘‘Sec. 7706. Dependent defined.’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2017. 

10 SEC. 13. PERMANENT EXTENSION OF LIMITATION ON DE11 DUCTION FOR STATE AND LOCAL, ETC., 

12 TAXES. 

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

14 of the Internal Revenue Code of 1986 is amended— 

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

16 and 

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

18 heading and inserting ‘‘AFTER 2017’’. 

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2016. 

22 SEC. 14. PERMANENT EXTENSION OF LIMITATION ON DE23 DUCTION FOR QUALIFIED RESIDENCE INTER24 EST. 

25 (a) REPEAL OF HOME EQUITY INDEBTEDNESS.— 


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

2 Internal Revenue Code of 1986 is amended by strik3 ing ‘‘during the taxable year on’’ and all that follows 

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

5 the taxable year on acquisition indebtedness with re6 spect to any qualified principal residence of the tax7 payer. For purposes of’’. 

8 (2) CONFORMING AMENDMENT.—Section 

9 163(h)(3) of such Code is amended by striking sub10 paragraph (C). 

11 (b) LIMITATION ON ACQUISITION INDEBTEDNESS.— 

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

13 the Internal Revenue Code of 1986 is amended by 

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

15 ‘‘$750,000 ($375,000’’. 

16 (2) TREATMENT OF INDEBTEDNESS INCURRED

17 ON OR BEFORE DECEMBER 31, 2017; 

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

19 Revenue Code of 1986, as amended by subsection 

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

21 (B) the following new subparagraph: 

22 ‘‘(C) TREATMENT OF INDEBTEDNESS IN23 CURRED ON OR BEFORE DECEMBER 15, 2017; 

24 REFINANCINGS.— 


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

2 indebtedness incurred on or before Decem3 ber 15, 2017, subparagraph (B)(ii) shall 

4 apply as in effect immediately before the 

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

6 in applying such subparagraph to any in7 debtedness incurred after such date, the 

8 limitation under such subparagraph shall 

9 be reduced (but not below zero) by the 

10 amount of any indebtedness incurred on or 

11 before December 15, 2017, which is treat12 ed as acquisition indebtedness for purposes 

13 of this subsection for the taxable year. 

14 ‘‘(ii) BINDING CONTRACT EXCEP15 TION.—In the case of a taxpayer who en16 ters into a written binding contract before 

17 December 15, 2017, to close on the pur18 chase of a principal residence before Janu19 ary 1, 2018, and who purchases such resi20 dence before April 1, 2018, subclause (III) 

21 shall be applied by substituting ‘April 1, 

22 2018’ for ‘December 15, 2017’. 

23 ‘‘(iii) TREATMENT OF REFINANCINGS

24 OF INDEBTEDNESS.— 


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1 ‘‘(I) IN GENERAL.—In the case 

2 of any indebtedness which is incurred 

3 to refinance indebtedness, such refi4 nanced indebtedness shall be treated 

5 for purposes of clause (i) as incurred 

6 on the date that the original indebted7 ness was incurred to the extent the 

8 amount of the indebtedness resulting 

9 from such refinancing does not exceed 

10 the amount of the refinanced indebt11 edness. 

12 ‘‘(II) LIMITATION ON PERIOD OF

13 REFINANCING.—Subclause (I) shall 

14 not apply to any indebtedness after 

15 the expiration of the term of the origi16 nal indebtedness or, if the principal of 

17 such original indebtedness is not am18 ortized over its term, the expiration of 

19 the term of the 1st refinancing of 

20 such indebtedness (or if earlier, the 

21 date which is 30 years after the date 

22 of such 1st refinancing).’’. 

23 (c) COORDINATION WITH EXCLUSION OF INCOME

24 FROM DISCHARGE OF INDEBTEDNESS.—Section 

25 108(h)(2) of the Internal Revenue Code of 1986 is amendVerDate Sep 11 2014 21:27 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S1162.IS S1162

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1 ed by striking ‘‘$1,000,000 ($500,000’’ and inserting 

2 ‘‘$750,000 ($375,000’’. 

