(a) Short title.—This Act may be cited as the “Tax Cuts and Jobs 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) Table of contents.—The table of contents for this Act is as follows:

Sec. 1. Short title; etc.

(a) In general.—Section 1 is amended by striking subsection (i) and by striking all that precedes subsection (h) and inserting the following:

(b) Application of current income tax brackets to capital gains brackets.—

(1) IN GENERAL.—

(A) 0-PERCENT CAPITAL GAINS BRACKET.—Section 1(h)(1) is amended by striking “which would (without regard to this paragraph) be taxed at a rate below 25 percent” in subparagraph (B)(i) and inserting “below the 15-percent rate threshold”.

(B) 15-PERCENT CAPITAL GAINS BRACKET.—Section 1(h)(1)(C)(ii)(I) is amended by striking “which would (without regard to this paragraph) be taxed at a rate below 39.6 percent” and inserting “below the 20-percent rate threshold”.

(2) RATE THRESHOLDS DEFINED.—Section 1(h) is amended by adding at the end the following new paragraph:

“(12) RATE THRESHOLDS DEFINED.—For purposes of this subsection—

“(A) 15-PERCENT RATE THRESHOLD.—The 15-percent rate threshold shall be—

“(i) in the case of a joint return or surviving spouse, $77,200 (½ such amount in the case of a married individual filing a separate return),

“(ii) in the case of an individual who is the head of a household (as defined in section 2(b)), $51,700,

“(iii) in the case of any other individual (other than an estate or trust), an amount equal to ½ of the amount in effect for the taxable year under clause (i), and

“(iv) in the case of an estate or trust, $2,600.

“(B) 20-PERCENT RATE THRESHOLD.—The 20-percent rate threshold shall be—

“(i) in the case of a joint return or surviving spouse, $479,000 (½ such amount in the case of a married individual filing a separate return),

“(ii) in the case of an individual who is the head of a household (as defined in section 2(b)), $452,400,

“(iii) in the case of any other individual (other than an estate or trust), $425,800, and

“(iv) in the case of an estate or trust, $12,700.

“(C) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 2018, each of the dollar amounts in subparagraphs (A) and (B) shall be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under subsection (c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2017’ for ‘calendar year 2016’ in clause (ii) thereof.”.

(c) Application of section 15.—

(1) IN GENERAL.—Subsection (a) of section 15 is amended by striking “by this chapter” and inserting “by section 11 (or by reference to any such rates)”.

(2) CONFORMING AMENDMENTS.—

(A) Section 15 is amended by striking subsections (d) and (f) and by redesignating subsection (e) as subsection (d).

(B) Section 15(d), as redesignated by subparagraph (A), is amended by striking “section 1 or 11(b)” and inserting “section 11(b)”.

(C) Section 6013(c) is amended by striking “sections 15, 443, and 7851(a)(1)(A)” and inserting “sections 443 and 7851(a)(1)(A)”.

(3) APPLICATION TO THIS ACT.—Section 15 of the Internal Revenue Code of 1986 shall not apply to any change in a rate of tax imposed by chapter 1 of such Code which occurs by reason of any amendment made by this Act (other than the amendments made by section 3001).

(d) Effective date.—

(1) IN GENERAL.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(2) SUBSECTION (c).—The amendments made by subsection (c) shall take effect on the date of the enactment of this Act.

(a) Increase in standard deduction.—Section 63(c) is amended to read as follows:

“(c) Standard deduction.—For purposes of this subtitle—

“(1) IN GENERAL.—Except as otherwise provided in this subsection, the term ‘standard deduction’ means—

“(A) $24,400, in the case of a joint return (or a surviving spouse (as defined in section 2(a)),

“(B) three-quarters of the amount in effect under subparagraph (A) for the taxable year, in the case of the head of a household (as defined in section 2(b)), and

“(C) one-half of the amount in effect under subparagraph (A) for the taxable year, in any other case.

“(2) LIMITATION ON STANDARD DEDUCTION IN THE CASE OF CERTAIN DEPENDENTS.—In the case of an individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the standard deduction applicable to such individual for such individual’s taxable year shall not exceed the greater of—

“(A) $500, or

“(B) the sum of $250 and such individual’s earned income (within the means of section 32).

“(3) CERTAIN INDIVIDUALS, ETC., NOT ELIGIBLE FOR STANDARD DEDUCTION.—In the case of—

“(A) a married individual filing a separate return where either spouse itemizes deductions,

“(B) a nonresident alien individual,

“(C) an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his annual accounting period, or

“(D) an estate or trust, common trust fund, or partnership,

the standard deduction shall be zero.

“(4) UNMARRIED INDIVIDUAL.—For purposes of this section, the term ‘unmarried individual’ means any individual who—

“(A) is not married as of the close of the taxable year (as determined by applying section 7703),

“(B) is not a surviving spouse (as defined in section 2(a)) for the taxable year, and

“(C) is not a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins.

“(5) INFLATION ADJUSTMENTS.—

“(A) STANDARD DEDUCTION AMOUNT.—In the case of any taxable year beginning after 2019, the dollar amount in paragraph (1)(A) shall be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2018’ for ‘calendar year 2016’ in clause (ii) thereof.

“(B) LIMITATION AMOUNT IN CASE OF CERTAIN DEPENDENTS.—In the case of any taxable year beginning after 2017, each of the dollar amounts in paragraph (2) shall be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) (I) in the case of the dollar amount in paragraph (2)(A), under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting ‘calendar year 1987’ for ‘calendar year 2016’ in clause (ii) thereof, and

“(II) in the case of the dollar amount in paragraph (2)(B), under section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting ‘calendar year 1997’ for ‘calendar year 2016’ in clause (ii) thereof.

If any increase determined under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.”.

(b) Conforming amendments.—

(1) Section 63(b) is amended by striking “, minus—” and all that follows and inserting “minus the standard deduction”.

(2) Section 63 is amended by striking subsections (f) and (g).

(3) Section 1398(c) is amended—

(A) by striking “Basic” in the heading thereof,

(B) by striking “Basic standard” in the heading of paragraph (3) and inserting “Standard”, and

(C) by striking “basic” in paragraph (3).

(4) Section 3402(m)(3) is amended by striking “(including the additional standard deduction under section 63(c)(3) for the aged and blind)”.

(5) Section 6014(b)(4) is amended by striking “section 63(c)(5)” and inserting “section 63(c)(2)”.

(c) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Part V of subchapter B of chapter 1 is hereby repealed.

(b) Definition of dependent retained.—Section 152, prior to repeal by subsection (a), is hereby redesignated as section 7706 and moved to the end of chapter 79.

(c) Application to estates and trusts.—Subsection (b) of section 642 is amended—

(1) by striking paragraph (2)(C),

(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 wage withholding rules.—

(1) IN GENERAL.—Section 3402(a) is amended by striking paragraph (2).

(2) CONFORMING AMENDMENT.—Section 3402(a) is amended—

(A) by redesignating subparagraphs (A) and (B) of paragraph (1) as paragraphs (1) and (2) and moving such redesignated paragraphs 2 ems to the left, and

(B) by striking all that precedes “otherwise provided in this section” and inserting the following:

“(a) Requirement of withholding.—Except as”.

(3) NUMBER OF EXEMPTIONS.—Section 3402(f)(1) is amended—

(A) in subparagraph (A), by striking “an individual described in section 151(d)(2)” and inserting “a dependent of any other taxpayer”, and

(B) in subparagraph (C), by striking “with respect to whom, on the basis of facts existing at the beginning of such day, there may reasonably be expected to be allowable an exemption under section 151(c)” and inserting “who, on the basis of facts existing at the beginning of such day, is reasonably expected to be a dependent of the employee”.

(f) Modification of return requirement.—

(1) IN GENERAL.—Paragraph (1) of section 6012(a) 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 to the taxpayer for such taxable year under section 63 if such individual and such individual’s spouse made a joint return,

“(ii) such individual and such individual’s spouse have the same household as their home at the close of the taxable year,

“(iii) such individual’s spouse does not make a separate return, and

“(iv) neither such individual nor such individual’s spouse is an individual described in section 63(c)(2) who has income (other than earned income) in excess of the amount in effect under section 63(c)(2)(A).”.

(2) BANKRUPTCY ESTATES.—Paragraph (8) of section 6012(a) is amended by striking “the sum of the exemption amount plus the basic standard deduction under section 63(c)(2)(D)” and inserting “the standard deduction in effect under section 63(c)(1)(B)”.

(g) Conforming amendments.—

(1) Section 2(a)(1)(B) is amended by striking “a dependent” and all that follows through “section 151” and inserting “a dependent who (within the meaning of section 7706, determined without regard to subsections (b)(1), (b)(2) and (d)(1)(B) thereof) is a son, stepson, daughter, or stepdaughter of the taxpayer”.

(2) Section 36B(b)(2)(A) is amended by striking “section 152” and inserting “section 7706”.

(3) Section 36B(b)(3)(B) is amended by striking “unless a deduction is allowed under section 151 for the taxable year with respect to a dependent” in the flush matter at the end and inserting “unless the taxpayer has a dependent for the taxable year”.

(4) 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”.

(5) 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 the taxpayer’s dependents for the taxable year”.

(6) 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”.

(7) Section 42(i)(3)(D)(ii)(I) is amended—

(A) by striking “section 152” and inserting “section 7706”, and

(B) by striking the period at the end and inserting a comma.

(8) Section 72(t)(2)(D)(i)(III) is amended by striking “section 152” and inserting “section 7706”.

(9) Section 72(t)(7)(A)(iii) is amended by striking “section 152(f)(1)” and inserting “section 7706(f)(1)”.

(10) 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)”.

(11) Section 105(c)(1) is amended by striking “section 152” and inserting “section 7706”.

(12) Section 125(e)(1)(D) is amended by striking “section 152” and inserting “section 7706”.

(13) 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)”.

(14) Section 139D(c)(5) is amended by striking “section 152” and inserting “section 7706”.

(15) Section 162(l)(1)(D) is amended by striking “section 152(f)(1)” and inserting “section 7706(f)(1)”.

(16) Section 170(g)(1) is amended by striking “section 152” and inserting “section 7706”.

(17) Section 170(g)(3) is amended by striking “section 152(d)(2)” and inserting “section 7706(d)(2)”.

(18) Section 172(d) is amended by striking paragraph (3).

(19) 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”.

(20) Section 220(d)(2)(A) is amended by striking “section 152” and inserting “section 7706”.

(21) 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”.

(22) Section 223(d)(2)(A) is amended by striking “section 152” and inserting “section 7706”.

(23) Section 401(h) is amended by striking “section 152(f)(1)” in the last sentence and inserting “section 7706(f)(1)”.

(24) Section 402(l)(4)(D) is amended by striking “section 152” and inserting “section 7706”.

(25) Section 409A(a)(2)(B)(ii)(I) is amended by striking “section 152(a)” and inserting “section 7706(a)”.

(26) Section 501(c)(9) is amended by striking “section 152(f)(1)” and inserting “section 7706(f)(1)”.

(27) Section 529(e)(2)(B) is amended by striking “section 152(d)(2)” and inserting “section 7706(d)(2)”.

(28) Section 703(a)(2) is amended by striking subparagraph (A) and by redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively.

(29) Section 874 is amended by striking subsection (b) and by redesignating subsection (c) as subsection (b).

(30) Section 891 is amended by striking “under section 151 and”.

(31) Section 904(b) is amended by striking paragraph (1).

(32) Section 931(b)(1) is amended by striking “(other than the deduction under section 151, relating to personal exemptions)”.

(33) Section 933 is amended—

(A) by striking “(other than the deduction under section 151, relating to personal exemptions)” in paragraph (1), and

(B) by striking “(other than the deduction for personal exemptions under section 151)” in paragraph (2).

