SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Protecting Family and Small Business Tax Cuts Act of 
2018’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) REFERENCES
TO
THE TAX CUTS
AND JOBS 
ACT.—Title I of Public Law 115-97 may be cited as the 
‘‘Tax Cuts and Jobs Act’’. 
(d) TABLE OF CONTENTS.—The table of contents of 
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 Pe-
ninsula of Egypt. 
Sec. 127. Extension of reduction in threshold for medical expense deduction. 
Subtitle D—Education
Sec. 131. Treatment of student loans discharged on account of death or dis-
ability. 
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. 
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 reimburse-
ment. 
Sec. 148. Qualified moving expense reimbursement exclusion limited to mem-
bers 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. 
TITLE III—BUDGETARY EFFECTS 
Sec. 301. Budgetary effects. 
TITLE I—INDIVIDUAL REFORM 
MADE PERMANENT 
Subtitle A—Rate Reform 
SEC. 101. MODIFICATION OF RATES. 
(a) MARRIED INDIVIDUALS FILING JOINT RETURNS 
AND SURVIVING SPOUSES.—Section 1(a) is amended by 
striking the table contained therein and inserting the fol-
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.
‘‘If taxable income is: 
The tax is: 
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.’’. 
(b) HEAD OF HOUSEHOLDS.—Section 1(b) is amend-
ed by striking the table contained therein and inserting 
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.’’. 
(c) UNMARRIED INDIVIDUALS OTHER THAN SUR-
VIVING SPOUSES AND HEADS OF HOUSEHOLD.—Section 
1(c) is amended by striking the table contained therein 
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.
‘‘If taxable income is: 
The tax is: 
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 ex-
cess over $500,000.’’. 
(d) MARRIED INDIVIDUALS FILING SEPARATE RE-
TURNS.—Section 1(d) is amended by striking the table 
contained therein 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 $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.’’. 
(e) ESTATES AND TRUSTS.—Section 1(e) is amended 
by striking the table contained therein and inserting the 
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.’’. 
(f) INFLATION
ADJUSTMENTS.—Section 1(f) is 
amended—
(1) by striking ‘‘1993’’ in paragraph (1) and in-
serting ‘‘2018’’, 
(2) by amending paragraph (2)(A) to read as 
follows: 
‘‘(A) by increasing the minimum and max-
imum dollar amounts for each bracket for 
which a tax is imposed under such table by the 
cost-of-living adjustment for such calendar year, 
determined under this subsection for such cal-
endar year by substituting ‘2017’ for ‘2016’ in 
paragraph (3)(A)(ii),’’, 
(3) in paragraph (7)(B), by striking all that 
precedes ‘‘(other than with respect to’’ and inserting 
the following: 
‘‘(B) SPECIAL
RULE.—In the case of a 
table prescribed in lieu of the table contained in 
subsection (b), (c), or (d), subparagraph (A)’’, 
(4) by striking paragraph (8), and 
(5) in the heading, by striking ‘‘PHASEOUT OF 
MARRIAGE PENALTY IN 15-PERCENT BRACKET; AD-
JUSTMENTS’’ and inserting ‘‘ADJUSTMENTS’’. 
(g) SPECIAL RULES FOR CERTAIN CHILDREN WITH 
UNEARNED INCOME.—
(1) IN GENERAL.—Section 1(g) is amended by 
striking all that precedes paragraph (2) and insert-
ing the following: 
‘‘(g) SPECIAL RULES FOR CERTAIN CHILDREN WITH 
UNEARNED INCOME.— 
‘‘(1) IN GENERAL.—In the case of any child to 
whom this subsection applies— 
‘‘(A) 
MODIFICATIONS
TO
APPLICABLE 
RATE BRACKETS.—In determining the amount 
of tax imposed by this section for the taxable 
year on such child, the income tax table other-
wise applicable under this section to such child 
shall be applied with the following modifica-
tions: 
‘‘(i) 
24-PERCENT
BRACKET.—The 
maximum taxable income which is taxed at 
a rate below 24 percent shall not be more 
than the sum of— 
‘‘(I) the earned taxable income of 
such child, plus 
‘‘(II) the minimum taxable in-
come for the 24-percent bracket in the 
table under subsection (e) (as ad-
justed under subsection (f)) for the 
taxable year.
