Us Congress House Bill HB976 Latest Draft

                            I 
118THCONGRESS 
1
STSESSION H. R. 976 
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, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY10, 2023 
Mr. B
UCHANAN(for himself, Mr. PERRY, Mr. JOYCEof Ohio, Mr. HERN, Mr. 
K
ELLYof Pennsylvania, Ms. VANDUYNE, Mrs. MILLERof West Virginia, 
Mr. A
RRINGTON, Mr. SMITHof Nebraska, Mr. FERGUSON, Mr. 
F
EENSTRA, Ms. TENNEY, Mr. KUSTOFF, Mr. AMODEI, Mr. MEUSER, Mr. 
C
RAWFORD, Mrs. MILLER-MEEKS, Mr. RESCHENTHALER, Mr. GAETZ, 
Mrs. C
AMMACK, Mr. STEIL, Mr. HIGGINSof Louisiana, Mr. MCCAUL, 
Mr. B
ALDERSON, Mr. MOOLENAAR, Mrs. WAGNER, Mr. GRAVESof Lou-
isiana, Mr. T
IMMONS, Mr. LATURNER, Mr. JOHNSONof Louisiana, Ms. 
S
ALAZAR, Mr. KELLYof Mississippi, Mr. WALTZ, Mr. MOONEY, Mr. 
B
ISHOPof North Carolina, Mr. WILLIAMSof New York, Mr. JOHNSON 
of Ohio, Mrs. L
UNA, Mr. FITZGERALD, Mr. OWENS, Mr. MOOREof Ala-
bama, Mr. F
INSTAD, Mr. CAREY, Mr. ALLEN, Mr. EMMER, Mr. MILLER 
of Ohio, Mr. D
ONALDS, Mr. JACKSONof Texas, Mr. VANDREW, Mr. 
M
OYLAN, Mr. GIMENEZ, Mr. MORAN, Mr. BOST, Mr. AUSTINSCOTTof 
Georgia, Mr. M
ANN, Mr. MOOREof Utah, Mr. MAST, Mrs. FISCHBACH, 
Mr. N
UNNof Iowa, Mr. RUTHERFORD, Mr. EZELL, Mr. DUARTE, Mr. 
G
OODENof Texas, Mr. BUCSHON, Mr. OGLES, Ms. LEEof Florida, Mr. 
P
OSEY, Mr. ELLZEY, Mr. GUEST, Mr. ESTES, Mr. CARTERof Georgia, 
Mr. W
ILLIAMSof Texas, and Mrs. MILLERof Illinois) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to make 
permanent certain provisions of the Tax Cuts and Jobs 
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Act affecting individuals, families, and small businesses, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE, ETC. 3
(a) S
HORTTITLE.—This Act may be cited as the 4
‘‘TCJA Permanency Act’’. 5
(b) A
MENDMENT OF 1986 CODE.—Except as other-6
wise expressly provided, whenever in this Act an amend-7
ment or repeal is expressed in terms of an amendment 8
to, or repeal of, a section or other provision, the reference 9
shall be considered to be made to a section or other provi-10
sion of the Internal Revenue Code of 1986. 11
(c) R
EFERENCES TO THE TAXCUTS ANDJOBS 12
A
CT.—Title I of Public Law 115–97 may be cited as the 13
‘‘Tax Cuts and Jobs Act’’. 14
(d) T
ABLE OFCONTENTS.—The table of contents of 15
this Act is as follows: 16
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. 
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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. 
Subtitle D—Education 
Sec. 131. Treatment of student loan discharges. 
Sec. 132. 529 account funding for homeschool and additional elementary and 
secondary expenses. 
Subtitle E—Deductions and Exclusions 
Sec. 141. Repeal of deduction for personal exemptions. 
Sec. 142. Limitation on deduction for State and local, etc., taxes. 
Sec. 143. Limitation on deduction for qualified residence interest. 
Sec. 144. Modification of deduction for personal casualty losses. 
Sec. 145. Termination of miscellaneous itemized deductions. 
Sec. 146. Repeal of overall limitation on itemized deductions. 
Sec. 147. Termination of exclusion for qualified bicycle commuting reimburse-
ment. 
Sec. 148. Qualified moving expense reimbursement exclusion limited to mem-
bers of Armed Forces. 
Sec. 149. Deduction for moving expenses limited to members of Armed Forces. 
Sec. 150. Limitation on wagering losses. 
Subtitle F—Increase in Estate and Gift Tax Exemption 
Sec. 151. Increase in estate and gift tax exemption. 
TITLE II—INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM 
TAX MADE PERMANENT 
Sec. 201. Increased exemption for individuals. 
TITLE I—INDIVIDUAL REFORM 1
MADE PERMANENT 2
Subtitle A—Rate Reform 3
SEC. 101. MODIFICATION OF RATES. 4
(a) M
ARRIEDINDIVIDUALSFILINGJOINTRETURNS 5
ANDSURVIVINGSPOUSES.—Section 1(a) is amended by 6
striking the table contained therein and inserting the fol-7
lowing: 8
‘‘If taxable income is: The tax is: 
Not over $19,050 ...................................... 10% of taxable income. 
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‘‘If taxable income is: The tax is: 
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. 
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) HEADS OF HOUSEHOLDS.—Section 1(b) is 1
amended by striking the table contained therein and in-2
serting the following: 3
‘‘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) UNMARRIEDINDIVIDUALSOTHERTHANSUR-4
VIVINGSPOUSES ANDHEADS OFHOUSEHOLDS.—Section 5
1(c) is amended by striking the table contained therein 6
and inserting the following: 7
‘‘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. 
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‘‘If taxable income is: The tax is: 
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. 
Over $500,000 ........................................... $150,689.50, plus 37% of the ex-
cess over $500,000.’’. 
(d) MARRIEDINDIVIDUALSFILINGSEPARATERE-1
TURNS.—Section 1(d) is amended by striking the table 2
contained therein and inserting the following: 3
‘‘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 ANDTRUSTS.—Section 1(e) is amended 4
by striking the table contained therein and inserting the 5
following: 6
‘‘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.’’. 
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(f) INFLATIONADJUSTMENTS.—Section 1(f) is 1
amended— 2
(1) by amending paragraph (2)(A) to read as 3
follows: 4
‘‘(A) by increasing the minimum and max-5
imum dollar amounts for each bracket for 6
which a tax is imposed under such table by the 7
cost-of-living adjustment for such calendar year, 8
determined under this subsection for such cal-9
endar year by substituting ‘2017’ for ‘2016’ in 10
paragraph (3)(A)(ii),’’, 11
(2) by amending paragraph (7) to read as fol-12
lows: 13
‘‘(7) R
OUNDING.— 14
‘‘(A) I
N GENERAL.—Except as provided in 15
subparagraph (B), if any increase determined 16
under paragraph (2)(A) is not a multiple of 17
$25, such increase shall be rounded to the next 18
lowest multiple of $25. 19
‘‘(B) J
OINT RETURNS, ETC.—In the case 20
of a table prescribed under subsection (a), sub-21
paragraph (A) shall be applied by substituting 22
‘$50’ for ‘$25’ both places it appears.’’, 23
(3) by striking paragraph (8), and 24
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(4) in the heading, by striking ‘‘PHASEOUT OF 1
M
ARRIAGEPENALTY IN15-PERCENTBRACKET; AD-2
JUSTMENTS’’ and inserting ‘‘ADJUSTMENTS’’. 3
(g) A
PPLICATION OFINCOMETAXBRACKETS TO 4
C
APITALGAINSBRACKETS.—Section 1(h) is amended— 5
(1) in paragraph (1)(B)(i), by striking ‘‘25 per-6
cent’’ and inserting ‘‘22 percent’’, 7
(2) in paragraph (1)(C)(ii)(I), by striking 8
‘‘which would (without regard to this paragraph) be 9
taxed at a rate below 39.6 percent’’ and inserting 10
‘‘below the maximum 15-percent rate amount’’, and 11
(3) by adding at the end the following new 12
paragraphs: 13
‘‘(12) M
AXIMUM 15-PERCENT RATE AMOUNT 14
DEFINED.—For purposes of this subsection, the 15
maximum 15-percent rate amount shall be— 16
‘‘(A) in the case of a joint return or sur-17
viving spouse (as defined in section 2(a)), 18
$479,000 (
1
⁄2such amount in the case of a 19
married individual filing a separate return), 20
‘‘(B) in the case of an individual who is a 21
head of household (as defined in section 2(b)), 22
$452,400, 23
‘‘(C) in the case of any other individual 24
(other than an estate or trust), $425,800, and 25
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‘‘(D) in the case of an estate or trust, 1
$12,700. 2
‘‘(13) D
ETERMINATION OF 0 PERCENT RATE 3
BRACKET FOR ESTATES AND TRUSTS .—In the case 4
of any estate or trust, paragraph (1)(B) shall be ap-5
plied by treating the amount determined in clause (i) 6
thereof as being equal to $2,600. 7
‘‘(14) I
NFLATION ADJUSTMENT .— 8
‘‘(A) I
N GENERAL.—Each of the dollar 9
amounts in paragraphs (12) and (13) shall be 10
increased by an amount equal to— 11
‘‘(i) such dollar amount, multiplied by 12
‘‘(ii) the cost-of-living adjustment de-13
termined under subsection (f)(3) for the 14
calendar year in which the taxable year be-15
gins, determined by substituting ‘calendar 16
year 2017’ for ‘calendar year 2016’ in sub-17
paragraph (A)(ii) thereof. 18
‘‘(B) R
OUNDING.—If any increase under 19
subparagraph (A) is not a multiple of $50, such 20
increase shall be rounded to the next lowest 21
multiple of $50.’’. 22
(h) C
ONFORMINGAMENDMENTS.— 23
(1) Section 1 is amended by striking sub-24
sections (i) and (j). 25
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(2) Section 3402(q)(1) is amended by striking 1
‘‘third lowest’’ and inserting ‘‘fourth lowest’’. 2
(i) A
PPLICATION OFSECTION15.— 3
(1) I
N GENERAL.—Subsection (a) of section 15 4
is amended by striking ‘‘If any rate of tax’’ and in-5
serting ‘‘In the case of a corporation, if any rate of 6
tax’’. 7
(2) C
ONFORMING AMENDMENTS .— 8
(A) Section 15 is amended by striking sub-9
sections (d) and (f). 10
(B) Section 6013(c) is amended by strik-11
ing ‘‘sections 15, 443, and 7851(a)(1)(A)’’ and 12
inserting ‘‘section 443’’. 13
(C) The heading of section 15 is amended 14
by inserting ‘‘
ON CORPORATIONS ’’ after ‘‘EF-15
FECT OF CHANGES ’’. 16
(D) The table of sections for part III of 17
subchapter A of chapter 1 is amended by strik-18
ing the item relating to section 15 and inserting 19
the following new item: 20
‘‘Sec. 15. Effect of changes on corporations.’’. 
