TCJA Permanency Act
This bill makes permanent provisions affecting individual and business taxpayers that were enacted in 2017 by the Tax Cuts and Jobs Act and are scheduled to expire at the end of 2025.
The bill makes permanent reductions in individual and capital gain tax rates.
The bill increases the standard tax deduction for individual taxpayers. It also increases and modifies the child tax credit and raises the contribution base for the tax deduction for charitable contributions.
The bill allows additional contributions to ABLE accounts (tax-exempt accounts designed to enable individuals with disabilities to save and pay for disability-related expenses). It exempts from taxation combat zone benefits of members of the Armed Forces serving in the Sinai Peninsula of Egypt and limits the deduction for moving expenses to active duty members of the Armed Forces.
Additionally, the bill
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8913 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8913
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
September 20, 2022
Mr. Buchanan (for himself, Mr. Brady, Mr. Banks, Mr. Perry, and Mr.
Joyce of Ohio) introduced the following 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 Act affecting individuals,
families, and small businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``TCJA Permanency
Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) References to the Tax Cuts and Jobs Act.--Title I of Public Law
115-97 may be cited as the ``Tax Cuts and Jobs Act''.
(d) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title, etc.
TITLE I--INDIVIDUAL REFORM MADE PERMANENT
Subtitle A--Rate Reform
Sec. 101. Modification of rates.
Subtitle B--Deduction for Qualified Business Income of Pass-Thru
Entities
Sec. 111. Deduction for qualified business income.
Sec. 112. Limitation on losses for taxpayers other than corporations.
Subtitle C--Tax Benefits for Families and Individuals
Sec. 121. Increase in standard deduction.
Sec. 122. Increase in and modification of child tax credit.
Sec. 123. Increased limitation for certain charitable contributions.
Sec. 124. Increased contributions to ABLE accounts.
Sec. 125. Rollovers to ABLE programs from 529 programs.
Sec. 126. Treatment of certain individuals performing services in the
Sinai Peninsula 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
reimbursement.
Sec. 148. Qualified moving expense reimbursement exclusion limited to
members of Armed Forces.
Sec. 149. Deduction for moving expenses limited to members of Armed
Forces.
Sec. 150. Limitation on wagering losses.
Subtitle F--Increase in Estate and Gift Tax Exemption
Sec. 151. Increase in estate and gift tax exemption.
TITLE II--INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM TAX MADE
PERMANENT
Sec. 201. Increased exemption for individuals.
TITLE I--INDIVIDUAL REFORM MADE PERMANENT
Subtitle A--Rate Reform
SEC. 101. MODIFICATION OF RATES.
(a) Married Individuals Filing Joint Returns and Surviving
Spouses.--Section 1(a) is amended by striking the table contained
therein and inserting the following:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $19,050..................... 10% of taxable income.
Over $19,050 but not over $77,400.... $1,905, plus 12% of the excess
over $19,050.
Over $77,400 but not over $165,000... $8,907, plus 22% of the excess
over $77,400.
Over $165,000 but not over $315,000.. $28,179, plus 24% of the excess
over $165,000.
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 amended by striking the
table contained therein and inserting the following:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $13,600..................... 10% of taxable income.
Over $13,600 but not over $51,800.... $1,360, plus 12% of the excess
over $13,600.
Over $51,800 but not over $82,500.... $5,944, plus 22% of the excess
over $51,800.
Over $82,500 but not over $157,500... $12,698, plus 24% of the excess
over $82,500.
Over $157,500 but not over $200,000.. $30,698, plus 32% of the excess
over $157,500.
Over $200,000 but not over $500,000.. $44,298, plus 35% of the excess
over $200,000.
Over $500,000........................ $149,298, plus 37% of the excess
over $500,000.''.
(c) Unmarried Individuals Other Than Surviving Spouses and Heads of
Households.--Section 1(c) is amended by striking the table contained
therein and inserting the following:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $9,525...................... 10% of taxable income.
Over $9,525 but not over $38,700..... $952.50, plus 12% of the excess
over $9,525.
Over $38,700 but not over $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $500,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $500,000........................ $150,689.50, plus 37% of the
excess over $500,000.''.
(d) Married Individuals Filing Separate Returns.--Section 1(d) is
amended by striking the table contained therein and inserting the
following:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $9,525...................... 10% of taxable income.
Over $9,525 but not over $38,700..... $952.50, plus 12% of the excess
over $9,525.
Over $38,700 but not over $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $300,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $300,000........................ $80,689.50, plus 37% of the
excess over $300,000.''.
(e) Estates and Trusts.--Section 1(e) is amended by striking the
table contained therein and inserting the following:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $2,550...................... 10% of taxable income.
Over $2,550 but not over $9,150...... $255, plus 24% of the excess over
$2,550.
Over $9,150 but not over $12,500..... $1,839, plus 35% of the excess
over $9,150.
Over $12,500......................... $3,011.50, plus 37% of the excess
over $12,500.''.
(f) Inflation Adjustments.--Section 1(f) is amended--
(1) by amending paragraph (2)(A) to read as follows:
``(A) by increasing the minimum and maximum dollar
amounts for each bracket for which a tax is imposed
under such table by the cost-of-living adjustment for
such calendar year, determined under this subsection
for such calendar year by substituting `2017' for
`2016' in paragraph (3)(A)(ii),'',
(2) by amending paragraph (7) to read as follows:
``(7) Rounding.--
``(A) In general.--Except as provided in
subparagraph (B), if any increase determined under
paragraph (2)(A) is not a multiple of $25, such
increase shall be rounded to the next lowest multiple
of $25.
``(B) Joint returns, etc.--In the case of a table
prescribed under subsection (a), subparagraph (A) shall
be applied by substituting `$50' for `$25' both places
it appears.'',
(3) by striking paragraph (8), and
(4) in the heading, by striking ``Phaseout of Marriage
Penalty in 15-percent Bracket; Adjustments'' and inserting
``Adjustments''.
(g) Application of Income Tax Brackets to Capital Gains Brackets.--
Section 1(h) is amended--
(1) in paragraph (1)(B)(i), by striking ``25 percent'' and
inserting ``22 percent'',
(2) in paragraph (1)(C)(ii)(I), by striking ``which would
(without regard to this paragraph) be taxed at a rate below
39.6 percent'' and inserting ``below the maximum 15-percent
rate amount'', and
(3) by adding at the end the following new paragraphs:
``(12) Maximum 15-percent rate amount defined.--For
purposes of this subsection, the maximum 15-percent rate amount
shall be--
``(A) in the case of a joint return or surviving
spouse (as defined in section 2(a)), $479,000 (\1/2\
such amount in the case of a married individual filing
a separate return),
``(B) in the case of an individual who is a head of
household (as defined in section 2(b)), $452,400,
``(C) in the case of any other individual (other
than an estate or trust), $425,800, and
``(D) in the case of an estate or trust, $12,700.
``(13) Determination of 0 percent rate bracket for estates
and trusts.--In the case of any estate or trust, paragraph
(1)(B) shall be applied by treating the amount determined in
clause (i) thereof as being equal to $2,600.
``(14) Inflation adjustment.--
``(A) In general.--Each of the dollar amounts in
paragraphs (12) and (13) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under subsection (f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2017'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--If any increase under subparagraph
(A) is not a multiple of $50, such increase shall be
rounded to the next lowest multiple of $50.''.
(h) Conforming Amendments.--
(1) Section 1 is amended by striking subsections (i) and
(j).
(2) Section 3402(q)(1) is amended by striking ``third
lowest'' and inserting ``fourth lowest''.
(i) Application of Section 15.--
(1) In general.--Subsection (a) of section 15 is amended by
striking ``If any rate of tax'' and inserting ``In the case of
a corporation, if any rate of tax''.
(2) Conforming amendments.--
(A) Section 15 is amended by striking subsections
(d) and (f).
(B) Section 6013(c) is amended by striking
``sections 15, 443, and 7851(a)(1)(A)'' and inserting
``section 443''.
(C) The heading of section 15 is amended by
inserting ``on corporations'' after ``effect of
changes''.
(D) The table of sections for part III of
subchapter A of chapter 1 is amended by striking the
item relating to section 15 and inserting the following
new item:
``Sec. 15. Effect of changes on corporations.''.
(j) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
(2) Application of section 15.--Section 15 of the Internal
Revenue Code of 1986 shall not apply to any change in a rate of
tax by reason of--
(A) section 1(j) of such Code (as in effect before
its repeal by this section), or
(B) any amendment made by this Act.
Subtitle B--Deduction for Qualified Business Income of Pass-Thru
Entities
SEC. 111. DEDUCTION FOR QUALIFIED BUSINESS INCOME.
(a) In General.--Section 199A is amended by striking subsection
(i).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 112. LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN CORPORATIONS.
(a) In General.--Section 461 is amended--
(1) by amending subsection (l)(1) to read as follows:
``(1) Limitation.--In the case of a taxpayer other than a
corporation, any excess business loss of the taxpayer for the
taxable year shall not be allowed.'', and
(2) by striking subsection (j) and redesignating
subsections (k) and (l) (as amended) as subsections (j) and
(k), respectively.
(b) Conforming Amendments.--
(1) Section 58(a)(2)(A) is amended by striking ``461(k)''
and inserting ``461(j)''.
(2) Section 461(i)(4) is amended by striking ``subsection
(k)'' and inserting ``subsection (j)''.
(3) Section 464(d)(2)(B)(iii) is amended by striking
``section 461(k)(2)(E)'' and inserting ``section
461(j)(2)(E)''.
(4) Subparagraphs (B) and (C) of section 1256(e)(3) are
each amended by striking ``section 461(k)(4)'' and inserting
``section 461(j)(4)''.
(5) Section 1258(d)(5)(C) is amended by striking ``section
461(k)(4)'' and inserting ``section 461(j)(4)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
Subtitle C--Tax Benefits for Families and Individuals
SEC. 121. INCREASE IN STANDARD DEDUCTION.
(a) In General.--Section 63(c)(2) is amended--
(1) by striking ``$4,400'' in subparagraph (B) and
inserting ``$18,000'', and
(2) by striking ``$3,000'' in subparagraph (C) and
inserting ``$12,000''.
(b) Inflation Adjustment.--Section 63(c)(4) is amended to read as
follows:
``(4) Adjustments for inflation.--
``(A) In general.--Each dollar amount in paragraph
(2)(B), (2)(C), or (5) or subsection (f) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting for `2016' in
subparagraph (A)(ii) thereof--
``(I) in the case of the dollar
amounts contained in paragraph (2)(B)
or (2)(C), `2017',
``(II) in the case of the dollar
amounts contained in paragraph (5)(A)
or subsection (f), `1987', and
``(III) in the case of the dollar
amount contained in paragraph (5)(B),
`1997'.
``(B) Rounding.--If any increase under subparagraph
(A) is not a multiple of $50, such increase shall be
rounded to the next lowest multiple of $50.''.
(c) Conforming Amendment.--Section 63(c) is amended by striking
paragraph (7).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 122. INCREASE IN AND MODIFICATION OF CHILD TAX CREDIT.
(a) In General.--Section 24 is amended by striking subsections (a),
(b), and (c) and inserting the following new subsections:
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of--
``(1) $2,000 for each qualifying child of the taxpayer, and
``(2) $500 for each qualifying dependent (other than a
qualifying child) of the taxpayer.
``(b) Limitation Based on Adjusted Gross Income.--The amount of the
credit allowable under subsection (a) shall be reduced (but not below
zero) by $50 for each $1,000 (or fraction thereof) by which the
taxpayer's modified adjusted gross income exceeds $400,000 in the case
of a joint return ($200,000 in any other case). For purposes of the
preceding sentence, the term ``modified adjusted gross income'' means
adjusted gross income increased by any amount excluded from gross
income under section 911, 931, or 933.
``(c) Qualifying Child; Qualifying Dependent.--For purposes of this
section--
``(1) Qualifying child.--The term `qualifying child' means
any qualifying dependent of the taxpayer--
``(A) who is a qualifying child (as defined in
section 7706(c)) of the taxpayer,
``(B) who has not attained age 17 at the close of
the calendar year in which the taxable year of the
taxpayer begins, and
``(C) whose name and social security number are
included on the taxpayer's return of tax for the
taxable year.
``(2) Qualifying dependent.--The term `qualifying
dependent' means any dependent of the taxpayer (as defined in
section 7706 without regard to all that follows `resident of
the United States' in section 7706(b)(3)(A)) whose name and TIN
are included on the taxpayer's return of tax for the taxable
year.
``(3) Social security number defined.--For purposes of this
subsection, the term `social security number' means, with
respect to a return of tax, a social security number issued to
an individual by the Social Security Administration, but only
if the social security number is issued--
``(A) to a citizen of the United States or pursuant
to subclause (I) (or that portion of subclause (III)
that relates to subclause (I)) of section
205(c)(2)(B)(i) of the Social Security Act, and
``(B) on or before the due date of filing such
return.''.
(b) Portion of Credit Refundable.--
(1) In general.--Section 24(d)(1)(A) is amended to read as
follows:
``(A) the credit which would be allowed under this
section determined--
``(i) by substituting `$1,400' for `$2,000'
in subsection (a)(1),
``(ii) without regard to subsection (a)(2),
and
``(iii) without regard to this subsection
(other than this subparagraph) and the
limitation under section 26(a), or''.
(2) Modification of limitation based on earned income.--
Section 24(d)(1)(B)(i) is amended by striking ``$3,000'' and
inserting ``$2,500''.
(3) Inflation adjustment.--Section 24(d) is amended by
inserting after paragraph (3) the following new paragraph:
``(4) Adjustment for inflation.--
``(A) In general.--The $1,400 amount in paragraph
(1)(A)(i) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `2017' for `2016' in
subparagraph (A)(ii) thereof.
``(B) Rounding.--If any increase under subparagraph
(A) is not a multiple of $100, such increase shall be
rounded to the next lowest multiple of $100.
``(C) Limitation.--The amount of any increase under
subparagraph (A) (after the application of subparagraph
(B)) shall not exceed $600.''.
(4) Conforming amendments.--
(A) Section 24(e) is amended to read as follows:
``(e) Taxpayer Identification Requirement.--No credit shall be
allowed under this section if the identifying number of the taxpayer
was issued after the due date for filing the return of tax for the
taxable year.''.
(B) Section 24 is amended by striking subsection
(h).
(c) Repeal of Certain Later Enacted Provisions.--
(1) Section 24 is amended by striking subsections (i), (j),
and (k).
(2) Chapter 77 is amended by striking section 7527A (and by
striking the item relating to section 7527A in the table of
sections for such chapter).
(3) Section 26(b)(2) is amended by inserting ``and'' at the
end of subparagraph (X), by striking ``, and'' at the end of
subparagraph (Y) and inserting a period, and by striking
subparagraph (Z).
(4) Section 3402(f)(1)(C) is amended by striking ``section
24 (determined after application of subsection (j) thereof)''
and inserting ``section 24(a)''.
(5) Section 6211(b)(4)(A) is amended--
(A) by striking ``24 by reason of subsections (d)
and (i)(1) thereof'' and inserting ``24(d)'', and
(B) by striking ``6428B, and 7527A'' and inserting
``and 6428B''.
(6) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by striking ``6431, or 7527A'' and
inserting ``or 6431''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 123. INCREASED LIMITATION FOR CERTAIN CHARITABLE CONTRIBUTIONS.
(a) In General.--Section 170(b)(1)(G) is amended to read as
follows:
``(G) Cash contributions.--
``(i) In general.--Any contribution of cash
to an organization described in subparagraph
(A) shall be allowed to the extent that the
aggregate of such contributions does not exceed
60 percent of the taxpayer's contribution base
for the taxable year, reduced by the aggregate
amount of contributions allowable under
subparagraph (A) for such taxpayer for such
year.
``(ii) Carryover.--If the aggregate amount
of contributions described in clause (i)
exceeds the limitation of clause (i), such
excess shall be treated (in a manner consistent
with the rules of subsection (d)(1)) as a
charitable contribution to which clause (i)
applies in each of the 5 succeeding years in
order of time.''.
(b) Coordination With Limitations on Other Contributions.--
(1) Coordination with 50 percent limitation.--Section
170(b)(1)(A) is amended by striking ``Any charitable
contribution'' and inserting ``Any charitable contribution
other than a contribution described in subparagraph (G)''.
(2) Coordination with 30 percent limitation.--Section
170(b)(1)(B) is amended--
(A) in the matter preceding clause (i), by striking
``to which subparagraph (A) applies'' and inserting
``to which subparagraph (A) or (G) applies'',
(B) by amending clause (ii) to read as follows:
``(ii) the excess of--
``(I) the sum of 50 percent of the
taxpayer's contribution base for the
taxable year, plus so much of the
amount of charitable contributions
allowable under subparagraph (G) as
does not exceed 10 percent of such
contribution base, over
``(II) the amount of charitable
contributions allowable under
subparagraphs (A) and (G) (determined
without regard to subparagraph (C)).'',
and
(C) in the matter following clause (ii), by
striking ``(to which subparagraph (A) does not apply)''
and inserting ``(to which neither subparagraph (A) nor
(G) applies)''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made in taxable years beginning after the date
of the enactment of this Act.
SEC. 124. INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS.
(a) Increase in Limitation for Contributions From Compensation of
Individuals With Disabilities.--Section 529A(b)(2)(B)(ii) is amended by
striking ``before January 1, 2026''.
(b) Allowance of Saver's Credit for ABLE Contributions by Account
Holder.--Section 25B(d)(1)(D) is amended by striking ``made before
January 1, 2026,''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 125. ROLLOVERS TO ABLE PROGRAMS FROM 529 PROGRAMS.
(a) In General.--Section 529(c)(3)(C)(i)(III) is amended by
striking ``before January 1, 2026,''.
(b) Effective Date.--The amendments made by this section shall
apply to distributions after the date of the enactment of this Act.
SEC. 126. TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE
SINAI PENINSULA OF EGYPT.
(a) In General.--Section 112(c)(2) is amended--
(1) by striking ``means any area'' and inserting ``means--
``(A) any area'', and
(2) by striking the period at the end and inserting ``, and
``(B) the Sinai Peninsula of Egypt.''.
(b) Period of Treatment.--Section 112(c)(3) is amended--
(1) by striking ``only if performed'' and inserting ``only
if--
``(A) in the case of an area described in paragraph
(2)(A), such service is performed'', and
(2) by striking the period at the end and inserting ``, and
``(B) in the case of the area described in
paragraph (2)(B), such service is performed during any
period with respect to which one or more members of the
Armed Forces of the United States are entitled to
special pay under section 310 of title 37, United
States Code (relating to special pay; duty subject to
hostile fire or imminent danger), for service performed
in such area.''.
(c) Conforming Amendment.--The Tax Cuts and Jobs Act is amended by
striking section 11026.
(d) Effective Date.--The amendments made by this section shall
apply with respect to services performed on or after the date of the
enactment of this Act.
Subtitle D--Education
SEC. 131. TREATMENT OF STUDENT LOAN DISCHARGES.
(a) Sunset of Special Rule for Discharges of Certain Loans.--
Section 108(f)(5) is amended--
(1) in the heading, by striking ``2025'' and inserting
``2023'', and
(2) by striking ``January 1, 2026'' and inserting ``January
1, 2024''.
(b) Reinstatement of Rule for Discharges on Account of Death or
Disability After 2023.--Section 108(f) is amended by adding at the end
the following new paragraph:
``(6) Discharges on account of death or disability after
2023.--
``(A) In general.--In the case of an individual,
gross income does not include any amount which (but for
this subsection) would be includible in gross income
for such taxable year by reasons of the discharge (in
whole or in part) of any loan described in subparagraph
(B) after December 31, 2023, if such discharge was--
``(i) pursuant to subsection (a) or (d) of
section 437 of the Higher Education Act of 1965
or the parallel benefit under part D of title
IV of such Act (relating to the repayment of
loan liability),
``(ii) pursuant to section 464(c)(1)(F) of
such Act, or
``(iii) otherwise discharged on account of
the death or total and permanent disability of
the student.
``(B) Loans described.--A loan is described in this
subparagraph if such loan is--
``(i) a student loan (as defined in
paragraph (2)), or
``(ii) a private education loan (as defined
in section 140(7) of the Consumer Credit
Protection Act (15 U.S.C. 1650(7))).''.
(c) Effective Date.--The amendments made by this section shall
apply to discharges of indebtedness after December 31, 2023.
SEC. 132. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND ADDITIONAL ELEMENTARY
AND SECONDARY EXPENSES.
(a) In General.--Section 529(c)(7) of the Internal Revenue Code of
1986 is amended to read as follows:
``(7) Treatment of elementary and secondary tuition.--Any
reference in this section to the term `qualified higher
education expense' shall include a reference to the following
expenses in connection with enrollment or attendance at, or for
students enrolled at or attending, an elementary or secondary
public, private, or religious school:
``(A) Tuition.
``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes
outside of the home, including at a tutoring facility,
but only if the tutor or instructor is not related to
the student and--
``(i) is licensed as a teacher in any
State,
``(ii) has taught at an eligible
educational institution, or
``(iii) is a subject matter expert in the
relevant subject.
``(F) Fees for a nationally standardized norm-
referenced achievement test, an advanced placement
examination, or any examinations related to college or
university admission.
``(G) Fees for dual enrollment in an institution of
higher education.
``(H) Educational therapies for students with
disabilities provided by a licensed or accredited
practitioner or provider, including occupational,
behavioral, physical, and speech-language therapies.
Such term shall include expenses for the purposes described in
subparagraphs (A) through (H) in connection with a homeschool
(whether treated as a homeschool or a private school for
purposes of applicable State law).''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made after the date of the enactment of this Act.
