H. R. 1625—802 
(A) by inserting after the second sentence the following: 
‘‘Any employer who violates section 3(m)(2)(B) shall be 
liable to the employee or employees affected in the amount 
of the sum of any tip credit taken by the employer and 
all such tips unlawfully kept by the employer, and in 
an additional equal amount as liquidated damages.’’; and 
(B) by striking ‘‘either of’’; 
(2) in subsection (c), by adding at the end the following: 
‘‘The authority and requirements described in this subsection 
shall apply with respect to a violation of section 3(m)(2)(B), 
as appropriate, and the employer shall be liable for the amount 
of the sum of any tip credit taken by the employer and all 
such tips unlawfully kept by the employer, and an additional 
equal amount as liquidated damages.’’; and 
(3) in subsection (e)(2), by adding at the end the following: 
‘‘Any person who violates section 3(m)(2)(B) shall be subject 
to a civil penalty not to exceed $1,100 for each such violation, 
as the Secretary determines appropriate, in addition to being 
liable to the employee or employees affected for all tips unlaw-
fully kept, and an additional equal amount as liquidated dam-
ages, as described in subsection (b).’’. 
(c) EFFECT ON REGULATIONS.—The portions of the final rule 
promulgated by the Department of Labor entitled ‘‘Updating Regula-
tions Issued Under the Fair Labor Standards Act’’ (76 Fed. Reg. 
18832 (April 5, 2011)) that revised sections 531.52, 531.54, and 
531.59 of title 29, Code of Federal Regulations (76 Fed. Reg. 18854– 
18856) and that are not addressed by section 3(m) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 203(m)) (as such section 
was in effect on April 5, 2011), shall have no further force or 
effect until any future action taken by the Administrator of the 
Wage and Hour Division of the Department of Labor. 
TITLE 
XIII—REVISIONS 
TO 
PASS- 
THROUGH 
PERIOD 
AND 
PAYMENT 
RULES 
SEC. 1301. REVISIONS TO PASS-THROUGH PERIOD AND PAYMENT 
RULES UNDER OPPS FOR CERTAIN NEW DRUGS AND 
BIOLOGICALS. 
(a) REVISIONS
TO
PASS-THROUGH
PERIOD
AND
PAYMENT 
RULES.— 
(1) IN GENERAL.—Section 1833(t)(6) of the Social Security 
Act (42 U.S.C. 1395l(t)(6)) is amended— 
(A) in subparagraph (C)(i), in the matter preceding 
subclause (I), by striking ‘‘The payment’’ and inserting 
‘‘Subject to subparagraph (G), the payment’’; 
(B) in subparagraph (D)(i), by inserting ‘‘subject to 
subparagraph (H),’’ before ‘‘in the case’’; and 
(C) by adding at the end the following new subpara-
graphs: 
‘‘(G) PASS-THROUGH
EXTENSION
FOR
CERTAIN
DRUGS 
AND BIOLOGICALS.—In the case of a drug or biological whose 
period of pass-through status under this paragraph ended 
on December 31, 2017, and for which payment under this 
subsection was packaged into a payment for a covered
H. R. 1625—803 
OPD service (or group of services) furnished beginning 
January 1, 2018, such pass-through status shall be 
extended for a 2-year period beginning on October 1, 2018. 
‘‘(H) TEMPORARY PAYMENT RULE FOR CERTAIN DRUGS 
AND BIOLOGICALS.—In the case of a drug or biological whose 
period of pass-through status under this paragraph ended 
on December 31, 2017, and for which payment under this 
subsection was packaged into a payment for a covered 
OPD service (or group of services) furnished beginning 
January 1, 2018, the payment amount for such drug or 
biological under this subsection that is furnished during 
the period beginning on October 1, 2018, and ending on 
March 31, 2019, shall be the greater of— 
‘‘(i) the payment amount that would otherwise 
apply under subparagraph (D)(i) for such drug or 
biological during such period; or 
‘‘(ii) the payment amount that applied under such 
subparagraph (D)(i) for such drug or biological on 
December 31, 2017. 
‘‘(I) SPECIAL
PAYMENT
ADJUSTMENT
RULES
FOR
LAST 
QUARTER OF 2018.—In the case of a drug or biological whose 
period of pass-through status under this paragraph ended 
on December 31, 2017, and for which payment under this 
subsection was packaged into a payment amount for a 
covered OPD service (or group of services) beginning 
January 1, 2018, the following rules shall apply with 
respect to payment amounts under this subsection for cov-
ered a OPD service (or group of services) furnished during 
the period beginning on October 1, 2018, and ending on 
December 31, 2018: 
‘‘(i) The Secretary shall remove the packaged costs 
of such drug or biological (as determined by the Sec-
retary) from the payment amount under this subsection 
for the covered OPD service (or group of services) with 
which it is packaged. 
‘‘(ii) The Secretary shall not make any adjustments 
to payment amounts under this subsection for a cov-
ered OPD service (or group of services) for which no 
costs were removed under clause (i).’’. 
(2) NONAPPLICATION
OF
LIMIT
ON
AGGREGATE
ANNUAL 
ADJUSTMENT
FOR
2018.—Section 1833(t)(6)(E)(i) of the Social 
Security Act (42 U.S.C. 1395l(t)(6)(E)(i)) is amended by adding 
at the end the following new sentence: ‘‘This clause shall not 
apply for 2018.’’. 