‘‘(ii) 
35-PERCENT
BRACKET.—The 
maximum taxable income which is taxed at 
a rate below 35 percent shall not be more 
than the sum of— 
‘‘(I) the earned taxable income of 
such child, plus 
‘‘(II) the minimum taxable in-
come for the 35-percent bracket in the 
table under subsection (e) (as ad-
justed under subsection (f)) for the 
taxable year. 
‘‘(iii) 
37-PERCENT
BRACKET.—The 
maximum taxable income which is taxed at 
a rate below 37 percent shall not be more 
than the sum of— 
‘‘(I) the earned taxable income of 
such child, plus 
‘‘(II) the minimum taxable in-
come for the 37-percent bracket in the 
table under subsection (e) (as ad-
justed under subsection (f)) for the 
taxable year. 
‘‘(B) COORDINATION WITH CAPITAL GAINS 
RATES.—For purposes of applying section 
1(h)—
‘‘(i) the maximum zero rate amount 
shall not be more than the sum of— 
‘‘(I) the earned taxable income of 
such child, plus 
‘‘(II) the amount in effect under 
subsection (h)(13) for the taxable 
year, and 
‘‘(ii) the maximum 15-percent rate 
amount shall not be more than the sum 
of— 
‘‘(I) the earned taxable income of 
such child, plus 
‘‘(II) the amount in effect under 
subsection (h)(12)(D) for the taxable 
year.’’. 
(2) 
EARNED
TAXABLE
INCOME.—Section 
1(g)(3) is amended to read as follows: 
‘‘(3) EARNED TAXABLE INCOME.—For purposes 
of this subsection, the term ‘earned taxable income’ 
means, with respect to any child for any taxable 
year, the taxable income of such child reduced (but 
not below zero) by the net unearned income of such 
child.’’.
(3) CONFORMING
AMENDMENT.—So much of 
paragraph (5) of section 1(g) as precedes subpara-
graph (A) thereof is amended to read as follows: 
‘‘(5) SPECIAL RULES FOR DETERMINING PAR-
ENT ELIGIBLE TO MAKE ELECTION.—For purposes 
of paragraph (7), the parent referred to in subpara-
graph (A)(iv) thereof is—’’. 
(h) APPLICATION OF INCOME TAX BRACKETS TO 
CAPITAL GAINS BRACKETS.—Section 1(h) is amended— 
(1) in paragraph (1)(B)(i), by striking ‘‘25 per-
cent’’ and inserting ‘‘22 percent’’, 
(2) in paragraph (1)(C)(ii)(I), by striking 
‘‘which would (without regard to this paragraph) be 
taxed at a rate below 39.6 percent’’ and inserting 
‘‘below the maximum 15-percent rate amount’’, and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(12) MAXIMUM 15-PERCENT
RATE
AMOUNT 
DEFINED.—For purposes of this subsection, the 
maximum 15-percent rate amount shall be— 
‘‘(A) in the case of a joint return or sur-
viving spouse (as defined in section 2(a)), 
$479,000 (1⁄2 such amount in the case of a 
married individual filing a separate return),
‘‘(B) in the case of an individual who is 
the head of a household (as defined in section 
2(b)), $452,400, 
‘‘(C) in the case of any other individual 
(other than an estate or trust), $425,800, and 
‘‘(D) in the case of an estate or trust, 
$12,700. 
‘‘(13) DETERMINATION OF 0 PERCENT RATE 
BRACKET FOR ESTATES AND TRUSTS.—In the case 
of any estate or trust, paragraph (1)(B) shall be ap-
plied by treating the amount determined in clause (i) 
thereof as being equal to $2,600. 
‘‘(14) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2018, each of the 
dollar amounts in paragraphs (12) and (13) 
shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under subsection (f)(3) for the 
calendar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2017’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof.