Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB1226 Compare Versions

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Old	New	Differences
1	1	II
2	2	118THCONGRESS
3	3	1
4	4	STSESSION S. 1226
5	5	To amend the Internal Revenue Code of 1986 to make permanent the
6	6	individual tax provisions of the tax reform law, and for other purposes.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	APRIL20, 2023
9	9	Mr. C
10	10	RUZ(for himself and Mr. BRAUN) introduced the following bill; which
11	11	was read twice and referred to the Committee on Finance
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to make
14	14	permanent the individual tax provisions of the tax reform
15	15	law, and for other purposes.
16	16	Be it enacted by the Senate and House of Representa-1
17	17	tives of the United States of America in Congress assembled, 2
18	18	SECTION 1. PERMANENT MODIFICATION OF INDIVIDUAL 3
19	19	RATE BRACKETS. 4
20	20	(a) M
21	21	ARRIEDINDIVIDUALSFILINGJOINTRETURNS 5
22	22	ANDSURVIVINGSPOUSES.—The table contained in sub-6
23	23	section (a) of section 1 of the Internal Revenue Code of 7
24	24	1986 is amended to read as follows: 8
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27	27	•S 1226 IS
28	28	‘‘If taxable income is: The tax is:
29	29	Not over $19,050 ...................................... 10% of taxable income.
30	30	Over $19,050 but not over $77,400 .......... $1,905, plus 12% of the excess over
31	31	$19,050.
32	32	Over $77,400 but not over $165,000 ........ $8,907, plus 22% of the excess over
33	33	$77,400.
34	34	Over $165,000 but not over $315,000 ...... $28,179, plus 24% of the excess
35	35	over $165,000.
36	36	Over $315,000 but not over $400,000 ...... $64,179, plus 32% of the excess
37	37	over $315,000.
38	38	Over $400,000 but not over $600,000 ...... $91,379, plus 35% of the excess
39	39	over $400,000.
40	40	Over $600,000 ........................................... $161,379, plus 37% of the excess
41	41	over $600,000.’’.
42	42	(b) HEADS OFHOUSEHOLDS.—The table contained 1
43	43	in subsection (b) of section 1 of the Internal Revenue Code 2
44	44	of 1986 is amended to read as follows: 3
45	45	‘‘If taxable income is: The tax is:
46	46	Not over $13,600 ...................................... 10% of taxable income.
47	47	Over $13,600 but not over $51,800 .......... $1,360, plus 12% of the excess over
48	48	$13,600.
49	49	Over $51,800 but not over $82,500 .......... $5,944, plus 22% of the excess over
50	50	$51,800.
51	51	Over $82,500 but not over $157,500 ........ $12,698, plus 24% of the excess
52	52	over $82,500.
53	53	Over $157,500 but not over $200,000 ...... $30,698, plus 32% of the excess
54	54	over $157,500.
55	55	Over $200,000 but not over $500,000 ...... $44,298, plus 35% of the excess
56	56	over $200,000.
57	57	Over $500,000 ........................................... $149,298, plus 37% of the excess
58	58	over $500,000.’’.
59	59	(c) UNMARRIEDINDIVIDUALSOTHERTHANSUR-4
60	60	VIVINGSPOUSES AND HEADS OFHOUSEHOLDS.—The 5
61	61	table contained in subsection (c) of section 1 of the Inter-6
62	62	nal Revenue Code of 1986 is amended to read as follows: 7
63	63	‘‘If taxable income is: The tax is:
64	64	Not over $9,525 ........................................ 10% of taxable income.
65	65	Over $9,525 but not over $38,700 ............ $952.50, plus 12% of the excess
66	66	over $9,525.
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69	69	•S 1226 IS
70	70	‘‘If taxable income is: The tax is:
71	71	Over $38,700 but not over $82,500 .......... $4,453.50, plus 22% of the excess
72	72	over $38,700.
73	73	Over $82,500 but not over $157,500 ........ $14,089.50, plus 24% of the excess
74	74	over $82,500.
75	75	Over $157,500 but not over $200,000 ...... $32,089.50, plus 32% of the excess
76	76	over $157,500.
77	77	Over $200,000 but not over $500,000 ...... $45,689.50, plus 35% of the excess
78	78	over $200,000.
79	79	Over $500,000 ........................................... $150,689.50, plus 37% of the ex-
80	80	cess over $500,000.’’.
81	81	(d) MARRIEDINDIVIDUALSFILINGSEPARATERE-1
82	82	TURNS.—The table contained in subsection (d) of section 2
83	83	1 of the Internal Revenue Code of 1986 is amended to 3
84	84	read as follows: 4
85	85	‘‘If taxable income is: The tax is:
86	86	Not over $9,525 ........................................ 10% of taxable income.
87	87	Over $9,525 but not over $38,700 ............ $952.50, plus 12% of the excess
88	88	over $9,525.
89	89	Over $38,700 but not over $82,500 .......... $4,453.50, plus 22% of the excess
90	90	over $38,700.
91	91	Over $82,500 but not over $157,500 ........ $14,089.50, plus 24% of the excess
92	92	over $82,500.
93	93	Over $157,500 but not over $200,000 ...... $32,089.50, plus 32% of the excess
94	94	over $157,500.
95	95	Over $200,000 but not over $300,000 ...... $45,689.50, plus 35% of the excess
96	96	over $200,000.
97	97	Over $300,000 ........................................... $80,689.50, plus 37% of the excess
98	98	over $300,000.’’.
99	99	(e) ESTATES ANDTRUSTS.—The table contained in 5
100	100	subsection (e) of section 1 of the Internal Revenue Code 6
101	101	of 1986 is amended to read as follows: 7
102	102	‘‘If taxable income is: The tax is:
103	103	Not over $2,550 ........................................ 10% of taxable income.
104	104	Over $2,550 but not over $9,150 .............. $255, plus 24% of the excess over
105	105	$2,550.
106	106	Over $9,150 but not over $12,500 ............ $1,839, plus 35% of the excess over
107	107	$9,150.
108	108	Over $12,500 ............................................. $3,011.50, plus 37% of the excess
109	109	over $12,500.’’.
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112	112	•S 1226 IS
113	113	(f) ADJUSTMENT FOR INFLATION.—Subsection (f) of 1
114	114	section 1 of the Internal Revenue Code of 1986 is amend-2
115	115	ed— 3
116	116	(1) by striking ‘‘1993’’ in paragraph (1) and in-4
117	117	serting ‘‘2018’’, 5
118	118	(2) by striking ‘‘determined—’’ and all that fol-6
119	119	lows in paragraph (2)(A) and inserting ‘‘determined 7
120	120	by substituting ‘2017’ for ‘2016’ in paragraph 8
121	121	(3)(A)(ii),’’, 9
122	122	(3) by striking ‘‘a married individual filing a 10
123	123	separate return’’ in paragraph (7)(B) and inserting 11
124	124	‘‘any unmarried individual other than a surviving 12
125	125	spouse or head of household’’, 13
126	126	(4) by striking ‘‘
127	127	MARRIED INDIVIDUALS FILING 14
128	128	SEPARATELY’’ in the heading of subparagraph (B) of 15
129	129	paragraph (7) and inserting ‘‘
130	130	CERTAIN UNMARRIED 16
131	131	INDIVIDUALS’’, and 17
132	132	(5) by striking paragraph (8). 18
133	133	(g) C
134	134	APITALGAINSBRACKETS.—Subsection (h) of 19
135	135	section 1 of the Internal Revenue Code of 1986 is amend-20
136	136	ed— 21
137	137	(1) by striking ‘‘which would (without regard to 22
138	138	this paragraph) be taxed at a rate below 25 percent’’ 23
139	139	in paragraph (1)(B)(i) and inserting ‘‘below the 24
140	140	maximum zero rate amount’’, 25
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143	143	•S 1226 IS
144	144	(2) by striking ‘‘which would (without regard to 1
145	145	this paragraph) be taxed at a rate below 39.6 per-2
146	146	cent’’ in paragraph (1)(C)(ii)(I) and inserting 3
147	147	‘‘below the maximum 15-percent rate amount’’, and 4
148	148	(3) by adding at the end the following new 5
149	149	paragraph: 6
150	150	‘‘(12) M
151	151	AXIMUM AMOUNTS DEFINED .—For pur-7
152	152	poses of this subsection— 8
153	153	‘‘(A) M
154	154	AXIMUM ZERO RATE AMOUNT .—The 9
155	155	maximum zero rate amount shall be— 10
156	156	‘‘(i) in the case of a joint return or 11
157	157	surviving spouse, $77,200, 12
158	158	‘‘(ii) in the case of an individual who 13
159	159	is a head of household (as defined in sec-14
160	160	tion 2(b)), $51,700, 15
161	161	‘‘(iii) in the case of any other indi-16
162	162	vidual (other than an estate or trust), an 17
163	163	amount equal to
164	164	1
165	165	∕2of the amount in effect 18
166	166	for the taxable year under clause (i), and 19
167	167	‘‘(iv) in the case of an estate or trust, 20
168	168	$2,600. 21
169	169	‘‘(B) M
170	170	AXIMUM 15 -PERCENT RATE 22
171	171	AMOUNT.—The maximum 15-percent rate 23
172	172	amount shall be— 24
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175	175	•S 1226 IS
176	176	‘‘(i) in the case of a joint return or 1
177	177	surviving spouse, $479,000 (
178	178	1
179	179	∕2such 2
180	180	amount in the case of a married individual 3
181	181	filing a separate return), 4
182	182	‘‘(ii) in the case of an individual who 5
183	183	is the head of a household (as defined in 6
184	184	section 2(b)), $452,400, 7
185	185	‘‘(iii) in the case of any other indi-8
186	186	vidual (other than an estate or trust), 9
187	187	$425,800, and 10
188	188	‘‘(iv) in the case of an estate or trust, 11
189	189	$12,700. 12
190	190	‘‘(C) I
191	191	NFLATION ADJUSTMENT .—In the 13
192	192	case of any taxable year beginning after 2018, 14
193	193	each of the dollar amounts in subparagraphs 15
194	194	(A) and (B) shall be increased by an amount 16