(34) 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).”.

(35) Section 1361(c)(1)(C) is amended by striking “section 152(f)(1)(C)” and inserting “section 7706(f)(1)(C)”.

(36) Section 1402(a) is amended by striking paragraph (7).

(37) Section 2032A(c)(7)(D) is amended by striking “section 152(f)(2)” and inserting “section 7706(f)(2)”.

(38) Section 3402(m)(1) is amended by striking “other than the deductions referred to in section 151 and”.

(39) Section 3402(r)(2) is amended by striking “the sum of—” and all that follows and inserting “the standard deduction in effect under section 63(c)(1)(B).”.

(40) Section 5000A(b)(3)(A) is amended by striking “section 152” and inserting “section 7706”.

(41) 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”.

(42) 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).

(43) Section 6103(l)(21)(A)(iii) is amended to read as follows:

“(iii) the number of the taxpayer’s dependents,”.

(44) Section 6213(g)(2) is amended by striking subparagraph (H).

(45) Section 6334(d)(2) is amended 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 standard deduction, divided by

“(ii) 52.

“(B) 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.”.

(46) Section 7702B(f)(2)(C)(iii) is amended by striking “section 152(d)(2)” and inserting “section 7706(d)(2)”.

(47) Section 7703(a) is amended by striking “part V of subchapter B of chapter 1 and”.

(48) Section 7703(b)(1) is amended by striking “section 152(f)(1)” and all that follows and inserting “section 7706(f)(1),”.

(49) Section 7706(a), as redesignated by this section, is amended by striking “this subtitle” and inserting “subtitle A”.

(50) (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.—In the case of any calendar year beginning after 2018, the $4,150 amount in paragraph (1)(B) shall be increased by an amount equal to—

“(A) such dollar amount, multiplied by

“(B) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 2017’ for ‘calendar year 2016’ in clause (ii) thereof.

If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.”.

(51) The table of sections for chapter 79 is amended by adding at the end the following new item:

“Sec. 7706. Dependent defined.”.

(h) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Part I of subchapter A of chapter 1 is amended by inserting after section 3 the following new section:

(b) 25 percent rate for certain dividends of real estate investment trusts and cooperatives.—Section 1(h), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:

“(13) 25 PERCENT RATE FOR CERTAIN DIVIDENDS OF REAL ESTATE INVESTMENT TRUSTS AND COOPERATIVES.—

“(A) IN GENERAL.—For purposes of this subsection, net capital gain (as defined in paragraph (11)) and unrecaptured section 1250 gain (as defined in paragraph (6)) shall each be increased by specified dividend income.

“(B) SPECIFIED DIVIDEND INCOME.—For purposes of this paragraph, the term ‘specified dividend income’ means—

“(i) in the case of any dividend received from a real estate investment trust, the portion of such dividend which is neither—

“(I) a capital gain dividend (as defined in section 852(b)(3)), nor

“(II) taken into account in determining qualified dividend income (as defined in paragraph (11)), and

“(ii) any dividend which is includible in gross income and which is received from an organization or corporation described in section 501(c)(12) or 1381(a).”.

(c) Clerical amendment.—The table of sections for part I of subchapter A of chapter 1 is amended by inserting after the item relating to section 3 the following new item:

“Sec. 4. 25 percent maximum rate on business income of individuals.”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(e) Transition rule.—In the case of any taxable year which includes December 31, 2017, the amendment made by subsection (a) shall apply with respect to such taxable year adjusted—

(1) so as to apply with respect to the rates of tax in effect under section 1 of the Internal Revenue Code of 1986 with respect to such taxable year (and so as to achieve a 25 percent effective rate of tax on the business income (determined without regard to paragraph (2)) in the same manner as such amendment applies to taxable years beginning after such date with respect to the rates of tax in effect for such years), and

(2) by reducing the amount of the reduction in tax (as otherwise determined under paragraph (1)) by the amount which bears the same proportion to the amount of such reduction as the number of days in the taxable year which are before January 1, 2018, bears to the number of days in the entire taxable year.

(a) Amendments related to modification of inflation adjustment.—

(1) Section 32(b)(2)(B)(ii)(II) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting ‘calendar year 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting ‘calendar year 2008’ for ‘calendar year 2016’ in clause (ii) thereof”.

(2) Section 32(j)(1)(B) is amended—

(A) in the matter preceding clause (i), by striking “section 1(f)(3)” and inserting “section 1(c)(2)(A)”,

(B) in clause (i), by striking “for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “for ‘calendar year 2016’ in clause (ii) thereof”, and

(C) in clause (ii), by striking “for ‘calendar year 1992’ in subparagraph (B) of such section 1” and inserting “for ‘calendar year 2016’ in clause (ii) thereof”.

(3) Section 36B(b)(3)(A)(ii)(II) is amended by striking “consumer price index” and inserting “C-CPI-U (as defined in section 1(c))”.

(4) Section 41(e)(5)(C) is amended to read as follows:

“(C) COST-OF-LIVING ADJUSTMENT DEFINED.—

“(i) IN GENERAL.—The cost-of-living adjustment for any calendar year is the cost-of-living adjustment for such calendar year determined under section 1(c)(2)(A), by substituting ‘calendar year 1987’ for ‘calendar year 2016’ in clause (ii) thereof.

“(ii) SPECIAL RULE WHERE BASE PERIOD ENDS IN A CALENDAR YEAR OTHER THAN 1983 OR 1984.—If the base period of any taxpayer does not end in 1983 or 1984, clause (i) shall be applied by substituting the calendar year in which such base period ends for 1987.”.

(5) Section 42(e)(3)(D)(ii) is amended by striking “section 1(f)(3) for such calendar year by substituting ‘calendar year 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof ” and inserting “section 1(c)(2)(A) for such calendar year by substituting ‘calendar year 2008’ for ‘calendar year 2016’ in clause (ii) thereof”.

(6) Section 42(h)(3)(H)(i)(II) is amended by striking “section 1(f)(3) for such calendar year by substituting ‘calendar year 2001’ for ‘calendar year 1992’ in subparagraph (B) thereof ” and inserting “section 1(c)(2)(A) for such calendar year by substituting ‘calendar year 2001’ for ‘calendar year 2016’ in clause (ii) thereof”.

(7) Section 45R(d)(3)(B)(ii) is amended by striking “section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 2012’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “ ‘section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 2012’ for ‘calendar year 2016’ in clause (ii) thereof’”.

(8) Section 125(i)(2) is amended—

(A) by striking “section 1(f)(3) for the calendar year in which the taxable year begins by substituting ‘calendar year 2012’ for ‘calendar year 1992’ in subparagraph (B) thereof” in subparagraph (B) and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins”, and

(B) by striking “$50” both places it appears in the last sentence and inserting “$100”.

(9) Section 162(o)(3) is amended by inserting “as in effect before enactment of the Tax Cuts and Jobs Act” after “section 1(f)(5)”.

(10) Section 220(g)(2) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 1997’ for ‘calendar year 2016’ in clause (ii) thereof”.

(11) Section 223(g)(1) is amended by striking all that follows subparagraph (A) and inserting the following:

“(B) the cost-of-living adjustment determined under section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined—

“(i) by substituting for ‘calendar year 2016’ in clause (ii) thereof—

“(I) except as provided in clause (ii), ‘calendar year 1997’, and

“(II) in the case of each dollar amount in subsection (c)(2)(A), ‘calendar year 2003’, and

“(ii) by substituting ‘March 31’ for ‘August 31’ in paragraphs (5)(B) and (6)(B) of section 1(c).

The Secretary shall publish the dollar amounts as adjusted under this subsection for taxable years beginning in any calendar year no later than June 1 of the preceding calendar year.”.

(12) Section 430(c)(7)(D)(vii)(II) is amended by striking “section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 2009’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year, determined by substituting ‘calendar year 2009’ for ‘calendar year 2016’ in clause (ii) thereof”.

(13) Section 512(d)(2)(B) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins, by substituting ‘calendar year 1994’ for ‘calendar year 1992’ in subparagraph (B) thereof”and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 1994’ for ‘calendar year 2016’ in clause (ii) thereof”.

(14) Section 513(h)(2)(C)(ii) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins by substituting ‘calendar year 1987’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 1987’ for ‘calendar year 2016’ in clause (ii) thereof”.

(15) Section 831(b)(2)(D)(ii) is amended by striking “section 1(f)(3) for such calendar year by substituting ‘calendar year 2013’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for such calendar year by substituting ‘calendar year 2013’ for ‘calendar year 2016’ in clause (ii) thereof”.

(16) Section 877A(a)(3)(B)(i)(II) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins, by substituting ‘calendar year 2007’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2007’ for ‘calendar year 2016’ in clause (ii) thereof”.

(17) Section 911(b)(2)(D)(ii)(II) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2004’ for ‘1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2004’ for ‘calendar year 2016’ in clause (ii) thereof”.

(18) Section 1274A(d)(2) is amended to read as follows:

“(2) INFLATION ADJUSTMENT.—

“(A) IN GENERAL.—In the case of any debt instrument arising out of a sale or exchange during any calendar year after 2018, each adjusted dollar amount shall be increased by an amount equal to—

“(i) such adjusted dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 2017’ for ‘calendar year 2016’ in clause (ii) thereof.

“(B) ADJUSTED DOLLAR AMOUNTS.—For purposes of this paragraph, the term ‘adjusted dollar amount’ means the dollar amounts in subsections (b) and (c), in each case as in effect for calendar year 2018.

“(C) ROUNDING.—Any increase under subparagraph (A) shall be rounded to the nearest multiple of $100.”.

(19) Section 2010(c)(3)(B)(ii) is amended by striking “section 1(f)(3) for such calendar year by substituting ‘calendar year 2010’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 2010’ for ‘calendar year 2016’ in clause (ii) thereof”.

(20) Section 2032A(a)(3)(B) is amended by striking “section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 1997’ for ‘calendar year 2016’ in clause (ii) thereof”.

(21) Section 2503(b)(2)(B) is amended by striking “section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year, determined by substituting ‘calendar year 1997’ for ‘calendar year 2016’ in clause (ii) thereof”.

(22) Section 4161(b)(2)(C)(i)(II) is amended by striking “section 1(f)(3) for such calendar year, determined by substituting ‘2004’ for ‘1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 2004’ for ‘calendar year 2016’ in clause (ii) thereof”.

(23) Section 4261(e)(4)(A)(ii) is amended by striking “section 1(f)(3) for such calendar year by substituting the year before the last nonindexed year for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for such calendar year, determined by substituting the year before the last nonindexed year for ‘calendar year 2016’ in clause (ii) thereof”.

(24) Section 4980I(b)(3)(C)(v)(II) is amended—

(A) by striking “section 1(f)(3)” and inserting “section 1(c)(2)(A)”,

(B) by striking “subparagraph (B)” and inserting “clause (ii)”, and

(C) by striking “1992” and inserting “2016”.

(25) Section 5000A(c)(3)(D)(ii) is amended—

(A) by striking “section 1(f)(3)” and inserting “section 1(c)(2)(A)”,

(B) by striking “subparagraph (B)” and inserting “clause (ii)”, and

(C) by striking “1992” and inserting “2016”.

(26) Section 6039F(d) is amended by striking “section 1(f)(3), except that subparagraph (B) thereof” and inserting “section 1(c)(2)(A), except that clause (ii) thereof ”.

(27) Section 6323(i)(4)(B) is amended by striking “section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 1996’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year, determined by substituting ‘calendar year 1996’ for ‘calendar year 2016’ in clause (ii) thereof”.