(j) EFFECTIVEDATE.— 21
(1) I
N GENERAL.—The amendments made by 22
this section shall apply to taxable years beginning 23
after the date of the enactment of this Act. 24
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(2) APPLICATION OF SECTION 15 .—Section 15 1
of the Internal Revenue Code of 1986 shall not 2
apply to any change in a rate of tax by reason of— 3
(A) section 1(j) of such Code (as in effect 4
before its repeal by this section), or 5
(B) any amendment made by this Act. 6
Subtitle B—Deduction for Quali-7
fied Business Income of Pass- 8
Thru Entities 9
SEC. 111. DEDUCTION FOR QUALIFIED BUSINESS INCOME. 10
(a) I
NGENERAL.—Section 199A is amended by 11
striking subsection (i). 12
(b) E
FFECTIVEDATE.—The amendments made by 13
this section shall apply to taxable years beginning after 14
the date of the enactment of this Act. 15
SEC. 112. LIMITATION ON LOSSES FOR TAXPAYERS OTHER 16
THAN CORPORATIONS. 17
(a) I
NGENERAL.—Section 461 is amended— 18
(1) by amending subsection (l)(1) to read as 19
follows: 20
‘‘(1) L
IMITATION.—In the case of a taxpayer 21
other than a corporation, any excess business loss of 22
the taxpayer for the taxable year shall not be al-23
lowed.’’, and 24
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(2) by striking subsection (j) and redesignating 1
subsections (k) and (l) (as amended) as subsections 2
(j) and (k), respectively. 3
(b) C
ONFORMINGAMENDMENTS.— 4
(1) Section 58(a)(2)(A) is amended by striking 5
‘‘461(k)’’ and inserting ‘‘461(j)’’. 6
(2) Section 461(i)(4) is amended by striking 7
‘‘subsection (k)’’ and inserting ‘‘subsection (j)’’. 8
(3) Section 464(d)(2)(B)(iii) is amended by 9
striking ‘‘section 461(k)(2)(E)’’ and inserting ‘‘sec-10
tion 461(j)(2)(E)’’. 11
(4) Subparagraphs (B) and (C) of section 12
1256(e)(3) are each amended by striking ‘‘section 13
461(k)(4)’’ and inserting ‘‘section 461(j)(4)’’. 14
(5) Section 1258(d)(5)(C) is amended by strik-15
ing ‘‘section 461(k)(4)’’ and inserting ‘‘section 16
461(j)(4)’’. 17
(c) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply to taxable years beginning after 19
the date of the enactment of this Act. 20
Subtitle C—Tax Benefits for 21
Families and Individuals 22
SEC. 121. INCREASE IN STANDARD DEDUCTION. 23
(a) I
NGENERAL.—Section 63(c)(2) is amended— 24
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(1) by striking ‘‘$4,400’’ in subparagraph (B) 1
and inserting ‘‘$18,000’’, and 2
(2) by striking ‘‘$3,000’’ in subparagraph (C) 3
and inserting ‘‘$12,000’’. 4
(b) I
NFLATIONADJUSTMENT.—Section 63(c)(4) is 5
amended to read as follows: 6
‘‘(4) A
DJUSTMENTS FOR INFLATION .— 7
‘‘(A) I
N GENERAL.—Each dollar amount in 8
paragraph (2)(B), (2)(C), or (5) or subsection 9
(f) shall be increased by an amount equal to— 10
‘‘(i) such dollar amount, multiplied by 11
‘‘(ii) the cost-of-living adjustment de-12
termined under section 1(f)(3) for the cal-13
endar year in which the taxable year be-14
gins, determined by substituting for ‘2016’ 15
in subparagraph (A)(ii) thereof— 16
‘‘(I) in the case of the dollar 17
amounts contained in paragraph 18
(2)(B) or (2)(C), ‘2017’, 19
‘‘(II) in the case of the dollar 20
amounts contained in paragraph 21
(5)(A) or subsection (f), ‘1987’, and 22
‘‘(III) in the case of the dollar 23
amount contained in paragraph 24
(5)(B), ‘1997’. 25
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‘‘(B) ROUNDING.—If any increase under 1
subparagraph (A) is not a multiple of $50, such 2
increase shall be rounded to the next lowest 3
multiple of $50.’’. 4
(c) C
ONFORMING AMENDMENT.—Section 63(c) is 5
amended by striking paragraph (7). 6
(d) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to taxable years beginning after 8
the date of the enactment of this Act. 9
SEC. 122. INCREASE IN AND MODIFICATION OF CHILD TAX 10
CREDIT. 11
(a) I
NGENERAL.—Section 24 is amended by striking 12
subsections (a), (b), and (c) and inserting the following 13
new subsections: 14
‘‘(a) A
LLOWANCE OF CREDIT.—There shall be al-15
lowed as a credit against the tax imposed by this chapter 16
for the taxable year an amount equal to the sum of— 17
‘‘(1) $2,000 for each qualifying child of the tax-18
payer, and 19
‘‘(2) $500 for each qualifying dependent (other 20
than a qualifying child) of the taxpayer. 21
‘‘(b) L
IMITATIONBASED ONADJUSTEDGROSSIN-22
COME.—The amount of the credit allowable under sub-23
section (a) shall be reduced (but not below zero) by $50 24
for each $1,000 (or fraction thereof) by which the tax-25
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payer’s modified adjusted gross income exceeds $400,000 1
in the case of a joint return ($200,000 in any other case). 2
For purposes of the preceding sentence, the term ‘‘modi-3
fied adjusted gross income’’ means adjusted gross income 4
increased by any amount excluded from gross income 5
under section 911, 931, or 933. 6
‘‘(c) Q
UALIFYINGCHILD; QUALIFYINGDEPEND-7
ENT.—For purposes of this section— 8
‘‘(1) Q
UALIFYING CHILD.—The term ‘qualifying 9
child’ means any qualifying dependent of the tax-10
payer— 11
‘‘(A) who is a qualifying child (as defined 12
in section 7706(c)) of the taxpayer, 13
‘‘(B) who has not attained age 17 at the 14
close of the calendar year in which the taxable 15
year of the taxpayer begins, and 16
‘‘(C) whose name and social security num-17
ber are included on the taxpayer’s return of tax 18
for the taxable year. 19
‘‘(2) Q
UALIFYING DEPENDENT .—The term 20
‘qualifying dependent’ means any dependent of the 21
taxpayer (as defined in section 7706 without regard 22
to all that follows ‘resident of the United States’ in 23
section 7706(b)(3)(A)) whose name and TIN are in-24
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cluded on the taxpayer’s return of tax for the tax-1
able year. 2
‘‘(3) S
OCIAL SECURITY NUMBER DEFINED .— 3
For purposes of this subsection, the term ‘social se-4
curity number’ means, with respect to a return of 5
tax, a social security number issued to an individual 6
by the Social Security Administration, but only if 7
the social security number is issued— 8
‘‘(A) to a citizen of the United States or 9
pursuant to subclause (I) (or that portion of 10
subclause (III) that relates to subclause (I)) of 11
section 205(c)(2)(B)(i) of the Social Security 12
Act, and 13
‘‘(B) on or before the due date of filing 14
such return.’’. 15
(b) P
ORTION OFCREDITREFUNDABLE.— 16
(1) I
N GENERAL.—Section 24(d)(1)(A) is 17
amended to read as follows: 18
‘‘(A) the credit which would be allowed 19
under this section determined— 20
‘‘(i) by substituting ‘$1,400’ for 21
‘$2,000’ in subsection (a)(1), 22
‘‘(ii) without regard to subsection 23
(a)(2), and 24
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‘‘(iii) without regard to this subsection 1
(other than this subparagraph) and the 2
limitation under section 26(a), or’’. 3
(2) M
ODIFICATION OF LIMITATION BASED ON 4
EARNED INCOME.—Section 24(d)(1)(B)(i) is amend-5
ed by striking ‘‘$3,000’’ and inserting ‘‘$2,500’’. 6
(3) I
NFLATION ADJUSTMENT .—Section 24(d) is 7
amended by inserting after paragraph (3) the fol-8
lowing new paragraph: 9
‘‘(4) A
DJUSTMENT FOR INFLATION .— 10
‘‘(A) I
N GENERAL.—The $1,400 amount in 11
paragraph (1)(A)(i) shall be increased by an 12
amount equal to— 13
‘‘(i) such dollar amount, multiplied by 14
‘‘(ii) the cost-of-living adjustment de-15
termined under section 1(f)(3) for the cal-16
endar year in which the taxable year be-17
gins, determined by substituting ‘2017’ for 18
‘2016’ in subparagraph (A)(ii) thereof. 19
‘‘(B) R
OUNDING.—If any increase under 20
subparagraph (A) is not a multiple of $100, 21
such increase shall be rounded to the next low-22
est multiple of $100. 23
‘‘(C) L
IMITATION.—The amount of any in-24
crease under subparagraph (A) (after the appli-25
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cation of subparagraph (B)) shall not exceed 1
$600.’’. 2
(4) C
ONFORMING AMENDMENTS .— 3
(A) Section 24(e) is amended to read as 4
follows: 5
‘‘(e) T
AXPAYERIDENTIFICATIONREQUIREMENT.— 6
No credit shall be allowed under this section if the identi-7
fying number of the taxpayer was issued after the due date 8
for filing the return of tax for the taxable year.’’. 9
(B) Section 24 is amended by striking sub-10
section (h). 11
(c) R
EPEAL OFCERTAINLATERENACTEDPROVI-12
SIONS.— 13
(1) Section 24 is amended by striking sub-14
sections (i), (j), and (k). 15
(2) Chapter 77 is amended by striking section 16
7527A (and by striking the item relating to section 17
7527A in the table of sections for such chapter). 18
(3) Section 26(b)(2) is amended by inserting 19