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

4 of the Internal Revenue Code of 1986 is amended— 

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

6 striking ‘‘$1,000,000’’, and 

7 (2) by striking subparagraph (F). 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2017. 

11 SEC. 15. PERMANENT EXTENSION OF MODIFICATIONS TO 

12 DEDUCTION FOR PERSONAL CASUALTY 

13 LOSSES. 

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

15 of the Internal Revenue Code of 1986 is amended— 

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

17 in subparagraph (A), and 

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

19 heading and inserting ‘‘AFTER 2017’’. 

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

21 this section shall apply to losses incurred in taxable years 

22 beginning after December 31, 2017. 


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1 SEC. 16. REPEAL OF MISCELLANEOUS ITEMIZED DEDUC2 TIONS. 

3 (a) IN GENERAL.—Section 67 of the Internal Rev4 enue Code of 1986 is amended— 

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

6 following: 

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

8 deduction shall be allowed for any taxable year beginning 

9 after December 31, 2017.’’, 

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

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

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

13 (b) CONFORMING AMENDMENT.—The table of sec14 tions for part I of subchapter B of chapter 1 of the Inter15 nal Revenue Code of 1986 is amended by striking ‘‘2-per16 cent floor on’’ in the item relating to section 67 and insert17 ing ‘‘Treatment of’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2017. 

21 SEC. 17. REPEAL OF OVERALL LIMITATION ON ITEMIZED 

22 DEDUCTIONS. 

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

24 1 of the Internal Revenue Code of 1986 is amended by 

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

26 in the table of sections for such part). 


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1 (b) CONFORMING AMENDMENTS.— 

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

3 Code of 1986 is amended by striking ‘‘section 

4 68(b)(2),’’. 

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

6 by striking subparagraph (F). 

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

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

9 date of the enactment of the Tax Cuts and Jobs 

10 Act)’’ after ‘‘68(b)’’. 

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

12 amended by striking ‘‘as an individual described in 

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

14 who is not married and who is not a surviving 

15 spouse or head of household’’. 

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

17 amended by striking clause (i) and redesignating 

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

19 respectively. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2017. 


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1 SEC. 18. REPEAL OF EXCLUSION FOR QUALIFIED BICYCLE 

2 COMMUTING REIMBURSEMENT. 

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

4 Revenue Code of 1986 is amended by striking subpara5 graph (D). 

6 (b) CONFORMING AMENDMENTS.— 

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

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

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

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

11 by striking subparagraph (C). 

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

13 by striking ‘‘(other than a qualified bicycle com14 muting reimbursement)’’. 

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

16 by striking subparagraph (F). 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2017. 

20 SEC. 19. PERMANENT EXTENSION OF MODIFICATION OF EX21 CLUSION FOR QUALIFIED MOVING EXPENSE 

22 REIMBURSEMENT. 

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

24 Revenue Code of 1986 is amended— 

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

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


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•S 1162 IS

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

2 following: 

3 ‘‘(2) QUALIFIED MILITARY MEMBER.—For pur4 poses of paragraph (1), the term ‘qualified military 

5 member’ means a member of the Armed Forces of 

6 the United States on active duty who moves pursu7 ant to a military order and incident to a permanent 

8 change of station.’’. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2017. 

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

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

14 the Internal Revenue Code of 1986 is amended to read 

15 as follows: 

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

17 as a deduction moving expenses paid or incurred during 

18 the taxable year in connection with the commencement of 

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

20 States on active duty who moves pursuant to a military 

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

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 217 of the Internal Revenue Code 

24 of 1986 is amended— 


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

2 and (i), 

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

4 and (j) as subsections (c), (d), and (e), respec5 tively, and 

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

7 (i) by striking paragraph (1) and re8 designating paragraphs (2) and (3) as 

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

10 (ii) in paragraph (2) (as so redesig11 nated), by striking ‘‘moving expenses of his 

12 spouse and dependents’’ and all that fol13 lows and inserting ‘‘moving expenses of his 

14 spouse and dependents as if his spouse 

15 commenced work as an employee at a new 

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

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

18 striking ‘‘217(h)(3)’’ each place it appears in sub19 sections (d)(3) and (e) and inserting ‘‘217(d)(3)’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2017. 


