IB 
Union Calendar No. 746 
115TH CONGRESS 
2D SESSION 
H. R. 6760 
[Report No. 115–958] 
To amend the Internal Revenue Code of 1986 to make permanent certain 
provisions of the Tax Cuts and Jobs Act affecting individuals, families, 
and small businesses. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 10, 2018 
Mr. RODNEY DAVIS of Illinois (for himself, Mr. MEADOWS, Mr. WALKER, Mr. 
BRADY of Texas, Mr. SAM JOHNSON of Texas, Mr. NUNES, Mr. 
REICHERT, Mr. ROSKAM, Mr. BUCHANAN, Mr. SMITH of Nebraska, Ms. 
JENKINS of Kansas, Mr. PAULSEN, Mr. MARCHANT, Mrs. BLACK, Mr. 
REED, Mr. KELLY of Pennsylvania, Mr. RENACCI, Mrs. NOEM, Mr. 
HOLDING, Mr. SMITH of Missouri, Mr. RICE of South Carolina, Mr. 
SCHWEIKERT, Mrs. WALORSKI, Mr. CURBELO of Florida, Mr. BISHOP of 
Michigan, Mr. LAHOOD, and Mr. WENSTRUP) introduced the following 
bill; which was referred to the Committee on Ways and Means 
SEPTEMBER 24, 2018 
Additional sponsors: Mrs. BLACKBURN, Mr. MITCHELL, Mr. SESSIONS, Mr. 
ESTES of Kansas, Mr. ABRAHAM, Mr. MARSHALL, Mr. KINZINGER, Mr. 
BANKS of Indiana, Mr. CHABOT, Mr. STIVERS, Mr. GUTHRIE, Mr. 
ARRINGTON, Mr. ALLEN, and Mr. GIANFORTE 
SEPTEMBER 24, 2018 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on September 10, 2018] 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
A BILL 
To amend the Internal Revenue Code of 1986 to make 
permanent certain provisions of the Tax Cuts and Jobs 
Act affecting individuals, families, and small businesses. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Pro-
tecting Family and Small Business Tax Cuts Act of 2018’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal 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. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6213
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
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 disability. 
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 members 
of Armed Forces. 
Sec. 149. Deduction for moving expenses limited to members of Armed Forces. 
Sec. 150. Limitation on wagering losses. 
Subtitle F—Increase in Estate and Gift Tax Exemption 
Sec. 151. Increase in estate and gift tax exemption. 
TITLE II—INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM 
TAX MADE PERMANENT 
Sec. 201. Increased exemption for individuals. 
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. 
Over $165,000 but not over $315,000 .........
$28,179, plus 24% of the excess over 
$165,000. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘If taxable income is: 
The tax is: 
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 amended 
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. 
Over $200,000 but not over $500,000 .........
$45,689.50, plus 35% of the excess 
over $200,000. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘If taxable income is: 
The tax is: 
Over $500,000 ...............................................
$150,689.50, plus 37% of the excess 
over $500,000.’’. 
(d) MARRIED INDIVIDUALS FILING SEPARATE RE-
TURNS.—Section 1(d) is amended by striking the table con-
tained 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 amend-
ed— 
(1) by striking ‘‘1993’’ in paragraph (1) and in-
serting ‘‘2018’’, 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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, deter-
mined under this subsection for such calendar 
year by substituting ‘2017’ for ‘2016’ in para-
graph (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 sub-
section (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 inserting 
the following: 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 otherwise appli-
cable under this section to such child shall be ap-
plied with the following modifications: 
‘‘(i) 24-PERCENT BRACKET.—The max-
imum 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 adjusted 
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— 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 adjusted 
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 adjusted 
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 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 PARENT 
ELIGIBLE
TO
MAKE
ELECTION.—For purposes of 
paragraph (7), the parent referred to in subpara-
graph (A)(iv) thereof is—’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(h) APPLICATION OF INCOME TAX BRACKETS TO CAP-
ITAL 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 para-
graphs: 
‘‘(12) MAXIMUM 15-PERCENT RATE AMOUNT DE-
FINED.—For purposes of this subsection, the max-
imum 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 mar-
ried 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. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(13) DETERMINATION
OF 0 PERCENT
RATE 
BRACKET FOR ESTATES AND TRUSTS.—In the case of 
any estate or trust, paragraph (1)(B) shall be applied 
by treating the amount determined in clause (i) there-
of as being equal to $2,600. 