‘‘and’’ at the end of subparagraph (X), by striking 20
‘‘, and’’ at the end of subparagraph (Y) and insert-21
ing a period, and by striking subparagraph (Z). 22
(4) Section 3402(f)(1)(C) is amended by strik-23
ing ‘‘section 24 (determined after application of sub-24
section (j) thereof)’’ and inserting ‘‘section 24(a)’’. 25
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(5) Section 6211(b)(4)(A) is amended— 1
(A) by striking ‘‘24 by reason of sub-2
sections (d) and (i)(1) thereof’’ and inserting 3
‘‘24(d)’’, and 4
(B) by striking ‘‘6428B, and 7527A’’ and 5
inserting ‘‘and 6428B’’. 6
(6) Paragraph (2) of section 1324(b) of title 7
31, United States Code, is amended by striking 8
‘‘6431, or 7527A’’ and inserting ‘‘or 6431’’. 9
(d) E
FFECTIVEDATE.—The amendments made by 10
this section shall apply to taxable years beginning after 11
the date of the enactment of this Act. 12
SEC. 123. INCREASED LIMITATION FOR CERTAIN CHARI-13
TABLE CONTRIBUTIONS. 14
(a) I
NGENERAL.—Section 170(b)(1)(G) is amended 15
to read as follows: 16
‘‘(G) C
ASH CONTRIBUTIONS.— 17
‘‘(i) I
N GENERAL.—Any contribution 18
of cash to an organization described in 19
subparagraph (A) shall be allowed to the 20
extent that the aggregate of such contribu-21
tions does not exceed 60 percent of the 22
taxpayer’s contribution base for the taxable 23
year, reduced by the aggregate amount of 24
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contributions allowable under subpara-1
graph (A) for such taxpayer for such year. 2
‘‘(ii) C
ARRYOVER.—If the aggregate 3
amount of contributions described in clause 4
(i) exceeds the limitation of clause (i), such 5
excess shall be treated (in a manner con-6
sistent with the rules of subsection (d)(1)) 7
as a charitable contribution to which clause 8
(i) applies in each of the 5 succeeding 9
years in order of time.’’. 10
(b) C
OORDINATIONWITHLIMITATIONS ONOTHER 11
C
ONTRIBUTIONS.— 12
(1) C
OORDINATION WITH 50 PERCENT LIMITA -13
TION.—Section 170(b)(1)(A) is amended by striking 14
‘‘Any charitable contribution’’ and inserting ‘‘Any 15
charitable contribution other than a contribution de-16
scribed in subparagraph (G)’’. 17
(2) C
OORDINATION WITH 30 PERCENT LIMITA -18
TION.—Section 170(b)(1)(B) is amended— 19
(A) in the matter preceding clause (i), by 20
striking ‘‘to which subparagraph (A) applies’’ 21
and inserting ‘‘to which subparagraph (A) or 22
(G) applies’’, 23
(B) by amending clause (ii) to read as fol-24
lows: 25
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‘‘(ii) the excess of— 1
‘‘(I) the sum of 50 percent of the 2
taxpayer’s contribution base for the 3
taxable year, plus so much of the 4
amount of charitable contributions al-5
lowable under subparagraph (G) as 6
does not exceed 10 percent of such 7
contribution base, over 8
‘‘(II) the amount of charitable 9
contributions allowable under sub-10
paragraphs (A) and (G) (determined 11
without regard to subparagraph 12
(C)).’’, and 13
(C) in the matter following clause (ii), by 14
striking ‘‘(to which subparagraph (A) does not 15
apply)’’ and inserting ‘‘(to which neither sub-16
paragraph (A) nor (G) applies)’’. 17
(c) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply to contributions made in taxable 19
years beginning after the date of the enactment of this 20
Act. 21
SEC. 124. INCREASED CONTRIBUTIONS TO ABLE AC-22
COUNTS. 23
(a) I
NCREASE INLIMITATION FORCONTRIBUTIONS 24
F
ROMCOMPENSATION OF INDIVIDUALSWITHDISABIL-25
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ITIES.—Section 529A(b)(2)(B)(ii) is amended by striking 1
‘‘before January 1, 2026’’. 2
(b) A
LLOWANCE OF SAVER’SCREDIT FORABLE 3
C
ONTRIBUTIONS BY ACCOUNT HOLDER.—Section 4
25B(d)(1)(D) is amended by striking ‘‘made before Janu-5
ary 1, 2026,’’. 6
(c) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to taxable years beginning after 8
the date of the enactment of this Act. 9
SEC. 125. ROLLOVERS TO ABLE PROGRAMS FROM 529 PRO-10
GRAMS. 11
(a) I
NGENERAL.—Section 529(c)(3)(C)(i)(III) is 12
amended by striking ‘‘before January 1, 2026,’’. 13
(b) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to distributions after the date of 15
the enactment of this Act. 16
SEC. 126. TREATMENT OF CERTAIN INDIVIDUALS PER-17
FORMING SERVICES IN THE SINAI PENIN-18
SULA OF EGYPT. 19
(a) I
NGENERAL.—Section 112(c)(2) is amended— 20
(1) by striking ‘‘means any area’’ and inserting 21
‘‘means— 22
‘‘(A) any area’’, and 23
(2) by striking the period at the end and insert-24
ing ‘‘, and 25
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‘‘(B) the Sinai Peninsula of Egypt.’’. 1
(b) P
ERIOD OFTREATMENT.—Section 112(c)(3) is 2
amended— 3
(1) by striking ‘‘only if performed’’ and insert-4
ing ‘‘only if— 5
‘‘(A) in the case of an area described in 6
paragraph (2)(A), such service is performed’’, 7
and 8
(2) by striking the period at the end and insert-9
ing ‘‘, and 10
‘‘(B) in the case of the area described in 11
paragraph (2)(B), such service is performed 12
during any period with respect to which one or 13
more members of the Armed Forces of the 14
United States are entitled to special pay under 15
section 310 of title 37, United States Code (re-16
lating to special pay; duty subject to hostile fire 17
or imminent danger), for service performed in 18
such area.’’. 19
(c) C
ONFORMINGAMENDMENT.—The Tax Cuts and 20
Jobs Act is amended by striking section 11026. 21
(d) E
FFECTIVEDATE.—The amendments made by 22
this section shall apply with respect to services performed 23
on or after the date of the enactment of this Act. 24
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Subtitle D—Education 1
SEC. 131. TREATMENT OF STUDENT LOAN DISCHARGES. 2
(a) S
UNSET OFSPECIALRULE FORDISCHARGES OF 3
C
ERTAINLOANS.—Section 108(f)(5) is amended— 4
(1) in the heading, by striking ‘‘
2025’’ and in-5
serting ‘‘
2024’’, and 6
(2) by striking ‘‘January 1, 2026’’ and insert-7
ing ‘‘January 1, 2025’’. 8
(b) R
EINSTATEMENT OF RULE FORDISCHARGES ON 9
A
CCOUNT OFDEATH ORDISABILITYAFTER2024.—Sec-10
tion 108(f) is amended by adding at the end the following 11
new paragraph: 12
‘‘(6) D
ISCHARGES ON ACCOUNT OF DEATH OR 13
DISABILITY AFTER 2024.— 14
‘‘(A) I
N GENERAL.—In the case of an indi-15
vidual, gross income does not include any 16
amount which (but for this subsection) would 17
be includible in gross income for such taxable 18
year by reasons of the discharge (in whole or in 19
part) of any loan described in subparagraph 20
(B) after December 31, 2024, if such discharge 21
was— 22
‘‘(i) pursuant to subsection (a) or (d) 23
of section 437 of the Higher Education 24
Act of 1965 or the parallel benefit under 25
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part D of title IV of such Act (relating to 1
the repayment of loan liability), 2
‘‘(ii) pursuant to section 464(c)(1)(F) 3
of such Act, or 4
‘‘(iii) otherwise discharged on account 5
of the death or total and permanent dis-6
ability of the student. 7
‘‘(B) L
OANS DESCRIBED.—A loan is de-8
scribed in this subparagraph if such loan is— 9
‘‘(i) a student loan (as defined in 10
paragraph (2)), or 11
‘‘(ii) a private education loan (as de-12
fined in section 140(7) of the Consumer 13
Credit Protection Act (15 U.S.C. 14
1650(7))).’’. 15
(c) E
FFECTIVEDATE.—The amendments made by 16
this section shall apply to discharges of indebtedness after 17
December 31, 2024. 18
SEC. 132. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND 19
ADDITIONAL ELEMENTARY AND SECONDARY 20
EXPENSES. 21
(a) I
NGENERAL.—Section 529(c)(7) of the Internal 22
Revenue Code of 1986 is amended to read as follows: 23
‘‘(7) T
REATMENT OF ELEMENTARY AND SEC -24
ONDARY TUITION.—Any reference in this section to 25
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the term ‘qualified higher education expense’ shall 1
include a reference to the following expenses in con-2
nection with enrollment or attendance at, or for stu-3
dents enrolled at or attending, an elementary or sec-4
ondary public, private, or religious school: 5
‘‘(A) Tuition. 6
‘‘(B) Curriculum and curricular materials. 7
‘‘(C) Books or other instructional mate-8
rials. 9
‘‘(D) Online educational materials. 10
‘‘(E) Tuition for tutoring or educational 11
classes outside of the home, including at a tu-12
toring facility, but only if the tutor or instruc-13
tor is not related to the student and— 14
‘‘(i) is licensed as a teacher in any 15
State, 16
‘‘(ii) has taught at an eligible edu-17
cational institution, or 18
‘‘(iii) is a subject matter expert in the 19
relevant subject. 20
‘‘(F) Fees for a nationally standardized 21