Subtitle E--Deductions and Exclusions
SEC. 141. REPEAL OF DEDUCTION FOR PERSONAL EXEMPTIONS.
(a) In General.--Part V of subchapter B of chapter 1 is hereby
repealed.
(b) Definition of Dependent Retained.--Section 152, prior to the
repeal made by subsection (a), is hereby redesignated as section 7706
and moved to the end of chapter 79.
(c) Application to Trusts and Estates.--Section 642(b) is amended--
(1) in paragraph (2)(C)--
(A) in clause (i), by striking ``the exemption
amount under section 151(d)'' and all that follows
through the period at the end and inserting ``the
dollar amount in effect under section 7706(d)(1)(B).'',
and
(B) by striking clause (iii),
(2) by striking paragraph (3), and
(3) by striking ``Deduction For Personal Exemption'' in the
heading thereof and inserting ``Basic Deduction''.
(d) Application to Nonresident Aliens.--Section 873(b) is amended
by striking paragraph (3).
(e) Modification of Return Requirement.--
(1) In general.--Section 6012(a)(1) is amended to read as
follows:
``(1) Every individual who has gross income for the taxable
year, except that a return shall not be required of--
``(A) an individual who is not married (determined
by applying section 7703) and who has gross income for
the taxable year which does not exceed the standard
deduction applicable to such individual for such
taxable year under section 63, or
``(B) an individual entitled to make a joint return
if--
``(i) the gross income of such individual,
when combined with the gross income of such
individual's spouse, for the taxable year does
not exceed the standard deduction which would
be applicable for such taxable year under
section 63 if such individual and such
individual's spouse made a joint return,
``(ii) such individual's spouse does not
make a separate return, and
``(iii) neither such individual nor such
individual's spouse is an individual described
in section 63(c)(4) who has income (other than
earned income) in excess of the amount in
effect under section 63(c)(4)(A).''.
(2) Bankruptcy estates.--Section 6012(a)(8) is amended by
striking ``the sum of the exemption amount plus the basic
standard deduction under section 63(c)(2)(C)'' and inserting
``the standard deduction in effect under section 63(c)(1)(B)''.
(3) Conforming amendment.--Section 6012 is amended by
striking subsection (f).
(f) Conforming Amendments.--
(1) Section 1(g)(5)(A) is amended by striking ``section
152(e)'' and inserting ``section 7706(e)''.
(2) Section 2(a)(1)(B) is amended--
(A) by striking ``section 152'' and inserting
``section 7706'', and
(B) by striking ``with respect to whom the taxpayer
is entitled to a deduction for the taxable year under
section 151'' and inserting ``whose TIN is included on
the taxpayer's return of tax for the taxable year''.
(3) Section 2(b)(1)(A)(i) is amended--
(A) in the matter preceding subclause (I)--
(i) by striking ``section 152(c)'' and
inserting ``section 7706(c)'', and
(ii) by striking ``section 152(e)'' and
inserting ``section 7706(e)'', and
(B) in subclause (II), by striking ``section
152(b)(2) or 152(b)(3)'' and inserting ``section
7706(b)(2) or 7706(b)(3)''.
(4) Section 2(b)(1)(A)(ii) is amended by striking ``if the
taxpayer is entitled to a deduction for the taxable year for
such person under section 151'' and inserting ``if the taxpayer
included such person's TIN on the return of tax for the taxable
year''.
(5) Section 2(b)(1)(B) is amended by striking ``if the
taxpayer is entitled to a deduction for the taxable year for
such father or mother under section 151'' and inserting ``if
such father or mother is a dependent of the taxpayer and the
taxpayer included such father or mother's TIN on the return of
tax for the taxable year''.
(6) Section 2(b)(3)(B) is amended--
(A) by striking ``section 152(d)(2)'' in clause (i)
and inserting ``section 7706(d)(2)'', and
(B) by striking ``section 152(d)'' in clause (ii)
and inserting ``section 7706(d)''.
(7) Section 21(b)(1)(A) is amended by striking ``section
152(a)(1)'' and inserting ``section 7706(a)(1)''.
(8) Section 21(b)(1)(B) is amended by striking ``section
152'' and inserting ``section 7706''.
(9) Section 21(e)(5)(A) is amended by striking ``section
152(e)'' and inserting ``section 7706(e)''.
(10) Section 21(e)(5) is amended by striking ``section
152(e)(4)(A)'' in the matter following subparagraph (B) and
inserting ``section 7706(e)(4)(A)''.
(11) Section 21(e)(6)(A) is amended to read as follows:
``(A) who is a dependent of either the taxpayer or
the taxpayer's spouse for the taxable year, or''.
(12) Section 21(e)(6)(B) is amended by striking ``section
152(f)(1)'' and inserting ``section 7706(f)(1)''.
(13) Section 25A(f)(1)(A)(iii) is amended by striking
``with respect to whom the taxpayer is allowed a deduction
under section 151''.
(14) Section 25A(g)(3) is amended by striking ``If a
deduction under section 151 with respect to an individual is
allowed to another taxpayer'' and inserting ``If an individual
is a dependent of another taxpayer''.
(15) Section 25B(c)(2)(A) is amended by striking ``any
individual with respect to whom a deduction under section 151
is allowed to another taxpayer'' and inserting ``any individual
who is a dependent of another taxpayer''.
(16) Section 25B(c)(2)(B) is amended by striking ``section
152(f)(2)'' and inserting ``section 7706(f)(2)''.
(17) Section 32(c)(1)(A)(ii)(III) is amended by striking
``a dependent for whom a deduction is allowable under section
151 to another taxpayer'' and inserting ``a dependent of
another taxpayer''.
(18) Section 32(c)(3) is amended--
(A) in subparagraph (A)--
(i) by striking ``section 152(c)'' and
inserting ``section 7706(c)'', and
(ii) by striking ``section 152(e)'' and
inserting ``section 7706(e)'',
(B) in subparagraph (B), by striking ``unless the
taxpayer is entitled to a deduction under section 151
for such taxable year with respect to such individual
(or would be so entitled but for section 152(e)'' and
inserting ``if such individual is not treated as a
dependent of such taxpayer for such taxable year by
reason of section 7706(b)(2) (determined without regard
to section 7706(e))'', and
(C) in subparagraph (C), by striking ``section
152(c)(1)(B)'' and inserting ``section 7706(c)(1)(B)''.
(19) Section 35(d)(1)(B) is amended by striking ``with
respect to whom the taxpayer is entitled to a deduction under
section 151(c)'' and inserting ``if the taxpayer included such
person's TIN on the return of tax for the taxable year''.
(20) Section 35(d)(2) is amended--
(A) by striking ``section 152(e)'' and inserting
``section 7706(e)'', and
(B) by striking ``section 152(e)(4)(A)'' and
inserting ``section 7706(e)(4)(A)''.
(21) Section 36B(b)(2)(A) is amended by striking ``section
152'' and inserting ``section 7706''.
(22) Section 36B(b)(3)(B) is amended--
(A) in clause (ii)(I)(aa), by striking ``who is not
allowed a deduction under section 151 for the taxable
year with respect to a dependent'' and inserting ``who
does not have any dependents for the taxable year'',
and
(B) in the flush matter at the end, by striking
``unless a deduction is allowed under section 151 for
the taxable year with respect to a dependent'' and
inserting ``unless the taxpayer has a dependent for the
taxable year (and the taxpayer included such
dependent's TIN on the return of tax for the taxable
year)''.