(28) Section 6334(g)(1)(B) is amended by striking “section 1(f)(3) for such calendar year, by substituting ‘calendar year 1998’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 1999’ for ‘calendar year 2016’ in clause (ii) thereof”.

(29) Section 6601(j)(3)(B) is amended by striking “section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 2016’ in clause (ii) thereof”.

(30) Section 6651(i)(1) is amended by striking “section 1(f)(3) determined by substituting ‘calendar year 2013’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) determined by substituting ‘calendar year 2013’ for ‘calendar year 2016’ in clause (ii) thereof”.

(31) Section 6721(f)(1) is amended—

(A) by striking “section 1(f)(3)” and inserting “section 1(c)(2)(A)”,

(B) by striking “subparagraph (B)” and inserting “clause (ii)”, and

(C) by striking “1992” and inserting “2016”.

(32) Section 6722(f)(1) is amended—

(A) by striking “section 1(f)(3)” and inserting “section 1(c)(2)(A)”,

(B) by striking “subparagraph (B)” and inserting “clause (ii)”, and

(C) by striking “1992” and inserting “2016”.

(33) Section 6652(c)(7)(A) is amended by striking “section 1(f)(3) determined by substituting ‘calendar year 2013’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) determined by substituting ‘calendar year 2013’ for ‘calendar year 2016’ in clause (ii) thereof ”.

(34) Section 6695(h)(1) is amended by striking “section 1(f)(3) determined by substituting ‘calendar year 2013’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) determined by substituting ‘calendar year 2013’ for ‘calendar year 2016’ in clause (ii) thereof”.

(35) Section 6698(e)(1) is amended by striking “section 1(f)(3) determined by substituting ‘calendar year 2013’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) determined by substituting ‘calendar year 2013’ for ‘calendar year 2016’ in clause (ii) thereof”.

(36) Section 6699(e)(1) is amended by striking “section 1(f)(3) determined by substituting ‘calendar year 2013’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) determined by substituting ‘calendar year 2013’ for ‘calendar year 2016’ in clause (ii) thereof”.

(37) Section 7345(f)(2) is amended by striking “section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 2015’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year, determined by substituting ‘calendar year 2015’ for ‘calendar year 2016’ in clause (ii) thereof”.

(38) Section 7430(c)(1) is amended by striking “section 1(f)(3) for such calendar year, by substituting ‘calendar year 1995’ for ‘calendar year 1992’ in subparagraph (B) thereof” in the flush text at the end and inserting “section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 1995’ for ‘calendar year 2016’ in clause (ii) thereof”.

(39) Section 7872(g)(5) is amended to read as follows:

“(5) INFLATION ADJUSTMENT.—

“(A) IN GENERAL.—In the case of any loan made during any calendar year after 2018 to which paragraph (1) applies, the adjusted dollar amount shall be increased by an amount equal to—

“(i) such adjusted dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(c)(2)(A) for such calendar year, determined by substituting ‘calendar year 2017’ for ‘calendar year 2016’ in clause (ii) thereof.

“(B) ADJUSTED DOLLAR AMOUNT.—For purposes of this paragraph, the term ‘adjusted dollar amount’ means the dollar amount in paragraph (2) as in effect for calendar year 2018.

“(C) ROUNDING.—Any increase under subparagraph (A) shall be rounded to the nearest multiple of $100.”.

(40) Section 219(b)(5)(C)(i)(II) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2007’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2007’ for ‘calendar year 2016’ in clause (ii) thereof”.

(41) Section 219(g)(8)(B) is amended by striking “section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2005’ for ‘calendar year 1992’ in subparagraph (B) thereof” and inserting “section 1(c)(2)(A) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2005’ for ‘calendar year 2016’ in clause (ii) thereof”.

(b) Other conforming amendments.—

(1) Section 36B(b)(3)(B)(ii)(I)(aa) is amended to read as follows:

“(aa) who is described in section 1(b)(1)(B) and who does not have any dependents for the taxable year,”.

(2) Section 486B(b)(1) is amended—

(A) by striking “maximum rate in effect” and inserting “highest rate specified”, and

(B) by striking “section 1(e)” and inserting “section 1”.

(3) Section 511(b)(1) is amended by striking “section 1(e)” and inserting “section 1”.

(4) Section 641(a) is amended by striking “section 1(e) shall apply to the taxable income” and inserting “section 1 shall apply to the taxable income”.

(5) Section 641(c)(2)(A) is amended to read as follows:

“(A) Except to the extent provided in section 1(h), the rate of tax shall be treated as being the highest rate of tax set forth in section 1(a).”.

(6) Section 646(b) is amended to read as follows:

“(b) Taxation of income of trust.—Except as provided in subsection (f)(1)(B)(ii), there is hereby imposed on the taxable income of an electing Settlement Trust a tax at the rate specified in section 1(a)(1). Such tax shall be in lieu of the income tax otherwise imposed by this chapter on such income.”.

(7) Section 685(c) is amended by striking “Section 1(e)” and inserting “Section 1”.

(8) Section 904(b)(3)(E)(ii)(I) is amended by striking “set forth in subsection (a), (b), (c), (d), or (e) of section 1 (whichever applies)” and inserting “the highest rate of tax specified in section 1”.

(9) Section 1398(c)(2) is amended by striking “subsection (d) of”.

(10) Section 3402(p)(1)(B) is amended by striking “any percentage applicable to any of the 3 lowest income brackets in the table under section 1(c),” and inserting “12 percent, 25 percent,”.

(11) Section 3402(q)(1) is amended by striking “the product of third lowest rate of tax applicable under section 1(c) and” and inserting “25 percent of”.

(12) Section 3402(r)(3) is amended by striking “the amount of tax which would be imposed by section 1(c) (determined without regard to any rate of tax in excess of the fourth lowest rate of tax applicable under section 1(c)) on an amount of taxable income equal to” and inserting “an amount equal to the product of 25 percent multiplied by”.

(13) Section 3406(a)(1) is amended by striking “the product of the fourth lowest rate of tax applicable under section 1(c) and” and inserting “25 percent of ”.

(14) Section 6103(e)(1)(A)(iii) is amended by inserting “(as in effect on the day before the date of the enactment of the Tax Cuts and Jobs Act)” after “section 1(g)”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) Increase in credit amount and addition of other dependents.—

(1) IN GENERAL.—Section 24(a) is amended to read as follows:

“(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) with respect to each qualifying child of the taxpayer, $1,600, and

“(2) for taxable years beginning before January 1, 2023, with respect to the taxpayer (each spouse in the case of a joint return) and each dependent of the taxpayer to whom paragraph (1) does not apply, $300.”.

(2) CONFORMING AMENDMENTS.—

(A) Section 24(c) is amended—

(i) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively,

(ii) by striking “152(c)” in paragraph (2) (as so redesignated) and inserting “7706(c)”,

(iii) by inserting before paragraph (2) (as so redesignated) the following new paragraph:

“(1) DEPENDENT.—

“(A) IN GENERAL.—The term ‘dependent’ shall have the meaning given such term by section 7706.

“(B) CERTAIN INDIVIDUALS NOT TREATED AS DEPENDENTS.—In the case of an individual with respect to whom a credit under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the amount applicable to such individual under subsection (a) for such individual’s taxable year shall be zero.”,

(iv) in paragraph (3) (as so redesignated)—

(I) by striking “term ‘qualifying child’” and inserting “terms ‘qualifying child’ and ‘dependent’”, and

(II) by striking “152(b)(3)” and inserting “7706(b)(3)”, and

(v) in the heading by striking “Qualifying” and inserting “Dependent; qualifying”.

(B) The heading for section 24 is amended by inserting “and family” after “Child”.

(C) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 24 and inserting the following new item:

“Sec. 24. Child and family tax credit.”.

(b) Elimination of marriage penalty.—Section 24(b)(2) is amended—

(1) by striking “$110,000” in subparagraph (A) and inserting “$230,000”,

(2) by inserting “and” at the end of subparagraph (A),

(3) by striking “$75,000 in the case of an individual who is not married” and all that follows through the period at the end and inserting “one-half of the amount in effect under subparagraph (A) for the taxable year in the case of any other individual.”.

(c) Credit refundable up to $1,000 per child.—

(1) IN GENERAL.—Section 24(d)(1)(A) is amended by striking all that follows “under this section” and inserting the following: determined—

“(i) without regard to this subsection and the limitation under section 26(a),

“(ii) without regard to subsection (a)(2), and

“(iii) by substituting ‘$1,000’ for ‘$1,600’ in subsection (a)(1), or”.

(2) INFLATION ADJUSTMENT.—Section 24(d) is amended by inserting after paragraph (2) the following new paragraph:

“(3) INFLATION ADJUSTMENT.—In the case of any taxable year beginning in a calendar year after 2017, the $1,000 amount in paragraph (1)(A)(iii) shall be increased by an amount equal to—

“(A) such dollar amount, multiplied by

“(B) the cost-of-living adjustment under section 1(c)(2)(A) for such calendar year.

Any increase determined under the preceding sentence shall be rounded to the next highest multiple of $100 and shall not exceed the amount in effect under subsection (a)(2).”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) Repeal of section 22.—

(1) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 22 (and by striking the item relating to such section in the table of sections for such subpart).

(2) CONFORMING AMENDMENT.—

(A) Section 86(f) is amended by striking paragraph (1) and by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively.

(B) (i) Subsections (c)(3)(B) and (d)(4)(A) of section 7706, as redesignated by this Act, are each amended by striking “(as defined in section 22(e)(3)”.

(ii) Section 7706(f), as redesignated by this Act, is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph:

“(7) PERMANENT AND TOTAL DISABILITY DEFINED.—An individual is permanently and totally disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered to be permanently and totally disabled unless he furnishes proof of the existence thereof in such form and manner, and at such times, as the Secretary may require.”.

(iii) Section 415(c)(3)(C)(i) is amended by striking “22(e)(3)” and inserting “7706(f)(7)”.

(iv) Section 422(c)(6) is amended by striking “22(e)(3)” and inserting “7706(f)(7)”.

(b) Termination of section 25.—Section 25, as amended by section 3601, is amended by adding at the end the following new subsection:

“(k) Termination.—No credit shall be allowed under this section with respect to any mortgage credit certificate issued after December 31, 2017.”.

(c) Repeal of section 30D.—

(1) IN GENERAL.—Subpart B of part IV of subchapter A of chapter 1 is amended by striking section 30D (and by striking the item relating to such section in the table of sections for such subpart).

(2) CONFORMING AMENDMENTS.—

(A) Section 38(b) is amended by striking paragraph (35).

(B) Section 1016(a) is amended by striking paragraph (37).

(C) Section 6501(m) is amended by striking “30D(e)(4),”.

(d) Effective date.—

(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(2) SUBSECTION (b).—The amendment made by subsection (c) shall apply to taxable years ending after December 31, 2017.

(3) SUBSECTION (c).—The amendments made by subsection (d) shall apply to vehicles placed in service in taxable years beginning after December 31, 2017.

(a) Identification requirements for child and family tax credit.—

(1) IN GENERAL.—Section 24(e) is amended to read as follows:

“(e) Identification requirements.—

“(1) REQUIREMENTS FOR QUALIFYING CHILD.—No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes the name and social security number of such qualifying child on the return of tax for the taxable year. The preceding sentence shall not prevent a qualifying child from being treated as a dependent described in subsection (a)(2).

“(2) OTHER IDENTIFICATION REQUIREMENTS.—No credit shall be allowed under this section with respect to any individual unless the taxpayer identification number of such individual is included on the return of tax for the taxable year and such identifying number was issued before the due date for filing the return for the taxable year.