195	195	equal to— 17
196	196	‘‘(i) such dollar amount, multiplied by 18
197	197	‘‘(ii) the cost-of-living adjustment de-19
198	198	termined under subsection (f)(3) for the 20
199	199	calendar year in which the taxable year be-21
200	200	gins, determined by substituting ‘calendar 22
201	201	year 2017’ for ‘calendar year 2016’ in sub-23
202	202	paragraph (A)(ii) thereof. 24
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205	205	•S 1226 IS
206	206	If any increase under this subparagraph is not 1
207	207	a multiple of $50, such increase shall be round-2
208	208	ed to the next lowest multiple of $50.’’. 3
209	209	(h) C
210	210	ONFORMINGAMENDMENTS.— 4
211	211	(1) Section 1 of the Internal Revenue Code of 5
212	212	1986 is amended by striking subsections (i) and (j). 6
213	213	(2) Section 3402(q)(1) of such Code is amend-7
214	214	ed by striking ‘‘third lowest’’ and inserting ‘‘fourth 8
215	215	lowest’’. 9
216	216	(i) S
217	217	ECTION15 NOTTOAPPLY.—Section 15 of the 10
218	218	Internal Revenue Code of 1986 shall not apply to any 11
219	219	change in a rate of tax by reason of this section. 12
220	220	(j) E
221	221	FFECTIVEDATE.—The amendments made by 13
222	222	this section shall apply to taxable years beginning after 14
223	223	December 31, 2022. 15
224	224	SEC. 2. PERMANENT EXTENSION OF DEDUCTION FOR 16
225	225	QUALIFIED BUSINESS INCOME OF PASS-THRU 17
226	226	ENTITIES. 18
227	227	(a) I
228	228	NGENERAL.—Section 199A of the Internal Rev-19
229	229	enue Code of 1986 is amended by striking subsection (i). 20
230	230	(b) E
231	231	FFECTIVEDATE.—The amendment made by 21
232	232	this section shall apply to taxable years beginning after 22
233	233	December 31, 2022. 23
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236	236	•S 1226 IS
237	237	SEC. 3. PERMANENT EXTENSION OF LIMITATION ON 1
238	238	LOSSES FOR TAXPAYERS OTHER THAN COR-2
239	239	PORATIONS. 3
240	240	(a) I
241	241	NGENERAL.—Paragraph (1) of section 461(l) 4
242	242	of the Internal Revenue Code of 1986 is amended to read 5
243	243	as follows: 6
244	244	‘‘(1) L
245	245	IMITATION.—In the case of taxable year 7
246	246	of a taxpayer other than a corporation, any excess 8
247	247	business loss of the taxpayer for the taxable year 9
248	248	shall not be allowed.’’. 10
249	249	(b) C
250	250	ONFORMINGAMENDMENT.—Section 461 of the 11
251	251	Internal Revenue Code of 1986 is amended by striking 12
252	252	subsection (j) (relating to limitation on excess farm losses 13
253	253	of certain taxpayers). 14
254	254	(c) E
255	255	FFECTIVEDATE.—The amendments made by 15
256	256	this section shall apply to taxable years beginning after 16
257	257	December 31, 2022. 17
258	258	SEC. 4. PERMANENT EXTENSION OF INCREASE IN STAND-18
259	259	ARD DEDUCTION. 19
260	260	(a) I
261	261	NGENERAL.—Section 63(c)(2) of the Internal 20
262	262	Revenue Code of 1986 is amended— 21
263	263	(1) by striking ‘‘$4,400’’ in subparagraph (B) 22
264	264	and inserting ‘‘$18,800’’, and 23
265	265	(2) by striking ‘‘$3,000’’ in subparagraph (C) 24
266	266	and inserting ‘‘$12,000’’. 25
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269	269	•S 1226 IS
270	270	(b) INFLATIONADJUSTMENT.—Paragraph (4) of sec-1
271	271	tion 63(c) of the Internal Revenue Code of 1986 is amend-2
272	272	ed to read as follows: 3
273	273	‘‘(4) A
274	274	DJUSTMENTS FOR INFLATION .— 4
275	275	‘‘(A) I
276	276	N GENERAL.—In the case of any 5
277	277	taxable year beginning in a calendar year after 6
278	278	2018, the $18,000 and $12,000 amounts in 7
279	279	paragraph (2) shall each be increased by an 8
280	280	amount equal to— 9
281	281	‘‘(i) such dollar amount, multiplied by 10
282	282	‘‘(ii) the cost-of-living adjustment de-11
283	283	termined under section 1(f)(3) for the cal-12
284	284	endar year in which the taxable year be-13
285	285	gins, by substituting ‘2017’ for ‘2016’ in 14
286	286	subparagraph (A)(ii) thereof. 15
287	287	‘‘(B) C
288	288	ERTAIN AMOUNTS.—In the case of 16
289	289	any taxable year beginning in a calendar year 17
290	290	after 1988, each dollar amount contained in 18
291	291	paragraph (5) or subsection (f) shall be in-19
292	292	creased by an amount equal to— 20
293	293	‘‘(i) such dollar amount, multiplied by 21
294	294	‘‘(ii) the cost-of-living adjustment de-22
295	295	termined under section 1(f)(3) for the cal-23
296	296	endar year in which the taxable year be-24
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299	299	•S 1226 IS
300	300	gins, by substituting for ‘calendar year 1
301	301	2016’ in subparagraph (A)(ii) thereof— 2
302	302	‘‘(I) ‘calendar year 1987’ in the 3
303	303	case of the dollar amounts contained 4
304	304	in paragraph (5)(A) or subsection (f), 5
305	305	and 6
306	306	‘‘(II) ‘calendar year 1997’ in the 7
307	307	case of the dollar amount contained in 8
308	308	paragraph (5)(B).’’. 9
309	309	(c) C
310	310	ONFORMINGAMENDMENT.—Section 63(c) of the 10
311	311	Internal Revenue Code of 1986 is amended by striking 11
312	312	paragraph (7). 12
313	313	(d) E
314	314	FFECTIVEDATE.—The amendments made by 13
315	315	this section shall apply to taxable years beginning after 14
316	316	December 31, 2022. 15
317	317	SEC. 5. PERMANENT INCREASE AND MODIFICATION OF 16
318	318	CHILD TAX CREDIT. 17
319	319	(a) I
320	320	NCREASE INCREDITAMOUNT.—Section 24(a) of 18
321	321	the Internal Revenue Code of 1986 is amended by striking 19
322	322	‘‘$1,000’’ and inserting ‘‘$2,000’’. 20
323	323	(b) L
324	324	IMITATION.—Paragraph (2) of section 24(b) of 21
325	325	the Internal Revenue Code of 1986 is amended to read 22
326	326	as follows: 23
327	327	‘‘(2) T
328	328	HRESHOLD AMOUNT .—For purposes of 24
329	329	paragraph (1), the term ‘threshold amount’ means— 25
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332	332	•S 1226 IS
333	333	‘‘(A) $400,000 in the case of a joint re-1
334	334	turn, and 2
335	335	‘‘(B) $200,000 in any other case.’’. 3
336	336	(c) P
337	337	ARTIALCREDITALLOWED FOR CERTAIN 4
338	338	O
339	339	THERDEPENDENTS.—Subsection (h) of section 24 of 5
340	340	the Internal Revenue Code of 1986 is amended to read 6
341	341	as follows: 7
342	342	‘‘(h) P
343	343	ARTIALCREDITALLOWED FOR CERTAIN 8
344	344	O
345	345	THERDEPENDENTS.— 9
346	346	‘‘(1) I
347	347	N GENERAL.—The credit determined 10
348	348	under subsection (a) shall be increased by $500 for 11
349	349	each dependent of the taxpayer (as defined in sec-12
350	350	tion 7706) other than a qualifying child described in 13
351	351	subsection (c). 14
352	352	‘‘(2) E
353	353	XCEPTION FOR CERTAIN NONCITIZENS .— 15
354	354	Paragraph (1) shall not apply with respect to any 16
355	355	individual who would not be a dependent if subpara-17
356	356	graph (A) of section 7706(b)(3) were applied with-18
357	357	out regard to all that follows ‘resident of the United 19
358	358	States’. 20
359	359	‘‘(3) C
360	360	ERTAIN QUALIFYING CHILDREN .—In the 21
361	361	case of any qualifying child with respect to whom a 22
362	362	credit is not allowed under this section by reason of 23
363	363	subsection (e)(1), such child shall be treated as a de-24
364	364	pendent to whom subparagraph (A) applies.’’. 25
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367	367	•S 1226 IS
368	368	(d) MAXIMUMAMOUNT OFREFUNDABLECREDIT.— 1
369	369	Subsection (d) of section 24 of the Internal Revenue Code 2
370	370	of 1986 is amended by inserting after paragraph (2) the 3
371	371	following new paragraph: 4
372	372	‘‘(3) L
373	373	IMITATION.— 5
374	374	‘‘(A) I
375	375	N GENERAL.—The amount deter-6
376	376	mined under paragraph (1)(A) with respect to 7
377	377	any qualifying child shall not exceed $1,400, 8
378	378	and such paragraph shall be applied without re-9
379	379	gard to subsection (h). 10
380	380	‘‘(B) A
381	381	DJUSTMENT FOR INFLATION .—In 11
382	382	the case of a taxable year beginning after 2018, 12
383	383	the $1,400 amount in subparagraph (A) shall 13
384	384	be increased by an amount equal to— 14
385	385	‘‘(i) such dollar amount, multiplied by 15
386	386	‘‘(ii) the cost-of-living adjustment de-16
387	387	termined under section 1(f)(3) for the cal-17
388	388	endar year in which the taxable year be-18
389	389	gins, determined by substituting ‘2017’ for 19
390	390	‘2016’ in subparagraph (A)(ii) thereof. 20
391	391	If any increase under this clause is not a mul-21
392	392	tiple of $100, such increase shall be rounded to 22
393	393	the next lowest multiple of $100.’’. 23
394	394	(e) E
395	395	ARNEDINCOMETHRESHOLD FORREFUNDABLE 24
396	396	C
397	397	REDIT.—Section 24(d)(1)(B) of the Internal Revenue 25
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400	400	•S 1226 IS
401	401	Code of 1986 is amended by striking ‘‘$3,000’’ and insert-1
402	402	ing ‘‘$2,500’’. 2
403	403	(f) S
404	404	OCIALSECURITYNUMBERREQUIRED.—Para-3
405	405	graph (1) of section 24(e) of the Internal Revenue Code 4
406	406	of 1986 is amended to read as follows: 5
407	407	‘‘(1) Q
408	408	UALIFYING CHILD SOCIAL SECURITY 6
409	409	NUMBER REQUIREMENT .—No credit shall be allowed 7
410	410	under this section to a taxpayer with respect to any 8
411	411	qualifying child unless the taxpayer includes the 9
412	412	name and social security number of such child on 10
413	413	the return of tax for the taxable year. For purposes 11
414	414	of the preceding sentence, the term ‘social security 12
415	415	number’ means a social security number issued to an 13
416	416	individual by the Social Security Administration, but 14
417	417	only if the social security number is issued— 15
418	418	‘‘(A) to a citizen of the United States or 16
419	419	pursuant to subclause (I) (or that portion of 17
420	420	subclause (III) that relates to subclause (I)) of 18
421	421	section 205(c)(2)(B)(i) of the Social Security 19
422	422	Act, and 20
423	423	‘‘(B) before the due date for such return.’’. 21
424	424	(g) R
425	425	EPEAL OFDEADWOOD.— 22
426	426	(1) I
427	427	N GENERAL.—Section 24 of the Internal 23
428	428	Revenue Code of 1986 is amended by striking sub-24
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431	431	•S 1226 IS
432	432	sections (i) and (j) and by redesignating subsection 1
433	433	(k) as subsection (i). 2
434	434	(2) C
435	435	ONFORMING AMENDMENTS .—Subsection 3
436	436	(i) of section 24 of such Code, as redesignated by 4
437	437	paragraph (1), is amended— 5
438	438	(A) by striking paragraph (2)(A), 6
439	439	(B) in paragraph (2)(B)— 7
440	440	(i) by striking and all that precedes 8
441	441	‘‘In the case’’, and 9
442	442	(ii) by redesignating clauses (i) and 10
443	443	(ii) as subparagraphs (A) and (B), respec-11
444	444	tively, and by moving such subparagraphs 12
445	445	2 ems to the left, 13
446	446	(C) in paragraph (3)(A), by striking ‘‘and 14
447	447	without regard to the application of this section 15
448	448	to bona fide residents of Puerto Rico under 16
449	449	subsection (i)(1)’’, and 17
450	450	(D) in paragraph (3)(C)(ii)— 18
451	451	(i) by striking ‘‘under subparagraph 19
452	452	(B)’’ and all that follows through ‘‘Decem-20
453	453	ber 31, 2021,’’ and inserting ‘‘under sub-21
454	454	paragraph (B),’’, and 22
455	455	(ii) by striking ‘‘paragraph (2)(B)’’ 23
456	456	and inserting ‘‘paragraph (2)’’. 24
457	457	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
458	458	kjohnson on DSK79L0C42PROD with BILLS 15
459	459	•S 1226 IS
460	460	(h) EFFECTIVEDATE.—The amendments made by 1
461	461	this section shall apply to taxable years beginning after 2
462	462	December 31, 2022. 3
463	463	SEC. 6. PERMANENT EXTENSION OF INCREASED LIMITA-4
464	464	TION FOR CERTAIN CHARITABLE CONTRIBU-5
465	465	TIONS. 6
466	466	(a) I
467	467	NGENERAL.—Section 170(b)(1)(G) of the Inter-7
468	468	nal Revenue Code of 1986 is amended— 8
469	469	(1) by striking ‘‘for any taxable year beginning 9
470	470	after December 31, 2017, and before January 1, 10
471	471	2026,’’ in clause (i), 11
472	472	(2) by striking ‘‘for any taxable year described 12
473	473	in such clause’’ in clause (ii), and 13
474	474	(3) by striking ‘‘For each taxable year de-14
475	475	scribed in clause (i), and each taxable year to which 15
476	476	any contribution under this subparagraph is carried 16
477	477	over under clause (ii), subparagraph (A)’’ in clause 17
478	478	(iii) and inserting ‘‘Subparagraph (A)’’. 18
479	479	(b) E
480	480	FFECTIVEDATE.—The amendments made by 19
481	481	this section shall apply to contributions in taxable years 20
482	482	beginning after December 31, 2025. 21
483	483	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
484	484	kjohnson on DSK79L0C42PROD with BILLS 16
485	485	•S 1226 IS
486	486	SEC. 7. PERMANENT EXTENSION OF INCREASED CON-1
487	487	TRIBUTIONS TO ABLE ACCOUNTS. 2
488	488	(a) I
489	489	NGENERAL.—Section 529A(b)(2)(B)(ii) of the 3
490	490	Internal Revenue Code of 1986 is amended by striking 4
491	491	‘‘before January 1, 2026’’. 5
492	492	(b) A
493	493	LLOWANCE OF SAVERSCREDIT.—Section 6
494	494	25B(d)(1)(D) of the Internal Revenue Code of 1986 is 7
495	495	amended by striking ‘‘before January 1, 2026,’’. 8
496	496	(c) E
497	497	FFECTIVEDATE.—The amendments made by 9
498	498	this section shall apply to taxable years beginning after 10
499	499	the date of the enactment of this Act. 11
500	500	SEC. 8. PERMANENT EXTENSION OF ROLLOVERS TO ABLE 12
501	501	PROGRAMS FROM 529 PROGRAMS. 13
502	502	(a) I
503	503	NGENERAL.—Section 529(c)(3)(C)(i)(III) is 14
504	504	amended by striking ‘‘before January 1, 2026,’’. 15
505	505	(b) E
506	506	FFECTIVEDATE.—The amendments made by 16
507	507	this section shall apply to distributions made after the 17
508	508	date of the enactment of this Act. 18
509	509	SEC. 9. PERMANENT EXTENSION OF TREATMENT OF CER-19
510	510	TAIN INDIVIDUALS PERFORMING SERVICES 20
511	511	IN THE SINAI PENINSULA OF EGYPT. 21
512	512	(a) I
513	513	NGENERAL.—Subsection (c) of section 11026 22
514	514	of Public Law 115–97 is amended— 23
515	515	(1) by striking ‘‘beginning before January 1, 24
516	516	2026’’ in paragraph (1)(B), and 25
517	517	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
518	518	kjohnson on DSK79L0C42PROD with BILLS 17
519	519	•S 1226 IS
520	520	(2) by striking ‘‘beginning before January 1, 1
521	521	2026’’ in paragraph (2)(B). 2
522	522	(b) E
523	523	FFECTIVEDATE.—The amendments made by 3
524	524	this section shall take effect on the date of the enactment 4
525	525	of this Act. 5
526	526	SEC. 10. PERMANENT EXTENSION OF TREATMENT OF STU-6
527	527	DENT LOANS DISCHARGED ON ACCOUNT OF 7
528	528	DEATH OR DISABILITY. 8
529	529	(a) I
530	530	NGENERAL.—Subparagraph (A) of section 9
531	531	108(f)(5) of the Internal Revenue Code of 1986 is amend-10
532	532	ed by striking ‘‘and before January 1, 2026,’’. 11
533	533	(b) E
534	534	FFECTIVEDATE.—The amendment made by 12
535	535	this section shall apply to discharges of indebtedness after 13
536	536	December 31, 2022. 14
537	537	SEC. 11. REPEAL OF DEDUCTION FOR PERSONAL EXEMP-15
538	538	TIONS. 16
539	539	(a) I
540	540	NGENERAL.—Part V of subchapter B of chapter 17
541	541	1 of the Internal Revenue Code of 1986 is hereby repealed. 18
542	542	(b) D
543	543	EFINITION OFDEPENDENTRETAINED.—Sec-19
544	544	tion 152 of the Internal Revenue Code of 1986, prior to 20
545	545	repeal by subsection (a), is hereby redesignated as section 21
546	546	7706 of such Code and moved to the end of chapter 79 22
547	547	of such Code. 23
548	548	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
549	549	kjohnson on DSK79L0C42PROD with BILLS 18
550	550	•S 1226 IS
551	551	(c) APPLICATION TOESTATES ANDTRUSTS.—Sub-1
552	552	paragraph (C) of section 642(b)(2) of the Internal Rev-2
553	553	enue Code of 1986 is amended— 3
554	554	(1) by striking ‘‘the exemption amount under 4
555	555	section 151(d)’’ in clause (i) and inserting ‘‘$4,150’’, 5
556	556	and 6
557	557	(2) by striking clause (iii) and inserting the fol-7
558	558	lowing: 8
559	559	‘‘(iii) I
560	560	NFLATION ADJUSTMENT .—In 9
561	561	the case of any taxable year beginning in 10
562	562	a calendar year after 2018, the $4,150 11
563	563	amount in clause (i) shall be increased by 12
564	564	an amount equal to— 13
565	565	‘‘(I) such dollar amount, multi-14
566	566	plied by 15
567	567	‘‘(II) the cost-of-living adjust-16
568	568	ment determined under section 1(f)(3) 17
569	569	for the calendar year in which the tax-18
570	570	able begins, determined by sub-19
571	571	stituting ‘2017’ for ‘2016’ in subpara-20
572	572	graph (A)(ii) thereof. 21
573	573	If any increase determined under the pre-22
574	574	ceding sentence is not a multiple of $100, 23
575	575	such increase shall be rounded to the next 24
576	576	lowest multiple of $100.’’. 25
577	577	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
578	578	kjohnson on DSK79L0C42PROD with BILLS 19
579	579	•S 1226 IS
580	580	(d) APPLICATION TONONRESIDENTALIENS.—Sec-1
581	581	tion 873(b) of the Internal Revenue Code of 1986 is 2
582	582	amended by striking paragraph (3). 3
583	583	(e) M
584	584	ODIFICATION OFRETURNREQUIREMENT.— 4
585	585	(1) I
586	586	N GENERAL.—Section 6012 of the Internal 5
587	587	Revenue Code of 1986 is amended— 6
588	588	(A) by striking paragraph (1) of subsection 7
589	589	(a) and inserting the following: 8
590	590	‘‘(1) Every individual who has gross income for 9
591	591	the taxable year, except that a return shall not be 10
592	592	required of— 11
593	593	‘‘(A) an individual who is not married (de-12
594	594	termined by applying section 7703) and who 13
595	595	has gross income for the taxable year which 14
596	596	does not exceed the standard deduction applica-15
597	597	ble to such individual for such taxable year 16
598	598	under section 63, or 17
599	599	‘‘(B) an individual entitled to make a joint 18
600	600	return if— 19
601	601	‘‘(i) the gross income of such indi-20
602	602	vidual, when combined with the gross in-21
603	603	come of such individual’s spouse, for the 22
604	604	taxable year does not exceed the standard 23
605	605	deduction which would be applicable to the 24
606	606	taxpayer for such taxable year under sec-25
607	607	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
608	608	kjohnson on DSK79L0C42PROD with BILLS 20
609	609	•S 1226 IS