norm-referenced achievement test, an advanced 22
placement examination, or any examinations re-23
lated to college or university admission. 24
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‘‘(G) Fees for dual enrollment in an insti-1
tution of higher education. 2
‘‘(H) Educational therapies for students 3
with disabilities provided by a licensed or ac-4
credited practitioner or provider, including oc-5
cupational, behavioral, physical, and speech-lan-6
guage therapies. 7
Such term shall include expenses for the purposes 8
described in subparagraphs (A) through (H) in con-9
nection with a homeschool (whether treated as a 10
homeschool or a private school for purposes of appli-11
cable State law).’’. 12
(b) E
FFECTIVEDATE.—The amendment made by 13
this section shall apply to distributions made after the 14
date of the enactment of this Act. 15
Subtitle E—Deductions and 16
Exclusions 17
SEC. 141. REPEAL OF DEDUCTION FOR PERSONAL EXEMP-18
TIONS. 19
(a) I
NGENERAL.—Part V of subchapter B of chapter 20
1 is hereby repealed. 21
(b) D
EFINITION OFDEPENDENTRETAINED.—Sec-22
tion 152, prior to the repeal made by subsection (a), is 23
hereby redesignated as section 7706 and moved to the end 24
of chapter 79. 25
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(c) APPLICATION TOTRUSTS ANDESTATES.—Sec-1
tion 642(b) is amended— 2
(1) in paragraph (2)(C)— 3
(A) in clause (i), by striking ‘‘the exemp-4
tion amount under section 151(d)’’ and all that 5
follows through the period at the end and in-6
serting ‘‘the dollar amount in effect under sec-7
tion 7706(d)(1)(B).’’, and 8
(B) by striking clause (iii), 9
(2) by striking paragraph (3), and 10
(3) by striking ‘‘D
EDUCTIONFORPERSONAL 11
E
XEMPTION’’ in the heading thereof and inserting 12
‘‘B
ASICDEDUCTION’’. 13
(d) A
PPLICATION TONONRESIDENTALIENS.—Sec-14
tion 873(b) is amended by striking paragraph (3). 15
(e) M
ODIFICATION OFRETURNREQUIREMENT.— 16
(1) I
N GENERAL.—Section 6012(a)(1) is 17
amended to read as follows: 18
‘‘(1) Every individual who has gross income for 19
the taxable year, except that a return shall not be 20
required of— 21
‘‘(A) an individual who is not married (de-22
termined by applying section 7703) and who 23
has gross income for the taxable year which 24
does not exceed the standard deduction applica-25
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ble to such individual for such taxable year 1
under section 63, or 2
‘‘(B) an individual entitled to make a joint 3
return if— 4
‘‘(i) the gross income of such indi-5
vidual, when combined with the gross in-6
come of such individual’s spouse, for the 7
taxable year does not exceed the standard 8
deduction which would be applicable for 9
such taxable year under section 63 if such 10
individual and such individual’s spouse 11
made a joint return, 12
‘‘(ii) such individual’s spouse does not 13
make a separate return, and 14
‘‘(iii) neither such individual nor such 15
individual’s spouse is an individual de-16
scribed in section 63(c)(4) who has income 17
(other than earned income) in excess of the 18
amount in effect under section 19
63(c)(4)(A).’’. 20
(2) B
ANKRUPTCY ESTATES .—Section 21
6012(a)(8) is amended by striking ‘‘the sum of the 22
exemption amount plus the basic standard deduction 23
under section 63(c)(2)(C)’’ and inserting ‘‘the stand-24
ard deduction in effect under section 63(c)(1)(B)’’. 25
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(3) CONFORMING AMENDMENT .—Section 6012 1
is amended by striking subsection (f). 2
(f) C
ONFORMINGAMENDMENTS.— 3
(1) Section 1(g)(5)(A) is amended by striking 4
‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 5
(2) Section 2(a)(1)(B) is amended— 6
(A) by striking ‘‘section 152’’ and insert-7
ing ‘‘section 7706’’, and 8
(B) by striking ‘‘with respect to whom the 9
taxpayer is entitled to a deduction for the tax-10
able year under section 151’’ and inserting 11
‘‘whose TIN is included on the taxpayer’s re-12
turn of tax for the taxable year’’. 13
(3) Section 2(b)(1)(A)(i) is amended— 14
(A) in the matter preceding subclause 15
(I)— 16
(i) by striking ‘‘section 152(c)’’ and 17
inserting ‘‘section 7706(c)’’, and 18
(ii) by striking ‘‘section 152(e)’’ and 19
inserting ‘‘section 7706(e)’’, and 20
(B) in subclause (II), by striking ‘‘section 21
152(b)(2) or 152(b)(3)’’ and inserting ‘‘section 22
7706(b)(2) or 7706(b)(3)’’. 23
(4) Section 2(b)(1)(A)(ii) is amended by strik-24
ing ‘‘if the taxpayer is entitled to a deduction for the 25
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taxable year for such person under section 151’’ and 1
inserting ‘‘if the taxpayer included such person’s 2
TIN on the return of tax for the taxable year’’. 3
(5) Section 2(b)(1)(B) is amended by striking 4
‘‘if the taxpayer is entitled to a deduction for the 5
taxable year for such father or mother under section 6
151’’ and inserting ‘‘if such father or mother is a 7
dependent of the taxpayer and the taxpayer included 8
such father or mother’s TIN on the return of tax for 9
the taxable year’’. 10
(6) Section 2(b)(3)(B) is amended— 11
(A) by striking ‘‘section 152(d)(2)’’ in 12
clause (i) and inserting ‘‘section 7706(d)(2)’’, 13
and 14
(B) by striking ‘‘section 152(d)’’ in clause 15
(ii) and inserting ‘‘section 7706(d)’’. 16
(7) Section 21(b)(1)(A) is amended by striking 17
‘‘section 152(a)(1)’’ and inserting ‘‘section 18
7706(a)(1)’’. 19
(8) Section 21(b)(1)(B) is amended by striking 20
‘‘section 152’’ and inserting ‘‘section 7706’’. 21
(9) Section 21(e)(5)(A) is amended by striking 22
‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 23
(10) Section 21(e)(5) is amended by striking 24
‘‘section 152(e)(4)(A)’’ in the matter following sub-25
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paragraph (B) and inserting ‘‘section 1
7706(e)(4)(A)’’. 2
(11) Section 21(e)(6)(A) is amended to read as 3
follows: 4
‘‘(A) who is a dependent of either the tax-5
payer or the taxpayer’s spouse for the taxable 6
year, or’’. 7
(12) Section 21(e)(6)(B) is amended by striking 8
‘‘section 152(f)(1)’’ and inserting ‘‘section 9
7706(f)(1)’’. 10
(13) Section 25A(f)(1)(A)(iii) is amended by 11
striking ‘‘with respect to whom the taxpayer is al-12
lowed a deduction under section 151’’. 13
(14) Section 25A(g)(3) is amended by striking 14
‘‘If a deduction under section 151 with respect to an 15
individual is allowed to another taxpayer’’ and in-16
serting ‘‘If an individual is a dependent of another 17
taxpayer’’. 18
(15) Section 25B(c)(2)(A) is amended by strik-19
ing ‘‘any individual with respect to whom a deduc-20
tion under section 151 is allowed to another tax-21
payer’’ and inserting ‘‘any individual who is a de-22
pendent of another taxpayer’’. 23
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(16) Section 25B(c)(2)(B) is amended by strik-1
ing ‘‘section 152(f)(2)’’ and inserting ‘‘section 2
7706(f)(2)’’. 3
(17) Section 32(c)(1)(A)(ii)(III) is amended by 4
striking ‘‘a dependent for whom a deduction is al-5
lowable under section 151 to another taxpayer’’ and 6
inserting ‘‘a dependent of another taxpayer’’. 7
(18) Section 32(c)(3) is amended— 8
(A) in subparagraph (A)— 9
(i) by striking ‘‘section 152(c)’’ and 10
inserting ‘‘section 7706(c)’’, and 11
(ii) by striking ‘‘section 152(e)’’ and 12
inserting ‘‘section 7706(e)’’, 13
(B) in subparagraph (B), by striking ‘‘un-14
less the taxpayer is entitled to a deduction 15
under section 151 for such taxable year with re-16
spect to such individual (or would be so entitled 17
but for section 152(e)’’ and inserting ‘‘if such 18
individual is not treated as a dependent of such 19
taxpayer for such taxable year by reason of sec-20
tion 7706(b)(2) (determined without regard to 21
section 7706(e))’’, and 22
(C) in subparagraph (C), by striking ‘‘sec-23
tion 152(c)(1)(B)’’ and inserting ‘‘section 24
7706(c)(1)(B)’’. 25
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(19) Section 35(d)(1)(B) is amended by strik-1
ing ‘‘with respect to whom the taxpayer is entitled 2
to a deduction under section 151(c)’’ and inserting 3
‘‘if the taxpayer included such person’s TIN on the 4
return of tax for the taxable year’’. 5
(20) Section 35(d)(2) is amended— 6
(A) by striking ‘‘section 152(e)’’ and in-7
serting ‘‘section 7706(e)’’, and 8
(B) by striking ‘‘section 152(e)(4)(A)’’ and 9
inserting ‘‘section 7706(e)(4)(A)’’. 10
(21) Section 36B(b)(2)(A) is amended by strik-11
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 12
(22) Section 36B(b)(3)(B) is amended— 13
(A) in clause (ii)(I)(aa), by striking ‘‘who 14