“(3) SOCIAL SECURITY NUMBER.—For purposes of this subsection, the term ‘social security number’ means a social security number issued by the Social Security Administration (but only if the social security number is issued 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)).”.

(2) OMISSIONS TREATED AS MATHEMATICAL OR CLERICAL ERROR.—

(A) IN GENERAL.—Section 6213(g)(2)(I) is amended to read as follows:

“(I) an omission of a correct social security number, or a correct TIN, required under section 24(e) (relating to child tax credit), to be included on a return,”.

(b) Social security number must be provided.—

(1) IN GENERAL.—Section 25A(f)(1)(A), as amended by section 1201 of this Act, is amended by striking “taxpayer identification number” each place it appears and inserting “social security number”.

(2) OMISSION TREATED AS MATHEMATICAL OR CLERICAL ERROR.—Section 6213(g)(2)(J) is amended by striking “TIN” and inserting “social security number and employer identification number”.

(c) Individuals prohibited from engaging in employment in United States not eligible for earned income tax credit.—Section 32(m) is amended—

(1) by striking “(other than:” and all that follows through “of the Social Security Act)”, and

(2) by inserting before the period at the end the following: “, but only if, in the case of subsection (c)(1)(E), the social security number is issued 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”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) Clarification regarding determination of self-employment income which is treated as earned income.—Section 32(c)(2)(B) is amended by striking “and” at the end of clause (v), by striking the period at the end of clause (vi) and inserting “, and”, and by adding at the end the following new clause:

“(vii) in determining the taxpayer’s net earnings from self-employment under subparagraph (A)(ii) there shall not fail to be taken into account any deduction which is allowable to the taxpayer under this subtitle.”.

(b) Required quarterly reporting of wages of employees.—Section 6011 is amended by adding at the end the following new subsection:

“(i) Employer reporting of wages.—Every person required to deduct and withhold from an employee a tax under section 3101 or 3402 shall include on each return or statement submitted with respect to such tax, the name and address of such employee and the amount of wages for such employee on which such tax was withheld.”.

(c) Effective date.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

(2) REPORTING.—The Secretary of the Treasury, or his designee, may delay the application of the amendment made by subsection (b) for such period as such Secretary (or designee) determines to be reasonable to allow persons adequate time to modify electronic (or other) systems to permit such person to comply with the requirements of such amendment.

(a) Substantiation requirement.—Section 32 is amended by adding at the end the following new subsection:

“(n) Inconsistent income reporting.—If the earned income of a taxpayer claimed on a return for purposes of this section is not substantiated by statements or returns under sections 6051, 6052, 6041(a), or 6050W with respect to such taxpayer, the Secretary may require such taxpayer to provide books and records to substantiate such income, including for the purpose of preventing fraud.”.

(b) Exclusion of unsubstantiated amount from earned income.—Section 32(c)(2) is amended by adding at the end the following new subparagraph:

“(C) EXCLUSION.—In the case of a taxpayer with respect to which there is an inconsistency described in subsection (n) who fails to substantiate such inconsistency to the satisfaction of the Secretary, the term ‘earned income’ shall not include amounts to the extent of such inconsistency.”.

(c) Effective date.—The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

(a) In general.—Section 25A is amended to read as follows:

(b) Conforming amendments.—

(1) Section 72(t)(7)(B) is amended by striking “section 25A(g)(2)” and inserting “section 25A(f)(2)”.

(2) Section 529(c)(3)(B)(v)(I) is amended by striking “section 25A(g)(2)” and inserting “section 25A(f)(2)”.

(3) Section 529(e)(3)(B)(i) is amended by striking “section 25A(b)(3)” and inserting “section 25A(d)”.

(4) Section 530(d)(2)(C) is amended—

(A) by striking “section 25A(g)(2)” in clause (i)(I) and inserting “section 25A(f)(2)”, and

(B) by striking “Hope and Lifetime Learning credits” in the heading and inserting “American opportunity tax credit”.

(5) Section 530(d)(4)(B)(iii) is amended by striking “section 25A(g)(2)” and inserting “section 25A(d)(4)(B)”.

(6) Section 6050S(e) is amended by striking “subsection (g)(2)” and inserting “subsection (f)(2)”.

(7) Section 6211(b)(4)(A) is amended by striking “subsection (i)(6)” and inserting “subsection (b)”.

(8) Section 6213(g)(2)(J) is amended by striking “TIN required under section 25A(g)(1)” and inserting “TIN, and employer identification number, required under section 25A(f)(1)”.

(9) Section 6213(g)(2)(Q) is amended to read as follows:

“(Q) an omission of information required by section 25A(f)(8)(B) or an entry on the return claiming the credit determined under section 25A(a) for a taxable year for which the credit is disallowed under section 25A(f)(8)(A).”.

(10) Section 1004(c) of division B of the American Recovery and Reinvestment Tax Act of 2009 is amended—

(A) in paragraph (1)—

(i) by striking “section 25A(i)(6)” each place it appears and inserting “section 25A(b)”, and

(ii) by striking “with respect to taxable years beginning after 2008 and before 2018” each place it appears and inserting “with respect to each taxable year”,

(B) in paragraph (2), by striking “Section 25A(i)(6)” and inserting “Section 25A(b)”, and

(C) in paragraph (3)(C), by striking “subsection (i)(6)” and inserting “subsection (b)”.

(11) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 25A and inserting the following new item:

“Sec. 25A. American opportunity tax credit.”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) No new contributions to Coverdell education savings account.—Section 530(b)(1)(A) is amended to read as follows:

“(A) Except in the case of rollover contributions, no contribution will be accepted after December 31, 2017.”.

(b) Limited distribution allowed for elementary and secondary tuition.—

(1) IN GENERAL.—Section 529(c) is amended by adding at the end the following new paragraph:

“(7) TREATMENT OF ELEMENTARY AND SECONDARY TUITION.—Any reference in this subsection to the term ‘qualified higher education expense’ shall include a reference to expenses for tuition in connection with enrollment at an elementary or secondary school.”.

(2) LIMITATION.—Section 529(e)(3)(A) is amended by adding at the end the following: “The amount of cash distributions from all qualified tuition programs described in subsection (b)(1)(A)(ii) with respect to a beneficiary during any taxable year, shall, in the aggregate, include not more than $10,000 in expenses for tuition incurred during the taxable year in connection with the enrollment or attendance of the beneficiary as an elementary or secondary school student at a public, private, or religious school.”.

(c) Rollovers to qualified tuition programs permitted.—Section 530(d)(5) is amended by inserting “, or into (by purchase or contribution) a qualified tuition program (as defined in section 529),” after “into another Coverdell education savings account”.

(d) Distributions from qualified tuition programs for certain expenses associated with registered apprenticeship programs.—Section 529(e)(3) is amended by adding at the end the following new subparagraph:

“(C) CERTAIN EXPENSES ASSOCIATED WITH REGISTERED APPRENTICESHIP PROGRAMS.—The term ‘qualified higher education expenses’ shall include books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act (29 U.S.C. 50).”.

(e) Unborn children allowed as account beneficiaries.—Section 529(e) is amended by adding at the end the following new paragraph:

“(6) TREATMENT OF UNBORN CHILDREN.—

“(A) IN GENERAL.—Nothing shall prevent an unborn child from being treated as a designated beneficiary or an individual under this section.

“(B) UNBORN CHILD.—For purposes of this paragraph—

“(i) IN GENERAL.—The term ‘unborn child’ means a child in utero.

“(ii) CHILD IN UTERO.—The term ‘child in utero’ means a member of the species homo sapiens, at any stage of development, who is carried in the womb.”.

(f) Effective dates.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2017.

(2) ROLLOVERS TO QUALIFIED TUITION PROGRAMS.—The amendments made by subsection (b) shall apply to distributions after December 31, 2017.

(a) Treatment of student loans discharged on account of death or disability.—Section 108(f) is amended by adding at the end the following new paragraph:

“(5) DISCHARGES ON ACCOUNT OF DEATH OR DISABILITY.—

“(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 by reasons of the discharge (in whole or in part) of any loan described in subparagraph (B) 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))).”.

(b) Exclusion from gross income for payments made under indian health service loan repayment program.—

(1) IN GENERAL.—Section 108(f)(4) is amended by inserting “under section 108 of the Indian Health Care Improvement Act,” after “338I of such Act,”.

(2) CLERICAL AMENDMENT.—The heading for section 108(f)(4) is amended by striking “and certain” and inserting “, indian health service loan repayment program, and certain”.

(c) Effective dates.—

(1) SUBSECTION (a).—The amendment made by subsection (a)(1) shall apply to discharges of indebtedness after December 31, 2017.

(2) SUBSECTION (b).—The amendments made by subsection (b) shall apply to amounts received in taxable years beginning after December 31, 2017.

(a) In general.—Subchapter B of chapter 1 is amended—

(1) in part VII by striking sections 221 and 222 (and by striking the items relating to such sections in the table of sections for such part),

(2) in part VII by striking sections 135 and 127 (and by striking the items relating to such sections in the table of sections for such part), and

(3) by striking subsection (d) of section 117.

(b) Conforming amendment relating to section 221.—

(1) Section 62(a) is amended by striking paragraph (17).

(2) Section 74(d) is amended by striking “221,”.

(3) Section 86(b)(2)(A) is amended by striking “221,”.

(4) Section 219(g)(3)(A)(ii) is amended by striking “221,”.

(5) Section 163(h)(2) is amended by striking subparagraph (F).

(6) Section 6050S(a) is amended—

(A) by inserting “or” at the end of paragraph (1),

(B) by striking “or” at the end of paragraph (2), and

(C) by striking paragraph (3).

(7) Section 6050S(e) is amended by striking all that follows “thereof)” and inserting a period.

(c) Conforming amendments related to section 222.—

(1) Section 62(a) is amended by striking paragraph (18).

(2) Section 74(d)(2)(B) is amended by striking “222,”.

(3) Section 86(b)(2)(A) is amended by striking “222,”.

(4) Section 219(g)(3)(A)(ii) is amended by striking “222,”.

(d) Conforming amendments relating to section 127.—

(1) Section 125(f)(1) is amended by striking “127,”.

(2) Section 132(j)(8) is amended by striking “which are not excludable from gross income under section 127”.

(3) Section 414(n)(3)(C) is amended by striking “127,”.

(4) Section 414(t)(2) is amended by striking “127,”.

(5) Section 3121(a)(18) is amended by striking “127,”.

(6) Section 3231(e) is amended by striking paragraph (6).

(7) Section 3306(b)(13) is amended by “127,”.

(8) Section 3401(a)(18) is amended by striking “127,”.

(9) Section 6039D(d)(1) is amended by striking “, 127”.

(e) Conforming amendments relating to section 117(d).—

(1) Section 117(c)(1) is amended—

(A) by striking “subsections (a) and (d)” and inserting “subsection (a)”, and

(B) by striking “or qualified tuition reduction”.

(2) Section 414(n)(3)(C) is amended by striking “117(d),”.

(3) Section 414(t)(2) is amended by striking “117(d),”.

(f) Conforming amendments related to section 135.—

(1) Section 74(d)(2)(B) is amended by striking “135,”.

(2) Section 86(b)(2)(A) is amended by striking “135,”.

(3) Section 219(g)(3)(A)(ii) is amended by striking “135,”.

(g) Effective dates.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(2) AMENDMENTS RELATING TO SECTION 117(d).—The amendments made by subsections (a)(3) and (e) shall apply to amounts paid or incurred after December 31, 2017.

(a) Rollovers from qualified tuition programs to qualified ABLE programs.—Section 529(c)(3)(C)(i) is amended by striking “or” at the end of subclause (I), by striking the period at the end of subclause (II) and inserting “, or”, and by adding at the end the following new subclause:

“(III) to an ABLE account (as defined in section 529A(e)(6)) of the designated beneficiary or a member of the family of the designated beneficiary.