(23) Section 36B(c)(1)(D) is amended by striking ``with
respect to whom a deduction under section 151 is allowable to
another taxpayer'' and inserting ``who is a dependent of
another taxpayer''.
(24) Section 36B(d)(1) is amended by striking ``equal to
the number of individuals for whom the taxpayer is allowed a
deduction under section 151 (relating to allowance of deduction
for personal exemptions) for the taxable year'' and inserting
``the sum of 1 (2 in the case of a joint return) plus the
number of individuals who are dependents of the taxpayer for
the taxable year''.
(25) Section 36B(e)(1) is amended by striking ``1 or more
individuals for whom a taxpayer is allowed a deduction under
section 151 (relating to allowance of deduction for personal
exemptions) for the taxable year (including the taxpayer or his
spouse)'' and inserting ``1 or more of the taxpayer, the
taxpayer's spouse, or any dependent of the taxpayer''.
(26) Section 42(i)(3)(D)(ii)(I) is amended by striking
``section 152'' and inserting ``section 7706''.
(27) Section 45R(e)(1)(A)(iv) is amended--
(A) by striking ``section 152(d)(2)'' and inserting
``section 7706(d)(2)'', and
(B) by striking ``section 152(d)(2)(H)'' and
inserting ``section 7706(d)(2)(H)''.
(28) Section 51(i)(1) is amended--
(A) by striking ``section 152(d)(2)'' in
subparagraphs (A) and (B) and inserting ``section
7706(d)(2)'', and
(B) by striking ``section 152(d)(2)(H)'' in
subparagraph (C) and inserting ``section
7706(d)(2)(H)''.
(29) Section 56(b)(1)(D) is amended--
(A) by striking ``, the deduction for personal
exemptions under section 151,'', and
(B) by striking ``and deduction for personal
exemptions'' in the heading thereof.
(30) Section 63(b) is amended by adding ``and'' at the end
of paragraph (1), by striking paragraph (2), and by
redesignating paragraph (3) as paragraph (2).
(31) Section 63(c), as amended by section 121, is amended
by striking paragraph (3) and redesignating paragraphs (4),
(5), and (6) as paragraphs (3), (4), and (5), respectively.
(32) Section 63(c)(4), as redesignated, is amended--
(A) by striking ``with respect to whom a deduction
under section 151 is allowable to'' and inserting ``who
is a dependent of'', and
(B) by striking ``certain'' in the heading thereof.
(33) Section 63(f) is amended by striking all that precedes
paragraph (3) and inserting the following:
``(f) Additional Standard Deduction for the Aged and Blind.--
``(1) In general.--For purposes of subsection (c)(1), the
additional standard deduction is, with respect to a taxpayer
for a taxable year, the sum of--
``(A) $600 if the taxpayer has attained age 65
before the close of such taxable year, and
``(B) $600 if the taxpayer is blind as of the close
of such taxable year.
``(2) Application to married individuals.--
``(A) Joint returns.--In the case of a joint
return, paragraph (1) shall be applied separately with
respect to each spouse.
``(B) Certain married individuals filing
separately.--In the case of a married individual filing
a separate return, if--
``(i) the spouse of such individual has no
gross income for the calendar year in which the
taxable year of such individual begins,
``(ii) such spouse is not the dependent of
another taxpayer for a taxable year beginning
in the calendar year in which such individual's
taxable year begins, and
``(iii) the TIN of such spouse is included
on such individual's return of tax for the
taxable year,
the additional standard deduction shall be determined
in the same manner as if such individual and such
individual's spouse filed a joint return.''.
(34) Section 63(f)(3) is amended by striking ``paragraphs
(1) and (2)'' and inserting ``subparagraphs (A) and (B) of
paragraph (1)''.
(35) Section 72(t)(2)(D)(i)(III) is amended by striking
``section 152'' and inserting ``section 7706''.
(36) Section 72(t)(7)(A)(iii) is amended by striking
``section 152(f)(1)'' and inserting ``section 7706(f)(1)''.
(37) Section 105(b) is amended--
(A) by striking ``as defined in section 152'' and
inserting ``as defined in section 7706'',
(B) by striking ``section 152(f)(1)'' and inserting
``section 7706(f)(1)'', and
(C) by striking ``section 152(e)'' and inserting
``section 7706(e)''.
(38) Section 105(c)(1) is amended by striking ``section
152'' and inserting ``section 7706''.
(39) Section 125(e)(1)(D) is amended by striking ``section
152'' and inserting ``section 7706''.
(40) Section 129(c)(1) is amended to read as follows:
``(1) who is a dependent of such employee or of such
employee's spouse, or''.
(41) Section 129(c)(2) is amended by striking ``section
152(f)(1)'' and inserting ``section 7706(f)(1)''.
(42) Section 132(h)(2)(B) is amended--
(A) by striking ``section 152(f)(1)'' and inserting
``section 7706(f)(1)'', and
(B) by striking ``section 152(e)'' and inserting
``section 7706(e)''.
(43) Section 139D(c)(5) is amended by striking ``section
152'' and inserting ``section 7706''.
(44) Section 139E(c)(2) is amended by striking ``section
152'' and inserting ``section 7706''.
(45) Section 162(l)(1)(D) is amended by striking ``section
152(f)(1)'' and inserting ``section 7706(f)(1)''.
(46) Section 170(g)(1) is amended by striking ``section
152'' and inserting ``section 7706''.
(47) Section 170(g)(3) is amended by striking ``section
152(d)(2)'' and inserting ``section 7706(d)(2)''.
(48) Section 172(d) is amended by striking paragraph (3).
(49) Section 213(a) is amended by striking ``section 152''
and inserting ``section 7706''.
(50) Section 213(d)(5) is amended by striking ``section
152(e)'' and inserting ``section 7706(e)''.
(51) Section 213(d)(11) is amended by striking ``section
152(d)(2)'' in the matter following subparagraph (B) and
inserting ``section 7706(d)(2)''.
(52) Section 220(b)(6) is amended by striking ``with
respect to whom a deduction under section 151 is allowable to''
and inserting ``who is a dependent of''.
(53) Section 220(d)(2)(A) is amended by striking ``section
152'' and inserting ``section 7706''.
(54) Section 221(d)(4) is amended by striking ``section
152'' and inserting ``section 7706''.
(55) Section 223(b)(6) is amended by striking ``with
respect to whom a deduction under section 151 is allowable to''
and inserting ``who is a dependent of''.
(56) Section 223(d)(2)(A) is amended by striking ``section
152'' and inserting ``section 7706''.
(57) Section 401(h) is amended by striking ``section
152(f)(1)'' in the last sentence and inserting ``section
7706(f)(1)''.
(58) Section 402(l)(4)(D) is amended by striking ``section
152'' and inserting ``section 7706''.
(59) Section 409A(a)(2)(B)(ii)(I) is amended by striking
``section 152(a)'' and inserting ``section 7706(a)''.
(60) Section 441(f)(2)(B)(iii) is amended by striking ``,
but only the adjusted amount of the deductions for personal
exemptions as described in section 443(c)''.
(61) Section 443 is amended--
(A) in subsection (b)--
(i) by striking paragraph (3), and
(ii) by striking ``modified taxable
income'' and inserting ``taxable income'' each
place such term appears,
(B) by striking subsection (c), and
(C) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(62) Section 501(c)(9) is amended by striking ``section
152(f)(1)'' and inserting ``section 7706(f)(1)''.
