‘‘(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.’’. 
(i) APPLICATION OF SECTION 15.— 
(1) IN GENERAL.—Subsection (a) of section 15 
is amended by striking ‘‘If any rate of tax’’ and in-
serting ‘‘In the case of a corporation, if any rate of 
tax’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 15 is amended by striking sub-
sections (d), (e), and (f). 
(B) Section 6013(c) is amended by strik-
ing ‘‘sections 15, 443, and 7851(a)(1)(A)’’ and 
inserting ‘‘section 443’’. 
(C) The heading of section 15 is amended 
by inserting ‘‘ON CORPORATIONS’’ after ‘‘EF-
FECT OF CHANGES’’. 
(D) The table of sections for part III of 
subchapter A of chapter 1 is amended by strik-
ing the item relating to section 15 and inserting 
the following new item: 
‘‘Sec. 15. Effect of changes on corporations.’’. 
(j) CONFORMING AMENDMENTS.— 
(1) Section 1 is amended by striking sub-
sections (i) and (j).
(2) Section 3402(q)(1) is amended by striking 
‘‘third lowest’’ and inserting ‘‘fourth lowest’’. 
(k) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2017. 
(2) APPLICATION OF SECTION 15.—Section 15 
of the Internal Revenue Code of 1986 shall not 
apply to any change in a rate of tax by reason of— 
(A) section 1(j) of such Code (as in effect 
before its repeal by this section), or 
(B) any amendment made by this Act. 
Subtitle B—Deduction for Quali-
fied Business Income of Pass- 
thru Entities 
SEC. 111. DEDUCTION FOR QUALIFIED BUSINESS INCOME. 
(a) IN GENERAL.—Section 199A is amended by 
striking subsection (i). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 112. LIMITATION ON LOSSES FOR TAXPAYERS OTHER 
THAN CORPORATIONS. 
(a) IN GENERAL.—Section 461 is amended—
(1) by amending subsection (l)(1) to read as 
follows: 
‘‘(1) LIMITATION.—In the case of a taxpayer 
other than a corporation, any excess business loss of 
the taxpayer for the taxable year shall not be al-
lowed.’’, and 
(2) by striking subsection (j) and redesignating 
subsections (k) and (l) (as amended) as subsections 
(j) and (k), respectively. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 58(a)(2)(A) is amended by striking 
‘‘461(k)’’ and inserting ‘‘461(j)’’. 
(2) Section 461(i)(4) is amended by striking 
‘‘subsection (k)’’ and inserting ‘‘subsection (j)’’. 
(3) Section 464(d)(2)(B)(iii) is amended by 
striking ‘‘section 461(k)(2)(E)’’ and inserting ‘‘sec-
tion 461(j)(2)(E)’’. 
(4) Subparagraphs (B) and (C) of section 
1256(e)(3) are each amended by striking ‘‘section 
461(k)(4)’’ and inserting ‘‘section 461(j)(4)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017.
Subtitle C—Tax Benefits for 
Families and Individuals 
SEC. 121. INCREASE IN STANDARD DEDUCTION. 
(a) IN GENERAL.—Section 63(c)(2) is amended— 
(1) by striking ‘‘$4,400’’ in subparagraph (B) 
and inserting ‘‘$18,000’’, and 
(2) by striking ‘‘$3,000’’ in subparagraph (C) 
and inserting ‘‘$12,000’’. 
(b) INFLATION ADJUSTMENT.—Section 63(c)(4) is 
amended to read as follows: 
‘‘(4) ADJUSTMENTS FOR INFLATION.— 
‘‘(A) IN GENERAL.—In the case of a tax-
able 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 de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting for ‘2016’ 
in subparagraph (A)(ii) thereof— 
‘‘(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’, and 
‘‘(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) is amended by striking 
‘‘section 63(c)(4),’’. 
(2) Section 1(f)(7)(B) is amended by striking 
‘‘sections 63(c)(4) and’’ and inserting ‘‘section’’. 
(3) Section 63(c) is amended by striking para-
graph (7). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 122. INCREASE IN AND MODIFICATION OF CHILD TAX 
CREDIT. 
(a) IN GENERAL.—Section 24 is amended by striking 
subsections (a), (b), and (c) and inserting the following 
new subsections:
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed 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 tax-
payer, and 
‘‘(2) $500 for each qualifying dependent (other 
than a qualifying child) of the taxpayer. 
‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN-
COME.—The amount of the credit allowable under sub-
section (a) shall be reduced (but not below zero) by $50 
for each $1,000 (or fraction thereof) by which the tax-
payer’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 ‘‘modi-
fied adjusted gross income’’ means adjusted gross income 
increased by any amount excluded from gross income 
under section 911, 931, or 933. 
‘‘(c) QUALIFYING CHILD; QUALIFYING DEPEND-
ENT.—For purposes of this section— 
‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 
child’ means any qualifying dependent of the tax-
payer— 
‘‘(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 num-
ber are included on the taxpayer’s return of tax 
for the taxable year. 
‘‘(2) QUALIFYING
DEPENDENT.—The 
term 
‘qualifying dependent’ means any dependent of the 
taxpayer (as defined in section 7706 without regard 
to all that follows ‘resident of the United States’ in 
section 7706(b)(3)(A)) whose name and TIN are in-
cluded on the taxpayer’s return of tax for the tax-
able year. 
‘‘(3) SOCIAL
SECURITY
NUMBER
DEFINED.— 
For purposes of this subsection, the term ‘social se-
curity number’ means, with respect to a return of 
tax, a social security number issued to an individual 
by the Social Security Administration, but only if 
the social security number is issued— 
‘‘(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) is 
amended to read as follows: 
‘‘(A) the credit which would be allowed 
under this section determined— 
‘‘(i) by substituting ‘$1,400’ for 
‘$2,000’ in subsection (a)(1), 
‘‘(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) is amend-
ed by striking ‘‘$3,000’’ and inserting ‘‘$2,500’’. 
(3) INFLATION ADJUSTMENT.—Section 24(d) is 
amended by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) ADJUSTMENT FOR INFLATION.— 
‘‘(A) IN GENERAL.—In the case of a tax-
able year beginning after 2018, the $1,400 
amount in paragraph (1)(A)(i) shall be in-
creased by an amount equal to—
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘2017’ for 
‘2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any increase under 
subparagraph (A) is not a multiple of $100, 
such increase shall be rounded to the next low-
est multiple of $100. 
‘‘(C) LIMITATION.—The amount of any in-
crease under subparagraph (A) (after the appli-
cation of subparagraph (B)) shall not exceed 
$600.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Section 24(e) is amended to read as 
follows: 
‘‘(e) TAXPAYER IDENTIFICATION REQUIREMENT.— 
No credit shall be allowed under this section if the identi-
fying number of the taxpayer was issued after the due date 
for filing the return of tax for the taxable year.’’. 
(B) Section 24 is amended by striking sub-
section (h).
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 123. INCREASED LIMITATION FOR CERTAIN CHARI-
TABLE CONTRIBUTIONS. 
(a) IN GENERAL.—Section 170(b)(1)(G) is amended 
to read as follows: 
‘‘(G) CASH CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—Any contribution 
of cash to an organization described in 
subparagraph (A) shall be allowed to the 
extent that the aggregate of such contribu-
tions does not exceed 60 percent of the 
taxpayer’s contribution base for the taxable 
year, reduced by the aggregate amount of 
contributions allowable under subpara-
graph (A) for such taxpayer for such year. 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation of clause (i), such 
excess shall be treated (in a manner con-
sistent with the rules of subsection (d)(1)) 
as a charitable contribution to which clause 
(i) applies in each of the 5 succeeding 
years in order of time.’’.
(b) COORDINATION WITH LIMITATIONS ON OTHER 
CONTRIBUTIONS.— 
(1) COORDINATION WITH 50 PERCENT LIMITA-
TION.—Section 170(b)(1)(A) is amended by striking 
‘‘Any charitable contribution’’ and inserting ‘‘Any 
charitable contribution other than a contribution de-
scribed in subparagraph (G)’’. 
(2) COORDINATION WITH 30 PERCENT LIMITA-
TION.—Section 170(b)(1)(B) is amended— 
(A) in the matter preceding clause (i), by 
striking ‘‘to which subparagraph (A) applies’’ 
and inserting ‘‘to which subparagraph (A) or 
(G) applies’’, 
(B) by amending clause (ii) to read as fol-
lows: 
‘‘(ii) the excess of— 
‘‘(I) the sum of 50 percent of the 
taxpayer’s contribution base for the 
taxable year, plus so much of the 
amount of charitable contributions al-
lowable under subparagraph (G) as 
does not exceed 10 percent of such 
contribution base, over 
‘‘(II) the amount of charitable 
contributions allowable under sub-
paragraphs (A) and (G) (determined 
without 
regard 
to 
subparagraph 
(C)).’’, and 
(C) in the matter following clause (ii), by 
striking ‘‘(to which subparagraph (A) does not 
apply)’’ and inserting ‘‘(to which neither sub-
paragraph (A) nor (G) applies)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2017. 