610	610	tion 63 if such individual and such individ-1
611	611	ual’s spouse made a joint return, 2
612	612	‘‘(ii) such individual and such individ-3
613	613	ual’s spouse have the same household as 4
614	614	their home at the close of the taxable year, 5
615	615	‘‘(iii) such individual’s spouse does not 6
616	616	make a separate return, and 7
617	617	‘‘(iv) neither such individual nor such 8
618	618	individual’s spouse is an individual de-9
619	619	scribed in section 63(c)(2) who has income 10
620	620	(other than earned income) in excess of the 11
621	621	amount in effect under section 12
622	622	63(c)(2)(A).’’, and 13
623	623	(B) by striking subsection (f). 14
624	624	(2) B
625	625	ANKRUPTCY ESTATES .—Paragraph (8) of 15
626	626	section 6012(a) of such Code is amended by striking 16
627	627	‘‘the sum of the exemption amount plus the basic 17
628	628	standard deduction under section 63(c)(2)(D)’’ and 18
629	629	inserting ‘‘the standard deduction in effect under 19
630	630	section 63(c)(1)(B)’’. 20
631	631	(f) C
632	632	ONFORMINGAMENDMENTS.— 21
633	633	(1) Section 1(f)(7) of the Internal Revenue 22
634	634	Code of 1986 is amended— 23
635	635	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
636	636	kjohnson on DSK79L0C42PROD with BILLS 21
637	637	•S 1226 IS
638	638	(A) by striking ‘‘section 151(d)(4)’’ in sub-1
639	639	paragraph (A) and inserting ‘‘section 2
640	640	7706(d)(6)’’, and 3
641	641	(B) by striking ‘‘151(d)(4)’’ in subpara-4
642	642	graph (B) and inserting ‘‘7706(d)(6)’’. 5
643	643	(2) Section 2(a)(1)(B) of the Internal Revenue 6
644	644	Code of 1986 is amended by striking ‘‘a dependent’’ 7
645	645	and all that follows through ‘‘section 151’’ and in-8
646	646	serting ‘‘a dependent who (within the meaning of 9
647	647	section 7706, determined without regard to sub-10
648	648	sections (b)(1), (b)(2), and (d)(1)(B) thereof) is a 11
649	649	son, stepson, daughter, or stepdaughter of the tax-12
650	650	payer’’. 13
651	651	(3) Section 21 of such Code is amended— 14
652	652	(A) in subsection (b)(1)(A), by striking 15
653	653	‘‘section 152(a)(1)’’ and inserting ‘‘section 16
654	654	7706(a)(1)’’, 17
655	655	(B) in subsection (b)(1)(B), by striking 18
656	656	‘‘section 152’’ and inserting ‘‘section 7706’’, 19
657	657	(C) in subsection (e)(5)— 20
658	658	(i) by striking ‘‘section 152(e)’’ in 21
659	659	subparagraph (A) and inserting ‘‘section 22
660	660	7706(e)’’, and 23
661	661	(ii) by striking ‘‘section 152(e)(4)(A)’’ 24
662	662	and inserting ‘‘section 7706(e)(4)(A)’’, and 25
663	663	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
664	664	kjohnson on DSK79L0C42PROD with BILLS 22
665	665	•S 1226 IS
666	666	(D) in subsection (e)(6)(B), by striking 1
667	667	‘‘section 152(f)(1)’’ and inserting ‘‘section 2
668	668	7706(f)(1)’’. 3
669	669	(4) Section 24(a) of such Code is amended by 4
670	670	striking ‘‘for which the taxpayer is allowed a deduc-5
671	671	tion under section 151’’ and inserting ‘‘which is a 6
672	672	dependent of the taxpayer’’. 7
673	673	(5) Section 24(c) of such Code is amended— 8
674	674	(A) in paragraph (1), by striking ‘‘section 9
675	675	152(c)’’ and inserting ‘‘section 7706(c)’’, and 10
676	676	(B) in paragraph (2), by striking ‘‘section 11
677	677	152(b)(3)’’ and inserting ‘‘section 7706(b)(3)’’. 12
678	678	(6) Section 25A(f)(1)(A)(iii) of such Code is 13
679	679	amended by striking ‘‘with respect to whom the tax-14
680	680	payer is allowed a deduction under section 151’’. 15
681	681	(7) Section 25A(g)(3) of such Code is amended 16
682	682	by striking ‘‘If a deduction under section 151 with 17
683	683	respect to an individual is allowed to another tax-18
684	684	payer’’ and inserting ‘‘If an individual is a depend-19
685	685	ent (as defined in section 7706) of another tax-20
686	686	payer’’. 21
687	687	(8) Section 25B(c)(2) of such Code is amend-22
688	688	ed— 23
689	689	(A) in subparagraph (A), by striking ‘‘with 24
690	690	respect to whom a deduction under section 151 25
691	691	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
692	692	kjohnson on DSK79L0C42PROD with BILLS 23
693	693	•S 1226 IS
694	694	is allowed to another taxpayer’’ and inserting 1
695	695	‘‘who is a dependent of another taxpayer’’, and 2
696	696	(B) in subparagraph (B), by striking ‘‘sec-3
697	697	tion 152(f)(2)’’ and inserting ‘‘section 4
698	698	7706(f)(2)’’. 5
699	699	(9) Section 25E(c)(3)(C) is amended by strik-6
700	700	ing ‘‘with respect to whom no deduction is allowable 7
701	701	with respect to another taxpayer under section 151’’ 8
702	702	and inserting ‘‘who is a dependent (as defined in 9
703	703	section 7706) of another taxpayer’’. 10
704	704	(10) Section 32(c)(1)(A)(iii) of such Code is 11
705	705	amended by striking ‘‘for whom a deduction is allow-12
706	706	able under section 151 to’’ and inserting ‘‘of’’. 13
707	707	(11) Section 32(c)(3) of such Code is amend-14
708	708	ed— 15
709	709	(A) in subparagraph (A)— 16
710	710	(i) by striking ‘‘section 152(c)’’ and 17
711	711	inserting ‘‘section 7706(c)’’, and 18
712	712	(ii) by striking ‘‘section 152(e)’’ and 19
713	713	inserting ‘‘section 7706(e)’’, 20
714	714	(B) in subparagraph (B), by striking ‘‘un-21
715	715	less the taxpayer is entitled to a deduction 22
716	716	under section 151 for such taxable year with re-23
717	717	spect to such individual (or would be so entitled 24
718	718	but for section 152(e))’’ and inserting ‘‘unless 25
719	719	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
720	720	kjohnson on DSK79L0C42PROD with BILLS 24
721	721	•S 1226 IS
722	722	such individual is a dependent (as defined in 1
723	723	section 7706) of such taxpayer for such taxable 2
724	724	year (or would be a dependent bu for section 3
725	725	7706(e)’’, and 4
726	726	(C) in subparagraph (C), by striking ‘‘sec-5
727	727	tion 152(c)(1)(B)’’ and inserting ‘‘section 6
728	728	7706(c)(1)(B)’’. 7
729	729	(12) Section 35(d)(1) of such Code is amended 8
730	730	by striking ‘‘with respect to whom the taxpayer is 9
731	731	entitled to a deduction under section 151(c)’’. 10
732	732	(13) Section 35(d)(2) of such Code is amend-11
733	733	ed— 12
734	734	(A) by striking ‘‘section 152(e)’’ and in-13
735	735	serting ‘‘section 7706(e)’’, and 14
736	736	(B) by striking ‘‘section 152(e)(4)(A)’’ and 15
737	737	inserting ‘‘section 7706(e)(4)(A)’’. 16
738	738	(14) Section 35(g)(4) of such Code is amended 17
739	739	by striking ‘‘with respect to whom a deduction under 18
740	740	section 151 is allowable to’’ and inserting ‘‘is a de-19
741	741	pendent (as defined in section 7706) of’’. 20
742	742	(15) Section 35(g)(10)(C)(ii) of such Code is 21
743	743	amended by striking ‘‘the taxpayer to whom the de-22
744	744	duction under section 151 is allowable’’ and insert-23
745	745	ing ‘‘the taxpayer of whom such individual is a de-24
746	746	pendent of’’. 25
747	747	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
748	748	kjohnson on DSK79L0C42PROD with BILLS 25
749	749	•S 1226 IS
750	750	(16) Section 36(d)(3) of such Code is amended 1
751	751	by striking ‘‘a deduction under section 151 with re-2
752	752	spect to such taxpayer is allowable to another tax-3
753	753	payer for such taxable year’’ and inserting ‘‘such 4
754	754	taxpayer is a dependent of another taxpayer for such 5
755	755	taxable year’’. 6
756	756	(17) Section 36B(b)(2)(A) of such Code is 7
757	757	amended by striking ‘‘section 152’’ and inserting 8
758	758	‘‘section 7706’’. 9
759	759	(18) Section 36B(b)(3)(B) of such Code is 10
760	760	amended— 11
761	761	(A) by striking ‘‘who is not allowed a de-12
762	762	duction under section 151 for the taxable year 13
763	763	with respect to a dependent’’ and inserting 14
764	764	‘‘who does not have any dependents for the tax-15
765	765	able year’’, and 16
766	766	(B) by striking ‘‘unless a deduction is al-17
767	767	lowed under section 151 for the taxable year 18
768	768	with respect to a dependent’’ in the flush mat-19
769	769	ter at the end and inserting ‘‘unless the tax-20
770	770	payer has a dependent for the taxable year’’. 21
771	771	(19) Section 36B(c)(1)(D) of such Code is 22
772	772	amended by striking ‘‘with respect to whom a deduc-23
773	773	tion under section 151 is allowable to another tax-24
774	774	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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776	776	•S 1226 IS
777	777	payer’’ and inserting ‘‘who is a dependent of another 1
778	778	taxpayer’’. 2
779	779	(20) Section 36B(d)(1) of such Code is amend-3
780	780	ed by striking ‘‘equal to the number of individuals 4
781	781	for whom the taxpayer is allowed a deduction under 5
782	782	section 151 (relating to allowance of deduction for 6
783	783	personal exemptions) for the taxable year’’ and in-7
784	784	serting ‘‘the sum of 1 (2 in the case of a joint re-8
785	785	turn) plus the number of the taxpayer’s dependents 9
786	786	for the taxable year’’. 10
787	787	(21) Section 36B(e)(1) of such Code is amend-11
788	788	ed by striking ‘‘1 or more individuals for whom a 12
789	789	taxpayer is allowed a deduction under section 151 13