(3) IMPLEMENTATION.—Notwithstanding any other provi-
sion of law, the Secretary of Health and Human Services may 
implement the amendments made by paragraphs (1) and (2) 
by program instruction or otherwise. 
(b) GAO STUDY AND REPORT.— 
(1) IN GENERAL.—The Comptroller General of the United 
States (in this subsection referred to as the ‘‘Comptroller Gen-
eral’’) shall conduct a study on the policy for packaging high 
cost drugs and biologicals after their pass-through status under 
subsection (t)(6) of section 1833 of the Social Security Act 
(42 U.S.C. 1395l) has expired under the payment systems for 
hospital outpatient department services under section sub-
section (t) of such section and for surgical services furnished
H. R. 1625—804 
in an ambulatory surgical center under subsection (i) of such 
section. Such study shall include an analysis of— 
(A) the impact of such policy on— 
(i) the utilization of such drugs and biologicals; 
(ii) the availability of treatment options, including 
consultations with physicians and hospitals; and 
(iii) to the extent practicable, the health outcomes 
of Medicare beneficiaries; and 
(B) the impact of the amendments made by subsection 
(a), including the impact on price competition and cost- 
sharing. 
(2) REPORT.—Not later than March 1, 2021, the Comptroller 
General shall submit to Congress a report containing the results 
of the study conducted under paragraph (1), together with 
recommendations for such legislation and administrative action 
as the Comptroller General determines appropriate. 
DIVISION T—REVENUE PROVISIONS 
SEC. 101. MODIFICATION OF DEDUCTION FOR QUALIFIED BUSINESS 
INCOME OF A COOPERATIVE AND ITS PATRONS. 
(a) 
DEDUCTION
FOR
QUALIFIED
PRODUCTION
ACTIVITIES 
INCOME.— 
(1) IN
GENERAL.—Subsection (g) of section 199A of the 
Internal Revenue Code of 1986 is amended to read as follows: 
‘‘(g) DEDUCTION
FOR
INCOME
ATTRIBUTABLE
TO
DOMESTIC 
PRODUCTION ACTIVITIES
OF SPECIFIED AGRICULTURAL
OR HORTI-
CULTURAL COOPERATIVES.— 
‘‘(1) ALLOWANCE OF DEDUCTION.— 
‘‘(A) IN GENERAL.—In the case of a taxpayer which 
is a specified agricultural or horticultural cooperative, there 
shall be allowed as a deduction an amount equal to 9 
percent of the lesser of— 
‘‘(i) the qualified production activities income of 
the taxpayer for the taxable year, or 
‘‘(ii) the taxable income of the taxpayer for the 
taxable year. 
‘‘(B) LIMITATION.— 
‘‘(i) IN GENERAL.—The deduction allowable under 
subparagraph (A) for any taxable year shall not exceed 
50 percent of the W-2 wages of the taxpayer for the 
taxable year. 
‘‘(ii) W-2 WAGES.—For purposes of this subpara-
graph, the W-2 wages of the taxpayer shall be deter-
mined in the same manner as under subsection (b)(4) 
(without regard to subparagraph (B) thereof and after 
application of subsection (b)(5)), except that such wages 
shall not include any amount which is not properly 
allocable to domestic production gross receipts for pur-
poses of paragraph (3)(A). 
‘‘(C) TAXABLE INCOME OF COOPERATIVES DETERMINED 
WITHOUT REGARD TO CERTAIN DEDUCTIONS.—For purposes 
of this subsection, the taxable income of a specified agricul-
tural or horticultural cooperative shall be computed without 
regard to any deduction allowable under subsection (b) 
or (c) of section 1382 (relating to patronage dividends,
H. R. 1625—805 
per-unit retain allocations, and nonpatronage distribu-
tions). 
‘‘(2) DEDUCTION ALLOWED TO PATRONS.— 
‘‘(A) IN GENERAL.—In the case of any eligible taxpayer 
who receives a qualified payment from a specified agricul-
tural or horticultural cooperative, there shall be allowed 
as a deduction for the taxable year in which such payment 
is received an amount equal to the portion of the deduction 
allowed under paragraph (1) to such cooperative which 
is— 
‘‘(i) allowed with respect to the portion of the quali-
fied production activities income to which such pay-
ment is attributable, and 
‘‘(ii) identified by such cooperative in a written 
notice mailed to such taxpayer during the payment 
period described in section 1382(d). 
‘‘(B) LIMITATION
BASED
ON
TAXABLE
INCOME.—The 
deduction allowed to any taxpayer under this paragraph 
shall not exceed the taxable income of the taxpayer deter-
mined without regard to the deduction allowed under this 
paragraph and after taking into account any deduction 
allowed to the taxpayer under subsection (a) for the taxable 
year. 
‘‘(C) COOPERATIVE DENIED DEDUCTION FOR PORTION OF 
QUALIFIED PAYMENTS.—The taxable income of a specified 
agricultural or horticultural cooperative shall not be 
reduced under section 1382 by reason of that portion of 
any qualified payment as does not exceed the deduction 
allowable under subparagraph (A) with respect to such 
payment. 
‘‘(D) ELIGIBLE TAXPAYER.—For purposes of this para-
graph, the term ‘eligible taxpayer’ means— 
‘‘(i) a taxpayer other than a corporation, or 
‘‘(ii) a specified agricultural or horticultural 
cooperative. 
‘‘(E) QUALIFIED PAYMENT.—For purposes of this section, 
the term ‘qualified payment’ means, with respect to any 
eligible taxpayer, any amount which— 
‘‘(i) is described in paragraph (1) or (3) of section 
1385(a), 
‘‘(ii) is received by such taxpayer from a specified 
agricultural or horticultural cooperative, and 
‘‘(iii) is attributable to qualified production activi-
ties income with respect to which a deduction is 
allowed to such cooperative under paragraph (1). 
‘‘(3) QUALIFIED PRODUCTION ACTIVITIES INCOME.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified production 
activities income’ for any taxable year means an amount 
equal to the excess (if any) of— 
‘‘(i) the taxpayer’s domestic production gross 
receipts for such taxable year, over 
‘‘(ii) the sum of— 
‘‘(I) the cost of goods sold that are allocable 
to such receipts, and
H. R. 1625—806 
‘‘(II) other expenses, losses, or deductions 
(other than the deduction allowed under this sub-
section), which are properly allocable to such 
receipts. 
‘‘(B) ALLOCATION METHOD.—The Secretary shall pre-
scribe rules for the proper allocation of items described 
in subparagraph (A) for purposes of determining qualified 
production activities income. Such rules shall provide for 
the proper allocation of items whether or not such items 
are directly allocable to domestic production gross receipts. 
‘‘(C) SPECIAL RULES FOR DETERMINING COSTS.— 
‘‘(i) IN
GENERAL.—For purposes of determining 
costs under subclause (I) of subparagraph (A)(ii), any 
item or service brought into the United States shall 
be treated as acquired by purchase, and its cost shall 
be treated as not less than its value immediately after 
it entered the United States. A similar rule shall apply 
in determining the adjusted basis of leased or rented 
property where the lease or rental gives rise to 
domestic production gross receipts. 
‘‘(ii) EXPORTS FOR FURTHER MANUFACTURE.—In the 
case of any property described in clause (i) that had 
been exported by the taxpayer for further manufacture, 
the increase in cost or adjusted basis under clause 
(i) shall not exceed the difference between the value 
of the property when exported and the value of the 
property when brought back into the United States 
after the further manufacture. 
‘‘(D) DOMESTIC PRODUCTION GROSS RECEIPTS.— 
‘‘(i) IN GENERAL.—The term ‘domestic production 
gross receipts’ means the gross receipts of the taxpayer 
which are derived from any lease, rental, license, sale, 
exchange, or other disposition of any agricultural or 
horticultural product which was manufactured, pro-
duced, grown, or extracted by the taxpayer (determined 
after the application of paragraph (4)(B)) in whole or 
significant part within the United States. Such term 
shall not include gross receipts of the taxpayer which 
are derived from the lease, rental, license, sale, 
exchange, or other disposition of land. 
‘‘(ii) RELATED PERSONS.— 
‘‘(I) IN GENERAL.—The term ‘domestic produc-
tion gross receipts’ shall not include any gross 
receipts of the taxpayer derived from property 
leased, licensed, or rented by the taxpayer for use 
by any related person. 
‘‘(II) RELATED PERSON.—For purposes of sub-
clause (I), a person shall be treated as related 
to another person if such persons are treated as 
a single employer under subsection (a) or (b) of 
section 52 or subsection (m) or (o) of section 414, 
except that determinations under subsections (a) 
and (b) of section 52 shall be made without regard 
to section 1563(b). 
‘‘(4) SPECIFIED AGRICULTURAL OR HORTICULTURAL COOPERA-
TIVE.—For purposes of this section—
H. R. 1625—807 
‘‘(A) IN GENERAL.—The term ‘specified agricultural or 
horticultural cooperative’ means an organization to which 
part I of subchapter T applies which is engaged— 
‘‘(i) in the manufacturing, production, growth, or 
extraction in whole or significant part of any agricul-
tural or horticultural product, or 
‘‘(ii) in the marketing of agricultural or horti-
cultural products. 
‘‘(B) APPLICATION
TO
MARKETING
COOPERATIVES.—A 
specified agricultural or horticultural cooperative described 
in subparagraph (A)(ii) shall be treated as having manufac-
tured, produced, grown, or extracted in whole or significant 
part any agricultural or horticultural product marketed 
by the specified agricultural or horticultural cooperative 
which its patrons have so manufactured, produced, grown, 
or extracted. 
‘‘(5) DEFINITIONS AND SPECIAL RULES.— 
‘‘(A) SPECIAL RULE FOR AFFILIATED GROUPS.— 
‘‘(i) IN
GENERAL.—All members of an expanded 
affiliated group shall be treated as a single corporation 
for purposes of this subsection. 
‘‘(ii) PARTNERSHIPS OWNED BY EXPANDED AFFILI-
ATED GROUPS.—For purposes of paragraph (3)(D), if 
all of the interests in the capital and profits of a 
partnership are owned by members of a single 
expanded affiliated group at all times during the tax-
able year of such partnership, the partnership and 
all members of such group shall be treated as a single 
taxpayer during such period. 
‘‘(iii) EXPANDED AFFILIATED GROUP.—For purposes 
of this subsection, the term ‘expanded affiliated group’ 
means an affiliated group as defined in section 1504(a), 
determined— 
‘‘(I) by substituting ‘more than 50 percent’ for 
‘at least 80 percent’ each place it appears, and 
‘‘(II) without regard to paragraphs (2) and (4) 
of section 1504(b). 
‘‘(iv) ALLOCATION OF DEDUCTION.—Except as pro-
vided in regulations, the deduction under paragraph 
(1) shall be allocated among the members of the 
expanded affiliated group in proportion to each mem-
ber’s respective amount (if any) of qualified production 
activities income. 
‘‘(B) SPECIAL
RULE
FOR
COOPERATIVE
PARTNERS.—In 
the case of a specified agricultural or horticultural coopera-
tive which is a partner in a partnership, rules similar 
to the rules of subsection (f)(1) shall apply for purposes 
of this subsection. 
‘‘(C) TRADE
OR
BUSINESS
REQUIREMENT.—This sub-
section shall be applied by only taking into account items 
which are attributable to the actual conduct of a trade 
or business. 
‘‘(D) UNRELATED BUSINESS TAXABLE INCOME.—For pur-
poses of determining the tax imposed by section 511, this 
section shall be applied by substituting ‘unrelated business 
taxable income’ for ‘taxable income’ each place it appears 
in this section (other than this subparagraph).
H. R. 1625—808 
‘‘(E) SPECIAL RULE FOR COOPERATIVE WITH OIL RELATED 
QUALIFIED PRODUCTION ACTIVITIES INCOME.— 
‘‘(i) IN
GENERAL.—If a specified agricultural or 
horticultural cooperative has oil related qualified 
production activities income for any taxable year, the 
amount otherwise allowable as a deduction under para-
graph (1) shall be reduced by 3 percent of the least 
of— 
‘‘(I) the oil related qualified production activi-
ties income of the cooperative for the taxable year, 
‘‘(II) the qualified production activities income 
of the cooperative for the taxable year, or 
‘‘(III) taxable income. 
‘‘(ii) OIL RELATED QUALIFIED PRODUCTION ACTIVI-
TIES INCOME.—For purposes of this subparagraph, the 
term ‘oil related qualified production activities income’ 
means for any taxable year the qualified production 
activities income which is attributable to the produc-
tion, refining, processing, transportation, or distribu-
tion of oil, gas, or any primary product thereof (within 
the meaning of section 927(a)(2)(C), as in effect before 
its repeal) during such taxable year. 
‘‘(6) REGULATIONS.—The Secretary shall prescribe such 
regulations as are necessary to carry out the purposes of this 
subsection, including regulations which prevent more than 1 
taxpayer from being allowed a deduction under this subsection 
with respect to any activity described in paragraph (3)(D)(i). 
Such regulations shall be based on the regulations applicable 
to cooperatives and their patrons under section 199 (as in 
effect before its repeal).’’. 
(2) CONFORMING AMENDMENTS.— 
(A) 
Sections 
63(b)(3), 
63(d)(3), 
199A(e)(1), 
and 
6662(d)(1)(C) of such Code are each amended by striking 
‘‘the deduction’’ and inserting ‘‘any deduction’’. 
(B) The last sentence of section 62(a) of such Code 
and section 172(d)(8) of such Code are each amended by 
striking ‘‘The deduction’’ and inserting ‘‘Any deduction’’. 
(C) Section 199A(e)(1) of such Code is amended by 
striking ‘‘Taxable income’’ and inserting ‘‘Except as other-
wise provided in subsection (g)(2)(B), taxable income’’. 
(D) Section 613(a) of such Code is amended by striking 
‘‘the deduction under section 199A’’ and inserting ‘‘any 
deduction under section 199A’’. 
(b) MODIFICATIONS RELATED
TO PAYMENTS FROM COOPERA-
TIVES.— 
(1) REPEAL OF SPECIAL DEDUCTION FOR QUALIFIED COOPERA-
TIVE DIVIDENDS.—Subsection (a) of section 199A of such Code 
is amended to read as follows: 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of a taxpayer 
other than a corporation, there shall be allowed as a deduction 
for any taxable year an amount equal to the lesser of— 
‘‘(1) the combined qualified business income amount of 
the taxpayer, or 
‘‘(2) an amount equal to 20 percent of the excess (if any) 
of— 
‘‘(A) the taxable income of the taxpayer for the taxable 
year, over
H. R. 1625—809 
‘‘(B) the net capital gain (as defined in section 1(h)) 
of the taxpayer for such taxable year.’’. 
(2) REPEAL OF RULE EXCLUDING QUALIFIED COOPERATIVE 
DIVIDENDS FROM QUALIFIED BUSINESS INCOME.— 
(A) IN GENERAL.—Section 199A(c)(1) of such Code is 
amended by striking ‘‘, qualified cooperative dividends,’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 199A(c)(3)(B) of such Code is amended— 
(I) by striking ‘‘investment’’ in the matter pre-
ceding clause (i), and 
(II) by adding at the end of clause (ii) the 
following: ‘‘Any amount described in section 
1385(a)(1) shall not be treated as described in this 
clause.’’. 
(ii) Section 199A(e) of such Code is amended by 
striking paragraph (4) and by redesignating paragraph 
(5) as paragraph (4). 
(3) REDUCTION
OF
QUALIFIED
BUSINESS
INCOME
WITH 
RESPECT TO INCOME RECEIVED FROM COOPERATIVES.—Section 
199A(b) of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(7) SPECIAL RULE WITH RESPECT TO INCOME RECEIVED FROM 
COOPERATIVES.—In the case of any qualified trade or business 
of a patron of a specified agricultural or horticultural coopera-
tive, the amount determined under paragraph (2) with respect 
to such trade or business shall be reduced by the lesser of— 
‘‘(A) 9 percent of so much of the qualified business 
income with respect to such trade or business as is properly 
allocable to qualified payments received from such coopera-
tive, or 
‘‘(B) 50 percent of so much of the W-2 wages with 
respect to such trade or business as are so allocable.’’. 
(c) APPLICATION OF SECTION 199 TO CERTAIN QUALIFIED PAY-
MENTS PAID AFTER 2017.—Subsection (c) of section 13305 of Public 
Law 115–97 is amended to read as follows: 
‘‘(c) EFFECTIVE DATES.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the amendments made by this section shall apply to taxable 
years beginning after December 31, 2017. 
‘‘(2) TRANSITION RULE FOR QUALIFIED PAYMENTS OF PATRONS 
OF COOPERATIVES.— 
‘‘(A) IN GENERAL.—The amendments made by this sec-
tion shall not apply to a qualified payment received by 
a taxpayer from a specified agricultural or horticultural 
cooperative in a taxable year of the taxpayer beginning 
after December 31, 2017, which is attributable to qualified 
production activities income with respect to which a deduc-
tion is allowable to the cooperative under section 199 of 
the Internal Revenue Code of 1986 (as in effect before 
the amendments made by this section) for a taxable year 
of the cooperative beginning before January 1, 2018. Any 
term used in this subparagraph which is also used in 
section 199 of such Code (as so in effect) shall have the 
same meaning as when used in such section. 
‘‘(B) COORDINATION WITH SECTION 199A.—No deduction 
shall be allowed under section 199A of such Code for any 
qualified payment to which subparagraph (A) applies.’’.
H. R. 1625—810 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall take effect 
as if included in section 11011 of Public Law 115–97. 
(2) APPLICATION
OF
SECTION
199
TO
CERTAIN
QUALIFIED 
PAYMENTS PAID AFTER 2017.—The amendment made by sub-
section (c) shall take effect as if included in section 13305 
of Public Law 115–97. 
SEC. 102. INCREASE IN STATE HOUSING CREDIT CEILING FOR , 2019, 
2020, 2021. 
(a) IN GENERAL.—Section 42(h)(3)(I) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(I) INCREASE IN STATE HOUSING CREDIT CEILING FOR 
2018, 2019, 2020, AND 2021.—In the case of calendar years 
2018, 2019, 2020, and 2021, each of the dollar amounts 
in effect under clauses (I) and (II) of subparagraph (C)(ii) 
for any calendar year (after any increase under subpara-
graph (H)) shall be increased by multiplying such dollar 
amount by 1.125.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to calendar years beginning after December 31, 2017. 
SEC. 103. AVERAGE INCOME TEST FOR LOW-INCOME HOUSING CREDIT. 
(a) IN GENERAL.—Paragraph (1) of section 42(g) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘subparagraph (A) or (B)’’ and inserting 
‘‘subparagraph (A), (B), or (C)’’, and 
(2) by inserting after subparagraph (B) the following new 
subparagraph: 
‘‘(C) AVERAGE INCOME TEST.— 
‘‘(i) IN GENERAL.—The project meets the minimum 
requirements of this subparagraph if 40 percent or 
more (25 percent or more in the case of a project 
described in section 142(d)(6)) of the residential units 
in such project are both rent-restricted and occupied 
by individuals whose income does not exceed the 
imputed income limitation designated by the taxpayer 
with respect to the respective unit. 
‘‘(ii) SPECIAL RULES RELATING TO INCOME LIMITA-
TION.—For purposes of clause (i)— 
‘‘(I) DESIGNATION.—The taxpayer shall des-
ignate the imputed income limitation of each unit 
taken into account under such clause. 
‘‘(II) AVERAGE
TEST.—The average of the 
imputed income limitations designated under sub-
clause (I) shall not exceed 60 percent of area 
median gross income. 
‘‘(III) 
10-PERCENT
INCREMENTS.—The 
des-
ignated imputed income limitation of any unit 
under subclause (I) shall be 20 percent, 30 percent, 
40 percent, 50 percent, 60 percent, 70 percent, 
or 80 percent of area median gross income.’’. 
(b) RULES RELATING TO NEXT AVAILABLE UNIT.—Subparagraph 
(D) of section 42(g)(2) of the Internal Revenue Code of 1986 is 
amended— 
(1) in clause (i), by striking ‘‘clause (ii)’’ and inserting 
‘‘clauses (ii), (iii), and (iv)’’,
H. R. 1625—811 
(2) in clause (ii)— 
(A) by striking ‘‘If’’ and inserting ‘‘In the case of a 
project with respect to which the taxpayer elects the 
requirements of subparagraph (A) or (B) of paragraph (1), 
if’’, 
(B) by striking the second sentence, and 
(C) by striking ‘‘NEXT AVAILABLE UNIT MUST BE RENTED 
TO LOW-INCOME TENANT IF INCOME RISES ABOVE 140 PER-
CENT
OF
INCOME
LIMIT’’ in the heading and inserting 
‘‘RENTAL OF NEXT AVAILABLE UNIT IN CASE OF 20–50 OR 
40–60 TEST’’, and 
(3) by adding at the end the following new clauses: 
‘‘(iii) RENTAL
OF
NEXT
AVAILABLE
UNIT
IN
CASE 
OF AVERAGE INCOME TEST.—In the case of a project 
with respect to which the taxpayer elects the require-
ments of subparagraph (C) of paragraph (1), if the 
income of the occupants of the unit increases above 
140 percent of the greater of— 
‘‘(I) 60 percent of area median gross income, 
or 
‘‘(II) the imputed income limitation designated 
with 
respect 
to 
the 
unit 
under 
paragraph 
(1)(C)(ii)(I), 
clause (i) shall cease to apply to any such unit if 
any residential rental unit in the building (of a size 
comparable to, or smaller than, such unit) is occupied 
by a new resident whose income exceeds the limitation 
described in clause (v). 
‘‘(iv) DEEP RENT SKEWED PROJECTS.—In the case 
of a project described in section 142(d)(4)(B), clause 
(ii) or (iii), whichever is applicable, shall be applied 
by substituting ‘170 percent’ for ‘140 percent’, and— 
‘‘(I) in the case of clause (ii), by substituting 
‘any low-income unit in the building is occupied 
by a new resident whose income exceeds 40 percent 
of area median gross income’ for ‘any residential 
rental unit’ and all that follows in such clause, 
and 
‘‘(II) in the case of clause (iii), by substituting 
‘any low-income unit in the building is occupied 
by a new resident whose income exceeds the lesser 
of 40 percent of area median gross income or the 
imputed income limitation designated with respect 
to such unit under paragraph (1)(C)(ii)(I)’ for ‘any 
residential rental unit’ and all that follows in such 
clause. 
‘‘(v) LIMITATION
DESCRIBED.—For purposes of 
clause (iii), the limitation described in this clause with 
respect to any unit is— 
‘‘(I) the imputed income limitation designated 
with respect to such unit under paragraph 
(1)(C)(ii)(I), in the case of a unit which was taken 
into account as a low-income unit prior to becoming 
vacant, and 
‘‘(II) the imputed income limitation which 
would have to be designated with respect to such 
unit under such paragraph in order for the project
H. R. 1625—812 
to continue to meet the requirements of paragraph 
(1)(C)(ii)(II), in the case of any other unit.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to elections made under section 42(g)(1) of the Internal 
Revenue Code of 1986 after the date of the enactment of this 
Act. 
DIVISION U—TAX TECHNICAL 
CORRECTIONS 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; ETC. 
(a) SHORT TITLE.—This division may be cited as the ‘‘Tax Tech-
nical Corrections Act of 2018’’. 
(b) AMENDMENT OF INTERNAL REVENUE CODE OF 1986.—Except 
as otherwise expressly provided, whenever in this division an 
amendment or repeal is expressed in terms of an amendment to, 
or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Internal 
Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for this division 
is as follows: 
Sec. 1. Short title; table of contents; etc. 
TITLE I—TAX TECHNICAL CORRECTIONS 
Sec. 101. Amendments relating to Protecting Americans from Tax Hikes Act of 
2015. 
Sec. 102. Amendment relating to Consolidated Appropriations Act, 2016. 
Sec. 103. Amendments relating to Fixing America’s Surface Transportation Act. 
Sec. 104. Amendments relating to Surface Transportation and Veterans Health 
Care Choice Improvement Act of 2015. 
Sec. 105. Amendments relating to Stephen Beck, Jr., ABLE Act of 2014. 
Sec. 106. Amendment relating to American Taxpayer Relief Act of 2012. 
Sec. 107. Amendment relating to United States-Korea Free Trade Agreement Im-
plementation Act. 
Sec. 108. Amendment relating to SAFETEA–LU. 
Sec. 109. Amendments relating to the American Jobs Creation Act of 2004. 
TITLE II—TECHNICAL CORRECTIONS RELATED TO PARTNERSHIP AUDIT 
RULES 
Sec. 201. Scope of adjustments subject to partnership audit rules. 
Sec. 202. Determination of imputed underpayments. 
Sec. 203. Alternative procedure to filing amended returns for purposes of modifying 
imputed underpayment. 
Sec. 204. Treatment of passthrough partners in tiered structures. 
Sec. 205. Treatment of failure of partnership to pay imputed underpayment. 
Sec. 206. Other technical corrections related to partnership audit rules. 
Sec. 207. Effective date. 
TITLE III—OTHER CORRECTIONS 
Sec. 301. Amendments relating to the Bipartisan Budget Act of 2015. 
Sec. 302. Amendments relating to the Energy Policy Act of 2005. 
TITLE IV—CLERICAL CORRECTIONS AND DEADWOOD 
Sec. 401. Clerical corrections and deadwood-related provisions.
H. R. 1625—813 
TITLE I—TAX TECHNICAL 
CORRECTIONS 
SEC. 101. AMENDMENTS RELATING TO PROTECTING AMERICANS FROM 
TAX HIKES ACT OF 2015. 
(a) AMENDMENT RELATING TO SECTION 103.— 
(1) Section 32(b)(2) is amended— 
(A) by striking clauses (ii) and (iii) of subparagraph 
(B), and 
(B) by striking so much of subparagraph (B) as pre-
cedes ‘‘In the case of a joint return’’ and inserting the 
following: 
‘‘(B) JOINT RETURNS.—’’. 
(2) Section 32(j)(1) is amended— 
(A) in the matter preceding subparagraph (A) by 
striking ‘‘after 1996’’ and inserting ‘‘after 2015’’, 
(B) in subparagraph (B) by inserting ‘‘by substituting 
in subparagraph (A)(ii) thereof’’ after ‘‘, determined’’ , 
(C) in subparagraph (B)(i) by striking ‘‘by substituting’’ 
and ‘‘in subparagraph (A)(ii) thereof’’, 
(D) in subparagraph (B)(ii)— 
(i) by striking ‘‘by substituting’’ and ‘‘in subpara-
graph (A)(ii) of such section 1’’, 
(ii) by striking ‘‘$3,000’’ and inserting ‘‘$5,000’’, 
(iii) by striking ‘‘(b)(2)(B)(iii)’’ and inserting 
‘‘(b)(2)(B)’’, and 
(iv) by striking ‘‘2007’’ and inserting ‘‘2008’’. 