SEC. 124. INCREASED CONTRIBUTIONS TO ABLE AC-
COUNTS. 
(a) INCREASE IN LIMITATION FOR CONTRIBUTIONS 
FROM COMPENSATION OF INDIVIDUALS WITH DISABIL-
ITIES.—Section 529A(b)(2)(B)(ii) is amended by striking 
‘‘before January 1, 2026’’. 
(b) ALLOWANCE OF SAVER’S CREDIT FOR ABLE 
CONTRIBUTIONS
BY
ACCOUNT
HOLDER.—Section 
25B(d)(1)(D) is amended by striking ‘‘made before Janu-
ary 1, 2026,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017.
SEC. 125. ROLLOVERS TO ABLE PROGRAMS FROM 529 PRO-
GRAMS. 
(a) IN GENERAL.—Section 529(c)(3)(C)(i)(III) is 
amended by striking ‘‘before January 1, 2026,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions after December 31, 
2017. 
SEC. 126. TREATMENT OF CERTAIN INDIVIDUALS PER-
FORMING SERVICES IN THE SINAI PENIN-
SULA OF EGYPT. 
(a) IN GENERAL.—Section 112(c)(2) is amended— 
(1) by striking ‘‘means any area’’ and inserting 
‘‘means— 
‘‘(A) any area’’, and 
(2) by striking the period at the end and insert-
ing ‘‘, and 
‘‘(B) the Sinai Peninsula of Egypt.’’. 
(b) PERIOD OF TREATMENT.—Section 112(c)(3) is 
amended— 
(1) by striking ‘‘only if performed’’ and insert-
ing ‘‘only if— 
‘‘(A) in the case of an area described in 
paragraph (2)(A), such service is performed’’, 
and 
(2) by striking the period at the end and insert-
ing ‘‘, and
‘‘(B) in the case of the area described in 
paragraph (2)(B), such service is performed 
during any period with respect to which one or 
more members of the Armed Forces of the 
United States are entitled to special pay under 
section 310 of title 37, United States Code (re-
lating to special pay; duty subject to hostile fire 
or imminent danger), for service performed in 
such area.’’. 
(c) CONFORMING AMENDMENT.—The Tax Cuts and 
Jobs Act is amended by striking section 11026. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to services performed 
on or after the date of the enactment of this Act. 
SEC. 127. EXTENSION OF REDUCTION IN THRESHOLD FOR 
MEDICAL EXPENSE DEDUCTION. 
(a) IN GENERAL.—Section 213(a) is amended by in-
serting ‘‘(7.5 percent in the case of any taxable year begin-
ning after December 31, 2018, and ending before January 
1, 2021)’’ after ‘‘10 percent’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 56(b)(1) is amended by striking 
subparagraph (B) and by redesignating subpara-
graphs (C) through (F) as subparagraphs (B) 
through (E), respectively.
(2) Section 213 is amended by striking sub-
section (f). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2018. 
Subtitle D—Education 
SEC. 131. TREATMENT OF STUDENT LOANS DISCHARGED 
ON ACCOUNT OF DEATH OR DISABILITY. 
(a) IN GENERAL.—Section 108(f)(5) is amended by 
striking ‘‘after December 31, 2017, and before January 
1, 2026’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to discharges of indebtedness after 
December 31, 2017. 
Subtitle E—Deductions and 
Exclusions 
SEC. 141. REPEAL OF DEDUCTION FOR PERSONAL EXEMP-
TIONS. 
(a) IN GENERAL.—Part V of subchapter B of chapter 
1 is hereby repealed. 
(b) DEFINITION OF DEPENDENT RETAINED.—Sec-
tion 152, prior to the repeal made by subsection (a), is 
hereby redesignated as section 7706 and moved to the end 
of chapter 79.
(c) APPLICATION TO TRUSTS AND ESTATES.—Sec-
tion 642(b) is amended— 
(1) in paragraph (2)(C)— 
(A) in clause (i), by striking ‘‘the exemp-
tion amount under section 151(d)’’ and all that 
follows through the period at the end and in-
serting ‘‘the dollar amount in effect under sec-
tion 7706(d)(1)(B).’’, and 
(B) by striking clause (iii), 
(2) by striking paragraph (3), and 
(3) by striking ‘‘DEDUCTION FOR PERSONAL 
EXEMPTION’’ in the heading thereof and inserting 
‘‘BASIC DEDUCTION’’. 
(d) APPLICATION TO NONRESIDENT ALIENS.—Sec-
tion 873(b) is amended by striking paragraph (3). 
(e) MODIFICATION OF RETURN REQUIREMENT.— 
(1) 
IN
GENERAL.—Section 
6012(a)(1) 
is 
amended to read as follows: 
‘‘(1) Every individual who has gross income for 
the taxable year, except that a return shall not be 
required of— 
‘‘(A) an individual who is not married (de-
termined by applying section 7703) and who 
has gross income for the taxable year which 
does not exceed the standard deduction applica-
ble to such individual for such taxable year 
under section 63, or 
‘‘(B) an individual entitled to make a joint 
return if— 
‘‘(i) the gross income of such indi-
vidual, when combined with the gross in-
come of such individual’s spouse, for the 
taxable year does not exceed the standard 
deduction which would be applicable for 
such taxable year under section 63 if such 
individual and such individual’s spouse 
made a joint return, 
‘‘(ii) such individual’s spouse does not 
make a separate return, and 
‘‘(iii) neither such individual nor such 
individual’s spouse is an individual de-
scribed in section 63(c)(4) who has income 
(other than earned income) in excess of the 
amount 
in 
effect 
under 
section 
63(c)(4)(A).’’. 
(2) 
BANKRUPTCY
ESTATES.—Section 
6012(a)(8) is amended by striking ‘‘the sum of the 
exemption amount plus the basic standard deduction 
under section 63(c)(2)(C)’’ and inserting ‘‘the stand-
ard deduction in effect under section 63(c)(1)(B)’’.
(3) CONFORMING AMENDMENT.—Section 6012 
is amended by striking subsection (f). 
(f) CONFORMING AMENDMENTS.— 
(1) Section 1(f)(7), as amended by section 121, 
is amended— 
(A) by striking ‘‘, section 68(b)(2) or sec-
tion 151(d)(4)’’ in subparagraph (A) and in-
serting ‘‘or section 68(b)(2)’’, and 
(B) by striking ‘‘(other than with respect 
to section 151(d)(4)(A))’’ in subparagraph (B). 
(2) Section 1(g)(5)(A) is amended by striking 
‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 
(3) Section 2(a)(1)(B) is amended— 
(A) by striking ‘‘section 152’’ and insert-
ing ‘‘section 7706’’, and 
(B) by striking ‘‘with respect to whom the 
taxpayer is entitled to a deduction for the tax-
able year under section 151’’ and inserting 
‘‘whose TIN is included on the taxpayer’s re-
turn of tax for the taxable year’’. 
(4) Section 2(b)(1)(A)(i) is amended— 
(A) in the matter preceding subclause 
(I)— 
(i) by striking ‘‘section 152(c)’’ and 
inserting ‘‘section 7706(c)’’, and
(ii) by striking ‘‘section 152(e)’’ and 
inserting ‘‘section 7706(e)’’, and 
(B) in subclause (II), by striking ‘‘section 
152(b)(2) or 152(b)(3)’’ and inserting ‘‘section 
7706(b)(2) or 7706(b)(3)’’. 
(5) Section 2(b)(1)(A)(ii) is amended by strik-
ing ‘‘if the taxpayer is entitled to a deduction for the 
taxable year for such person under section 151’’ and 
inserting ‘‘if the taxpayer included such person’s 
TIN on the return of tax for the taxable year’’. 
(6) Section 2(b)(1)(B) is amended by striking 
‘‘if the taxpayer is entitled to a deduction for the 
taxable year for such father or mother under section 
151’’ and inserting ‘‘if such father or mother is a 
dependent of the taxpayer and the taxpayer included 
such father or mother’s TIN on the return of tax for 
the taxable year’’. 
(7) Section 2(b)(3)(B) is amended— 
(A) by striking ‘‘section 152(d)(2)’’ in 
clause (i) and inserting ‘‘section 7706(d)(2)’’, 
and 
(B) by striking ‘‘section 152(d)’’ in clause 
(ii) and inserting ‘‘section 7706(d)’’.
(8) Section 21(b)(1)(A) is amended by striking 
‘‘section 
152(a)(1)’’ 
and 
inserting 
‘‘section 
7706(a)(1)’’. 
(9) Section 21(b)(1)(B) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’. 
(10) Section 21(e)(5)(A) is amended by striking 
‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 
(11) Section 21(e)(5) is amended by striking 
‘‘section 152(e)(4)(A)’’ in the matter following sub-
paragraph 
(B) 
and 
inserting 
‘‘section 
7706(e)(4)(A)’’. 
(12) Section 21(e)(6)(A) is amended to read as 
follows: 
‘‘(A) who is a dependent of either the tax-
payer or the taxpayer’s spouse for the taxable 
year, or’’. 
(13) Section 21(e)(6)(B) is amended by striking 
‘‘section 
152(f)(1)’’ 
and 
inserting 
‘‘section 
7706(f)(1)’’. 
(14) Section 25A(f)(1)(A)(iii) is amended by 
striking ‘‘with respect to whom the taxpayer is al-
lowed a deduction under section 151’’. 
(15) Section 25A(g)(3) is amended by striking 
‘‘If a deduction under section 151 with respect to an 
individual is allowed to another taxpayer’’ and in-
serting ‘‘If an individual is a dependent of another 
taxpayer’’. 
(16) Section 25B(c)(2)(A) is amended by strik-
ing ‘‘any individual with respect to whom a deduc-
tion under section 151 is allowed to another tax-
payer’’ and inserting ‘‘any individual who is a de-
pendent of another taxpayer’’. 
(17) Section 25B(c)(2)(B) is amended by strik-
ing ‘‘section 152(f)(2)’’ and inserting ‘‘section 
7706(f)(2)’’. 
(18) Section 32(c)(1)(A)(ii)(III) is amended by 
striking ‘‘a dependent for whom a deduction is al-
lowable under section 151 to another taxpayer’’ and 
inserting ‘‘a dependent of another taxpayer’’. 
(19) Section 32(c)(3) is amended— 
(A) in subparagraph (A)— 
(i) by striking ‘‘section 152(c)’’ and 
inserting ‘‘section 7706(c)’’, and 
(ii) by striking ‘‘section 152(e)’’ and 
inserting ‘‘section 7706(e)’’, 
(B) in subparagraph (B), by striking ‘‘un-
less the taxpayer is entitled to a deduction 
under section 151 for such taxable year with re-
spect to such individual (or would be so entitled 
but for section 152(e)’’ and inserting ‘‘if such
individual is not treated as a dependent of such 
taxpayer for such taxable year by reason of sec-
tion 7706(b)(2) (determined without regard to 
section 7706(e))’’, and 
(C) in subparagraph (C), by striking ‘‘sec-
tion 152(c)(1)(B)’’ and inserting ‘‘section 
7706(c)(1)(B)’’. 
(20) Section 35(d)(1)(B) is amended by strik-
ing ‘‘with respect to whom the taxpayer is entitled 
to a deduction under section 151(c)’’ and inserting 
‘‘if the taxpayer included such person’s TIN on the 
return of tax for the taxable year’’. 
(21) Section 35(d)(2) is amended— 
(A) by striking ‘‘section 152(e)’’ and in-
serting ‘‘section 7706(e)’’, and 
(B) by striking ‘‘section 152(e)(4)(A)’’ and 
inserting ‘‘section 7706(e)(4)(A)’’. 
(22) Section 36B(b)(2)(A) is amended by strik-
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 
(23) Section 36B(b)(3)(B) is amended by strik-
ing ‘‘unless a deduction is allowed under section 151 
for the taxable year with respect to a dependent’’ in 
the flush matter at the end and inserting ‘‘unless 
the taxpayer has a dependent for the taxable year
(and the taxpayer included such dependent’s TIN on 
the return of tax for the taxable year)’’. 
(24) Section 36B(c)(1)(D) is amended by strik-
ing ‘‘with respect to whom a deduction under section 
151 is allowable to another taxpayer’’ and inserting 
‘‘who is a dependent of another taxpayer’’. 
(25) Section 36B(d)(1) is amended by striking 
‘‘equal to the number of individuals for whom the 
taxpayer is allowed a deduction under section 151 
(relating to allowance of deduction for personal ex-
emptions) for the taxable year’’ and inserting ‘‘the 
sum of 1 (2 in the case of a joint return) plus the 
number of individuals who are dependents of the 
taxpayer for the taxable year’’. 
(26) Section 36B(e)(1) is amended by striking 
‘‘1 or more individuals for whom a taxpayer is al-
lowed a deduction under section 151 (relating to al-
lowance of deduction for personal exemptions) for 
the taxable year (including the taxpayer or his 
spouse)’’ and inserting ‘‘1 or more of the taxpayer, 
the taxpayer’s spouse, or any dependent of the tax-
payer’’. 
(27) Section 42(i)(3)(D)(ii)(I) is amended by 
striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 
(28) Section 45R(e)(1)(A)(iv) is amended—
(A) by striking ‘‘section 152(d)(2)’’ and in-
serting ‘‘section 7706(d)(2)’’, and 
(B) by striking ‘‘section 152(d)(2)(H)’’ 
and inserting ‘‘section 7706(d)(2)(H)’’. 
(29) Section 51(i)(1) is amended— 
(A) by striking ‘‘section 152(d)(2)’’ in sub-
paragraphs (A) and (B) and inserting ‘‘section 
7706(d)(2)’’, and 
(B) by striking ‘‘section 152(d)(2)(H)’’ in 
subparagraph 
(C) 
and 
inserting 
‘‘section 
7706(d)(2)(H)’’. 
(30) Section 56(b)(1)(D), as amended by the 
preceding provisions of this Act, is amended— 
(A) by striking ‘‘, the deduction for per-
sonal exemptions under section 151,’’, and 
(B) by striking ‘‘AND
DEDUCTION
FOR 
PERSONAL EXEMPTIONS’’ in the heading there-
of. 
(31) Section 63(b) is amended by adding ‘‘and’’ 
at the end of paragraph (1), by striking paragraph 
(2), and by redesignating paragraph (3) as para-
graph (2). 
(32) Section 63(c), as amended by section 121, 
is amended by striking paragraph (3) and redesig-
nating paragraphs (4), (5), and (6) as paragraphs 
(3), (4), and (5), respectively. 
(33) Section 63(c)(4), as redesignated, is 
amended— 
(A) by striking ‘‘with respect to whom a 
deduction under section 151 is allowable to’’ 
and inserting ‘‘who is a dependent of’’, and 
(B) by striking ‘‘CERTAIN’’ in the heading 
thereof. 
(34) Section 63(d) is amended by adding ‘‘and’’ 
at the end of paragraph (1), by striking paragraph 
(2), and by redesignating paragraph (3) as para-
graph (2). 
(35) Section 63(f) is amended by striking all 
that precedes paragraph (3) and inserting the fol-
lowing: 
‘‘(f) ADDITIONAL STANDARD DEDUCTION FOR THE 
AGED AND BLIND.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(c)(1), the additional standard deduction is, with re-
spect to a taxpayer for a taxable year, the sum of— 
‘‘(A) $600 if the taxpayer has attained age 
65 before the close of such taxable year, and 
‘‘(B) $600 if the taxpayer is blind as of 
the close of such taxable year.
‘‘(2) 
APPLICATION
TO
MARRIED
INDIVID-
UALS.— 
‘‘(A) JOINT RETURNS.—In the case of a 
joint return, paragraph (1) shall be applied sep-
arately with respect to each spouse. 
‘‘(B) CERTAIN MARRIED INDIVIDUALS FIL-
ING SEPARATELY.—In the case of a married in-
dividual filing a separate return, if— 
‘‘(i) the spouse of such individual has 
no gross income for the calendar year in 
which the taxable year of such individual 
begins, 
‘‘(ii) such spouse is not the dependent 
of another taxpayer for a taxable year be-
ginning in the calendar year in which such 
individual’s taxable year begins, and 
‘‘(iii) the TIN of such spouse is in-
cluded on such individual’s return of tax 
for the taxable year, 
the additional standard deduction shall be de-
termined in the same manner as if such indi-
vidual and such individual’s spouse filed a joint 
return.’’.
(36) Section 63(f)(3) is amended by striking 
‘‘paragraphs (1) and (2)’’ and inserting ‘‘subpara-
graphs (A) and (B) of paragraph (1)’’. 
(37) Section 72(t)(2)(D)(i)(III) is amended by 
striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 
(38) Section 72(t)(7)(A)(iii) is amended by 
striking ‘‘section 152(f)(1)’’ and inserting ‘‘section 
7706(f)(1)’’. 
(39) Section 105(b) is amended— 
(A) by striking ‘‘as defined in section 152’’ 
and inserting ‘‘as defined in section 7706’’, 
(B) by striking ‘‘section 152(f)(1)’’ and in-
serting ‘‘section 7706(f)(1)’’ and 
(C) by striking ‘‘section 152(e)’’ and in-
serting ‘‘section 7706(e)’’. 
(40) Section 105(c)(1) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’. 
(41) Section 125(e)(1)(D) is amended by strik-
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 
(42) Section 129(c)(1) is amended to read as 
follows: 
‘‘(1) who is a dependent of such employee or of 
such employee’s spouse, or’’.
(43) Section 129(c)(2) is amended by striking 
‘‘section 
152(f)(1)’’ 
and 
inserting 
‘‘section 
7706(f)(1)’’. 
(44) Section 132(h)(2)(B) is amended— 
(A) by striking ‘‘section 152(f)(1)’’ and in-
serting ‘‘section 7706(f)(1)’’, and 
(B) by striking ‘‘section 152(e)’’ and in-
serting ‘‘section 7706(e)’’. 
(45) Section 139D(c)(5) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’. 
(46) Section 139E(c)(2) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’. 
(47) Section 162(l)(1)(D) is amended by strik-
ing ‘‘section 152(f)(1)’’ and inserting ‘‘section 
7706(f)(1)’’. 
(48) Section 170(g)(1) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’. 
(49) Section 170(g)(3) is amended by striking 
‘‘section 
152(d)(2)’’ 
and 
inserting 
‘‘section 
7706(d)(2)’’. 
(50) Section 172(d) is amended by striking 
paragraph (3). 
(51) Section 213(a) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’.
(52) Section 213(d)(5) is amended by striking 
‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 
(53) Section 213(d)(11) is amended by striking 
‘‘section 152(d)(2)’’ in the matter following subpara-
graph (B) and inserting ‘‘section 7706(d)(2)’’. 
(54) Section 220(b)(6) is amended by striking 
‘‘with respect to whom a deduction under section 
151 is allowable to’’ and inserting ‘‘who is a depend-
ent of’’. 
(55) Section 220(d)(2)(A) is amended by strik-
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 
(56) Section 221(d)(4) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’. 
(57) Section 222(c)(3) is amended by striking 
‘‘with respect to whom a deduction under section 
151 is allowable to’’ and inserting ‘‘who is a depend-
ent of’’. 
(58) Section 223(b)(6) is amended by striking 
‘‘with respect to whom a deduction under section 
151 is allowable to’’ and inserting ‘‘who is a depend-
ent of’’. 
(59) Section 223(d)(2)(A) is amended by strik-
ing ‘‘section 152’’ and inserting ‘‘section 7706’’.
(60) Section 401(h) is amended by striking 
‘‘section 152(f)(1)’’ in the last sentence and insert-
ing ‘‘section 7706(f)(1)’’. 
(61) Section 402(l)(4)(D) is amended by strik-
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 
(62) Section 409A(a)(2)(B)(ii)(I) is amended 
by striking ‘‘section 152(a)’’ and inserting ‘‘section 
7706(a)’’. 
(63) Section 441(f)(2)(B)(iii) is amended by 
striking ‘‘, but only the adjusted amount of the de-
ductions for personal exemptions as described in sec-
tion 443(c)’’. 
(64) Section 443 is amended— 
(A) in subsection (b)— 
(i) by striking paragraph (3), and 
(ii) by striking ‘‘modified taxable in-
come’’ and inserting ‘‘taxable income’’ each 
place such term appears, 
(B) by striking subsection (c), and 
(C) by redesignating subsections (d) and 
(e) as subsections (c) and (d), respectively. 
(65) Section 501(c)(9) is amended by striking 
‘‘section 
152(f)(1)’’ 
and 
inserting 
‘‘section 
7706(f)(1)’’.
(66) Section 529(e)(2)(B) is amended by strik-
ing ‘‘section 152(d)(2)’’ and inserting ‘‘section 
7706(d)(2)’’. 