790	790	(relating to allowance of deduction for personal ex-14
791	791	emptions) for the taxable year (including the tax-15
792	792	payer or his spouse)’’ and inserting ‘‘1 or more of 16
793	793	the taxpayer, the taxpayer’s spouse, or any depend-17
794	794	ent of the taxpayer’’. 18
795	795	(22) Section 42(i)(3)(D)(ii)(I) of such Code is 19
796	796	amended by striking ‘‘section 152’’ and inserting 20
797	797	‘‘section 7706’’. 21
798	798	(23) Section 45R(e)(1)(A)(iv) of such Code is 22
799	799	amended— 23
800	800	(A) by striking ‘‘section 152(d)(2)’’ and in-24
801	801	serting ‘‘section 7706(d)(2)’’, and 25
802	802	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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804	804	•S 1226 IS
805	805	(B) by striking ‘‘section 152(d)(2)(H)’’ 1
806	806	and inserting ‘‘section 7706(d)(2)(H)’’. 2
807	807	(24) Section 51(i)(1) of such Code is amend-3
808	808	ed— 4
809	809	(A) by striking ‘‘section 152(d)(2)’’ each 5
810	810	place it appears and inserting ‘‘section 6
811	811	7706(d)(2)’’, and 7
812	812	(B) by striking ‘‘section 152(d)(2)(H)’’ in 8
813	813	subparagraph (C) thereof and inserting ‘‘section 9
814	814	7706(d)(2)(H)’’. 10
815	815	(25) Section 56(b)(1)(D) of such Code is 11
816	816	amended by striking ‘‘, the deduction for personal 12
817	817	exemptions under section 151,’’. 13
818	818	(26) Section 63(b) of such Code is amended by 14
819	819	striking paragraph (2) and by redesignating para-15
820	820	graphs (3) and (4) as paragraphs (2) and (3), re-16
821	821	spectively. 17
822	822	(27) Section 63(c)(5) is amended by striking 18
823	823	‘‘with respect to whom a deduction under section 19
824	824	151 is allowable to’’ and inserting ‘‘who is a depend-20
825	825	ent of’’. 21
826	826	(28) Subparagraph (B) of section 63(f)(1) of 22
827	827	such Code is amended to read as follows: 23
828	828	‘‘(B) for the spouse of the taxpayer if— 24
829	829	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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831	831	•S 1226 IS
832	832	‘‘(i) the spouse has attained age 65 1
833	833	before the close of the taxable year, and 2
834	834	‘‘(ii) a joint return is not made by the 3
835	835	taxpayer and his spouse, and the spouse, 4
836	836	for the calendar year in which the taxable 5
837	837	year of the taxpayer begins, has no gross 6
838	838	income and is not the dependent of an-7
839	839	other taxpayer.’’. 8
840	840	(29) Subparagraph (B) of section 63(f)(2) of 9
841	841	such Code is amended to read as follows: 10
842	842	‘‘(B) for the spouse of the taxpayer if— 11
843	843	‘‘(i) the spouse is blind as of the close 12
844	844	of the taxable year, and 13
845	845	‘‘(ii) a joint return is not made by the 14
846	846	taxpayer and his spouse, and the spouse, 15
847	847	for the calendar year in which the taxable 16
848	848	year of the taxpayer begins, has no gross 17
849	849	income and is not the dependent of an-18
850	850	other taxpayer.’’. 19
851	851	(30) Section 72(t)(2)(D)(i)(III) of such Code is 20
852	852	amended by striking ‘‘section 152’’ and inserting 21
853	853	‘‘section 7706’’. 22
854	854	(31) Section 72(t)(7)(A)(iii) of such Code is 23
855	855	amended by striking ‘‘section 152(f)(1)’’ and insert-24
856	856	ing ‘‘section 7706(f)(1)’’. 25
857	857	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
858	858	kjohnson on DSK79L0C42PROD with BILLS 29
859	859	•S 1226 IS
860	860	(32) Section 105(b) of such Code is amended— 1
861	861	(A) by striking ‘‘as defined in section 152’’ 2
862	862	and inserting ‘‘as defined in section 7706’’, 3
863	863	(B) by striking ‘‘section 152(f)(1)’’ and in-4
864	864	serting ‘‘section 7706(f)(1)’’, and 5
865	865	(C) by striking ‘‘section 152(e)’’ and in-6
866	866	serting ‘‘section 7706(e)’’. 7
867	867	(33) Section 105(c)(1) of such Code is amended 8
868	868	by striking ‘‘section 152’’ and inserting ‘‘section 9
869	869	7706’’. 10
870	870	(34) Section 125(e)(1)(D) of such Code is 11
871	871	amended by striking ‘‘section 152’’ and inserting 12
872	872	‘‘section 7706’’. 13
873	873	(35) Section 129(c) of such Code is amended— 14
874	874	(A) by striking ‘‘with respect to whom, for 15
875	875	such taxable year, a deduction is allowable 16
876	876	under section 151(c) (relating to personal ex-17
877	877	emptions for dependents) to’’ in paragraph (1) 18
878	878	and inserting ‘‘who is a dependent of’’, and 19
879	879	(B) by striking ‘‘section 152(f)(1)’’ in 20
880	880	paragraph (2) and inserting ‘‘section 21
881	881	7706(f)(1)’’. 22
882	882	(36) Section 132(h)(2)(B) of such Code is 23
883	883	amended— 24
884	884	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
885	885	kjohnson on DSK79L0C42PROD with BILLS 30
886	886	•S 1226 IS
887	887	(A) by striking ‘‘section 152(f)(1)’’ and in-1
888	888	serting ‘‘section 7706(f)(1)’’, and 2
889	889	(B) by striking ‘‘section 152(e)’’ and in-3
890	890	serting ‘‘section 7706(e)’’. 4
891	891	(37) Section 135(c)(2)(A)(iii) is amended by 5
892	892	striking ‘‘with respect to whom the taxpayer is al-6
893	893	lowed a deduction under section 151’’. 7
894	894	(38) Section 139D(c)(5) of such Code is 8
895	895	amended by striking ‘‘section 152’’ and inserting 9
896	896	‘‘section 7706’’. 10
897	897	(39) Section 139E(c)(2) of such Code is 11
898	898	amended by striking ‘‘section 152’’ and inserting 12
899	899	‘‘section 7706’’. 13
900	900	(40) Section 162(l)(1)(D) of such Code is 14
901	901	amended by striking ‘‘section 152(f)(1)’’ and insert-15
902	902	ing ‘‘section 7706(f)(1)’’. 16
903	903	(41) Section 170(g)(1) of such Code is amend-17
904	904	ed by striking ‘‘section 152’’ and inserting ‘‘section 18
905	905	7706’’. 19
906	906	(42) Section 170(g)(3) of such Code is amend-20
907	907	ed by striking ‘‘section 152(d)(2)’’ and inserting 21
908	908	‘‘section 7706(d)(2)’’. 22
909	909	(43) Section 172(d) of such Code is amended 23
910	910	by striking paragraph (3). 24
911	911	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
912	912	kjohnson on DSK79L0C42PROD with BILLS 31
913	913	•S 1226 IS
914	914	(44) Section 213(a) of such Code is amended 1
915	915	by striking ‘‘section 152’’ and inserting ‘‘section 2
916	916	7706’’. 3
917	917	(45) Section 213(d)(5) of such Code is amend-4
918	918	ed by striking ‘‘section 152(e)’’ and inserting ‘‘sec-5
919	919	tion 7706(e)’’. 6
920	920	(46) Section 213(e)(11) of such Code is amend-7
921	921	ed by striking ‘‘section 152(d)(2)’’ and inserting 8
922	922	‘‘section 7706(d)(2)’’. 9
923	923	(47) Section 220(b)(6) of such Code is amend-10
924	924	ed by striking ‘‘with respect to whom a deduction 11
925	925	under section 151 is allowable to’’ and inserting 12
926	926	‘‘who is a dependent of’’. 13
927	927	(48) Section 220(d)(2)(A) of such Code is 14
928	928	amended by striking ‘‘section 152’’ and inserting 15
929	929	‘‘section 7706’’. 16
930	930	(49) Section 221(c) of such Code is amended by 17
931	931	striking ‘‘a deduction under section 151 with respect 18
932	932	to such individual is allowed to’’ and inserting ‘‘such 19
933	933	individual is a dependent of’’. 20
934	934	(50) Section 221(d)(4) of such Code is amend-21
935	935	ed by striking ‘‘section 152’’ and inserting ‘‘section 22
936	936	7706’’. 23
937	937	(51) Section 223(b)(6) of such Code is amend-24
938	938	ed by striking ‘‘with respect to whom a deduction 25
939	939	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
940	940	kjohnson on DSK79L0C42PROD with BILLS 32
941	941	•S 1226 IS
942	942	under section 151 is allowable to’’ and inserting 1
943	943	‘‘who is a dependent of’’. 2
944	944	(52) Section 223(d)(2)(A) of such Code is 3
945	945	amended by striking ‘‘section 152’’ and inserting 4
946	946	‘‘section 7706’’. 5
947	947	(53) Section 401(h) of such Code is amended 6
948	948	by striking ‘‘section 152(f)(1)’’ in the last sentence 7
949	949	and inserting ‘‘section 7706(f)(1)’’. 8
950	950	(54) Section 402(l)(4)(D) of such Code is 9
951	951	amended by striking ‘‘section 152’’ and inserting 10
952	952	‘‘section 7706’’. 11
953	953	(55) Section 409A(a)(2)(B)(ii)(I) of such Code 12
954	954	is amended by striking ‘‘section 152(a)’’ and insert-13
955	955	ing ‘‘section 7706(a)’’. 14
956	956	(56) Section 443 is amended by striking sub-15
957	957	section (c). 16
958	958	(57) Section 501(c)(9) of such Code is amended 17
959	959	by striking ‘‘section 152(f)(1)’’ and inserting ‘‘sec-18
960	960	tion 7706(f)(1)’’. 19
961	961	(58) Section 529(c)(9)(C)(iii) of such Code is 20
962	962	amended by striking ‘‘section 152(d)(2)(B)’’ and in-21
963	963	serting ‘‘section 7706(d)(2)(B)’’. 22
964	964	(59) Section 529(e)(2)(B) of such Code is 23
965	965	amended by striking ‘‘section 152(d)(2)’’ and insert-24
966	966	ing ‘‘section 7706(d)(2)’’. 25
967	967	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
968	968	kjohnson on DSK79L0C42PROD with BILLS 33
969	969	•S 1226 IS
970	970	(60) Section 529A(e)(4) of such Code is amend-1
971	971	ed— 2
972	972	(A) by striking ‘‘section 152(d)(2)(B)’’ and 3
973	973	inserting ‘‘section 7706(d)(2)(B)’’, and 4
974	974	(B) by striking ‘‘section 152(f)(1)(B)’’ and 5