Subclause (III) shall not apply to so much of a distribution which, when added to all other contributions made to the ABLE account for the taxable year, exceeds the limitation under section 529A(b)(2)(B).”.

(b) Effective date.—The amendments made by this section shall apply to distributions after December 31, 2017.

(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) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) Modification of limitations.—

(1) IN GENERAL.—Section 163(h)(3) is amended to read as follows:

“(3) QUALIFIED RESIDENCE INTEREST.—For purposes of this subsection—

“(A) IN GENERAL.—The term ‘qualified residence interest’ means any interest which is paid or accrued during the taxable year on indebtedness which—

“(i) is incurred in acquiring, constructing, or substantially improving any qualified residence (determined as of the time the interest is accrued) of the taxpayer, and

“(ii) is secured by such residence.

Such term also includes interest on any indebtedness secured by such residence resulting from the refinancing of indebtedness meeting the requirements of the preceding sentence (or this sentence); but only to the extent the amount of the indebtedness resulting from such refinancing does not exceed the amount of the refinanced indebtedness.

“(B) LIMITATION.—The aggregate amount of indebtedness taken into account under subparagraph (A) for any period shall not exceed $500,000 (half of such amount in the case of a married individual filing a separate return).

“(C) TREATMENT OF INDEBTEDNESS INCURRED ON OR BEFORE NOVEMBER 2, 2017.—

“(i) IN GENERAL.—In the case of any pre-November 2, 2017, indebtedness, this paragraph shall apply as in effect immediately before the enactment of the Tax Cuts and Jobs Act.

“(ii) PRE-NOVEMBER 2, 2017, INDEBTEDNESS.—For purposes of this subparagraph, the term ‘pre-November 2, 2017, indebtedness’ means—

“(I) any principal residence acquisition indebtedness which was incurred on or before November 2, 2017, or

“(II) any principal residence acquisition indebtedness which is incurred after November 2, 2017, to refinance indebtedness described in clause (i) (or refinanced indebtedness meeting the requirements of this clause) to the extent (immediately after the refinancing) the principal amount of the indebtedness resulting from the refinancing does not exceed the principal amount of the refinanced indebtedness (immediately before the refinancing).

“(iii) LIMITATION ON PERIOD OF REFINANCING.—clause (ii)(II) shall not apply to any indebtedness after—

“(I) the expiration of the term of the original indebtedness, or

“(II) 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).

“(iv) BINDING CONTRACT EXCEPTION.—In the case of a taxpayer who enters into a written binding contract before November 2, 2017, to close on the purchase of a principal residence before January 1, 2018, and who purchases such residence before April 1, 2018, subparagraphs (A) and (B) shall be applied by substituting ‘April 1, 2018’ for ‘November 2, 2017’.”.

(2) CONFORMING AMENDMENTS.—

(A) Section 108(h)(2) is by striking “for ‘$1,000,000 ($500,000’ in clause (ii) thereof” and inserting “for ‘$500,000 ($250,000’ in paragraph (2)(A), and ‘$1,000,000’ for ‘$500,000’ in paragraph (2)(B), thereof”.

(B) Section 163(h) is amended by striking subparagraphs (E) and (F) in paragraph (4).

(b) Taxpayers limited to 1 qualified residence.—Section 163(h)(4)(A)(i) is amended to read as follows:

“(i) IN GENERAL.—The term ‘qualified residence’ means the principal residence (within the meaning of section 121) of the taxpayer.”.

(c) Effective dates.—

(1) IN GENERAL.—The amendments made by this section shall apply to interest paid or accrued in taxable years beginning after December 31, 2017, with respect to indebtedness incurred before, on, or after such date.

(2) TREATMENT OF GRANDFATHERED INDEBTEDNESS.—For application of the amendments made by this section to grandfathered indebtedness, see paragraph (3)(C) of section 163(h) of the Internal Revenue Code of 1986, as amended by this section.

(a) In general.—Section 164(b)(5) is amended to read as follows:

“(5) LIMITATION IN CASE OF INDIVIDUALS.—In the case of a taxpayer other than a corporation—

“(A) foreign real property taxes (other than taxes which are paid or accrued in carrying on a trade or business or an activity described in section 212) shall not be taken into account under subsection (a)(1),

“(B) the aggregate amount of taxes (other than taxes which are paid or accrued in carrying on a trade or business or an activity described in section 212) taken into account under subsection (a)(1) for any taxable year shall not exceed $10,000 ($5,000 in the case of a married individual filing a separate return),

“(C) subsection (a)(2) shall only apply to taxes which are paid or accrued in carrying on a trade or business or an activity described in section 212, and

“(D) subsection (a)(3) shall not apply to State and local taxes.”.

(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Section 165(c) is amended by inserting “and” at the end of paragraph (1), by striking “; and” at the end of paragraph (2) and inserting a period, and by striking paragraph (3).

(b) Conforming amendments.—

(1) Section 165(h) is amended to read as follows:

“(h) Special rule where personal casualty gains exceed personal casualty losses.—

“(1) IN GENERAL.—If the personal casualty gains for any taxable year exceed the personal casualty losses for such taxable year—

“(A) all such gains shall be treated as gains from sales or exchanges of capital assets, and

“(B) all such losses shall be treated as losses from sales or exchanges of capital assets.

“(2) DEFINITIONS OF PERSONAL CASUALTY GAIN AND PERSONAL CASUALTY LOSS.—For purposes of this subsection—

“(A) PERSONAL CASUALTY LOSS.—The term ‘personal casualty loss’ means any loss of property not connected with a trade or business or a transaction entered into for profit, if such loss arises from fire, storm, shipwreck, or other casualty, or from theft.

“(B) PERSONAL CASUALTY GAIN.—The term ‘personal casualty gain’ means the recognized gain from any involuntary conversion of property which is described in subparagraph (A) arising from fire, storm, shipwreck, or other casualty, or from theft.”.

(2) Section 165 is amended by striking subsection (k).

(3) (A) Section 165(l)(1) is amended by striking “a loss described in subsection (c)(3)” and inserting “an ordinary loss described in subsection (c)(2)”.

(B) Section 165(l) is amended—

(i) by striking paragraph (5),

(ii) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, and

(iii) by inserting after paragraph (1) the following new paragraph:

“(2) LIMITATIONS.—

“(A) DEPOSIT MAY NOT BE FEDERALLY INSURED.—No election may be made under paragraph (1) with respect to any loss on a deposit in a qualified financial institution if part or all of such deposit is insured under Federal law.

“(B) DOLLAR LIMITATION.—With respect to each financial institution, the aggregate amount of losses attributable to deposits in such financial institution to which an election under paragraph (1) may be made by the taxpayer for any taxable year shall not exceed $20,000 ($10,000 in the case of a separate return by a married individual). The limitation of the preceding sentence shall be reduced by the amount of any insurance proceeds under any State law which can reasonably be expected to be received with respect to losses on deposits in such institution.”.

(4) Section 172(b)(1)(E)(ii), prior to amendment under title III, is amended by striking subclause (I) and by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively.

(5) Section 172(d)(4)(C) is amended by striking “paragraph (2) or (3) of section 165(c)” and inserting “section 165(c)(2)”.

(6) Section 274(f) is amended by striking “casualty losses,” in the heading thereof.

(7) Section 280A(b) is amended by striking “casualty losses,” in the heading thereof.

(8) Section 873(b), as amended by the preceding provisions of this Act, is amended by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.

(9) Section 504(b) of the Disaster Tax Relief and Airport and Airway Extension Act of 2017 is amended by adding at the end the following new paragraph:

“(4) COORDINATION WITH TAX REFORM.—This subsection shall be applied without regard to the amendments made by section 1304 of the Tax Cuts and Jobs Act”..”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Section 165(d) is amended by adding at the end the following: “For purposes of the preceding sentence, the term ‘losses from wagering transactions’ includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.”.

(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) Increased limitation for cash contributions.—Section 170(b)(1) is amended by redesignating subparagraph (G) as subparagraph (H) and by inserting after subparagraph (F) the following new subparagraph:

“(G) INCREASED LIMITATION FOR CASH CONTRIBUTIONS.—

“(i) IN GENERAL.—In the case of any contribution of cash to an organization described in subparagraph (A), the total amount of such contributions which may be taken into account under subsection (a) for any taxable year shall not exceed 60 percent of the taxpayer’s contribution base for such year.

“(ii) CARRYOVER.—If the aggregate amount of contributions described in clause (i) exceeds the applicable limitation under 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.

“(iii) COORDINATION WITH SUBPARAGRAPHS (A) AND (B).—

“(I) IN GENERAL.—Contributions taken into account under this subparagraph shall not be taken into account under subparagraph (A).

“(II) LIMITATION REDUCTION.—Subparagraphs (A) and (B) shall be applied by reducing (but not below zero) the aggregate contribution limitation allowed for the taxable year under each such subparagraph by the aggregate contributions allowed under this subparagraph for such taxable year.”.

(b) Denial of deduction for college athletic event seating rights.—Section 170(l)(1) is amended to read as follows:

“(1) IN GENERAL.—No deduction shall be allowed under this section for any amount described in paragraph (2).”.

(c) Charitable mileage rate adjusted for inflation.—Section 170(i) is amended by striking “shall be 14 cents per mile” and inserting “shall be a rate which takes into account the variable cost of operating an automobile”.

(d) Repeal of substantiation exception in case of contributions reported by donee.—Section 170(f)(8) is amended by striking subparagraph (D) and by redesignating subparagraph (E) as subparagraph (D).

(e) Effective date.—The amendments made by this section shall apply to contributions made in taxable years beginning after December 31, 2017.

(a) In general.—Section 212 is amended by adding “or” at the end of paragraph (1), by striking “; or” at the end of paragraph (2) and inserting a period, and by striking paragraph (3).

(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Part VII of subchapter B is amended by striking by striking section 213 (and by striking the item relating to such section in the table of sections for such subpart).

(b) Conforming amendments.—

(1) (A) Section 105(f) is amended to read as follows:

“(f) Medical care.—For purposes of this section—

“(1) IN GENERAL.—The term ‘medical care’ means amounts paid—

“(A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,

“(B) for transportation primarily for and essential to medical care referred to in subparagraph (A),

“(C) for qualified long-term care services (as defined in section 7702B(c)), or

“(D) for insurance (including amounts paid as premiums under part B of title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care referred to in subparagraphs (A) and (B) or for any qualified long-term care insurance contract (as defined in section 7702B(b)).

In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in paragraph (7)) shall be taken into account under subparagraph (D).

“(2) AMOUNTS PAID FOR CERTAIN LODGING AWAY FROM HOME TREATED AS PAID FOR MEDICAL CARE.—Amounts paid for lodging (not lavish or extravagant under the circumstances) while away from home primarily for and essential to medical care referred to in paragraph (1)(A) shall be treated as amounts paid for medical care if—

“(A) the medical care referred to in paragraph (1)(A) is provided by a physician in a licensed hospital (or in a medical care facility which is related to, or the equivalent of, a licensed hospital), and

“(B) there is no significant element of personal pleasure, recreation, or vacation in the travel away from home.

The amount taken into account under the preceding sentence shall not exceed $50 for each night for each individual.

“(3) PHYSICIAN.—The term ‘physician’ has the meaning given to such term by section 1861(r) of the Social Security Act (42 U.S.C. 1395x(r)).