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•S 1162 IS

1 SEC. 21. PERMANENT EXTENSION OF LIMITATION ON WA2 GERING LOSSES. 

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

4 164(d) of the Internal Revenue Code of 1986 is amended 

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

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

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

8 this section shall not apply to taxable years beginning 

9 after December 31, 2017. 

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

11 MADE PERMANENT. 

12 (a) IN GENERAL.—Section 2010(c)(3)(A) of the In13 ternal Revenue Code of 1986 is amended by striking 

14 ‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 

15 (b) CONFORMING AMENDMENTS.— 

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

17 Code of 1986 is amended by striking subparagraph 

18 (C). 

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

20 is amended to read as follows: 

21 ‘‘(g) MODIFICATIONS TO GIFT TAX PAYABLE TO RE22 FLECT DIFFERENT TAX RATES.—For purposes of apply23 ing subsection (b)(2) with respect to 1 or more gifts, the 

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

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

26 of such gifts, be used both to compute— 


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

2 to such gifts, and 

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

4 section 2505, including in computing— 

5 ‘‘(A) the applicable credit amount under 

6 section 2505(a)(1), and 

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

8 credit for all preceding periods under section 

9 2505(a)(2).’’. 

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

11 this section shall apply to estates of decedents dying and 

12 gifts made after December 31, 2017. 

13 SEC. 23. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMP14 TION MADE PERMANENT. 

15 (a) IN GENERAL.—Section 55(d) of the Internal Rev16 enue Code of 1986 is amended— 

17 (1) in paragraph (1)— 

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

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

20 (B) by striking ‘‘$50,600’’ in subpara21 graph (B) and inserting ‘‘$70,300’’, and 

22 (2) in paragraph (2)— 

23 (A) by striking ‘‘$150,000’’ in subpara24 graph (A) and inserting ‘‘$1,000,000’’, and 


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

2 and inserting the following: 

3 ‘‘(B) 50 percent of the dollar amount ap4 plicable under subparagraph (A) in the case of 

5 a taxpayer described in subparagraph (B) or 

6 (C) of paragraph (1), and 

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

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

9 (b) INFLATION ADJUSTMENT.— 

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

11 the Internal Revenue Code of 1986 is amended to 

12 read as follows: 

13 ‘‘(ii) the cost-of-living adjustment de14 termined under section 1(f)(3) for the cal15 endar year in which the taxable year be16 gins, by substituting for ‘calendar year 

17 2016’ in subparagraph (A)(ii) thereof— 

18 ‘‘(I) ‘calendar year 2011’ in the 

19 case of the dollar amounts described 

20 in clauses (i), (iv), and (v) of subpara21 graph (B), and 

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

23 case of the dollar amounts described 

24 in clauses (ii) and (iii) of subpara25 graph (B).’’. 


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1 (2) CONFORMING AMENDMENTS.—Section 

2 55(d)(3)(B) of such Code is amended— 

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

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

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

6 paragraph (1),’’, 

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

8 (B) of paragraph (2).’’ in clause (iii) and in9 serting ‘‘paragraph (2)(A),’’, and 

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

11 ‘‘(iv) the dollar amount contained in 

12 paragraph (1)(D), and 

13 ‘‘(v) the dollar amount contained in 

14 paragraph (2)(C).’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2017. 

18 SEC. 24. TECHNICAL AMENDMENT. 

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

20 redesignating subsection (a) as subsection (b) and by in21 serting before subsection (b) (as so redesignated) the fol22 lowing new subsection: 

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

24 ‘Tax Cuts and Jobs Act’.’’. 

Æ 


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