‘‘(14) INFLATION ADJUSTMENT.— 
‘‘(A) IN GENERAL.—In the case of any tax-
able 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 cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2017’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any increase under 
subparagraph (A) is not a multiple of $50, such 
increase shall be rounded to the next lowest mul-
tiple 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 insert-
ing ‘‘In the case of a corporation, if any rate of tax’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(A) section 1(j) of such Code (as in effect be-
fore its repeal by this section), or 
(B) any amendment made by this Act. 
Subtitle B—Deduction for Qualified 
Business Income of Pass-thru 
Entities 
SEC. 111. DEDUCTION FOR QUALIFIED BUSINESS INCOME. 
(a) IN GENERAL.—Section 199A is amended by strik-
ing subsection (i). 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 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 fol-
lows: 
‘‘(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.— 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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 ‘‘section 
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 Decem-
ber 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.— 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 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 mul-
tiple of $50.’’. 
(c) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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 Decem-
ber 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 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 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 taxpayer’s 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
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’’ means adjusted gross income increased by any 
amount excluded from gross income under section 911, 931, 
or 933. 
‘‘(c) QUALIFYING CHILD; QUALIFYING DEPENDENT.— 
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 ‘quali-
fying dependent’ means any dependent of the tax-
payer (as defined in section 7706 without regard to 
all that follows ‘resident of the United States’ in sec-
tion 7706(b)(3)(A)) whose name and TIN are in-
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
cluded on the taxpayer’s return of tax for the taxable 
year. 
‘‘(3) SOCIAL SECURITY NUMBER DEFINED.—For 
purposes of this subsection, the term ‘social security 
number’ means, with respect to a return of tax, a so-
cial 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 sub-
clause (III) that relates to subclause (I)) of sec-
tion 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 amend-
ed 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 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 amended 
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 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 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 lowest mul-
tiple of $100. 
‘‘(C) LIMITATION.—The amount of any in-
crease under subparagraph (A) (after the appli-
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
cation of subparagraph (B)) shall not exceed 
$600.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Section 24(e) is amended to read as fol-
lows: 
‘‘(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 is amended by striking sub-
section (h). 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 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 sub-
paragraph (A) shall be allowed to the extent 
that the aggregate of such contributions does 
not exceed 60 percent of the taxpayer’s con-
tribution base for the taxable year, reduced 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
by the aggregate amount of contributions al-
lowable under subparagraph (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
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
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’’, 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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 con-
tribution base, over 
‘‘(II) the amount of charitable 
contributions allowable under subpara-
graphs (A) and (G) (determined with-
out 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 ACCOUNTS. 
(a) INCREASE IN LIMITATION FOR CONTRIBUTIONS 
FROM COMPENSATION
OF INDIVIDUALS WITH DISABIL-
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
ITIES.—Section 529A(b)(2)(B)(ii) is amended by striking 
‘‘before January 1, 2026’’. 
(b) ALLOWANCE OF SAVER’S CREDIT FOR ABLE CON-
TRIBUTIONS BY ACCOUNT HOLDER.—Section 25B(d)(1)(D) 
is amended by striking ‘‘made before January 1, 2026,’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 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.’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(b) PERIOD
OF TREATMENT.—Section 112(c)(3) is 
amended— 
(1) by striking ‘‘only if performed’’ and inserting 
‘‘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 dur-
ing 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 (relating to 
special pay; duty subject to hostile fire or immi-
nent 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. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
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 sub-
paragraph (B) and by redesignating subparagraphs 
(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 Decem-
ber 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 De-
cember 31, 2017. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
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.—Section 
152, prior to the repeal made by subsection (a), is hereby 
redesignated as section 7706 and moved to the end of chap-
ter 79. 