“(4) CONTRACTS COVERING OTHER THAN MEDICAL CARE.—In the case of an insurance contract under which amounts are payable for other than medical care referred to in subparagraphs (A), (B) and (C) of paragraph (1)—

“(A) no amount shall be treated as paid for insurance to which paragraph (1)(D) applies unless the charge for such insurance is either separately stated in the contract, or furnished to the policyholder by the insurance company in a separate statement,

“(B) the amount taken into account as the amount paid for such insurance shall not exceed such charge, and

“(C) no amount shall be treated as paid for such insurance if the amount specified in the contract (or furnished to the policyholder by the insurance company in a separate statement) as the charge for such insurance is unreasonably large in relation to the total charges under the contract.

“(5) CERTAIN PRE-PAID CONTRACTS.—Subject to the limitations of paragraph (4), premiums paid during the taxable year by a taxpayer before he attains the age of 65 for insurance covering medical care (within the meaning of subparagraphs (A), (B), and (C) of paragraph (1)) for the taxpayer, his spouse, or a dependent after the taxpayer attains the age of 65 shall be treated as expenses paid during the taxable year for insurance which constitutes medical care if premiums for such insurance are payable (on a level payment basis) under the contract for a period of 10 years or more or until the year in which the taxpayer attains the age of 65 (but in no case for a period of less than 5 years).

“(6) COSMETIC SURGERY.—

“(A) IN GENERAL.—The term ‘medical care’ does not include cosmetic surgery or other similar procedures, unless the surgery or procedure is necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease.

“(B) COSMETIC SURGERY DEFINED .—For purposes of this paragraph, the term ‘cosmetic surgery’ means any procedure which is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease.

“(7) ELIGIBLE LONG-TERM CARE PREMIUMS.—

“(A) IN GENERAL.—For purposes of this section, the term ‘eligible long-term care premiums’ means the amount paid during a taxable year for any qualified long-term care insurance contract (as defined in section 7702B(b)) covering an individual, to the extent such amount does not exceed the limitation determined under the following table:

“(B) INDEXING.—

“(i) IN GENERAL.—In the case of any taxable year beginning after 1997, each dollar amount in subparagraph (A) shall be increased by the medical care cost adjustment of such amount for such calendar year. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $10.

“(ii) MEDICAL CARE COST ADJUSTMENT.—For purposes of clause (i), the medical care cost adjustment for any calendar year is the adjustment prescribed by the Secretary, in consultation with the Secretary of Health and Human Services, for purposes of such clause. To the extent that CPI (as defined section 1(c)), or any component thereof, is taken into account in determining such adjustment, such adjustment shall be determined by taking into account C-CPI-U (as so defined), or the corresponding component thereof, in lieu of such CPI (or component thereof), but only with respect to the portion of such adjustment which relates to periods after December 31, 2017.

“(8) CERTAIN PAYMENTS TO RELATIVES TREATED AS NOT PAID FOR MEDICAL CARE.—An amount paid for a qualified long-term care service (as defined in section 7702B(c)) provided to an individual shall be treated as not paid for medical care if such service is provided—

“(A) by the spouse of the individual or by a relative (directly or through a partnership, corporation, or other entity) unless the service is provided by a licensed professional with respect to such service, or

“(B) by a corporation or partnership which is related (within the meaning of section 267(b) or 707(b)) to the individual.

For purposes of this paragraph, the term ‘relative’ means an individual bearing a relationship to the individual which is described in any of subparagraphs (A) through (G) of section 7706(d)(2). This paragraph shall not apply for purposes of subsection (b) with respect to reimbursements through insurance.”.

(B) Section 72(t)(2)(D)(i)(III) is amended by striking “section 213(d)(1)(D)” and inserting “section 105(f)(1)(D)”.

(C) Section 104(a) is amended by striking “section 213(d)(1)” in the last sentence and inserting “section 105(f)(1)”.

(D) Section 105(b) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(E) Section 139D is amended by striking “section 213” and inserting “section 223”.

(F) Section 162(l)(2) is amended by striking “section 213(d)(10)” and inserting “section 105(f)(7)”.

(G) Section 220(d)(2)(A) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(H) Section 223(d)(2)(A) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(I) Section 419A(f)(2) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(J) Section 501(c)(26)(A) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(K) Section 2503(e) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(L) Section 4980B(c)(4)(B)(i)(I) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(M) Section 6041(f) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(N) Section 7702B(a)(2) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(O) Section 7702B(a)(4) is amended by striking “section 213(d)(1)(D)” and inserting “section 105(f)(1)(D)”.

(P) Section 7702B(d)(5) is amended by striking “section 213(d)(10)” and inserting “section 105(f)(7)”.

(Q) Section 9832(d)(3) is amended by striking “section 213(d)” and inserting “section 105(f)”.

(2) Section 72(t)(2)(B) is amended to read as follows:

“(B) MEDICAL EXPENSES.—Distributions made to an individual (other than distributions described in subparagraph (A), (C), or (D) to the extent such distributions do not exceed the excess of—

“(i) the expenses paid by the taxpayer during the taxable year, not compensated for by insurance or otherwise, for medical care (as defined in 105(f)) of the taxpayer, his spouse, or a dependent (as defined in section 7706, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), over

“(ii) 10 percent of the taxpayer’s adjusted gross income.”.

(3) Section 162(l) is amended by striking paragraph (3).

(4) Section 402(l) is amended by striking paragraph (7) and redesignating paragraph (8) as paragraph (7).

(5) Section 220(f) is amended by striking paragraph (6).

(6) Section 223(f) is amended by striking paragraph (6).

(7) Section 7702B(e) is amended by striking paragraph (2).

(8) Section 7706(f)(7), as redesignated by this Act, is amended by striking “sections 105(b), 132(h)(2)(B), and 213(d)(5)” and inserting “sections 105(b) and 132(h)(2)(B)”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Part VII of subchapter B is amended by striking by striking section 215 (and by striking the item relating to such section in the table of sections for such subpart).

(b) Conforming amendments.—

(1) CORRESPONDING REPEAL OF PROVISIONS PROVIDING FOR INCLUSION OF ALIMONY IN GROSS INCOME.—

(A) Subsection (a) of section 61 is amended by striking paragraph (8) and by redesignating paragraphs (9) through (15) as paragraphs (8) through (14), respectively.

(B) Part II of subchapter B of chapter 1 is amended by striking section 71 (and by striking the item relating to such section in the table of sections for such part).

(C) Subpart F of part I of subchapter J of chapter 1 is amended by striking section 682 (and by striking the item relating to such section in the table of sections for such subpart).

(2) RELATED TO REPEAL OF SECTION 215.—

(A) Section 62(a) is amended by striking paragraph (10).

(B) Section 3402(m)(1) is amended by striking “(other than paragraph (10) thereof)”.

(3) RELATED TO REPEAL OF SECTION 71.—

(A) Section 121(d)(3) is amended—

(i) by striking “(as defined in section 71(b)(2))” in subparagraph (B), and

(ii) by adding at the end the following new subparagraph:

“(C) DIVORCE OR SEPARATION INSTRUMENT.—For purposes of this paragraph, the term ‘divorce or separation instrument’ means—

“(i) a decree of divorce or separate maintenance or a written instrument incident to such a decree,

“(ii) a written separation agreement, or

“(iii) a decree (not described in clause (i)) requiring a spouse to make payments for the support or maintenance of the other spouse.”.

(B) Section 220(f)(7) is amended by striking “subparagraph (A) of section 71(b)(2)” and inserting “clause (i) of section 121(d)(3)(C)”.

(C) Section 223(f)(7) is amended by striking “subparagraph (A) of section 71(b)(2)” and inserting “clause (i) of section 121(d)(3)(C)”.

(D) Section 382(l)(3)(B)(iii) is amended by striking “section 71(b)(2)” and inserting “section 121(d)(3)(C)”.

(E) Section 408(d)(6) is amended by striking “subparagraph (A) of section 71(b)(2)” and inserting “clause (i) of section 121(d)(3)(C)”.

(c) Effective date.—The amendments made by this section shall apply to—

(1) any divorce or separation instrument (as defined in section 71(b)(2) of the Internal Revenue Code of 1986 as in effect before the date of the enactment of this Act) executed after December 31, 2017, and

(2) any divorce or separation instrument (as so defined) executed on or before such date and modified after such date if the modification expressly provides that the amendments made by this section apply to such modification.

(a) In general.—Part VII of subchapter B is amended by striking by striking section 217 (and by striking the item relating to such section in the table of sections for such subpart).

(b) Retention of moving expenses for members of Armed Forces.—Section 134(b) is amended by adding at the end the following new paragraph:

“(7) MOVING EXPENSES.—The term ‘qualified military benefit’ includes any benefit described in section 217(g) (as in effect before the enactment of the Tax Cuts And Jobs Act).”.

(c) Conforming amendments.—

(1) Section 62(a) is amended by striking paragraph (15).

(2) Section 274(m)(3) is amended by striking “(other than section 217)”.

(3) Section 3121(a) is amended by striking paragraph (11).

(4) Section 3306(b) is amended by striking paragraph (9).

(5) Section 3401(a) is amended by striking paragraph (15).

(6) Section 7872(f) is amended by striking paragraph (11).

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) Termination of income tax deduction.—Section 220 is amended by adding at the end the following new subsection:

“(k) Termination.—No deduction shall be allowed under subsection (a) with respect to any taxable year beginning after December 31, 2017.”.

(b) Termination of exclusion for employer-Provided contributions.—Section 106 is amended by striking subsection (b).

(c) Conforming amendments.—

(1) Section 62(a) is amended by striking paragraph (16).

(2) Section 106(d) is amended by striking paragraph (2), by redesignating paragraph (3) as paragraph (6), and by inserting after paragraph (1) the following new paragraphs:

“(2) NO CONSTRUCTIVE RECEIPT.—No amount shall be included in the gross income of any employee solely because the employee may choose between the contributions referred to in paragraph (1) and employer contributions to another health plan of the employer.

“(3) SPECIAL RULE FOR DEDUCTION OF EMPLOYER CONTRIBUTIONS.—Any employer contribution to a health savings account (as so defined), if otherwise allowable as a deduction under this chapter, shall be allowed only for the taxable year in which paid.

“(4) EMPLOYER HEALTH SAVINGS ACCOUNT CONTRIBUTION REQUIRED TO BE SHOWN ON RETURN.—Every individual required to file a return under section 6012 for the taxable year shall include on such return the aggregate amount contributed by employers to the health savings accounts (as so defined) of such individual or such individual’s spouse for such taxable year.

“(5) HEALTH SAVINGS ACCOUNT CONTRIBUTIONS NOT PART OF COBRA COVERAGE.—Paragraph (1) shall not apply for purposes of section 4980B.”.

(3) Section 223(b)(4) is amended by striking subparagraph (A), by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, and by striking the second sentence thereof.

(4) Section 223(b)(5) is amended by striking “under paragraph (3))” and all that follows through “shall be divided equally between them” and inserting the following: “under paragraph (3)) shall be divided equally between the spouses”.

(5) Section 223(c) is amended by striking paragraph (5).

(6) Section 3231(e) is amended by striking paragraph (10).

(7) Section 3306(b) is amended by striking paragraph (17).

(8) Section 3401(a) is amended by striking paragraph (21).

(9) Chapter 43 is amended by striking section 4980E (and by striking the item relating to such section in the table of sections for such chapter).

(10) Section 4980G is amended to read as follows:

(11) Section 6051(a) is amended by striking paragraph (11).

(12) Section 6051(a)(14)(A) is amended by striking “paragraphs (11) and (12)” and inserting “paragraph (12)”.

(d) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Part IX of subchapter B of chapter 1 is amended by inserting after the item relating to section 262 the following new item:

(b) Repeal of certain above-the-line trade and business deductions of employees.—

(1) IN GENERAL.—Section 62(a)(2) is amended—

(A) by striking subparagraphs (B), (C), and (D), and

(B) by redesignating subparagraph (E) as subparagraph (B).