(67) Section 529A(e)(4) is amended— 
(A) by striking ‘‘section 152(d)(2)(B)’’ and 
inserting ‘‘section 7706(d)(2)(B)’’, and 
(B) by striking ‘‘section 152(f)(1)(B)’’ and 
inserting ‘‘section 7706(f)(1)(B)’’. 
(68) Section 643(a)(2) is amended— 
(A) by striking ‘‘(relating to deduction for 
personal exemptions)’’ and inserting ‘‘(relating 
to basic deduction)’’, and 
(B) by striking ‘‘DEDUCTION
FOR
PER-
SONAL EXEMPTION’’ in the heading thereof and 
inserting ‘‘BASIC DEDUCTION’’. 
(69) Section 703(a)(2) is amended by striking 
subparagraph (A) and by redesignating subpara-
graphs (B) through (F) as subparagraphs (A) 
through (E), respectively. 
(70) Section 874 is amended by striking sub-
section (b) and by redesignating subsection (c) as 
subsection (b). 
(71) Section 891 is amended by striking ‘‘under 
section 151 and’’.
(72) Section 904(b)(1) is amended to read as 
follows: 
‘‘(1) DEDUCTION FOR ESTATES AND TRUSTS.— 
For purposes of subsection (a), the taxable income 
of an estate or trust shall be computed without any 
deduction under section 642(b).’’. 
(73) Section 931(b)(1) is amended to read as 
follows: 
‘‘(1) any deduction from gross income, or’’. 
(74) Section 933 is amended— 
(A) by striking ‘‘as a deduction from his 
gross income any deductions (other than the de-
duction under section 151, relating to personal 
exemptions)’’ in paragraph (1) and inserting 
‘‘any deduction from gross income’’, and 
(B) by striking ‘‘as a deduction from his 
gross income any deductions (other than the de-
duction for personal exemptions under section 
151)’’ in paragraph (2) and inserting ‘‘any de-
duction from gross income’’. 
(75) Section 1212(b)(2)(B)(ii) is amended to 
read as follows: 
‘‘(ii) in the case of an estate or trust, 
the deduction allowed for such year under 
section 642(b).’’.
(76) Section 1361(c)(1)(C) is amended by strik-
ing ‘‘section 152(f)(1)(C)’’ and inserting ‘‘section 
7706(f)(1)(C)’’. 
(77) Section 1402(a) is amended by striking 
paragraph (7). 
(78) Section 2032A(c)(7)(D) is amended by 
striking ‘‘section 152(f)(2)’’ and inserting ‘‘section 
7706(f)(2)’’. 
(79) Section 3402(m)(1) is amended by striking 
‘‘other than the deductions referred to in section 
151 and’’. 
(80) Section 3402(r)(2) is amended by striking 
‘‘the sum of—’’ and all that follows and inserting 
‘‘the basic standard deduction (as defined in section 
63(c)) for an individual to whom section 63(c)(2)(C) 
applies.’’. 
(81) Section 5000A(b)(3)(A) is amended by 
striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 
(82) Section 5000A(c)(4)(A) is amended by 
striking ‘‘the number of individuals for whom the 
taxpayer is allowed a deduction under section 151 
(relating to allowance of deduction for personal ex-
emptions) for the taxable year’’ and inserting ‘‘the 
sum of 1 (2 in the case of a joint return) plus the
the case of a married individual filing a sepa-
rate return).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 143. LIMITATION ON DEDUCTION FOR QUALIFIED RES-
IDENCE INTEREST. 
(a) INTEREST ON HOME EQUITY INDEBTEDNESS.— 
Section 163(h)(3)(A) is amended by striking ‘‘during the 
taxable year on’’ and all that follows through ‘‘residence 
of the taxpayer.’’ and inserting ‘‘during the taxable year 
on acquisition indebtedness with respect to any qualified 
residence of the taxpayer.’’. 
(b) LIMITATION ON ACQUISITION INDEBTEDNESS.— 
Section 163(h)(3)(B)(ii) is amended to read as follows: 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount treated as acquisition indebtedness 
for any period shall not exceed the excess 
(if any) of— 
‘‘(I) $750,00 ($375,000, in the 
case of a married individual filing a 
separate return), over 
‘‘(II) the sum of the aggregate 
outstanding pre-October 13, 1987, in-
debtedness (as defined in subpara-