is not allowed a deduction under section 151 for 15
the taxable year with respect to a dependent’’ 16
and inserting ‘‘who does not have any depend-17
ents for the taxable year’’, and 18
(B) in the flush matter at the end, by 19
striking ‘‘unless a deduction is allowed under 20
section 151 for the taxable year with respect to 21
a dependent’’ and inserting ‘‘unless the tax-22
payer has a dependent for the taxable year (and 23
the taxpayer included such dependent’s TIN on 24
the return of tax for the taxable year)’’. 25
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(23) Section 36B(c)(1)(D) is amended by strik-1
ing ‘‘with respect to whom a deduction under section 2
151 is allowable to another taxpayer’’ and inserting 3
‘‘who is a dependent of another taxpayer’’. 4
(24) Section 36B(d)(1) is amended by striking 5
‘‘equal to the number of individuals for whom the 6
taxpayer is allowed a deduction under section 151 7
(relating to allowance of deduction for personal ex-8
emptions) for the taxable year’’ and inserting ‘‘the 9
sum of 1 (2 in the case of a joint return) plus the 10
number of individuals who are dependents of the 11
taxpayer for the taxable year’’. 12
(25) Section 36B(e)(1) is amended by striking 13
‘‘1 or more individuals for whom a taxpayer is al-14
lowed a deduction under section 151 (relating to al-15
lowance of deduction for personal exemptions) for 16
the taxable year (including the taxpayer or his 17
spouse)’’ and inserting ‘‘1 or more of the taxpayer, 18
the taxpayer’s spouse, or any dependent of the tax-19
payer’’. 20
(26) Section 42(i)(3)(D)(ii)(I) is amended by 21
striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 22
(27) Section 45R(e)(1)(A)(iv) is amended— 23
(A) by striking ‘‘section 152(d)(2)’’ and in-24
serting ‘‘section 7706(d)(2)’’, and 25
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(B) by striking ‘‘section 152(d)(2)(H)’’ 1
and inserting ‘‘section 7706(d)(2)(H)’’. 2
(28) Section 51(i)(1) is amended— 3
(A) by striking ‘‘section 152(d)(2)’’ in sub-4
paragraphs (A) and (B) and inserting ‘‘section 5
7706(d)(2)’’, and 6
(B) by striking ‘‘section 152(d)(2)(H)’’ in 7
subparagraph (C) and inserting ‘‘section 8
7706(d)(2)(H)’’. 9
(29) Section 56(b)(1)(D) is amended— 10
(A) by striking ‘‘, the deduction for per-11
sonal exemptions under section 151,’’, and 12
(B) by striking ‘‘
AND DEDUCTION FOR 13
PERSONAL EXEMPTIONS ’’ in the heading there-14
of. 15
(30) Section 63(b) is amended by adding ‘‘and’’ 16
at the end of paragraph (1), by striking paragraph 17
(2), and by redesignating paragraph (3) as para-18
graph (2). 19
(31) Section 63(c), as amended by section 121, 20
is amended by striking paragraph (3) and redesig-21
nating paragraphs (4), (5), and (6) as paragraphs 22
(3), (4), and (5), respectively. 23
(32) Section 63(c)(4), as redesignated, is 24
amended— 25
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(A) by striking ‘‘with respect to whom a 1
deduction under section 151 is allowable to’’ 2
and inserting ‘‘who is a dependent of’’, and 3
(B) by striking ‘‘
CERTAIN’’ in the heading 4
thereof. 5
(33) Section 63(f) is amended by striking all 6
that precedes paragraph (3) and inserting the fol-7
lowing: 8
‘‘(f) A
DDITIONALSTANDARDDEDUCTION FOR THE 9
A
GED ANDBLIND.— 10
‘‘(1) I
N GENERAL.—For purposes of subsection 11
(c)(1), the additional standard deduction is, with re-12
spect to a taxpayer for a taxable year, the sum of— 13
‘‘(A) $600 if the taxpayer has attained age 14
65 before the close of such taxable year, and 15
‘‘(B) $600 if the taxpayer is blind as of 16
the close of such taxable year. 17
‘‘(2) A
PPLICATION TO MARRIED INDIVID -18
UALS.— 19
‘‘(A) J
OINT RETURNS.—In the case of a 20
joint return, paragraph (1) shall be applied sep-21
arately with respect to each spouse. 22
‘‘(B) C
ERTAIN MARRIED INDIVIDUALS FIL -23
ING SEPARATELY.—In the case of a married in-24
dividual filing a separate return, if— 25
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‘‘(i) the spouse of such individual has 1
no gross income for the calendar year in 2
which the taxable year of such individual 3
begins, 4
‘‘(ii) such spouse is not the dependent 5
of another taxpayer for a taxable year be-6
ginning in the calendar year in which such 7
individual’s taxable year begins, and 8
‘‘(iii) the TIN of such spouse is in-9
cluded on such individual’s return of tax 10
for the taxable year, 11
the additional standard deduction shall be de-12
termined in the same manner as if such indi-13
vidual and such individual’s spouse filed a joint 14
return.’’. 15
(34) Section 63(f)(3) is amended by striking 16
‘‘paragraphs (1) and (2)’’ and inserting ‘‘subpara-17
graphs (A) and (B) of paragraph (1)’’. 18
(35) Section 72(t)(2)(D)(i)(III) is amended by 19
striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 20
(36) Section 72(t)(7)(A)(iii) is amended by 21
striking ‘‘section 152(f)(1)’’ and inserting ‘‘section 22
7706(f)(1)’’. 23
(37) Section 105(b) is amended— 24
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(A) by striking ‘‘as defined in section 152’’ 1
and inserting ‘‘as defined in section 7706’’, 2
(B) by striking ‘‘section 152(f)(1)’’ and in-3
serting ‘‘section 7706(f)(1)’’, and 4
(C) by striking ‘‘section 152(e)’’ and in-5
serting ‘‘section 7706(e)’’. 6
(38) Section 105(c)(1) is amended by striking 7
‘‘section 152’’ and inserting ‘‘section 7706’’. 8
(39) Section 125(e)(1)(D) is amended by strik-9
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 10
(40) Section 129(c)(1) is amended to read as 11
follows: 12
‘‘(1) who is a dependent of such employee or of 13
such employee’s spouse, or’’. 14
(41) Section 129(c)(2) is amended by striking 15
‘‘section 152(f)(1)’’ and inserting ‘‘section 16
7706(f)(1)’’. 17
(42) Section 132(h)(2)(B) is amended— 18
(A) by striking ‘‘section 152(f)(1)’’ and in-19
serting ‘‘section 7706(f)(1)’’, and 20
(B) by striking ‘‘section 152(e)’’ and in-21
serting ‘‘section 7706(e)’’. 22
(43) Section 139D(c)(5) is amended by striking 23
‘‘section 152’’ and inserting ‘‘section 7706’’. 24
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(44) Section 139E(c)(2) is amended by striking 1
‘‘section 152’’ and inserting ‘‘section 7706’’. 2
(45) Section 162(l)(1)(D) is amended by strik-3
ing ‘‘section 152(f)(1)’’ and inserting ‘‘section 4
7706(f)(1)’’. 5
(46) Section 170(g)(1) is amended by striking 6
‘‘section 152’’ and inserting ‘‘section 7706’’. 7
(47) Section 170(g)(3) is amended by striking 8
‘‘section 152(d)(2)’’ and inserting ‘‘section 9
7706(d)(2)’’. 10
(48) Section 172(d) is amended by striking 11
paragraph (3). 12
(49) Section 213(a) is amended by striking 13
‘‘section 152’’ and inserting ‘‘section 7706’’. 14
(50) Section 213(d)(5) is amended by striking 15
‘‘section 152(e)’’ and inserting ‘‘section 7706(e)’’. 16
(51) Section 213(d)(11) is amended by striking 17
‘‘section 152(d)(2)’’ in the matter following subpara-18
graph (B) and inserting ‘‘section 7706(d)(2)’’. 19
(52) Section 220(b)(6) is amended by striking 20
‘‘with respect to whom a deduction under section 21
151 is allowable to’’ and inserting ‘‘who is a depend-22
ent of’’. 23
(53) Section 220(d)(2)(A) is amended by strik-24
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 25
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(54) Section 221(d)(4) is amended by striking 1
‘‘section 152’’ and inserting ‘‘section 7706’’. 2
(55) Section 223(b)(6) is amended by striking 3
‘‘with respect to whom a deduction under section 4
151 is allowable to’’ and inserting ‘‘who is a depend-5
ent of’’. 6
(56) Section 223(d)(2)(A) is amended by strik-7
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 8
(57) Section 401(h) is amended by striking 9
‘‘section 152(f)(1)’’ in the last sentence and insert-10
ing ‘‘section 7706(f)(1)’’. 11
(58) Section 402(l)(4)(D) is amended by strik-12
ing ‘‘section 152’’ and inserting ‘‘section 7706’’. 13
(59) Section 409A(a)(2)(B)(ii)(I) is amended 14
by striking ‘‘section 152(a)’’ and inserting ‘‘section 15
7706(a)’’. 16
(60) Section 441(f)(2)(B)(iii) is amended by 17
striking ‘‘, but only the adjusted amount of the de-18
ductions for personal exemptions as described in sec-19
tion 443(c)’’. 20
(61) Section 443 is amended— 21
(A) in subsection (b)— 22
(i) by striking paragraph (3), and 23
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(ii) by striking ‘‘modified taxable in-1
come’’ and inserting ‘‘taxable income’’ each 2
place such term appears, 3
(B) by striking subsection (c), and 4
(C) by redesignating subsections (d) and 5
(e) as subsections (c) and (d), respectively. 6