(2) CONFORMING AMENDMENTS.—

(A) Section 62 is amended by striking subsections (b) and (d) and by redesignating subsections (c) and (e) as subsections (b) and (c), respectively.

(B) Section 62(a)(20) is amended by striking “subsection (e)” and inserting “subsection (c)”.

(c) Continued exclusion of working condition fringe benefits.—Section 132(d) is amended by inserting “(determined without regard to section 262A)” after “section 162”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Section 119 is amended by adding at the end the following new subsection:

“(e) Limitation on exclusion of lodging.—

“(1) IN GENERAL.—The aggregate amount excluded from gross income of the taxpayer under subsections (a) and (d) with respect to lodging for any taxable year shall not exceed $50,000 (half such amount in the case of a married individual filing a separate return).

“(2) LIMITATION TO 1 HOME.—Subsections (a) and (d) (separately and in combination) shall not apply with respect to more than 1 residence of the taxpayer at any given time. In the case of a joint return, the preceding sentence shall apply separately to each spouse for any period during which each spouse resides separate from the other spouse in a residence which is provided in connection with the employment of each spouse, respectively.

“(3) LIMITATION FOR HIGHLY COMPENSATED EMPLOYEES.—

“(A) REDUCED FOR EXCESS COMPENSATION.—In the case of an individual whose compensation for the taxable year exceeds the amount in effect under section 414(q)(1)(B)(i) for the calendar in which such taxable year begins, the $50,000 amount under paragraph (1) shall be reduced (but not below zero) by an amount equal to 50 percent of such excess. For purposes of the preceding sentence, the term ‘compensation’ means wages (as defined in section 3121(a) (without regard to the contribution and benefit base limitation in section 3121(a)(1)).

“(B) EXCLUSION DENIED FOR 5-PERCENT OWNERS.—In the case of an individual who is a 5-percent owner (as defined in section 416(i)(1)(B)(i)) of the employer at any time during the taxable year, the amount under paragraph (1) shall be zero.”.

(b) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

(a) Requirement that residence be principal residence for 5 years during 8-year period.—Subsection (a) of section 121 is amended—

(1) by striking “5-year period” and inserting “8-year period”, and

(2) by striking “2 years” and inserting “5 years”.

(b) Application to only 1 sale or exchange every 5 years.—Paragraph (3) of section 121(b) is amended to read as follows:

“(3) APPLICATION TO ONLY 1 SALE OR EXCHANGE EVERY 5 YEARS.—Subsection (a) shall not apply to any sale or exchange by the taxpayer if, during the 5-year period ending on the date of such sale or exchange, there was any other sale or exchange by the taxpayer to which subsection (a) applied.”.

(c) Phaseout based on modified adjusted gross income.—Section 121 is amended by adding at the end the following new subsection:

“(h) Phaseout based on modified adjusted gross income.—

“(1) IN GENERAL.—If the average modified adjusted gross income of the taxpayer for the taxable year and the 2 preceding taxable years exceeds $250,000 (twice such amount in the case of a joint return), the amount which would (but for this subsection) be excluded from gross income under subsection (a) for such taxable year shall be reduced (but not below zero) by the amount of such excess.

“(2) MODIFIED ADJUSTED GROSS INCOME.—For purposes of this subsection, the term ‘modified adjusted gross income’ means, with respect to any taxable year, adjusted gross income determined after application of this section (but without regard to subsection (b)(1) and this subsection).

“(3) SPECIAL RULE FOR JOINT RETURNS.—In the case of a joint return, the average modified adjusted gross income of the taxpayer shall be determined without regard to any taxable year with respect to which the taxpayer did not file a joint return.”.

(d) Conforming amendments.—

(1) The following provisions of section 121 are each amended by striking “5-year period” each place it appears therein and inserting “8-year period”:

(A) Subsection (b)(5)(C)(ii)(I).

(B) Subsection (c)(1)(B)(i)(I).

(C) Subsection (d)(7)(B).

(D) Subparagraphs (A) and (B) of subsection (d)(9).

(E) Subsection (d)(10).

(F) Subsection (d)(12)(A).

(2) Section 121(c)(1)(B)(ii) is amended by striking “2 years” and inserting “5 years”:

(e) Effective date.—The amendments made by this section shall apply to sales and exchanges after December 31, 2017.

(a) In general.—Section 74 is amended by striking subsection (c).

(b) Repeal of limitation on deduction.—Section 274 is amended by striking subsection (j).

(c) Conforming amendments.—

(1) Section 102(c)(2) is amended by striking the first sentence.

(2) Section 414(n)(3)(C) is amended by striking “274(j),”.

(3) Section 414(t)(2) is amended by striking “274(j),”.

(4) Section 3121(a)(20) is amended by striking “74(c)”.

(5) Section 3231(e)(5) is amended by striking “74(c),”.

(6) Section 3306(b)(16) is amended by striking “74(c),”.

(7) Section 3401(a)(19) is amended by striking “74(c),”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Section 129 is amended by adding at the end the following new subsection:

“(f) Termination.—Subsection (a) shall not apply to taxable years beginning after December 31, 2022.”.

(b) Effective date.—The amendment made by this section shall take effect on the date of the enactment of this Act.

(a) In general.—Section 132(a) is amended by striking paragraph (6).

(b) Conforming amendments.—

(1) Section 82 is amended by striking “Except as provided in section 132(a)(6), there” and inserting “There”.

(2) Section 132 is amended by striking subsection (g).

(3) Section 132(l) is amended by striking by striking “subsections (e) and (g)” and inserting “subsection (e)”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Part III of subchapter B of chapter 1 is amended by striking section 137 (and by striking the item relating to such section in the table of sections for such part).

(b) Conforming amendments.—

(1) Sections 414(n)(3)(C), 414(t)(2), 74(d)(2)(B), 86(b)(2)(A), 219(g)(3)(A)(ii) are each amended by striking “, 137”.

(2) Section 1016(a), as amended by the preceding provision of this Act, is amended by striking paragraph (26).

(3) Section 6039D(d)(1), as amended by the preceding provisions of this Act, is amended—

(A) by striking “, or 137”, and

(B) by inserting “or” before “125”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Section 408A(d) is amended by striking paragraph (6) and by redesignating paragraph (7) as paragraph (6).

(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Section 401(a)(36) is amended by striking “age 62” and inserting “age 59 ½”.

(b) Application to governmental section 457(b) plans.—Clause (i) of section 457(d)(1)(A) is amended by inserting “(in the case of a plan maintained by an employer described in subsection (e)(1)(A), age 59 ½)” before the comma at the end.

(c) Effective date.—The amendments made by this section shall apply to plan years beginning after December 31, 2017.

(a) In general.—Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall modify Treasury Regulation section 1.401(k)–1(d)(3)(iv)(E) to—

(1) delete the 6-month prohibition on contributions imposed by paragraph (2) thereof, and

(2) make any other modifications necessary to carry out the purposes of section 401(k)(2)(B)(i)(IV) of the Internal Revenue Code of 1986.

(b) Effective date.—The revised regulations under this section shall apply to plan years beginning after December 31, 2017.

(a) In general.—Section 401(k) is amended by adding at the end the following:

“(14) SPECIAL RULES RELATING TO HARDSHIP WITHDRAWALS.—For purposes of paragraph (2)(B)(i)(IV)—

“(A) AMOUNTS WHICH MAY BE WITHDRAWN.—The following amounts may be distributed upon hardship of the employee:

“(i) Contributions to a profit-sharing or stock bonus plan to which section 402(e)(3) applies.

“(ii) Qualified nonelective contributions (as defined in subsection (m)(4)(C)).

“(iii) Qualified matching contributions described in paragraph (3)(D)(ii)(I).

“(iv) Earnings on any contributions described in clause (i), (ii), or (iii).

“(B) NO REQUIREMENT TO TAKE AVAILABLE LOAN.—A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan.".”.

(b) Conforming amendment.—Section 401(k)(2)(B)(i)(IV) is amended to read as follows:

“(IV) subject to the provisions of paragraph (14), upon hardship of the employee, or".”.

(c) Effective date.—The amendments made by this section shall apply to plan years beginning after December 31, 2017.

(a) In general.—Paragraph (3) of section 402(c) is amended by adding at the end the following new subparagraph:

“(C) ROLLOVER OF CERTAIN PLAN LOAN OFFSET AMOUNTS.—

“(i) IN GENERAL.—In the case of a qualified plan loan offset amount, paragraph (1) shall not apply to any transfer of such amount made after the due date (including extensions) for filing the return of tax for the taxable year in which such amount is treated as distributed from a qualified employer plan.

“(ii) QUALIFIED PLAN LOAN OFFSET AMOUNT.—For purposes of this subparagraph, the term ‘qualified plan loan offset amount’ means a plan loan offset amount which is treated as distributed from a qualified employer plan to a participant or beneficiary solely by reason of—

“(I) the termination of the qualified employer plan, or

“(II) the failure to meet the repayment terms of the loan from such plan because of the separation from service of the participant (whether due to layoff, cessation of business, termination of employment, or otherwise).

“(iii) PLAN LOAN OFFSET AMOUNT.—For purposes of clause (ii), the term ‘plan loan offset amount’ means the amount by which the participant's accrued benefit under the plan is reduced in order to repay a loan from the plan.

“(iv) LIMITATION.—This subparagraph shall not apply to any plan loan offset amount unless such plan loan offset amount relates to a loan to which section 72(p)(1) does not apply by reason of section 72(p)(2).

“(v) QUALIFIED EMPLOYER PLAN.—For purposes of this subsection, the term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4).”.

(b) Conforming amendment.—Subparagraph (A) of section 402(c)(3) is amended by striking “subparagraph (B)” and inserting “subparagraphs (B) and (C)”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

(a) In general.—Section 401 is amended—

(1) by redesignating subsection (o) as subsection (p), and

(2) by inserting after subsection (n) the following new subsection:

“(o) Special rules for applying nondiscrimination rules to protect older, longer service and grandfathered participants.—

“(1) TESTING OF DEFINED BENEFIT PLANS WITH CLOSED CLASSES OF PARTICIPANTS.—

“(A) BENEFITS, RIGHTS, OR FEATURES PROVIDED TO CLOSED CLASSES.—A defined benefit plan which provides benefits, rights, or features to a closed class of participants shall not fail to satisfy the requirements of subsection (a)(4) by reason of the composition of such closed class or the benefits, rights, or features provided to such closed class, if—

“(i) for the plan year as of which the class closes and the 2 succeeding plan years, such benefits, rights, and features satisfy the requirements of subsection (a)(4) (without regard to this subparagraph but taking into account the rules of subparagraph (I)),

“(ii) after the date as of which the class was closed, any plan amendment which modifies the closed class or the benefits, rights, and features provided to such closed class does not discriminate significantly in favor of highly compensated employees, and

“(iii) the class was closed before April 5, 2017, or the plan is described in subparagraph (C).

“(B) AGGREGATE TESTING WITH DEFINED CONTRIBUTION PLANS PERMITTED ON A BENEFITS BASIS.—

“(i) IN GENERAL.—For purposes of determining compliance with subsection (a)(4) and section 410(b), a defined benefit plan described in clause (iii) may be aggregated and tested on a benefits basis with 1 or more defined contribution plans, including with the portion of 1 or more defined contribution plans which—

“(I) provides matching contributions (as defined in subsection (m)(4)(A)),

“(II) provides annuity contracts described in section 403(b) which are purchased with matching contributions or nonelective contributions, or

“(III) consists of an employee stock ownership plan (within the meaning of section 4975(e)(7)) or a tax credit employee stock ownership plan (within the meaning of section 409(a)).