975	975	inserting ‘‘section 7706(f)(1)(B)’’. 6
976	976	(61) Section 703(a)(2) of such Code is amended 7
977	977	by striking subparagraph (A) and by redesignating 8
978	978	subparagraphs (B) through (F) as subparagraphs 9
979	979	(A) through (E), respectively. 10
980	980	(62) Section 873(b) is amended by striking 11
981	981	paragraph (3). 12
982	982	(63) Section 874 of such Code is amended by 13
983	983	striking subsection (b) and by redesignating sub-14
984	984	section (c) as subsection (b). 15
985	985	(64) Section 891 of such Code is amended by 16
986	986	striking ‘‘under section 151 and’’. 17
987	987	(65) Section 904(b) of such Code is amended 18
988	988	by striking paragraph (1). 19
989	989	(66) Section 931(b)(1) of such Code is amend-20
990	990	ed by striking ‘‘(other than the deduction under sec-21
991	991	tion 151, relating to personal exemptions)’’. 22
992	992	(67) Section 933 of such Code is amended— 23
993	993	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
994	994	kjohnson on DSK79L0C42PROD with BILLS 34
995	995	•S 1226 IS
996	996	(A) by striking ‘‘(other than the deduction 1
997	997	under section 151, relating to personal exemp-2
998	998	tions)’’ in paragraph (1), and 3
999	999	(B) by striking ‘‘(other than the deduction 4
1000	1000	for personal exemptions under section 151)’’ in 5
1001	1001	paragraph (2). 6
1002	1002	(68) Section 1212(b)(2)(B)(ii) of such Code is 7
1003	1003	amended to read as follows: 8
1004	1004	‘‘(ii) in the case of an estate or trust, 9
1005	1005	the deduction allowed for such year under 10
1006	1006	section 642(b).’’. 11
1007	1007	(69) Section 1361(c)(1)(C) of such Code is 12
1008	1008	amended by striking ‘‘section 152(f)(1)(C)’’ and in-13
1009	1009	serting ‘‘section 7706(f)(1)(C)’’. 14
1010	1010	(70) Section 1402(a) of such Code is amended 15
1011	1011	by striking paragraph (7). 16
1012	1012	(71) Section 2032A(c)(7)(D) of such Code is 17
1013	1013	amended by striking ‘‘section 152(f)(2)’’ and insert-18
1014	1014	ing ‘‘section 7706(f)(2)’’. 19
1015	1015	(72) Section 3402(f)(1)(A) of such Code is 20
1016	1016	amended by striking ‘‘for whom a deduction is al-21
1017	1017	lowed with respect to another taxpayer under section 22
1018	1018	151’’ and inserting ‘‘who is a dependent of another 23
1019	1019	taxpayer’’. 24
1020	1020	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1021	1021	kjohnson on DSK79L0C42PROD with BILLS 35
1022	1022	•S 1226 IS
1023	1023	(73) Section 3402(m)(1) of such Code is 1
1024	1024	amended by striking ‘‘other than the deductions re-2
1025	1025	ferred to in section 151 and’’. 3
1026	1026	(74) Section 3402(r)(2) of such Code is amend-4
1027	1027	ed by striking ‘‘the sum of—’’ and all that follows 5
1028	1028	and inserting ‘‘the standard deduction in effect 6
1029	1029	under section 63(c)(1)(B).’’. 7
1030	1030	(75) Section 5000A(b)(3)(A) of such Code is 8
1031	1031	amended by striking ‘‘section 152’’ and inserting 9
1032	1032	‘‘section 7706’’. 10
1033	1033	(76) Section 5000A(c)(4)(A) of such Code is 11
1034	1034	amended by striking ‘‘the number of individuals for 12
1035	1035	whom the taxpayer is allowed a deduction under sec-13
1036	1036	tion 151 (relating to allowance of deduction for per-14
1037	1037	sonal exemptions) for the taxable year’’ and insert-15
1038	1038	ing ‘‘the sum of 1 (2 in the case of a joint return) 16
1039	1039	plus the number of the taxpayer’s dependents for 17
1040	1040	the taxable year’’. 18
1041	1041	(77) Section 6013(b)(3)(A) of such Code is 19
1042	1042	amended— 20
1043	1043	(A) by striking ‘‘had less than the exemp-21
1044	1044	tion amount of gross income’’ in clause (ii) and 22
1045	1045	inserting ‘‘had no gross income’’, 23
1046	1046	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1047	1047	kjohnson on DSK79L0C42PROD with BILLS 36
1048	1048	•S 1226 IS
1049	1049	(B) by striking ‘‘had gross income of the 1
1050	1050	exemption amount or more’’ in clause (iii) and 2
1051	1051	inserting ‘‘had any gross income’’, and 3
1052	1052	(C) by striking the flush language fol-4
1053	1053	lowing clause (iii). 5
1054	1054	(78) Section 6103(l)(21)(A)(iii) of such Code is 6
1055	1055	amended to read as follows: 7
1056	1056	‘‘(iii) the number of the taxpayer’s de-8
1057	1057	pendents,’’. 9
1058	1058	(79) Section 6213(g)(2)(H) of such Code is 10
1059	1059	amended by striking ‘‘or section 151 (relating to al-11
1060	1060	lowance of deductions for personal exemptions)’’. 12
1061	1061	(80) Section 6334(d)(2) of such Code is amend-13
1062	1062	ed to read as follows: 14
1063	1063	‘‘(2) E
1064	1064	XEMPT AMOUNT.— 15
1065	1065	‘‘(A) I
1066	1066	N GENERAL.—For purposes of para-16
1067	1067	graph (1), the term ‘exempt amount’ means an 17
1068	1068	amount equal to— 18
1069	1069	‘‘(i) the sum of the amount deter-19
1070	1070	mined under subparagraph (B) and the 20
1071	1071	standard deduction, divided by 21
1072	1072	‘‘(ii) 52. 22
1073	1073	‘‘(B) A
1074	1074	MOUNT DETERMINED .—For pur-23
1075	1075	poses of subparagraph (A), the amount deter-24
1076	1076	mined under this subparagraph is $4,150 multi-25
1077	1077	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1078	1078	kjohnson on DSK79L0C42PROD with BILLS 37
1079	1079	•S 1226 IS
1080	1080	plied by the number of the taxpayer’s depend-1
1081	1081	ents for the taxable year in which the levy oc-2
1082	1082	curs. 3
1083	1083	‘‘(C) I
1084	1084	NFLATION ADJUSTMENT .—In the 4
1085	1085	case of any taxable year beginning after 2018, 5
1086	1086	the $4,150 amount in subparagraph (B) shall 6
1087	1087	be increased by an amount equal to— 7
1088	1088	‘‘(i) such dollar amount, multiplied by 8
1089	1089	‘‘(ii) the cost-of-living adjustment de-9
1090	1090	termined under section 1(f)(3) for the cal-10
1091	1091	endar year in which the taxable year be-11
1092	1092	gins, by substituting ‘calendar year 2017’ 12
1093	1093	for ‘calendar year 2016’ in subparagraph 13
1094	1094	(A) thereof. 14
1095	1095	If any increase determined under the preceding 15
1096	1096	sentence is not a multiple of $100, such in-16
1097	1097	crease shall be rounded to the next lowest mul-17
1098	1098	tiple of $100. 18
1099	1099	‘‘(D) V
1100	1100	ERIFIED STATEMENT .—Unless the 19
1101	1101	taxpayer submits to the Secretary a written and 20
1102	1102	properly verified statement specifying the facts 21
1103	1103	necessary to determine the proper amount 22
1104	1104	under subparagraph (A), subparagraph (A) 23
1105	1105	shall be applied as if the taxpayer were a mar-24
1106	1106	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1107	1107	kjohnson on DSK79L0C42PROD with BILLS 38
1108	1108	•S 1226 IS
1109	1109	ried individual filing a separate return with no 1
1110	1110	dependents.’’. 2
1111	1111	(81) Section 6334(d) of such Code is amended 3
1112	1112	by striking paragraph (4). 4
1113	1113	(82) Section 7702B(f)(2)(C)(iii) of such Code is 5
1114	1114	amended by striking ‘‘section 152(d)(2)’’ and insert-6
1115	1115	ing ‘‘section 7706(d)(2)’’. 7
1116	1116	(83) Section 7703(a) of such Code is amended 8
1117	1117	by striking ‘‘part V of subchapter B of chapter 1 9
1118	1118	and’’. 10
1119	1119	(84) Section 7703(b)(1) of such Code is amend-11
1120	1120	ed— 12
1121	1121	(A) by striking ‘‘section 152(f)(1)’’ and all 13
1122	1122	that follows and inserting ‘‘section 7706(f)(1),’’, 14
1123	1123	and 15
1124	1124	(B) by striking ‘‘section 152(e)’’ and in-16
1125	1125	serting ‘‘section 7706(e)’’. 17
1126	1126	(85) Section 7706(a) of such Code, as redesig-18
1127	1127	nated by this section, is amended by striking ‘‘this 19
1128	1128	subtitle’’ and inserting ‘‘subtitle A’’. 20
1129	1129	(86)(A) Section 7706(d)(1)(B) of such Code, as 21
1130	1130	redesignated by this section, is amended by striking 22
1131	1131	‘‘the exemption amount (as defined in section 23
1132	1132	151(d))’’ and inserting ‘‘$4,150’’. 24
1133	1133	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1134	1134	kjohnson on DSK79L0C42PROD with BILLS 39
1135	1135	•S 1226 IS
1136	1136	(B) Section 7706(d) of such Code, as redesig-1
1137	1137	nated by this section, is amended by adding at the 2
1138	1138	end the following new paragraph: 3
1139	1139	‘‘(6) I
1140	1140	NFLATION ADJUSTMENT .—In the case of 4
1141	1141	any calendar year beginning after 2018, the $4,150 5
1142	1142	amount in paragraph (1)(B) shall be increased by an 6
1143	1143	amount equal to— 7
1144	1144	‘‘(A) such dollar amount, multiplied by 8
1145	1145	‘‘(B) the cost-of-living adjustment deter-9
1146	1146	mined under section 1(f)(3) for such calendar 10
1147	1147	year, determined by substituting ‘calendar year 11
1148	1148	2017’ for ‘calendar year 2016’ in subparagraph 12
1149	1149	(A)(ii) thereof. 13
1150	1150	If any increase determined under the preceding sen-14
1151	1151	tence is not a multiple of $100, such increase shall 15
1152	1152	be rounded to the next lowest multiple of $100.’’. 16
1153	1153	(87) The table of sections for chapter 79 of 17
1154	1154	such Code is amended by adding at the end the fol-18
1155	1155	lowing new item: 19
1156	1156	‘‘Sec. 7706. Dependent defined.’’.