(c) APPLICATION TO TRUSTS AND ESTATES.—Section 
642(b) is amended— 
(1) in paragraph (2)(C)— 
(A) in clause (i), by striking ‘‘the exemption 
amount under section 151(d)’’ and all that fol-
lows through the period at the end and inserting 
‘‘the dollar amount in effect under section 
7706(d)(1)(B).’’, and 
(B) by striking clause (iii), 
(2) by striking paragraph (3), and 
(3) by striking ‘‘DEDUCTION FOR PERSONAL EX-
EMPTION’’ in the heading thereof and inserting 
‘‘BASIC DEDUCTION’’. 
(d) APPLICATION TO NONRESIDENT ALIENS.—Section 
873(b) is amended by striking paragraph (3). 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(e) MODIFICATION OF RETURN REQUIREMENT.— 
(1) IN GENERAL.—Section 6012(a)(1) is amend-
ed to read as follows: 
‘‘(1) Every individual who has gross income for 
the taxable year, except that a return shall not be re-
quired 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 applicable 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 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 sec-
tion 63(c)(2)(C)’’ and inserting ‘‘the standard deduc-
tion 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 section 
151(d)(4)’’ in subparagraph (A) and inserting 
‘‘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— 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(A) by striking ‘‘section 152’’ and inserting 
‘‘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 return 
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 in-
serting ‘‘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 striking 
‘‘if the taxpayer is entitled to a deduction for the tax-
able year for such person under section 151’’ and in-
serting ‘‘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 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
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’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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 allow-
able under section 151 to another taxpayer’’ and in-
serting ‘‘a dependent of another taxpayer’’. 
(19) Section 32(c)(3) is amended— 
(A) in subparagraph (A)— 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(i) by striking ‘‘section 152(c)’’ and in-
serting ‘‘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 respect 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 section 
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 striking 
‘‘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 insert-
ing ‘‘section 7706(e)’’, and 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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 re-
turn 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 tax-
payer is allowed a deduction under section 151 (relat-
ing to allowance of deduction for personal exemp-
tions) 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-
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
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 tax-
payer’s spouse, or any dependent of the taxpayer’’. 
(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 pre-
ceding provisions of this Act, is amended— 
(A) by striking ‘‘, the deduction for personal 
exemptions under section 151,’’, and 
(B) by striking ‘‘AND DEDUCTION FOR PER-
SONAL EXEMPTIONS’’ in the heading thereof. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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 amend-
ed— 
(A) by striking ‘‘with respect to whom a de-
duction 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.— 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 INDIVIDUALS.— 
‘‘(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, 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(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 insert-
ing ‘‘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 striking 
‘‘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). 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(51) Section 213(a) is amended by striking ‘‘sec-
tion 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 dependent 
of’’. 
(55) Section 220(d)(2)(A) is amended by striking 
‘‘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 dependent 
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 dependent 
of’’. 
(59) Section 223(d)(2)(A) is amended by striking 
‘‘section 152’’ and inserting ‘‘section 7706’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(60) Section 401(h) is amended by striking ‘‘sec-
tion 152(f)(1)’’ in the last sentence and inserting 
‘‘section 7706(f)(1)’’. 
(61) Section 402(l)(4)(D) is amended by striking 
‘‘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 deduc-
tions for personal exemptions as described in section 
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)’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(66) Section 529(e)(2)(B) is amended by striking 
‘‘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 sub-
section (b). 
(71) Section 891 is amended by striking ‘‘under 
section 151 and’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(72) Section 904(b)(1) is amended to read as fol-
lows: 
‘‘(1) DEDUCTION FOR ESTATES AND TRUSTS.— 
For purposes of subsection (a), the taxable income of 
an estate or trust shall be computed without any de-
duction under section 642(b).’’. 