(63) Section 529(e)(2)(B) is amended by striking ``section
152(d)(2)'' and inserting ``section 7706(d)(2)''.
(64) Section 529A(e)(4) is amended--
(A) by striking ``section 152(d)(2)(B)'' and
inserting ``section 7706(d)(2)(B)'', and
(B) by striking ``section 152(f)(1)(B)'' and
inserting ``section 7706(f)(1)(B)''.
(65) Section 643(a)(2) is amended--
(A) by striking ``(relating to deduction for
personal exemptions)'' and inserting ``(relating to
basic deduction)'', and
(B) by striking ``Deduction for personal
exemption'' in the heading thereof and inserting
``Basic deduction''.
(66) Section 703(a)(2) is amended by striking subparagraph
(A) and by redesignating subparagraphs (B) through (F) as
subparagraphs (A) through (E), respectively.
(67) Section 874 is amended by striking subsection (b) and
by redesignating subsection (c) as subsection (b).
(68) Section 891 is amended by striking ``under section 151
and''.
(69) Section 904(b)(1) is amended to read as follows:
``(1) Deduction for estates and trusts.--For purposes of
subsection (a), the taxable income of an estate or trust shall
be computed without any deduction under section 642(b).''.
(70) Section 931(b)(1) is amended to read as follows:
``(1) any deduction from gross income, or''.
(71) Section 933 is amended--
(A) by striking ``as a deduction from his gross
income any deductions (other than the deduction under
section 151, relating to personal exemptions)'' in
paragraph (1) and inserting ``any deduction from gross
income'', and
(B) by striking ``as a deduction from his gross
income any deductions (other than the deduction for
personal exemptions under section 151)'' in paragraph
(2) and inserting ``any deduction from gross income''.
(72) Section 1212(b)(2)(B)(ii) is amended to read as
follows:
``(ii) in the case of an estate or trust,
the deduction allowed for such year under
section 642(b).''.
(73) Section 1361(c)(1)(C) is amended by striking ``section
152(f)(1)(C)'' and inserting ``section 7706(f)(1)(C)''.
(74) Section 1402(a) is amended by striking paragraph (7).
(75) Section 2032A(c)(7)(D) is amended by striking
``section 152(f)(2)'' and inserting ``section 7706(f)(2)''.
(76) Section 3402(f)(1)(A) is amended by striking ``for
whom a deduction is allowable with respect to another taxpayer
under section 151'' and inserting ``who is a dependent of
another taxpayer''.
(77) Section 3402(m)(1) is amended by striking ``other than
the deductions referred to in section 151 and''.
(78) Section 3402(m)(3) is amended by striking ``section
63(c)(3)'' and inserting ``section 63(f)''.
(79) Section 3402(r)(2) is amended by striking ``the sum
of--'' and all that follows and inserting ``the basic standard
deduction (as defined in section 63(c)) for an individual to
whom section 63(c)(2)(C) applies.''.
(80) Section 5000A(b)(3)(A) is amended by striking
``section 152'' and inserting ``section 7706''.
(81) Section 5000A(c)(4)(A) is amended by striking ``the
number of individuals for whom the taxpayer is allowed a
deduction under section 151 (relating to allowance of deduction
for personal exemptions) for the taxable year'' and inserting
``the sum of 1 (2 in the case of a joint return) plus the
number of the taxpayer's dependents for the taxable year''.
(82) Section 6013(b)(3)(A) is amended--
(A) by striking ``had less than the exemption
amount of gross income'' in clause (ii) and inserting
``had no gross income'',
(B) by striking ``had gross income of the exemption
amount or more'' in clause (iii) and inserting ``had
any gross income'', and
(C) by striking the flush language following clause
(iii).
(83) Section 6014(a) is amended by striking ``section
6012(a)(1)(C)(i)'' and inserting ``section
6012(a)(1)(B)(iii)''.
(84) Section 6014(b)(4) is amended by striking ``63(c)(5)''
and inserting ``63(c)(4)''.
(85) Section 6103(l)(13) is amended--
(A) in subparagraph (A), by striking clause (iv)
and redesignating clauses (v) and (vi) as clauses (iv)
and (v), respectively, and
(B) in subparagraph (C)(i), by striking ``clauses
(i) through (iv)'' and inserting ``clauses (i) through
(iii)''.
(86) Section 6103(l)(21)(A)(iii) is amended to read as
follows:
``(iii) the number of the taxpayer's
dependents,''.
(87) Section 6213(g)(2)(H) is amended by striking ``section
21 (relating to expenses for household and dependent care
services necessary for gainful employment) or section 151
(relating to allowance of deductions for personal exemptions)''
and inserting ``subsection (a)(1)(B), (b)(1)(A)(ii), or
(b)(1)(B) of section 2 or section 21, 35(d)(1)(B),
36B(b)(3)(B), or 63(f)(2)(B)''.
(88) Section 6334(d) is amended--
(A) by amending paragraph (2) to read as follows:
``(2) Exempt amount.--
``(A) In general.--For purposes of paragraph (1),
the term `exempt amount' means an amount equal to--
``(i) the sum of the amount determined
under subparagraph (B) and the standard
deduction, divided by
``(ii) 52.
``(B) Amount determined.--For purposes of
subparagraph (A), the amount determined under this
subparagraph is--
``(i) the dollar amount in effect under
section 7706(d)(1)(B), multiplied by
``(ii) the number of the taxpayer's
dependents for the taxable year in which the
levy occurs.
``(C) Verified statement.--Unless the taxpayer
submits to the Secretary a written and properly
verified statement specifying the facts necessary to
determine the proper amount under subparagraph (A),
subparagraph (A) shall be applied as if the taxpayer
were a married individual filing a separate return with
no dependents.'', and
(B) by striking paragraph (4).
(89) Section 7702B(f)(2)(C)(iii) is amended by striking
``section 152(d)(2)'' and inserting ``section 7706(d)(2)''.
(90) Section 7703(a) is amended by striking ``part V of
subchapter B of chapter 1 and''.
(91) Section 7703(b)(1) is amended by striking ``section
152(f)(1))'' and all that follows and inserting ``section
7706(f)(1)) who is a dependent of such individual for the
taxable year (or would be but for section 7706(e)),''.
(92) Section 7706(a), as redesignated by this section, is
amended by striking ``this subtitle'' and inserting ``this
title''.
(93)(A) Section 7706(d)(1)(B), as redesignated by this
section, is amended by striking ``the exemption amount (as
defined in section 151(d))'' and inserting ``$4,150''.
(B) Section 7706(d), as redesignated by this section, is
amended by adding at the end the following new paragraph:
``(6) Inflation adjustment.--The $4,150 amount in paragraph
(1)(B) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
such taxable year begins, determined by substituting
`calendar year 2017' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
If any increase determined under the preceding sentence is not
a multiple of $50, such increase shall be rounded to the next
lowest multiple of $50.''.
(94) Section 7706(e)(3), as redesignated by this section,
is amended by inserting ``(as in effect before its repeal)''
after ``section 151''.
(95) Section 7706(f)(6)(B), as redesignated by this
section, is amended by striking clause (i) and designating
clauses (ii), (iii), and (iv) as clauses (i), (ii), and (iii),
respectively.