1157	1157	(g) EFFECTIVEDATE.—The amendments made by 20
1158	1158	this section shall apply to taxable years beginning after 21
1159	1159	December 31, 2022. 22
1160	1160	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1161	1161	kjohnson on DSK79L0C42PROD with BILLS 40
1162	1162	•S 1226 IS
1163	1163	SEC. 12. PERMANENT EXTENSION OF LIMITATION ON DE-1
1164	1164	DUCTION FOR STATE AND LOCAL, ETC., 2
1165	1165	TAXES. 3
1166	1166	(a) I
1167	1167	NGENERAL.—Paragraph (6) of section 164(b) 4
1168	1168	of the Internal Revenue Code of 1986 is amended— 5
1169	1169	(1) by striking ‘‘, and before January 1, 2026’’, 6
1170	1170	and 7
1171	1171	(2) by striking ‘‘
1172	1172	2018 THROUGH 2025’’ in the 8
1173	1173	heading and inserting ‘‘
1174	1174	AFTER 2017’’. 9
1175	1175	(b) E
1176	1176	FFECTIVEDATE.—The amendments made by 10
1177	1177	this section shall apply to taxable years beginning after 11
1178	1178	December 31, 2022. 12
1179	1179	SEC. 13. PERMANENT EXTENSION OF LIMITATION ON DE-13
1180	1180	DUCTION FOR QUALIFIED RESIDENCE INTER-14
1181	1181	EST. 15
1182	1182	(a) R
1183	1183	EPEAL OFHOMEEQUITYINDEBTEDNESS.— 16
1184	1184	(1) I
1185	1185	N GENERAL.—Section 163(h)(3)(A) of the 17
1186	1186	Internal Revenue Code of 1986 is amended by strik-18
1187	1187	ing ‘‘during the taxable year on’’ and all that follows 19
1188	1188	through ‘‘For purposes of’’ and inserting ‘‘during 20
1189	1189	the taxable year on acquisition indebtedness with re-21
1190	1190	spect to any qualified principal residence of the tax-22
1191	1191	payer. For purposes of’’. 23
1192	1192	(2) C
1193	1193	ONFORMING AMENDMENT .—Section 24
1194	1194	163(h)(3) of such Code is amended by striking sub-25
1195	1195	paragraph (C). 26
1196	1196	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1197	1197	kjohnson on DSK79L0C42PROD with BILLS 41
1198	1198	•S 1226 IS
1199	1199	(b) LIMITATION ONACQUISITIONINDEBTEDNESS.— 1
1200	1200	(1) I
1201	1201	N GENERAL.—Section 163(h)(3)(B)(ii) of 2
1202	1202	the Internal Revenue Code of 1986 is amended by 3
1203	1203	striking ‘‘$1,000,000 ($500,000’’ and inserting 4
1204	1204	‘‘$750,000 ($375,000’’. 5
1205	1205	(2) T
1206	1206	REATMENT OF INDEBTEDNESS INCURRED 6
1207	1207	ON OR BEFORE DECEMBER 31 , 2017; 7
1208	1208	REFINANCINGS.—Section 163(h)(3) of the Internal 8
1209	1209	Revenue Code of 1986, as amended by subsection 9
1210	1210	(a)(2), is amended by inserting after subparagraph 10
1211	1211	(B) the following new subparagraph: 11
1212	1212	‘‘(C) T
1213	1213	REATMENT OF INDEBTEDNESS IN -12
1214	1214	CURRED ON OR BEFORE DECEMBER 15 , 2017; 13
1215	1215	REFINANCINGS.— 14
1216	1216	‘‘(i) I
1217	1217	N GENERAL.—In the case of any 15
1218	1218	indebtedness incurred on or before Decem-16
1219	1219	ber 15, 2017, subparagraph (B)(ii) shall 17
1220	1220	apply as in effect immediately before the 18
1221	1221	enactment of the Public Law 115–97, and, 19
1222	1222	in applying such subparagraph to any in-20
1223	1223	debtedness incurred after such date, the 21
1224	1224	limitation under such subparagraph shall 22
1225	1225	be reduced (but not below zero) by the 23
1226	1226	amount of any indebtedness incurred on or 24
1227	1227	before December 15, 2017, which is treat-25
1228	1228	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1229	1229	kjohnson on DSK79L0C42PROD with BILLS 42
1230	1230	•S 1226 IS
1231	1231	ed as acquisition indebtedness for purposes 1
1232	1232	of this subsection for the taxable year. 2
1233	1233	‘‘(ii) B
1234	1234	INDING CONTRACT EXCEP -3
1235	1235	TION.—In the case of a taxpayer who en-4
1236	1236	ters into a written binding contract before 5
1237	1237	December 15, 2017, to close on the pur-6
1238	1238	chase of a principal residence before Janu-7
1239	1239	ary 1, 2018, and who purchases such resi-8
1240	1240	dence before April 1, 2018, subclause (III) 9
1241	1241	shall be applied by substituting ‘April 1, 10
1242	1242	2018’ for ‘December 15, 2017’. 11
1243	1243	‘‘(iii) T
1244	1244	REATMENT OF REFINANCINGS 12
1245	1245	OF INDEBTEDNESS.— 13
1246	1246	‘‘(I) I
1247	1247	N GENERAL.—In the case 14
1248	1248	of any indebtedness which is incurred 15
1249	1249	to refinance indebtedness, such refi-16
1250	1250	nanced indebtedness shall be treated 17
1251	1251	for purposes of clause (i) as incurred 18
1252	1252	on the date that the original indebted-19
1253	1253	ness was incurred to the extent the 20
1254	1254	amount of the indebtedness resulting 21
1255	1255	from such refinancing does not exceed 22
1256	1256	the amount of the refinanced indebt-23
1257	1257	edness. 24
1258	1258	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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1260	1260	•S 1226 IS
1261	1261	‘‘(II) LIMITATION ON PERIOD OF 1
1262	1262	REFINANCING.—Subclause (I) shall 2
1263	1263	not apply to any indebtedness after 3
1264	1264	the expiration of the term of the origi-4
1265	1265	nal indebtedness or, if the principal of 5
1266	1266	such original indebtedness is not am-6
1267	1267	ortized over its term, the expiration of 7
1268	1268	the term of the 1st refinancing of 8
1269	1269	such indebtedness (or if earlier, the 9
1270	1270	date which is 30 years after the date 10
1271	1271	of such 1st refinancing).’’. 11
1272	1272	(c) C
1273	1273	OORDINATIONWITHEXCLUSION OF INCOME 12
1274	1274	F
1275	1275	ROM DISCHARGE OF INDEBTEDNESS.—Section 13
1276	1276	108(h)(2) of the Internal Revenue Code of 1986 is amend-14
1277	1277	ed by striking ‘‘, applied by substituting’’ and all that fol-15
1278	1278	lows through ‘‘section 163(h)(3)(F)(i)(II)’’. 16
1279	1279	(d) C
1280	1280	ONFORMINGAMENDMENTS.—Section 163(h)(3) 17
1281	1281	of the Internal Revenue Code of 1986 is amended— 18
1282	1282	(1) in the heading of subparagraph (D)(ii), by 19
1283	1283	striking ‘‘$1,000,000’’, and 20
1284	1284	(2) by striking subparagraph (F). 21
1285	1285	(e) E
1286	1286	FFECTIVEDATE.—The amendments made by 22
1287	1287	this section shall apply to taxable years beginning after 23
1288	1288	December 31, 2022. 24
1289	1289	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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1291	1291	•S 1226 IS
1292	1292	SEC. 14. PERMANENT EXTENSION OF MODIFICATIONS TO 1
1293	1293	DEDUCTION FOR PERSONAL CASUALTY 2
1294	1294	LOSSES. 3
1295	1295	(a) I
1296	1296	NGENERAL.—Paragraph (5) of section 165(h) 4
1297	1297	of the Internal Revenue Code of 1986 is amended— 5
1298	1298	(1) by striking ‘‘, and before January 1, 2026’’ 6
1299	1299	in subparagraph (A), and 7
1300	1300	(2) by striking ‘‘
1301	1301	2018 THROUGH 2025’’ in the 8
1302	1302	heading and inserting ‘‘
1303	1303	AFTER 2017’’. 9
1304	1304	(b) E
1305	1305	FFECTIVEDATE.—The amendments made by 10
1306	1306	this section shall apply to losses incurred in taxable years 11
1307	1307	beginning after December 31, 2022. 12
1308	1308	SEC. 15. REPEAL OF MISCELLANEOUS ITEMIZED DEDUC-13
1309	1309	TIONS. 14
1310	1310	(a) I
1311	1311	NGENERAL.—Section 67 of the Internal Rev-15
1312	1312	enue Code of 1986 is amended— 16
1313	1313	(1) by striking subsection (a) and inserting the 17
1314	1314	following: 18
1315	1315	‘‘(a) G
1316	1316	ENERALRULE.—No miscellaneous itemized 19
1317	1317	deduction shall be allowed for any taxable year beginning 20
1318	1318	after December 31, 2017.’’, 21
1319	1319	(2) by striking subsection (g), and 22
1320	1320	(3) by striking ‘‘
1321	1321	2-PERCENT FLOOR ON ’’ in 23
1322	1322	the heading and inserting ‘‘
1323	1323	TREATMENT OF ’’. 24
1324	1324	(b) C
1325	1325	ONFORMINGAMENDMENT.—The table of sec-25
1326	1326	tions for part I of subchapter B of chapter 1 of the Inter-26
1327	1327	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1328	1328	kjohnson on DSK79L0C42PROD with BILLS 45
1329	1329	•S 1226 IS
1330	1330	nal Revenue Code of 1986 is amended by striking ‘‘2-per-1
1331	1331	cent floor on’’ in the item relating to section 67 and insert-2
1332	1332	ing ‘‘Treatment of’’. 3
1333	1333	(c) E
1334	1334	FFECTIVEDATE.—The amendments made by 4
1335	1335	this section shall apply to taxable years beginning after 5
1336	1336	December 31, 2022. 6
1337	1337	SEC. 16. REPEAL OF OVERALL LIMITATION ON ITEMIZED 7
1338	1338	DEDUCTIONS. 8
1339	1339	(a) I
1340	1340	NGENERAL.—Part 1 of subchapter B of chapter 9
1341	1341	1 of the Internal Revenue Code of 1986 is amended by 10
1342	1342	striking section 68 (and the item relating to such section 11
1343	1343	in the table of sections for such part). 12
1344	1344	(b) C
1345	1345	ONFORMINGAMENDMENTS.— 13
1346	1346	(1) Section 1(f)(7) of the Internal Revenue 14
1347	1347	Code of 1986, as amended by this Act, is amended 15
1348	1348	by striking ‘‘section 63(c)(4), or section 68(b)(2)’’ 16
1349	1349	and inserting ‘‘or section 63(c)(4)’’. 17
1350	1350	(2) Section 56(b)(1) of such Code is amended 18
1351	1351	by striking subparagraph (E). 19
1352	1352	(3) Section 164(b)(5)(H)(ii)(III) of such Code 20
1353	1353	is amended by inserting ‘‘(as in effect before the 21
1354	1354	date of the enactment of the Tax Cuts and Jobs 22
1355	1355	Act)’’ after ‘‘68(b)’’. 23
1356	1356	(4) Section 642(b)(2)(C)(i)(I) of such Code is 24
1357	1357	amended by striking ‘‘as an individual described in 25
1358	1358	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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1360	1360	•S 1226 IS
1361	1361	section 68(b)(1)(C)’’ and inserting ‘‘as an individual 1
1362	1362	who is not married and who is not a surviving 2
1363	1363	spouse or head of household’’. 3
1364	1364	(5) Section 773(a)(3)(B) of such Code is 4
1365	1365	amended by striking clause (i) and redesignating 5
1366	1366	clauses (ii) through (iv) as clauses (i) through (iii), 6
1367	1367	respectively. 7
1368	1368	(c) E
1369	1369	FFECTIVEDATE.—The amendments made by 8
1370	1370	this section shall apply to taxable years beginning after 9
1371	1371	December 31, 2022. 10
1372	1372	SEC. 17. REPEAL OF EXCLUSION FOR QUALIFIED BICYCLE 11
1373	1373	COMMUTING REIMBURSEMENT. 12
1374	1374	(a) I
1375	1375	NGENERAL.—Section 132(f)(1) of the Internal 13
1376	1376	Revenue Code of 1986 is amended by striking subpara-14
1377	1377	graph (D). 15
1378	1378	(b) C
1379	1379	ONFORMINGAMENDMENTS.— 16
1380	1380	(1) Section 132(f)(2) of the Internal Revenue 17
1381	1381	Code of 1986 is amended by inserting ‘‘and’’ at the 18