(73) Section 931(b)(1) is amended to read as fol-
lows: 
‘‘(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).’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(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 strik-
ing ‘‘the number of individuals for whom the tax-
payer is allowed a deduction under section 151 (relat-
ing to allowance of deduction for personal exemp-
tions) for the taxable year’’ and inserting ‘‘the sum 
of 1 (2 in the case of a joint return) plus the number 
of the taxpayer’s dependents for the taxable year’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(83) Section 6013(b)(3)(A) is amended— 
(A) by striking ‘‘had less than the exemp-
tion amount of gross income’’ in clause (ii) and 
inserting ‘‘had no gross income’’, 
(B) by striking ‘‘had gross income of the ex-
emption amount or more’’ in clause (iii) and in-
serting ‘‘had any gross income’’, and 
(C) by striking the flush language following 
clause (iii). 
(84) Section 6014(a) is amended by striking 
‘‘section 6012(a)(1)(C)(i)’’ and inserting ‘‘section 
6012(a)(1)(B)(iii)’’. 
(85) Section 6014(b)(4) is amended by striking 
‘‘63(c)(5)’’ and inserting ‘‘63(c)(4)’’. 
(86) Section 6103(l)(21)(A)(iii) is amended to 
read as follows: 
‘‘(iii) the number of the taxpayer’s de-
pendents,’’. 
(87) Section 6213(g)(2)(H) is amended by strik-
ing ‘‘section 21 (relating to expenses for household 
and dependent care services necessary for gainful em-
ployment) or section 151 (relating to allowance of de-
ductions for personal exemptions)’’ and inserting 
‘‘subsection (a)(1)(B), (b)(1)(A)(ii), or (b)(1)(B) of 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
section 2 or section 21, 35(d)(1)(B), 36B(b)(3)(B), or 
63(f)(2)(B)’’. 
(88) Section 6334(d) is amended— 
(A) by amending paragraph (2) to read as 
follows: 
‘‘(2) EXEMPT AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘exempt amount’ means an 
amount equal to— 
‘‘(i) the sum of the amount determined 
under subparagraph (B) and the standard 
deduction, divided by 
‘‘(ii) 52. 
‘‘(B) AMOUNT DETERMINED.—For purposes 
of subparagraph (A), the amount determined 
under this subparagraph is— 
‘‘(i) the dollar amount in effect under 
section 7706(d)(1)(B), multiplied by 
‘‘(ii) the number of the taxpayer’s de-
pendents for the taxable year in which the 
levy occurs. 
‘‘(C) VERIFIED
STATEMENT.—Unless the 
taxpayer submits to the Secretary a written and 
properly verified statement specifying the facts 
necessary to determine the proper amount under 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
subparagraph (A), subparagraph (A) shall be ap-
plied as if the taxpayer were a married indi-
vidual filing a separate return with no depend-
ents.’’, and 
(B) by striking paragraph (4). 
(89) Section 7702B(f)(2)(C)(iii) is amended by 
striking ‘‘section 152(d)(2)’’ and inserting ‘‘section 
7706(d)(2)’’. 
(90) Section 7703(a) is amended by striking 
‘‘part V of subchapter B of chapter 1 and’’. 
(91) Section 7703(b)(1) is amended by striking 
‘‘section 152(f)(1))’’ and all that follows and inserting 
‘‘section 7706(f)(1)) who is a dependent of such indi-
vidual for the taxable year (or would be but for sec-
tion 7706(e)),’’. 
(92) Section 7706(a), as redesignated by this sec-
tion, is amended by striking ‘‘this subtitle’’ and in-
serting ‘‘subtitle A’’. 
(93)(A) Section 7706(d)(1)(B), as redesignated 
by this section, is amended by striking ‘‘the exemp-
tion amount (as defined in section 151(d))’’ and in-
serting ‘‘$4,150’’. 