(62) Section 501(c)(9) is amended by striking 7
‘‘section 152(f)(1)’’ and inserting ‘‘section 8
7706(f)(1)’’. 9
(63) Section 529(e)(2)(B) is amended by strik-10
ing ‘‘section 152(d)(2)’’ and inserting ‘‘section 11
7706(d)(2)’’. 12
(64) Section 529A(e)(4) is amended— 13
(A) by striking ‘‘section 152(d)(2)(B)’’ and 14
inserting ‘‘section 7706(d)(2)(B)’’, and 15
(B) by striking ‘‘section 152(f)(1)(B)’’ and 16
inserting ‘‘section 7706(f)(1)(B)’’. 17
(65) Section 643(a)(2) is amended— 18
(A) by striking ‘‘(relating to deduction for 19
personal exemptions)’’ and inserting ‘‘(relating 20
to basic deduction)’’, and 21
(B) by striking ‘‘D
EDUCTION FOR PER -22
SONAL EXEMPTION’’ in the heading thereof and 23
inserting ‘‘B
ASIC DEDUCTION’’. 24
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(66) Section 703(a)(2) is amended by striking 1
subparagraph (A) and by redesignating subpara-2
graphs (B) through (F) as subparagraphs (A) 3
through (E), respectively. 4
(67) Section 874 is amended by striking sub-5
section (b) and by redesignating subsection (c) as 6
subsection (b). 7
(68) Section 891 is amended by striking ‘‘under 8
section 151 and’’. 9
(69) Section 904(b)(1) is amended to read as 10
follows: 11
‘‘(1) D
EDUCTION FOR ESTATES AND TRUSTS .— 12
For purposes of subsection (a), the taxable income 13
of an estate or trust shall be computed without any 14
deduction under section 642(b).’’. 15
(70) Section 931(b)(1) is amended to read as 16
follows: 17
‘‘(1) any deduction from gross income, or’’. 18
(71) Section 933 is amended— 19
(A) by striking ‘‘as a deduction from his 20
gross income any deductions (other than the de-21
duction under section 151, relating to personal 22
exemptions)’’ in paragraph (1) and inserting 23
‘‘any deduction from gross income’’, and 24
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•HR 976 IH
(B) by striking ‘‘as a deduction from his 1
gross income any deductions (other than the de-2
duction for personal exemptions under section 3
151)’’ in paragraph (2) and inserting ‘‘any de-4
duction from gross income’’. 5
(72) Section 1212(b)(2)(B)(ii) is amended to 6
read as follows: 7
‘‘(ii) in the case of an estate or trust, 8
the deduction allowed for such year under 9
section 642(b).’’. 10
(73) Section 1361(c)(1)(C) is amended by strik-11
ing ‘‘section 152(f)(1)(C)’’ and inserting ‘‘section 12
7706(f)(1)(C)’’. 13
(74) Section 1402(a) is amended by striking 14
paragraph (7). 15
(75) Section 2032A(c)(7)(D) is amended by 16
striking ‘‘section 152(f)(2)’’ and inserting ‘‘section 17
7706(f)(2)’’. 18
(76) Section 3402(f)(1)(A) is amended by strik-19
ing ‘‘for whom a deduction is allowable with respect 20
to another taxpayer under section 151’’ and insert-21
ing ‘‘who is a dependent of another taxpayer’’. 22
(77) Section 3402(m)(1) is amended by striking 23
‘‘other than the deductions referred to in section 24
151 and’’. 25
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(78) Section 3402(m)(3) is amended by striking 1
‘‘section 63(c)(3)’’ and inserting ‘‘section 63(f)’’. 2
(79) Section 3402(r)(2) is amended by striking 3
‘‘the sum of—’’ and all that follows and inserting 4
‘‘the basic standard deduction (as defined in section 5
63(c)) for an individual to whom section 63(c)(2)(C) 6
applies.’’. 7
(80) Section 5000A(b)(3)(A) is amended by 8
striking ‘‘section 152’’ and inserting ‘‘section 7706’’. 9
(81) Section 5000A(c)(4)(A) is amended by 10
striking ‘‘the number of individuals for whom the 11
taxpayer is allowed a deduction under section 151 12
(relating to allowance of deduction for personal ex-13
emptions) for the taxable year’’ and inserting ‘‘the 14
sum of 1 (2 in the case of a joint return) plus the 15
number of the taxpayer’s dependents for the taxable 16
year’’. 17
(82) Section 6013(b)(3)(A) is amended— 18
(A) by striking ‘‘had less than the exemp-19
tion amount of gross income’’ in clause (ii) and 20
inserting ‘‘had no gross income’’, 21
(B) by striking ‘‘had gross income of the 22
exemption amount or more’’ in clause (iii) and 23
inserting ‘‘had any gross income’’, and 24
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(C) by striking the flush language fol-1
lowing clause (iii). 2
(83) Section 6014(a) is amended by striking 3
‘‘section 6012(a)(1)(C)(i)’’ and inserting ‘‘section 4
6012(a)(1)(B)(iii)’’. 5
(84) Section 6014(b)(4) is amended by striking 6
‘‘63(c)(5)’’ and inserting ‘‘63(c)(4)’’. 7
(85) Section 6103(l)(13) is amended— 8
(A) in subparagraph (A), by striking 9
clause (iv) and redesignating clauses (v) and 10
(vi) as clauses (iv) and (v), respectively, and 11
(B) in subparagraph (C)(i), by striking 12
‘‘clauses (i) through (iv)’’ and inserting 13
‘‘clauses (i) through (iii)’’. 14
(86) Section 6103(l)(21)(A)(iii) is amended to 15
read as follows: 16
‘‘(iii) the number of the taxpayer’s de-17
pendents,’’. 18
(87) Section 6213(g)(2)(H) is amended by 19
striking ‘‘section 21 (relating to expenses for house-20
hold and dependent care services necessary for gain-21
ful employment) or section 151 (relating to allow-22
ance of deductions for personal exemptions)’’ and in-23
serting ‘‘subsection (a)(1)(B), (b)(1)(A)(ii), or 24
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(b)(1)(B) of section 2 or section 21, 35(d)(1)(B), 1
36B(b)(3)(B), or 63(f)(2)(B)’’. 2
(88) Section 6334(d) is amended— 3
(A) by amending paragraph (2) to read as 4
follows: 5
‘‘(2) E
XEMPT AMOUNT.— 6
‘‘(A) I
N GENERAL.—For purposes of para-7
graph (1), the term ‘exempt amount’ means an 8
amount equal to— 9
‘‘(i) the sum of the amount deter-10
mined under subparagraph (B) and the 11
standard deduction, divided by 12
‘‘(ii) 52. 13
‘‘(B) A
MOUNT DETERMINED .—For pur-14
poses of subparagraph (A), the amount deter-15
mined under this subparagraph is— 16
‘‘(i) the dollar amount in effect under 17
section 7706(d)(1)(B), multiplied by 18
‘‘(ii) the number of the taxpayer’s de-19
pendents for the taxable year in which the 20
levy occurs. 21
‘‘(C) V
ERIFIED STATEMENT .—Unless the 22
taxpayer submits to the Secretary a written and 23
properly verified statement specifying the facts 24
necessary to determine the proper amount 25
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under subparagraph (A), subparagraph (A) 1
shall be applied as if the taxpayer were a mar-2
ried individual filing a separate return with no 3
dependents.’’, and 4
(B) by striking paragraph (4). 5
(89) Section 7702B(f)(2)(C)(iii) is amended by 6
striking ‘‘section 152(d)(2)’’ and inserting ‘‘section 7
7706(d)(2)’’. 8
(90) Section 7703(a) is amended by striking 9
‘‘part V of subchapter B of chapter 1 and’’. 10
(91) Section 7703(b)(1) is amended by striking 11
‘‘section 152(f)(1))’’ and all that follows and insert-12
ing ‘‘section 7706(f)(1)) who is a dependent of such 13
individual for the taxable year (or would be but for 14
section 7706(e)),’’. 15
(92) Section 7706(a), as redesignated by this 16
section, is amended by striking ‘‘this subtitle’’ and 17
inserting ‘‘this title’’. 18
(93)(A) Section 7706(d)(1)(B), as redesignated 19
by this section, is amended by striking ‘‘the exemp-20
tion amount (as defined in section 151(d))’’ and in-21
serting ‘‘$4,150’’. 22
(B) Section 7706(d), as redesignated by this 23
section, is amended by adding at the end the fol-24
lowing new paragraph: 25
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‘‘(6) INFLATION ADJUSTMENT .—The $4,150 1
amount in paragraph (1)(B) shall be increased by an 2
amount equal to— 3
‘‘(A) such dollar amount, multiplied by 4
‘‘(B) the cost-of-living adjustment deter-5
mined under section 1(f)(3) for the calendar 6
year in which such taxable year begins, deter-7
mined by substituting ‘calendar year 2017’ for 8
‘calendar year 2016’ in subparagraph (A)(ii) 9
thereof. 10
If any increase determined under the preceding sen-11
tence is not a multiple of $50, such increase shall 12
be rounded to the next lowest multiple of $50.’’. 13
(94) Section 7706(e)(3), as redesignated by this 14
section, is amended by inserting ‘‘(as in effect before 15
its repeal)’’ after ‘‘section 151’’. 16
(95) Section 7706(f)(6)(B), as redesignated by 17
this section, is amended by striking clause (i) and 18
designating clauses (ii), (iii), and (iv) as clauses (i), 19
(ii), and (iii), respectively. 20
(96) The table of parts for subchapter B of 21
chapter 1 is amended by striking the item relating 22
to part V. 23
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(97) The table of sections for chapter 79 is 1
amended by adding at the end the following new 2
item: 3
‘‘Sec. 7706. Dependent defined.’’. 