(b) 
AMENDMENT
RELATING
TO
SECTION
105.—Section 
132(f)(6)(A) is amended by striking the second sentence. 
(c) AMENDMENTS RELATING TO SECTION 121.—Section 41(c) is 
amended— 
(1) by striking paragraph (4), 
(2) by redesignating paragraphs (5), (6), and (7) as para-
graphs (4), (5), and (6), respectively, and 
(3) by striking the last sentence of paragraph (4)(C) (as 
so redesignated). 
(d) AMENDMENTS RELATING TO SECTION 143.— 
(1) Section 168(k)(2)(B)(i)(III) is amended by inserting 
‘‘binding’’ before ‘‘contract’’. 
(2) Section 168(k)(5)(B)(ii) is amended— 
(A) by inserting ‘‘crop or’’ after ‘‘more than one’’, and 
(B) by inserting ‘‘a marketable crop or yield of’’ after 
‘‘begins bearing’’. 
(3) For purposes of applying section 168(k) of the Internal 
Revenue Code of 1986, as in effect on the day before the 
date of the enactment of Public Law 115-97, with respect to 
property acquired before September 28, 2017, paragraph (6) 
thereof shall be treated as reading as follows (and as having 
been included in section 143 of the Protecting Americans from 
Tax Hikes Act of 2015): 
‘‘(6) PHASE-DOWN.—In the case of qualified property placed 
in service by the taxpayer after December 31, 2017 (December 
31, 2018, in the case of property described in subparagraph 
(B) or (C) of paragraph (2)), paragraph (1)(A) shall be applied 
by substituting for ‘50 percent’— 
‘‘(A) ‘40 percent’ in the case of—
H. R. 1625—814 
‘‘(i) property placed in service in 2018 (other than 
property described in subparagraph (B) or (C) of para-
graph (2)), and 
‘‘(ii) property described in subparagraph (B) or (C) 
of paragraph (2) which is placed in service in 2019, 
and 
‘‘(B) ‘30 percent’ in the case of— 
‘‘(i) property placed in service in 2019 (other than 
property described in subparagraph (B) or (C) of para-
graph (2)), and 
‘‘(ii) property described in subparagraph (B) or (C) 
of paragraph (2) which is placed in service in 2020.’’. 
(4) Section 168(k)(7) of the Internal Revenue Code of 1986, 
as in effect on the day before the date of the enactment of 
Public Law 115-97, shall be applied— 
(A) by substituting ‘‘paragraphs (1), (2)(F), and (4)’’ 
for ‘‘paragraphs (1) and (2)(F)’’, and 
(B) as if the application of such substitution had been 
included in section 143 of the Protecting Americans from 
Tax Hikes Act of 2015. 
(e) AMENDMENTS RELATING TO SECTION 167.— 
(1) Section 168(j)(3) is amended by striking ‘‘property to 
which paragraph (1) applies’’ and inserting ‘‘qualified Indian 
reservation property’’. 
(2) Section 168(j)(8) is amended by striking ‘‘this sub-
section’’ and inserting ‘‘paragraph (1)’’. 
(f) AMENDMENTS RELATING TO SECTION 202.— 
(1) Section 6722(c)(3)(A) is amended— 
(A) by striking ‘‘any information return’’ in clause (iii) 
and inserting ‘‘the payee statement’’, and 
(B) by striking ‘‘filed’’ in the flush matter at the end 
and inserting ‘‘furnished’’. 
(2) Section 6721(c)(3)(A) is amended by striking ‘‘any 
information return’’ and inserting ‘‘the information return’’. 
(3) Section 202(e) of the Protecting Americans from Tax 
Hikes Act of 2015 is amended by striking ‘‘provided’’ and 
inserting ‘‘furnished’’. 
(g) AMENDMENTS RELATING TO SECTION 203.— 
(1) Section 6109(i)(1)(A)(i) is amended by striking ‘‘commu-
nity-based certified acceptance agent’’ and inserting ‘‘commu-
nity-based certifying acceptance agent’’. 
(2) Section 6109(i)(1)(B) is amended by striking ‘‘Internal 
Revenue Service’’ and inserting ‘‘Internal Revenue Service, a 
community-based certifying acceptance agent approved by the 
Secretary,’’. 
(3) Section 6109(i)(3) is amended— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘ending after the issuance of such 
number’’ before the period at the end of the first sen-
tence, and 
(ii) by striking ‘‘on the last day of such third 
consecutive taxable year’’ and inserting ‘‘on the day 
after the due date for the return of tax for such third 
consecutive taxable year’’, and 
(B) by striking subparagraph (B)(ii) and inserting the 
following:
H. R. 1625—815 
‘‘(ii) if the individual does not file a return of 
tax (or is not included as a dependent on the return 
of tax of another taxpayer) for 3 consecutive taxable 
years at least one of which ends after December 18, 
2015, the due date for the return of tax for such third 
consecutive taxable year.’’. 
(4) Section 203(c) of the Protecting Americans from Tax 
Hikes Act of 2015 is amended— 
(A) by striking ‘‘section 6109(i)(1)(A)(i)’’ and inserting 
‘‘section 6109(i)(1)’’, 
(B) by striking ‘‘community-based certified acceptance 
agents’’ and inserting ‘‘community-based certifying accept-
ance agents’’, and 
(C) by striking ‘‘CERTIFIED’’ in the heading thereof and 
inserting ‘‘CERTIFYING’’. 