(B) Section 7706(d), as redesignated by this sec-
tion, is amended by adding at the end the following 
new paragraph: 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(6) INFLATION
ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year begin-
ning after 2018, the $4,150 amount in paragraph 
(1)(B) shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(c)(2)(A) for the calendar 
year in which such taxable year begins, deter-
mined by substituting ‘calendar year 2017’ for 
‘calendar year 2016’ in clause (ii) thereof. 
If any increase determined under the preceding sen-
tence is not a multiple of $50, such increase shall be 
rounded to the next lowest multiple of $50.’’. 
(94) Section 7706(e)(3), as redesignated by this 
section, is amended by inserting ‘‘(as in effect before 
its repeal)’’ after ‘‘section 151’’. 
(95) Section 7706(f)(6)(B), as redesignated by 
this section, is amended by striking clause (i) and 
designating clauses (ii), (iii), and (iv) as clauses (i), 
(ii), and (iii), respectively. 
(96) The table of parts for subchapter B of chap-
ter 1 is amended by striking the item relating to part 
V. 
(97) The table of sections for chapter 79 is 
amended by adding at the end the following new item: 
‘‘Sec. 7706. Dependent defined.’’. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6213
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
(g) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2017. 
SEC. 142. LIMITATION ON DEDUCTION FOR STATE AND 
LOCAL, ETC. TAXES. 
(a) IN GENERAL.—Section 164(b)(6) is amended by 
striking all that precedes ‘‘The preceding sentence’’ and in-
serting the following: 
‘‘(6) LIMITATION ON INDIVIDUAL DEDUCTIONS.— 
In the case of an individual— 
‘‘(A) no deduction shall be allowed under 
this chapter for foreign real property taxes paid 
or accrued during the taxable year, and 
‘‘(B) the aggregate amount of the deduction 
allowed under this chapter for taxes described in 
paragraphs (1), (2), and (3) of subsection (a) 
and paragraph (5) of this subsection paid or ac-
crued by the taxpayer during the taxable year 
shall not exceed $10,000 ($5,000 in the case of a 
married individual filing a separate return).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2017. 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
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 resi-
dence 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 out-
standing pre-October 13, 1987, indebt-
edness (as defined in subparagraph 
(D)) plus the aggregate outstanding 
pre-December 15, 2017, indebtedness 
(as defined in subparagraph (C)).’’. 
(c) TREATMENT OF INDEBTEDNESS INCURRED ON OR 
BEFORE DECEMBER 15, 2017.—Section 163(h)(3)(C) is 
amended to read as follows: 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(C) TREATMENT
OF
INDEBTEDNESS
IN-
CURRED ON OR BEFORE DECEMBER 15, 2017.— 
‘‘(i) IN GENERAL.—In the case of any 
pre-December 15, 2017, indebtedness, sub-
paragraph (B)(ii) shall not apply and the 
aggregate amount of such indebtedness 
treated as acquisition indebtedness for any 
period shall not exceed the excess (if any) 
of— 
‘‘(I) $1,000,000 ($500,000, in the 
case of a married individual filing a 
separate return), over 
‘‘(II) the aggregate outstanding 
pre-October 13, 1987, indebtedness (as 
defined in subparagraph (D)). 
‘‘(ii) PRE-DECEMBER 15, 2017, INDEBT-
EDNESS.—For purposes of this subpara-
graph— 
‘‘(I) IN GENERAL.—The term ‘pre- 
December 
15, 
2017, 
indebtedness’ 
means indebtedness (other than pre-Oc-
tober 13, 1987, indebtedness) incurred 
on or before December 15, 2017. 
‘‘(II) BINDING
WRITTEN
CON-
TRACT EXCEPTION.—In the case of a 
VerDate Sep 11 2014 
20:34 Sep 24, 2018
Jkt 079200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6203
E:\BILLS\H6760.RH
H6760
tkelley on DSKBCP9HB2PROD with BILLS