(g) EFFECTIVEDATE.—The amendments made by 4
this section shall apply to taxable years beginning after 5
the date of the enactment of this Act. 6
SEC. 142. LIMITATION ON DEDUCTION FOR STATE AND 7
LOCAL, ETC., TAXES. 8
(a) I
NGENERAL.—Section 164(b)(6) is amended by 9
striking all that precedes ‘‘The preceding sentence’’ and 10
inserting the following: 11
‘‘(6) L
IMITATION ON INDIVIDUAL DEDUC -12
TIONS.—In the case of an individual— 13
‘‘(A) no deduction shall be allowed under 14
this chapter for foreign real property taxes paid 15
or accrued during the taxable year, and 16
‘‘(B) the aggregate amount of the deduc-17
tion allowed under this chapter for taxes de-18
scribed in paragraphs (1), (2), and (3) of sub-19
section (a) and paragraph (5) of this subsection 20
(and any tax described in any such paragraph 21
taken into account under section 216(a)(1)) 22
paid or accrued by the taxpayer during the tax-23
able year shall not exceed $10,000 ($5,000 in 24
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the case of a married individual filing a sepa-1
rate return).’’. 2
(b) E
FFECTIVEDATE.—The amendment made by 3
this section shall apply to taxable years beginning after 4
the date of the enactment of this Act. 5
SEC. 143. LIMITATION ON DEDUCTION FOR QUALIFIED RES-6
IDENCE INTEREST. 7
(a) I
NTEREST ONHOMEEQUITYINDEBTEDNESS.— 8
Section 163(h)(3)(A) is amended by striking ‘‘during the 9
taxable year on’’ and all that follows through ‘‘residence 10
of the taxpayer.’’ and inserting ‘‘during the taxable year 11
on acquisition indebtedness with respect to any qualified 12
residence of the taxpayer.’’. 13
(b) L
IMITATION ONACQUISITIONINDEBTEDNESS.— 14
Section 163(h)(3)(B)(ii) is amended to read as follows: 15
‘‘(ii) L
IMITATION.—The aggregate 16
amount treated as acquisition indebtedness 17
for any period shall not exceed the excess 18
(if any) of— 19
‘‘(I) $750,000 ($375,000, in the 20
case of a married individual filing a 21
separate return), over 22
‘‘(II) the sum of the aggregate 23
outstanding pre-October 13, 1987, in-24
debtedness (as defined in subpara-25
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graph (D)) plus the aggregate out-1
standing pre-December 15, 2017, in-2
debtedness (as defined in subpara-3
graph (C)).’’. 4
(c) T
REATMENT OF INDEBTEDNESS INCURRED ON 5
ORBEFOREDECEMBER15, 2017.—Section 163(h)(3)(C) 6
is amended to read as follows: 7
‘‘(C) T
REATMENT OF INDEBTEDNESS IN -8
CURRED ON OR BEFORE DECEMBER 15 , 2017.— 9
‘‘(i) I
N GENERAL.—In the case of any 10
pre-December 15, 2017, indebtedness, sub-11
paragraph (B)(ii) shall not apply and the 12
aggregate amount of such indebtedness 13
treated as acquisition indebtedness for any 14
period shall not exceed the excess (if any) 15
of— 16
‘‘(I) $1,000,000 ($500,000, in 17
the case of a married individual filing 18
a separate return), over 19
‘‘(II) the aggregate outstanding 20
pre-October 13, 1987, indebtedness 21
(as defined in subparagraph (D)). 22
‘‘(ii) P
RE-DECEMBER 15, 2017, IN-23
DEBTEDNESS.—For purposes of this sub-24
paragraph— 25
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‘‘(I) IN GENERAL.—The term 1
‘pre-December 15, 2017, indebted-2
ness’ means indebtedness (other than 3
pre-October 13, 1987, indebtedness) 4
incurred on or before December 15, 5
2017. 6
‘‘(II) B
INDING WRITTEN CON -7
TRACT EXCEPTION.—In the case of a 8
taxpayer who enters into a written 9
binding contract before December 15, 10
2017, to close on the purchase of a 11
principal residence before January 1, 12
2018, and who purchases such resi-13
dence before April 1, 2018, the term 14
‘pre-December 15, 2017, indebted-15
ness’ shall include indebtedness se-16
cured by such residence. 17
‘‘(iii) R
EFINANCING INDEBTED -18
NESS.— 19
‘‘(I) I
N GENERAL.—In the case 20
of any indebtedness which is incurred 21
to refinance indebtedness, such refi-22
nanced indebtedness shall be treated 23
for purposes of this subparagraph as 24
incurred on the date that the original 25
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indebtedness was incurred to the ex-1
tent the amount of the indebtedness 2
resulting from such refinancing does 3
not exceed the amount of the refi-4
nanced indebtedness. 5
‘‘(II) L
IMITATION ON PERIOD OF 6
REFINANCING.—Subclause (I) shall 7
not apply to any indebtedness after 8
the expiration of the term of the origi-9
nal indebtedness or, if the principal of 10
such original indebtedness is not am-11
ortized over its term, the expiration of 12
the term of the 1st refinancing of 13
such indebtedness (or if earlier, the 14
date which is 30 years after the date 15
of such 1st refinancing).’’. 16
(d) C
OORDINATIONWITHTREATMENT OF INDEBT-17
EDNESSINCURRED ON ORBEFOREOCTOBER13, 1987.— 18
Section 163(h)(3)(D) is amended— 19
(1) by striking clause (ii) and redesignating 20
clauses (iii) and (iv) as clauses (ii) and (iii), respec-21
tively, and 22
(2) in clause (iii) (as so redesignated)— 23
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(A) by striking ‘‘clause (iii)’’ in the matter 1
preceding subclause (I) and inserting ‘‘clause 2
(ii)’’, and 3
(B) by striking ‘‘clause (iii)(I)’’ in sub-4
clauses (I) and (II) and inserting ‘‘clause 5
(ii)(I)’’. 6
(e) C
OORDINATIONWITHEXCLUSION OF INCOME 7
F
ROM DISCHARGE OF INDEBTEDNESS.—Section 8
108(h)(2) is amended by striking ‘‘applied by substituting 9
‘$750,000 ($375,000’ for ‘$1,000,000 ($500,000’ in 10
clause (ii) thereof and’’. 11
(f) C
ONFORMINGAMENDMENT.—Section 163(h)(3) 12
is amended by striking subparagraph (F). 13
(g) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to taxable years beginning after 15
the date of the enactment of this Act. 16
SEC. 144. MODIFICATION OF DEDUCTION FOR PERSONAL 17
CASUALTY LOSSES. 18
(a) I
NGENERAL.—Section 165(h)(5)(A) is amended 19
by striking ‘‘in a taxable year beginning after December 20
31, 2017, and before January 1, 2026,’’. 21
(b) C
ONFORMINGAMENDMENTS.— 22
(1) Section 165(h)(5)(B) is amended by strik-23
ing ‘‘for any taxable year to which subparagraph (A) 24
applies’’. 25
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(2) Section 165(h)(5) is amended by striking 1
‘‘
FOR TAXABLE YEARS 2018 THROUGH 2025 ’’ in the 2
heading thereof and inserting ‘‘
TO LOSSES ATTRIB-3
UTABLE TO FEDERALLY DECLARED DISASTERS ’’. 4
(c) E
FFECTIVEDATE.—The amendments made by 5
this section shall apply to losses sustained in taxable years 6
beginning after the date of the enactment of this Act. 7
SEC. 145. TERMINATION OF MISCELLANEOUS ITEMIZED DE-8
DUCTIONS. 9
(a) I
NGENERAL.—Section 67 is amended— 10
(1) by amending subsection (a) to read as fol-11
lows: 12
‘‘(a) I
NGENERAL.—In the case of an individual, mis-13
cellaneous itemized deductions shall not be allowed.’’, and 14
(2) by striking subsection (g). 15
(b) M
OVEMENT OF DEFINITION OF ADJUSTED 16
G
ROSSINCOME FORESTATES ANDTRUSTS.— 17
(1) Section 67 is amended by striking sub-18
section (e). 19
(2) Section 641 is amended by adding at the 20
end the following new subsection: 21
‘‘(d) C
OMPUTATION OFADJUSTEDGROSSINCOME.— 22
For purposes of this title, the adjusted gross income of 23
an estate or trust shall be computed in the same manner 24
as in the case of an individual, except that— 25
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‘‘(1) the deductions for costs which are paid or 1
incurred in connection with the administration of the 2
estate or trust and which would not have been in-3
curred if the property were not held in such trust or 4
estate, and 5
‘‘(2) the deductions allowable under sections 6
642(b), 651, and 661, 7
shall be treated as allowable in arriving at adjusted gross 8
income.’’. 9
(c) C
ONFORMINGAMENDMENTS.— 10
(1) Section 56(b)(1)(A) is amended to read as 11
follows: 12
‘‘(A) C
ERTAIN TAXES .—No deduction 13
(other than a deduction allowable in computing 14
adjusted gross income) shall be allowed for any 15
taxes described in paragraph (1), (2), or (3) of 16
section 164(a) or clause (ii) of section 17
164(b)(5)(A).’’. 18
(2) Section 56(b)(1)(C), as amended by the 19
preceding provisions of this Act, is amended by 20
striking ‘‘subparagraph (A)(ii)’’ and inserting ‘‘sub-21
paragraph (A)’’. 22
(3) Section 62(a) is amended by striking ‘‘sub-23
title’’ in the matter preceding paragraph (1) and in-24
serting ‘‘title’’. 25
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(4) Section 641(c)(2)(E) is amended to read as 1
follows: 2
‘‘(E) Section 642(c) shall not apply.’’. 3
(5) Section 1411(a)(2) is amended by striking 4
‘‘(as defined in section 67(e))’’. 5
(6) Section 6654(d)(1)(C) is amended by strik-6
ing clause (iii). 7
(7) Section 67 is amended in the heading, by 8
striking ‘‘
2-PERCENT FLOOR ON ’’ and inserting 9
‘‘
DENIAL OF’’. 10
(8) The table of sections for part 1 of sub-11
chapter B of chapter 1 is amended by striking the 12
item relating to section 67 and inserting the fol-13
lowing new item: 14
‘‘Sec. 67. Denial of miscellaneous itemized deductions.’’. 