1382	1382	end of subparagraph (A), by striking ‘‘, and’’ at the 19
1383	1383	end of subparagraph (B) and inserting a period, and 20
1384	1384	by striking subparagraph (C). 21
1385	1385	(2) Section 132(f)(4) of such Code is amended 22
1386	1386	by striking ‘‘(other than a qualified bicycle com-23
1387	1387	muting reimbursement)’’. 24
1388	1388	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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1390	1390	•S 1226 IS
1391	1391	(3) Section 132(f)(5) of such Code is amended 1
1392	1392	by striking subparagraph (F). 2
1393	1393	(4) Section 132(f) of such Code is amended by 3
1394	1394	striking paragraph (8). 4
1395	1395	(c) E
1396	1396	FFECTIVEDATE.—The amendments made by 5
1397	1397	this section shall apply to taxable years beginning after 6
1398	1398	December 31, 2022. 7
1399	1399	SEC. 18. PERMANENT EXTENSION OF MODIFICATION OF EX-8
1400	1400	CLUSION FOR QUALIFIED MOVING EXPENSE 9
1401	1401	REIMBURSEMENT. 10
1402	1402	(a) I
1403	1403	NGENERAL.—Section 132(g) of the Internal 11
1404	1404	Revenue Code of 1986 is amended— 12
1405	1405	(1) in paragraph (1), by striking ‘‘individual’’ 13
1406	1406	and inserting ‘‘qualified military member’’, and 14
1407	1407	(2) by striking paragraph (2) and inserting the 15
1408	1408	following: 16
1409	1409	‘‘(2) Q
1410	1410	UALIFIED MILITARY MEMBER .—For pur-17
1411	1411	poses of paragraph (1), the term ‘qualified military 18
1412	1412	member’ means a member of the Armed Forces of 19
1413	1413	the United States on active duty who moves pursu-20
1414	1414	ant to a military order and incident to a permanent 21
1415	1415	change of station.’’. 22
1416	1416	(b) E
1417	1417	FFECTIVEDATE.—The amendments made by 23
1418	1418	this section shall apply to taxable years beginning after 24
1419	1419	December 31, 2022. 25
1420	1420	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1421	1421	kjohnson on DSK79L0C42PROD with BILLS 48
1422	1422	•S 1226 IS
1423	1423	SEC. 19. REPEAL OF DEDUCTION FOR MOVING EXPENSES. 1
1424	1424	(a) I
1425	1425	NGENERAL.—Subsection (a) of section 217 of 2
1426	1426	the Internal Revenue Code of 1986 is amended to read 3
1427	1427	as follows: 4
1428	1428	‘‘(a) D
1429	1429	EDUCTIONALLOWED.—There shall be allowed 5
1430	1430	as a deduction moving expenses paid or incurred during 6
1431	1431	the taxable year in connection with the commencement of 7
1432	1432	work by a member of the Armed Forces of the United 8
1433	1433	States on active duty who moves pursuant to a military 9
1434	1434	order and incident to a permanent change of station.’’. 10
1435	1435	(b) C
1436	1436	ONFORMINGAMENDMENTS.— 11
1437	1437	(1) Section 217 of the Internal Revenue Code 12
1438	1438	of 1986 is amended— 13
1439	1439	(A) by striking subsections (c), (d), (f), 14
1440	1440	and (i), 15
1441	1441	(B) by redesignating subsections (g), (h), 16
1442	1442	and (j) as subsections (c), (d), and (e), respec-17
1443	1443	tively, and 18
1444	1444	(C) in subsection (c), as so redesignated— 19
1445	1445	(i) by striking paragraph (1) and re-20
1446	1446	designating paragraphs (2) and (3) as 21
1447	1447	paragraphs (1) and (2), respectively, and 22
1448	1448	(ii) in paragraph (2) (as so redesig-23
1449	1449	nated), by striking ‘‘moving expenses of his 24
1450	1450	spouse and dependents’’ and all that fol-25
1451	1451	lows and inserting ‘‘moving expenses of his 26
1452	1452	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1453	1453	kjohnson on DSK79L0C42PROD with BILLS 49
1454	1454	•S 1226 IS
1455	1455	spouse and dependents as if his spouse 1
1456	1456	commenced work as an employee at a new 2
1457	1457	principal place of work at such location.’’. 3
1458	1458	(2) Section 23 of such Code is amended by 4
1459	1459	striking ‘‘217(h)(3)’’ each place it appears in sub-5
1460	1460	sections (d)(3) and (e) and inserting ‘‘217(d)(3)’’. 6
1461	1461	(c) E
1462	1462	FFECTIVEDATE.—The amendments made by 7
1463	1463	this section shall apply to taxable years beginning after 8
1464	1464	December 31, 2022. 9
1465	1465	SEC. 20. PERMANENT EXTENSION OF LIMITATION ON WA-10
1466	1466	GERING LOSSES. 11
1467	1467	(a) I
1468	1468	NGENERAL.—The second sentence of section 12
1469	1469	165(d) of the Internal Revenue Code of 1986 is amended 13
1470	1470	by striking ‘‘in the case of taxable years beginning after 14
1471	1471	December 31, 2017, and before January 1, 2026,’’. 15
1472	1472	(b) E
1473	1473	FFECTIVEDATE.—The amendments made by 16
1474	1474	this section shall not apply to taxable years beginning 17
1475	1475	after December 31, 2022. 18
1476	1476	SEC. 21. INCREASE IN ESTATE AND GIFT TAX EXEMPTION 19
1477	1477	MADE PERMANENT. 20
1478	1478	(a) I
1479	1479	NGENERAL.—Section 2010(c)(3)(A) of the In-21
1480	1480	ternal Revenue Code of 1986 is amended by striking 22
1481	1481	‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 23
1482	1482	(b) C
1483	1483	ONFORMINGAMENDMENTS.— 24
1484	1484	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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1486	1486	•S 1226 IS
1487	1487	(1) Section 2010(c)(3) of the Internal Revenue 1
1488	1488	Code of 1986 is amended by striking subparagraph 2
1489	1489	(C). 3
1490	1490	(2) Subsection (g) of section 2001 of such Code 4
1491	1491	is amended to read as follows: 5
1492	1492	‘‘(g) M
1493	1493	ODIFICATIONSTOGIFTTAXPAYABLETORE-6
1494	1494	FLECTDIFFERENTTAXRATES.—For purposes of apply-7
1495	1495	ing subsection (b)(2) with respect to 1 or more gifts, the 8
1496	1496	rates of tax under subsection (c) in effect at the decedent’s 9
1497	1497	death shall, in lieu of the rates of tax in effect at the time 10
1498	1498	of such gifts, be used both to compute— 11
1499	1499	‘‘(1) the tax imposed by chapter 12 with respect 12
1500	1500	to such gifts, and 13
1501	1501	‘‘(2) the credit allowed against such tax under 14
1502	1502	section 2505, including in computing— 15
1503	1503	‘‘(A) the applicable credit amount under 16
1504	1504	section 2505(a)(1), and 17
1505	1505	‘‘(B) the sum of the amounts allowed as a 18
1506	1506	credit for all preceding periods under section 19
1507	1507	2505(a)(2).’’. 20
1508	1508	(c) E
1509	1509	FFECTIVEDATE.—The amendments made by 21
1510	1510	this section shall apply to estates of decedents dying and 22
1511	1511	gifts made after December 31, 2022. 23
1512	1512	VerDate Sep 11 2014 17:51 Apr 23, 2023 Jkt 039200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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1514	1514	•S 1226 IS
1515	1515	SEC. 22. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMP-1
1516	1516	TION MADE PERMANENT. 2
1517	1517	(a) I
1518	1518	NGENERAL.—Section 55(d) of the Internal Rev-3
1519	1519	enue Code of 1986 is amended— 4
1520	1520	(1) in paragraph (1)— 5
1521	1521	(A) by striking ‘‘$78,750’’ in subparagraph 6
1522	1522	(A) and inserting ‘‘$109,400’’, and 7
1523	1523	(B) by striking ‘‘$50,600’’ in subpara-8
1524	1524	graph (B) and inserting ‘‘$70,300’’, and 9
1525	1525	(2) in paragraph (2)— 10
1526	1526	(A) by striking ‘‘$150,000’’ in subpara-11
1527	1527	graph (A) and inserting ‘‘$1,000,000’’, and 12
1528	1528	(B) by striking subparagraphs (B) and (C) 13
1529	1529	and inserting the following: 14
1530	1530	‘‘(B) 50 percent of the dollar amount ap-15
1531	1531	plicable under subparagraph (A) in the case of 16
1532	1532	a taxpayer described in subparagraph (B) or 17
1533	1533	(C) of paragraph (1), and 18
1534	1534	‘‘(C) 50 percent of $150,000 in the case of 19
1535	1535	a taxpayer described in paragraph (1)(D).’’. 20
1536	1536	(b) I
1537	1537	NFLATIONADJUSTMENT.— 21
1538	1538	(1) I
1539	1539	N GENERAL.—Section 55(d)(3)(A)(ii) of 22
1540	1540	the Internal Revenue Code of 1986 is amended to 23
1541	1541	read as follows: 24
1542	1542	‘‘(ii) the cost-of-living adjustment de-25
1543	1543	termined under section 1(f)(3) for the cal-26
1544	1544	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
1545	1545	kjohnson on DSK79L0C42PROD with BILLS 52
1546	1546	•S 1226 IS
1547	1547	endar year in which the taxable year be-1
1548	1548	gins, by substituting for ‘calendar year 2
1549	1549	2016’ in subparagraph (A)(ii) thereof— 3
1550	1550	‘‘(I) ‘calendar year 2011’ in the 4
1551	1551	case of the dollar amounts described 5
1552	1552	in clauses (i), (iv), and (v) of subpara-6
1553	1553	graph (B), and 7
1554	1554	‘‘(II) ‘calendar year 2017’ in the 8
1555	1555	case of the dollar amounts described 9
1556	1556	in clauses (ii) and (iii) of subpara-10
1557	1557	graph (B).’’. 11
1558	1558	(2) C
1559	1559	ONFORMING AMENDMENTS .—Section 12
1560	1560	55(d)(3)(B) of such Code is amended— 13
1561	1561	(A) by striking ‘‘subparagraphs (A), (B), 14
1562	1562	and (D) of paragraph (1), and’’ in clause (ii) 15
1563	1563	and inserting ‘‘subparagraphs (A) and (B) of 16
1564	1564	paragraph (1),’’, 17
1565	1565	(B) by striking ‘‘subparagraphs (A) and 18
1566	1566	(B) of paragraph (2).’’ in clause (iii) and in-19
1567	1567	serting ‘‘paragraph (2)(A),’’, and 20
1568	1568	(C) by adding at the end the following: 21
1569	1569	‘‘(iv) the dollar amount contained in 22
1570	1570	paragraph (1)(D), and 23
1571	1571	‘‘(v) the dollar amount contained in 24
1572	1572	paragraph (2)(C).’’. 25
1573	1573	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226
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1575	1575	•S 1226 IS
1576	1576	(c) TREATMENT OF UNEARNEDINCOME OFMINOR 1
1577	1577	C
1578	1578	HILDREN.—Section 59 of the Internal Revenue Code of 2
1579	1579	1986 is amended by striking subsection (j). 3
1580	1580	(d) E
1581	1581	FFECTIVEDATE.—The amendments made by 4
1582	1582	this section shall apply to taxable years beginning after 5
1583	1583	December 31, 2022. 6
1584	1584	SEC. 23. TECHNICAL AMENDMENT. 7
1585	1585	Section 11000 of Public Law 115–97 is amended by 8
1586	1586	redesignating subsection (a) as subsection (b) and by in-9
1587	1587	serting before subsection (b) (as so redesignated) the fol-10
1588	1588	lowing new subsection: 11
1589	1589	‘‘(a) S
1590	1590	HORTTITLE.—This title may be cited as the 12
1591	1591	‘Tax Cuts and Jobs Act’.’’. 13
1592	1592	Æ
1593	1593	VerDate Sep 11 2014 00:06 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6301 E:\BILLS\S1226.IS S1226
1594	1594	kjohnson on DSK79L0C42PROD with BILLS