(96) The table of parts for subchapter B of chapter 1 is
amended by striking the item relating to part V.
(97) The table of sections for chapter 79 is amended by
adding at the end the following new item:
``Sec. 7706. Dependent defined.''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 142. LIMITATION ON DEDUCTION FOR STATE AND LOCAL, ETC., TAXES.
(a) In General.--Section 164(b)(6) is amended by striking all that
precedes ``The preceding sentence'' and inserting the following:
``(6) Limitation on individual deductions.--In the case of
an individual--
``(A) no deduction shall be allowed under this
chapter for foreign real property taxes paid or accrued
during the taxable year, and
``(B) the aggregate amount of the deduction allowed
under this chapter for taxes described in paragraphs
(1), (2), and (3) of subsection (a) and paragraph (5)
of this subsection (and any tax described in any such
paragraph taken into account under section 216(a)(1))
paid or accrued by the taxpayer during the taxable year
shall not exceed $10,000 ($5,000 in the case of a
married individual filing a separate return).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 143. LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST.
(a) Interest on Home Equity Indebtedness.--Section 163(h)(3)(A) is
amended by striking ``during the taxable year on'' and all that follows
through ``residence of the taxpayer.'' and inserting ``during the
taxable year on acquisition indebtedness with respect to any qualified
residence of the taxpayer.''.
(b) Limitation on Acquisition Indebtedness.--Section
163(h)(3)(B)(ii) is amended to read as follows:
``(ii) Limitation.--The aggregate amount
treated as acquisition indebtedness for any
period shall not exceed the excess (if any)
of--
``(I) $750,000 ($375,000, in the
case of a married individual filing a
separate return), over
``(II) the sum of the aggregate
outstanding pre-October 13, 1987,
indebtedness (as defined in
subparagraph (D)) plus the aggregate
outstanding pre-December 15, 2017,
indebtedness (as defined in
subparagraph (C)).''.
(c) Treatment of Indebtedness Incurred on or Before December 15,
2017.--Section 163(h)(3)(C) is amended to read as follows:
``(C) Treatment of indebtedness incurred on or
before december 15, 2017.--
``(i) In general.--In the case of any pre-
December 15, 2017, indebtedness, subparagraph
(B)(ii) shall not apply and the aggregate
amount of such indebtedness treated as
acquisition indebtedness for any period shall
not exceed the excess (if any) of--
``(I) $1,000,000 ($500,000, in the
case of a married individual filing a
separate return), over
``(II) the aggregate outstanding
pre-October 13, 1987, indebtedness (as
defined in subparagraph (D)).
``(ii) Pre-december 15, 2017,
indebtedness.--For purposes of this
subparagraph--
``(I) In general.--The term `pre-
December 15, 2017, indebtedness' means
indebtedness (other than pre-October
13, 1987, indebtedness) incurred on or
before December 15, 2017.
``(II) Binding written contract
exception.--In the case of a taxpayer
who enters into a written binding
contract before December 15, 2017, to
close on the purchase of a principal
residence before January 1, 2018, and
who purchases such residence before
April 1, 2018, the term `pre-December
15, 2017, indebtedness' shall include
indebtedness secured by such residence.
``(iii) Refinancing indebtedness.--
``(I) In general.--In the case of
any indebtedness which is incurred to
refinance indebtedness, such refinanced
indebtedness shall be treated for
purposes of this subparagraph as
incurred on the date that the original
indebtedness was incurred to the extent
the amount of the indebtedness
resulting from such refinancing does
not exceed the amount of the refinanced
indebtedness.
``(II) Limitation on period of
refinancing.--Subclause (I) shall not
apply to any indebtedness after the
expiration of the term of the original
indebtedness or, if the principal of
such original indebtedness is not
amortized over its term, the expiration
of the term of the 1st refinancing of
such indebtedness (or if earlier, the
date which is 30 years after the date
of such 1st refinancing).''.
(d) Coordination With Treatment of Indebtedness Incurred on or
Before October 13, 1987.--Section 163(h)(3)(D) is amended--
(1) by striking clause (ii) and redesignating clauses (iii)
and (iv) as clauses (ii) and (iii), respectively, and
(2) in clause (iii) (as so redesignated)--
(A) by striking ``clause (iii)'' in the matter
preceding subclause (I) and inserting ``clause (ii)'',
and
(B) by striking ``clause (iii)(I)'' in subclauses
(I) and (II) and inserting ``clause (ii)(I)''.
(e) Coordination With Exclusion of Income From Discharge of
Indebtedness.--Section 108(h)(2) is amended by striking ``applied by
substituting `$750,000 ($375,000' for `$1,000,000 ($500,000' in clause
(ii) thereof and''.
(f) Conforming Amendment.--Section 163(h)(3) is amended by striking
subparagraph (F).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 144. MODIFICATION OF DEDUCTION FOR PERSONAL CASUALTY LOSSES.
(a) In General.--Section 165(h)(5)(A) is amended by striking ``in a
taxable year beginning after December 31, 2017, and before January 1,
2026,''.
(b) Conforming Amendments.--
(1) Section 165(h)(5)(B) is amended by striking ``for any
taxable year to which subparagraph (A) applies''.
(2) Section 165(h)(5) is amended by striking ``for taxable
years 2018 through 2025'' in the heading thereof and inserting
``to losses attributable to federally declared disasters''.
(c) Effective Date.--The amendments made by this section shall
apply to losses sustained in taxable years beginning after the date of
the enactment of this Act.
SEC. 145. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS.
(a) In General.--Section 67 is amended--
(1) by amending subsection (a) to read as follows:
``(a) In General.--In the case of an individual, miscellaneous
itemized deductions shall not be allowed.'', and
(2) by striking subsection (g).
(b) Movement of Definition of Adjusted Gross Income for Estates and
Trusts.--
(1) Section 67 is amended by striking subsection (e).
(2) Section 641 is amended by adding at the end the
following new subsection:
``(d) Computation of Adjusted Gross Income.--For purposes of this
title, the adjusted gross income of an estate or trust shall be
computed in the same manner as in the case of an individual, except
that--
``(1) the deductions for costs which are paid or incurred
in connection with the administration of the estate or trust
and which would not have been incurred if the property were not
held in such trust or estate, and
``(2) the deductions allowable under sections 642(b), 651,
and 661,
shall be treated as allowable in arriving at adjusted gross income.''.
(c) Conforming Amendments.--
(1) Section 56(b)(1)(A) is amended to read as follows:
``(A) Certain taxes.--No deduction (other than a
deduction allowable in computing adjusted gross income)
shall be allowed for any taxes described in paragraph
(1), (2), or (3) of section 164(a) or clause (ii) of
section 164(b)(5)(A).''.
(2) Section 56(b)(1)(C), as amended by the preceding
provisions of this Act, is amended by striking ``subparagraph
(A)(ii)'' and inserting ``subparagraph (A)''.
(3) Section 62(a) is amended by striking ``subtitle'' in
the matter preceding paragraph (1) and inserting ``title''.
(4) Section 641(c)(2)(E) is amended to read as follows:
``(E) Section 642(c) shall not apply.''.
(5) Section 1411(a)(2) is amended by striking ``(as defined
in section 67(e))''.
(6) Section 6654(d)(1)(C) is amended by striking clause
(iii).
(7) Section 67 is amended in the heading, by striking ``2-
percent floor on'' and inserting ``denial of''.