(5) Section 203(f) of the Protecting Americans from Tax 
Hikes Act of 2015 is amended by striking ‘‘The amendments’’ 
and inserting ‘‘Except to the extent provided in section 
6109(i)(3) of the Internal Revenue Code of 1986, the amend-
ments’’. 
(h) AMENDMENTS RELATING TO SECTION 204.—Section 204(b) 
of the Protecting Americans from Tax Hikes Act of 2015 is 
amended— 
(1) by striking paragraph (2), and 
(2) by striking so much as precedes ‘‘amendment made 
by this section’’ and inserting the following: ‘‘(b) EFFECTIVE 
DATE.—The’’. 
(i) AMENDMENTS RELATING TO SECTION 205.— 
(1) Section 24(e)(2) is amended by striking ‘‘identifying 
number’’ and inserting ‘‘taxpayer identification number’’. 
(2) Section 205(c) of the Protecting Americans from Tax 
Hikes Act of 2015 is amended— 
(A) by striking paragraph (2), and 
(B) by striking so much as precedes ‘‘shall apply to 
any return of tax’’ and inserting the following: ‘‘(c) EFFEC-
TIVE DATE.—The amendments made by this section’’. 
(j) AMENDMENTS RELATING TO SECTION 206.—Section 206(b) 
of the Protecting Americans from Tax Hikes Act of 2015 is 
amended— 
(1) by striking ‘‘Except as provided in paragraph (2), the 
amendment’’ in paragraph (1) and inserting ‘‘The amendment’’, 
and 
(2) by striking paragraph (2) and redesignating paragraph 
(3) as paragraph (2). 
(k) AMENDMENT RELATING TO SECTION 209.—Section 209(d)(2) 
of the Protecting Americans from Tax Hikes Act of 2015 is amended 
by striking ‘‘amendment made by subsection (b)’’ and inserting 
‘‘amendments made by subsections (b) and (c)’’. 
(l) AMENDMENTS RELATED TO SECTIONS 102, 206, 207, 208, 
AND 211.— 
(1) Section 25A(b)(1) is amended— 
(A) in subparagraph (A) by striking ‘‘$1,000’’ and 
inserting ‘‘$2,000’’, and 
(B) in subparagraph (B)— 
(i) by striking ‘‘50 percent’’ and inserting ‘‘25 per-
cent’’,
H. R. 1625—816 
(ii) by striking ‘‘$1,000’’ and inserting ‘‘$2,000’’, 
and 
(iii) by striking ‘‘the applicable limit’’ and inserting 
‘‘$4,000’’. 
(2) Subparagraphs (A) and (C) of section 25A(b)(2) are 
amended by striking ‘‘2’’ in the heading and text of each 
subparagraph and inserting ‘‘4’’. 
(3) Section 25A(b)(4) is amended to read as follows: 
‘‘(4) RESTRICTIONS ON TAXPAYERS WHO IMPROPERLY CLAIMED 
AMERICAN OPPORTUNITY TAX CREDIT IN PRIOR YEARS.— 
‘‘(A) TAXPAYERS MAKING PRIOR FRAUDULENT OR RECK-
LESS CLAIMS.— 
‘‘(i) IN GENERAL.—No American Opportunity Tax 
Credit shall be allowed under this section for any tax-
able year in the disallowance period. 
‘‘(ii) DISALLOWANCE
PERIOD.—For purposes of 
subparagraph (A), the disallowance period is— 
‘‘(I) the period of 10 taxable years after the 
most recent taxable year for which there was a 
final determination that the taxpayer’s claim of 
the American Opportunity Tax Credit under this 
section was due to fraud, and 
‘‘(II) the period of 2 taxable years after the 
most recent taxable year for which there was a 
final determination that the taxpayer’s claim of 
the American Opportunity Tax Credit under this 
section was due to reckless or intentional disregard 
of rules and regulations (but not due to fraud). 
‘‘(B) TAXPAYERS MAKING IMPROPER PRIOR CLAIMS.—In 
the case of a taxpayer who is denied the American Oppor-
tunity Tax Credit under this section for any taxable year 
as a result of the deficiency procedures under subchapter 
B of chapter 63, no American Opportunity Tax Credit shall 
be allowed under this section for any subsequent taxable 
year unless the taxpayer provides such information as the 
Secretary may require to demonstrate eligibility for such 
credit.’’. 
(4) Section 25A(d) is amended to read as follows: 
‘‘(d) LIMITATIONS
BASED
ON
MODIFIED
ADJUSTED
GROSS 
INCOME.— 
‘‘(1) AMERICAN OPPORTUNITY TAX CREDIT.—The American 
Opportunity Tax Credit (determined without regard to this 
paragraph) shall be reduced (but not below zero) by the amount 
which bears the same ratio to such credit (as so determined) 
as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted gross income 
for such taxable year, over 
‘‘(ii) $80,000 ($160,000 in the case of a joint return), 
bears to 
‘‘(B) $10,000 ($20,000 in the case of a joint return). 
‘‘(2) LIFETIME LEARNING CREDIT.—The Lifetime Learning 
Credit (determined without regard to this paragraph) shall 
be reduced (but not below zero) by the amount which bears 
the same ratio to such credit (as so determined) as— 
‘‘(A) the excess of—