(d) EFFECTIVEDATE.—The amendments made by 15
this section shall apply to taxable years beginning after 16
the date of the enactment of this Act. 17
SEC. 146. REPEAL OF OVERALL LIMITATION ON ITEMIZED 18
DEDUCTIONS. 19
(a) I
NGENERAL.—Part 1 of subchapter B of chapter 20
1 is amended by striking section 68 (and the item relating 21
to such section in the table of sections for such part). 22
(b) C
ONFORMINGAMENDMENTS.— 23
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(1) Section 56(b)(1), as amended by the pre-1
ceding provisions of this Act, is amended by striking 2
subparagraph (E). 3
(2) Section 164(b)(5)(H)(ii)(III) is amended by 4
striking ‘‘(as determined under section 68(b))’’. 5
(3) Section 164(b)(5)(H) is amended by adding 6
at the end the following new clause: 7
‘‘(iii) A
PPLICABLE AMOUNT DE -8
FINED.—For purposes of clause (ii), the 9
term ‘applicable amount’ means— 10
‘‘(I) $300,000 in the case of a 11
joint return or a surviving spouse, 12
‘‘(II) $275,000 in the case of a 13
head of household, 14
‘‘(III) $250,000 in the case of an 15
individual who is not married and who 16
is not a surviving spouse or head of 17
household, and 18
‘‘(IV) 
1
⁄2the amount applicable 19
under subclause (I) in the case of a 20
married individual filing a separate 21
return. 22
For purposes of this paragraph, marital 23
status shall be determined under section 24
7703. In the case of any taxable year be-25
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ginning in calendar years after the date of 1
the enactment of this clause, each of the 2
dollar amounts in this clause shall be in-3
creased by an amount equal to such dollar 4
amount, multiplied by the cost-of-living ad-5
justment determined under section 1(f)(3) 6
for the calendar year in which the taxable 7
year begins, determined by substituting 8
‘2012’ for ‘2016’ in subparagraph (A)(ii) 9
thereof. If any amount after adjustment 10
under the preceding sentence is not a mul-11
tiple of $50, such amount shall be rounded 12
to the next lowest multiple of $50.’’. 13
(c) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to taxable years beginning after 15
the date of the enactment of this Act. 16
SEC. 147. TERMINATION OF EXCLUSION FOR QUALIFIED BI-17
CYCLE COMMUTING REIMBURSEMENT. 18
(a) I
NGENERAL.—Section 132(f)(1) is amended by 19
striking subparagraph (D). 20
(b) C
ONFORMINGAMENDMENTS.— 21
(1) Section 132(f)(2) is amended by adding 22
‘‘and’’ at the end of subparagraph (A), striking ‘‘, 23
and’’ at the end of subparagraph (B) and inserting 24
a period, and striking subparagraph (C). 25
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(2) Section 132(f)(4) is amended by striking 1
‘‘(other than a qualified bicycle commuting reim-2
bursement)’’. 3
(3) Section 132(f) is amended by striking para-4
graph (8). 5
(4) Section 274(l)(2) is amended by striking 6
‘‘after December 31, 2017, and before January 1, 7
2026’’. 8
(c) E
FFECTIVEDATE.—The amendments made by 9
this section shall apply to taxable years beginning after 10
the date of the enactment of this Act. 11
SEC. 148. QUALIFIED MOVING EXPENSE REIMBURSEMENT 12
EXCLUSION LIMITED TO MEMBERS OF 13
ARMED FORCES. 14
(a) I
NGENERAL.—Section 132(g) is amended— 15
(1) by striking ‘‘by an individual’’ in paragraph 16
(1) and inserting ‘‘by a qualified military indi-17
vidual’’, and 18
(2) by striking paragraph (2) and inserting the 19
following new paragraph: 20
‘‘(2) Q
UALIFIED MILITARY INDIVIDUAL .—For 21
purposes of this subsection, the term ‘qualified mili-22
tary individual’ means a member of the Armed 23
Forces of the United States on active duty who 24
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moves pursuant to a military order and incident to 1
a permanent change of station.’’. 2
(b) E
FFECTIVEDATE.—The amendments made by 3
this section shall apply to taxable years beginning after 4
the date of the enactment of this Act. 5
SEC. 149. DEDUCTION FOR MOVING EXPENSES LIMITED TO 6
MEMBERS OF ARMED FORCES. 7
(a) I
NGENERAL.—Section 217 is amended— 8
(1) by amending subsection (a) to read as fol-9
lows: 10
‘‘(a) D
EDUCTIONALLOWED.—There shall be allowed 11
as a deduction moving expenses paid or incurred during 12
the taxable year by a member of the Armed Forces of the 13
United States on active duty who moves pursuant to a 14
military order and incident to a permanent change of sta-15
tion.’’, 16
(2) by striking subsections (c), (d), (f), (g), and 17
(k) and redesignating subsections (h), (i), and (j) as 18
subsections (c), (d), and (f), respectively, and 19
(3) by inserting after subsection (d), as so re-20
designated, the following new subsection: 21
‘‘(e) E
XPENSESFURNISHEDIN-KIND.—Any moving 22
and storage expenses which are furnished in-kind (or for 23
which reimbursement or an allowance is provided, but only 24
to the extent of the expenses paid or incurred)— 25
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‘‘(1) to a member described in subsection (a), 1
or to such member’s spouse or dependents, shall not 2
be includible in gross income, and no reporting with 3
respect to such expenses shall be required by the 4
Secretary of Defense or the Secretary of Transpor-5
tation, as the case may be, and 6
‘‘(2) to the spouse and dependents of a member 7
described in subsection (a) with regard to moving to 8
a location other than the one to which such member 9
moves (or from a location other than the one from 10
which such member moves), this section shall apply 11
with respect to the moving expenses of such spouse 12
and dependents as if such spouse were a member de-13
scribed in subsection (a).’’. 14
(b) C
ONFORMINGAMENDMENTS.— 15
(1) Subsections (d)(3)(C) and (e) of section 23 16
are each amended by striking ‘‘section 217(h)(3)’’ 17
and inserting ‘‘section 217(c)(3)’’. 18
(2) Section 7872(f) is amended by striking 19
paragraph (11). 20
(3) Section 217 is amended in the heading by 21
striking ‘‘
MOVING EXPENSES ’’ and inserting 22
‘‘
CERTAIN MOVING EXPENSES OF MEMBERS OF 23
ARMED FORCES ’’. 24
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(4) The table of sections for part VII of sub-1
chapter B of chapter 1 is amended by striking the 2
item relating to section 217 and inserting the fol-3
lowing new item: 4
‘‘Sec. 217. Certain moving expenses of members of Armed Forces.’’. 
(c) EFFECTIVEDATE.—The amendments made by 5
this section shall apply to taxable years beginning after 6
the date of the enactment of this Act. 7
SEC. 150. LIMITATION ON WAGERING LOSSES. 8
(a) I
NGENERAL.—Section 165(d) is amended by 9
striking ‘‘in the case of taxable years beginning after De-10
cember 31, 2017, and before January 1, 2026,’’. 11
(b) E
FFECTIVEDATE.—The amendment made by 12
this section shall apply to taxable years beginning after 13
the date of the enactment of this Act. 14
Subtitle F—Increase in Estate and 15
Gift Tax Exemption 16
SEC. 151. INCREASE IN ESTATE AND GIFT TAX EXEMPTION. 17
(a) I
NGENERAL.—Section 2010(c)(3) is amended in 18
subparagraph (A), by striking ‘‘$5,000,000’’ and inserting 19
‘‘$10,000,000’’. 20
(b) C
ONFORMINGAMENDMENT.—Section 2010(c)(3) 21
is amended by striking subparagraph (C). 22
(c) E
FFECTIVEDATE.—The amendments made by 23
this section shall apply to estates of decedents dying and 24
gifts made after the date of the enactment of this Act. 25
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TITLE II—INCREASED EXEMP-1
TION FOR ALTERNATIVE MIN-2
IMUM TAX MADE PERMANENT 3
SEC. 201. INCREASED EXEMPTION FOR INDIVIDUALS. 4
(a) I
NGENERAL.—Section 55(d)(1) is amended— 5
(1) by striking ‘‘$78,750’’ in subparagraph (A) 6
and inserting ‘‘$109,400’’, and 7
(2) by striking ‘‘$50,600’’ in subparagraph (B) 8
and inserting ‘‘$70,300’’. 9
(b) P
HASE-OUT OFEXEMPTIONAMOUNT.—Section 10
55(d)(2) is amended— 11
(1) by striking ‘‘$150,000’’ in subparagraph 12
(A) and inserting ‘‘$1,000,000’’, and 13
(2) by striking subparagraphs (B) and (C) and 14
by inserting the following new subparagraphs: 15
‘‘(B) 50 percent of the dollar amount ap-16
plicable under subparagraph (A) in the case of 17
a taxpayer described in paragraph (1)(B) or 18
(1)(C), and 19
‘‘(C) $75,000 in the case of a taxpayer de-20
scribed in paragraph (1)(D).’’. 21
(c) I
NFLATIONADJUSTMENT.—Section 55(d)(3) is 22
amended to read as follows: 23
‘‘(3) I
NFLATION ADJUSTMENT .—Each dollar 24
amount described in clause (i) or (ii) of subpara-25
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graph (B) shall be increased by an amount equal 1
to— 2
‘‘(A) such dollar amount, multiplied by 3
‘‘(B) the cost-of-living adjustment deter-4
mined under section 1(f)(3) for the calendar 5
year in which the taxable year begins, deter-6
mined by substituting— 7
‘‘(i) in the case of a dollar amount 8
contained in paragraph (1)(D) or (2)(C) or 9
in subsection (b)(1)(A), ‘calendar year 10
2011’ for ‘calendar year 2016’ in subpara-11
graph (A)(ii) thereof, and 12
‘‘(ii) in the case of a dollar amount 13
contained in paragraph (1)(A), (1)(B), or 14
(2)(A), ‘calendar year 2017’ for ‘calendar 15
year 2016’ in subparagraph (A)(ii) thereof. 16
Any increased amount determined under this para-17
graph shall be rounded to the nearest multiple of 18
$100 ($50 in the case of the dollar amount con-19
tained in paragraph (2)(C)).’’. 20
(d) R
EPEAL OFCOORDINATIONWITHRULESRELAT-21
ING TO THETAXATION OFUNEARNEDCHILDREN.—Sec-22
tion 59 is amended by striking subsection (j). 23
(e) C
ONFORMINGAMENDMENT.—Section 55(d) is 24
amended by striking paragraph (4). 25
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(f) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to taxable years beginning after 2
the date of the enactment of this Act. 3
Æ 
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