(8) The table of sections for part 1 of subchapter B of
chapter 1 is amended by striking the item relating to section
67 and inserting the following new item:
``Sec. 67. Denial of miscellaneous itemized deductions.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 146. REPEAL OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.
(a) In General.--Part 1 of subchapter B of chapter 1 is amended by
striking section 68 (and the item relating to such section in the table
of sections for such part).
(b) Conforming Amendments.--
(1) Section 56(b)(1), as amended by the preceding
provisions of this Act, is amended by striking subparagraph
(E).
(2) Section 164(b)(5)(H)(ii)(III) is amended by striking
``(as determined under section 68(b))''.
(3) Section 164(b)(5)(H) is amended by adding at the end
the following new clause:
``(iii) Applicable amount defined.--For
purposes of clause (ii), the term `applicable
amount' means--
``(I) $300,000 in the case of a
joint return or a surviving spouse,
``(II) $275,000 in the case of a
head of household,
``(III) $250,000 in the case of an
individual who is not married and who
is not a surviving spouse or head of
household, and
``(IV) \1/2\ the amount applicable
under subclause (I) in the case of a
married individual filing a separate
return.
For purposes of this paragraph, marital status
shall be determined under section 7703. In the
case of any taxable year beginning in calendar
years after the date of the enactment of this
clause, each of the dollar amounts in this
clause shall be increased by an amount equal to
such dollar amount, multiplied by the cost-of-
living adjustment determined under section
1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting
`2012' for `2016' in subparagraph (A)(ii)
thereof. If any amount after adjustment under
the preceding sentence is not a multiple of
$50, such amount shall be rounded to the next
lowest multiple of $50.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 147. TERMINATION OF EXCLUSION FOR QUALIFIED BICYCLE COMMUTING
REIMBURSEMENT.
(a) In General.--Section 132(f)(1) is amended by striking
subparagraph (D).
(b) Conforming Amendments.--
(1) Section 132(f)(2) is amended by adding ``and'' at the
end of subparagraph (A), striking ``, and'' at the end of
subparagraph (B) and inserting a period, and striking
subparagraph (C).
(2) Section 132(f)(4) is amended by striking ``(other than
a qualified bicycle commuting reimbursement)''.
(3) Section 132(f) is amended by striking paragraph (8).
(4) Section 274(l)(2) is amended by striking ``after
December 31, 2017, and before January 1, 2026''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 148. QUALIFIED MOVING EXPENSE REIMBURSEMENT EXCLUSION LIMITED TO
MEMBERS OF ARMED FORCES.
(a) In General.--Section 132(g) is amended--
(1) by striking ``by an individual'' in paragraph (1) and
inserting ``by a qualified military individual'', and
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Qualified military individual.--For purposes of this
subsection, the term `qualified military individual' means a
member of the Armed Forces of the United States on active duty
who moves pursuant to a military order and incident to a
permanent change of station.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 149. DEDUCTION FOR MOVING EXPENSES LIMITED TO MEMBERS OF ARMED
FORCES.
(a) In General.--Section 217 is amended--
(1) by amending subsection (a) to read as follows:
``(a) Deduction Allowed.--There shall be allowed as a deduction
moving expenses paid or incurred during the taxable year by a member of
the Armed Forces of the United States on active duty who moves pursuant
to a military order and incident to a permanent change of station.'',
(2) by striking subsections (c), (d), (f), (g), and (k) and
redesignating subsections (h), (i), and (j) as subsections (c),
(d), and (f), respectively, and
(3) by inserting after subsection (d), as so redesignated,
the following new subsection:
``(e) Expenses Furnished in Kind.--Any moving and storage expenses
which are furnished in kind (or for which reimbursement or an allowance
is provided, but only to the extent of the expenses paid or incurred)--
``(1) to a member described in subsection (a), or to such
member's spouse or dependents, shall not be includible in gross
income, and no reporting with respect to such expenses shall be
required by the Secretary of Defense or the Secretary of
Transportation, as the case may be, and
``(2) to the spouse and dependents of a member described in
subsection (a) with regard to moving to a location other than
the one to which such member moves (or from a location other
than the one from which such member moves), this section shall
apply with respect to the moving expenses of such spouse and
dependents as if such spouse were a member described in
subsection (a).''.
(b) Conforming Amendments.--
(1) Subsections (d)(3)(C) and (e) of section 23 are each
amended by striking ``section 217(h)(3)'' and inserting
``section 217(c)(3)''.
(2) Section 7872(f) is amended by striking paragraph (11).
(3) Section 217 is amended in the heading by striking
``moving expenses'' and inserting ``certain moving expenses of
members of armed forces''.
(4) The table of sections for part VII of subchapter B of
chapter 1 is amended by striking the item relating to section
217 and inserting the following new item:
``Sec. 217. Certain moving expenses of members of Armed Forces.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 150. LIMITATION ON WAGERING LOSSES.
(a) In General.--Section 165(d) is amended by striking ``in the
case of taxable years beginning after December 31, 2017, and before
January 1, 2026,''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
Subtitle F--Increase in Estate and Gift Tax Exemption
SEC. 151. INCREASE IN ESTATE AND GIFT TAX EXEMPTION.
(a) In General.--Section 2010(c)(3) is amended in subparagraph (A),
by striking ``$5,000,000'' and inserting ``$10,000,000''.
(b) Conforming Amendment.--Section 2010(c)(3) is amended by
striking subparagraph (C).
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying and gifts made after the date of
the enactment of this Act.
TITLE II--INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM TAX MADE
PERMANENT
SEC. 201. INCREASED EXEMPTION FOR INDIVIDUALS.
(a) In General.--Section 55(d)(1) is amended--
(1) by striking ``$78,750'' in subparagraph (A) and
inserting ``$109,400'', and
(2) by striking ``$50,600'' in subparagraph (B) and
inserting ``$70,300''.
(b) Phase-Out of Exemption Amount.--Section 55(d)(2) is amended--
(1) by striking ``$150,000'' in subparagraph (A) and
inserting ``$1,000,000'', and
(2) by striking subparagraphs (B) and (C) and by inserting
the following new subparagraphs:
``(B) 50 percent of the dollar amount applicable
under subparagraph (A) in the case of a taxpayer
described in paragraph (1)(B) or (1)(C), and
``(C) $75,000 in the case of a taxpayer described
in paragraph (1)(D).''.
(c) Inflation Adjustment.--Section 55(d)(3) is amended to read as
follows:
``(3) Inflation adjustment.--Each dollar amount described
in clause (i) or (ii) of subparagraph (B) shall be increased by
an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting--
``(i) in the case of a dollar amount
contained in paragraph (1)(D) or (2)(C) or in
subsection (b)(1)(A), `calendar year 2011' for
`calendar year 2016' in subparagraph (A)(ii)
thereof, and
``(ii) in the case of a dollar amount
contained in paragraph (1)(A), (1)(B), or
(2)(A), `calendar year 2017' for `calendar year
2016' in subparagraph (A)(ii) thereof.
Any increased amount determined under this paragraph shall be
rounded to the nearest multiple of $100 ($50 in the case of the
dollar amount contained in paragraph (2)(C)).''.
(d) Repeal of Coordination With Rules Relating to the Taxation of
Unearned Children.--Section 59 is amended by striking subsection (j).
(e) Conforming Amendment.--Section 55(d) is amended by striking
paragraph (4).
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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