To amend the Internal Revenue Code of 1986 to make permanent the increase in the standard deduction, the increase in and modifications of the child tax credit, and the repeal of the deduction for personal exemptions contained in Public Law 115-97.

To amend the Internal Revenue Code of 1986 to make permanent the increase in the standard deduction, the increase in and modifications of the child tax credit, and the repeal of the deduction for personal exemptions contained in Public Law 115–97. 1. Increase in standard deduction (a) In general Section 63(c)(2) (1) by striking $4,400 $18,000 (2) by striking $3,000 $12,000 (b) Inflation adjustment Section 63(c)(4) of such Code is amended to read as follows: (4) Adjustments for inflation (A) In general In the case of a taxable year beginning after 2018, each dollar amount in paragraph (2)(B), (2)(C), or (5) or subsection (f) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting for 2016 (I) in the case of the dollar amounts contained in paragraph (2)(B) or (2)(C), 2017 (II) in the case of the dollar amounts contained in paragraph (5)(A) or subsection (f), 1987 (III) in the case of the dollar amount contained in paragraph (5)(B), 1997 (B) Rounding If any increase under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. . (c) Conforming amendments (1) Section 1(f)(7)(A) of such Code is amended by striking section 63(c)(4), (2) Section 1(f)(7)(B) of such Code is amended by striking sections 63(c)(4) and section (3) Section 63(c) of such Code is amended by striking paragraph (7). (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 2. Increase in and modification of child tax credit (a) In general Section 24 (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of— (1) $2,000 for each qualifying child of the taxpayer, and (2) $500 for each qualifying dependent (other than a qualifying child) of the taxpayer. (b) Limitation based on adjusted gross income The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income exceeds $400,000 in the case of a joint return ($200,000 in any other case). For purposes of the preceding sentence, the term modified adjusted gross income (c) Qualifying child; qualifying dependent For purposes of this section— (1) Qualifying child The term qualifying child (A) who is a qualifying child (as defined in section 7706(c)) of the taxpayer, (B) who has not attained age 17 at the close of the calendar year in which the taxable year of the taxpayer begins, and (C) whose name and social security number are included on the taxpayer’s return of tax for the taxable year. (2) Qualifying dependent The term qualifying dependent resident of the United States (3) Social security number defined For purposes of this subsection, the term social security number (A) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and (B) on or before the due date of filing such return. . (b) Portion of credit refundable (1) In general Section 24(d)(1)(A) (A) the credit which would be allowed under this section determined— (i) by substituting $1,400 $2,000 (ii) without regard to subsection (a)(2), and (iii) without regard to this subsection and the limitation under section 26(a), or . (2) Modification of limitation based on earned income Section 24(d)(1)(B)(i) of such Code is amended by striking $3,000 $2,500 (3) Inflation adjustment Section 24(d) of such Code is amended by inserting after paragraph (3) the following new paragraph: (4) Adjustment for inflation (A) In general In the case of a taxable year beginning after 2018, the $1,400 amount in paragraph (1)(A)(i) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2017 2016 (B) Rounding If any increase under subparagraph (A) is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100. (C) Limitation The amount of any increase under subparagraph (A) (after the application of subparagraph (B)) shall not exceed $600. . (4) Conforming amendments (A) Section 24(e) of such Code is amended to read as follows: (e) Taxpayer identification requirement No credit shall be allowed under this section if the identifying number of the taxpayer was issued after the due date for filing the return of tax for the taxable year. . (B) Section 24 of such Code is amended by striking subsection (h). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 3. Elimination of deduction for personal exemptions (a) In general Section 151(d)(5) , and before January 1, 2026 (b) Conforming amendments (1) Section 152(d)(1)(B) is amended by inserting after section 151(d)) or, in the case of a taxable year for which the exemption amount is zero, the dollar amount in effect for the taxable year under section 6334(d)(4)(B) (2) The heading of section 151(d)(5) of such Code is amended by striking 2018 through 2025 after 2017 (3) The second sentence of section 6334(d)(4)(C) is amended by striking $100 $50 (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

Summary: This bill makes permanent several tax provisions that were enacted in 2017 and are scheduled to expire at the end of 2025. The provisions that are made permanent increase the standard deduction, increase and modify the child tax credit, and eliminate the deduction for personal exemptions.