“(ii) SPECIAL RULES FOR MATCHING CONTRIBUTIONS.—For purposes of clause (i), if a defined benefit plan is aggregated with a portion of a defined contribution plan providing matching contributions—

“(I) such defined benefit plan must also be aggregated with any portion of such defined contribution plan which provides elective deferrals described in subparagraph (A) or (C) of section 402(g)(3), and

“(II) such matching contributions shall be treated in the same manner as nonelective contributions, including for purposes of applying the rules of subsection (l).

“(iii) PLANS DESCRIBED.—A defined benefit plan is described in this clause if—

“(I) the plan provides benefits to a closed class of participants,

“(II) for the plan year as of which the class closes and the 2 succeeding plan years, the plan satisfies the requirements of section 410(b) and subsection (a)(4) (without regard to this subparagraph but taking into account the rules of subparagraph (I)),

“(III) after the date as of which the class was closed, any plan amendment which modifies the closed class or the benefits provided to such closed class does not discriminate significantly in favor of highly compensated employees, and

“(IV) the class was closed before April 5, 2017, or the plan is described in subparagraph (C).

“(C) PLANS DESCRIBED.—A plan is described in this subparagraph if, taking into account any predecessor plan—

“(i) such plan has been in effect for at least 5 years as of the date the class is closed, and

“(ii) during the 5-year period preceding the date the class is closed, there has not been a substantial increase in the coverage or value of the benefits, rights, or features described in subparagraph (A) or in the coverage or benefits under the plan described in subparagraph (B)(iii) (whichever is applicable).

“(D) DETERMINATION OF SUBSTANTIAL INCREASE FOR BENEFITS, RIGHTS, AND FEATURES.—In applying subparagraph (C)(ii) for purposes of subparagraph (A)(iii), a plan shall be treated as having had a substantial increase in coverage or value of the benefits, rights, or features described in subparagraph (A) during the applicable 5-year period only if, during such period—

“(i) the number of participants covered by such benefits, rights, or features on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or

“(ii) such benefits, rights, and features have been modified by 1 or more plan amendments in such a way that, as of the date the class is closed, the value of such benefits, rights, and features to the closed class as a whole is substantially greater than the value as of the first day of such 5-year period, solely as a result of such amendments.

“(E) DETERMINATION OF SUBSTANTIAL INCREASE FOR AGGREGATE TESTING ON BENEFITS BASIS.—In applying subparagraph (C)(ii) for purposes of subparagraph (B)(iii)(IV), a plan shall be treated as having had a substantial increase in coverage or benefits during the applicable 5-year period only if, during such period—

“(i) the number of participants benefitting under the plan on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or

“(ii) the average benefit provided to such participants on the date such period ends is more than 50 percent greater than the average benefit provided on the first day of the plan year in which such period began.

“(F) CERTAIN EMPLOYEES DISREGARDED.—For purposes of subparagraphs (D) and (E), any increase in coverage or value or in coverage or benefits, whichever is applicable, which is attributable to such coverage and value or coverage and benefits provided to employees—

“(i) who became participants as a result of a merger, acquisition, or similar event which occurred during the 7-year period preceding the date the class is closed, or

“(ii) who became participants by reason of a merger of the plan with another plan which had been in effect for at least 5 years as of the date of the merger,

shall be disregarded, except that clause (ii) shall apply for purposes of subparagraph (D) only if, under the merger, the benefits, rights, or features under 1 plan are conformed to the benefits, rights, or features of the other plan prospectively.

“(G) RULES RELATING TO AVERAGE BENEFIT.—For purposes of subparagraph (E)—

“(i) the average benefit provided to participants under the plan will be treated as having remained the same between the 2 dates described in subparagraph (E)(ii) if the benefit formula applicable to such participants has not changed between such dates, and

“(ii) if the benefit formula applicable to 1 or more participants under the plan has changed between such 2 dates, then the average benefit under the plan shall be considered to have increased by more than 50 percent only if—

“(I) the total amount determined under section 430(b)(1)(A)(i) for all participants benefitting under the plan for the plan year in which the 5-year period described in subparagraph (E) ends, exceeds

“(II) the total amount determined under section 430(b)(1)(A)(i) for all such participants for such plan year, by using the benefit formula in effect for each such participant for the first plan year in such 5-year period, by more than 50 percent.

In the case of a CSEC plan (as defined in section 414(y)), the normal cost of the plan (as determined under section 433(j)(1)(B)) shall be used in lieu of the amount determined under section 430(b)(1)(A)(i).

“(H) TREATMENT AS SINGLE PLAN.—For purposes of subparagraphs (E) and (G), a plan described in section 413(c) shall be treated as a single plan rather than as separate plans maintained by each participating employer.

“(I) SPECIAL RULES.—For purposes of subparagraphs (A)(i) and (B)(iii)(II), the following rules shall apply:

“(i) In applying section 410(b)(6)(C), the closing of the class of participants shall not be treated as a significant change in coverage under section 410(b)(6)(C)(i)(II).

“(ii) 2 or more plans shall not fail to be eligible to be aggregated and treated as a single plan solely by reason of having different plan years.

“(iii) Changes in the employee population shall be disregarded to the extent attributable to individuals who become employees or cease to be employees, after the date the class is closed, by reason of a merger, acquisition, divestiture, or similar event.

“(iv) Aggregation and all other testing methodologies otherwise applicable under subsection (a)(4) and section 410(b) may be taken into account.

The rule of clause (ii) shall also apply for purposes of determining whether plans to which subparagraph (B)(i) applies may be aggregated and treated as 1 plan for purposes of determining whether such plans meet the requirements of subsection (a)(4) and section 410(b).

“(J) SPUN-OFF PLANS.—For purposes of this paragraph, if a portion of a defined benefit plan described in subparagraph (A) or (B)(iii) is spun off to another employer and the spun-off plan continues to satisfy the requirements of—

“(i) subparagraph (A)(i) or (B)(iii)(II), whichever is applicable, if the original plan was still within the 3-year period described in such subparagraph at the time of the spin off, and

“(ii) subparagraph (A)(ii) or (B)(iii)(III), whichever is applicable,

the treatment under subparagraph (A) or (B) of the spun-off plan shall continue with respect to such other employer.

“(2) TESTING OF DEFINED CONTRIBUTION PLANS.—

“(A) TESTING ON A BENEFITS BASIS.—A defined contribution plan shall be permitted to be tested on a benefits basis if—

“(i) such defined contribution plan provides make-whole contributions to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated,

“(ii) for the plan year of the defined contribution plan as of which the class eligible to receive such make-whole contributions closes and the 2 succeeding plan years, such closed class of participants satisfies the requirements of section 410(b)(2)(A)(i) (determined by applying the rules of paragraph (1)(I)),

“(iii) after the date as of which the class was closed, any plan amendment to the defined contribution plan which modifies the closed class or the allocations, benefits, rights, and features provided to such closed class does not discriminate significantly in favor of highly compensated employees, and

“(iv) the class was closed before April 5, 2017, or the defined benefit plan under clause (i) is described in paragraph (1)(C) (as applied for purposes of paragraph (1)(B)(iii)(IV)).

“(B) AGGREGATION WITH PLANS INCLUDING MATCHING CONTRIBUTIONS.—

“(i) IN GENERAL.—With respect to 1 or more defined contribution plans described in subparagraph (A), for purposes of determining compliance with subsection (a)(4) and section 410(b), the portion of such plans which provides make-whole contributions or other nonelective contributions may be aggregated and tested on a benefits basis with the portion of 1 or more other defined contribution plans which—

“(I) provides matching contributions (as defined in subsection (m)(4)(A)),

“(II) provides annuity contracts described in section 403(b) which are purchased with matching contributions or nonelective contributions, or

“(III) consists of an employee stock ownership plan (within the meaning of section 4975(e)(7)) or a tax credit employee stock ownership plan (within the meaning of section 409(a)).

“(ii) SPECIAL RULES FOR MATCHING CONTRIBUTIONS.—Rules similar to the rules of paragraph (1)(B)(ii) shall apply for purposes of clause (i).

“(C) SPECIAL RULES FOR TESTING DEFINED CONTRIBUTION PLAN FEATURES PROVIDING MATCHING CONTRIBUTIONS TO CERTAIN OLDER, LONGER SERVICE PARTICIPANTS.—In the case of a defined contribution plan which provides benefits, rights, or features to a closed class of participants whose accruals under a defined benefit plan have been reduced or eliminated, the plan shall not fail to satisfy the requirements of subsection (a)(4) solely by reason of the composition of the closed class or the benefits, rights, or features provided to such closed class if the defined contribution plan and defined benefit plan otherwise meet the requirements of subparagraph (A) but for the fact that the make-whole contributions under the defined contribution plan are made in whole or in part through matching contributions.

“(D) SPUN-OFF PLANS.—For purposes of this paragraph, if a portion of a defined contribution plan described in subparagraph (A) or (C) is spun off to another employer, the treatment under subparagraph (A) or (C) of the spun-off plan shall continue with respect to the other employer if such plan continues to comply with the requirements of clauses (ii) (if the original plan was still within the 3-year period described in such clause at the time of the spin off) and (iii) of subparagraph (A), as determined for purposes of subparagraph (A) or (C), whichever is applicable.

“(3) DEFINITIONS.—For purposes of this subsection—

“(A) MAKE-WHOLE CONTRIBUTIONS.—Except as otherwise provided in paragraph (2)(C), the term ‘make-whole contributions’ means nonelective allocations for each employee in the class which are reasonably calculated, in a consistent manner, to replace some or all of the retirement benefits which the employee would have received under the defined benefit plan and any other plan or qualified cash or deferred arrangement under subsection (k)(2) if no change had been made to such defined benefit plan and such other plan or arrangement. For purposes of the preceding sentence, consistency shall not be required with respect to employees who were subject to different benefit formulas under the defined benefit plan.

“(B) REFERENCES TO CLOSED CLASS OF PARTICIPANTS.—References to a closed class of participants and similar references to a closed class shall include arrangements under which 1 or more classes of participants are closed, except that 1 or more classes of participants closed on different dates shall not be aggregated for purposes of determining the date any such class was closed.

“(C) HIGHLY COMPENSATED EMPLOYEE.—The term ‘highly compensated employee’ has the meaning given such term in section 414(q).".”.

(b) Participation requirements.—Paragraph (26) of section 401(a) is amended by adding at the end the following new subparagraph:

“(I) PROTECTED PARTICIPANTS.—

“(i) IN GENERAL.—A plan shall be deemed to satisfy the requirements of subparagraph (A) if—

“(I) the plan is amended—

“(aa) to cease all benefit accruals, or

“(bb) to provide future benefit accruals only to a closed class of participants,

“(II) the plan satisfies subparagraph (A) (without regard to this subparagraph) as of the effective date of the amendment, and

“(III) the amendment was adopted before April 5, 2017, or the plan is described in clause (ii).

“(ii) PLANS DESCRIBED.—A plan is described in this clause if the plan would be described in subsection (o)(1)(C), as applied for purposes of subsection (o)(1)(B)(iii)(IV) and by treating the effective date of the amendment as the date the class was closed for purposes of subsection (o)(1)(C).

“(iii) SPECIAL RULES.—For purposes of clause (i)(II), in applying section 410(b)(6)(C), the amendments described in clause (i) shall not be treated as a significant change in coverage under section 410(b)(6)(C)(i)(II).

“(iv) SPUN-OFF PLANS.—For purposes of this subparagraph, if a portion of a plan described in clause (i) is spun off to another employer, the treatment under clause (i) of the spun-off plan shall continue with respect to the other employer.”.

(c) Effective date.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act, without regard to whether any plan modifications referred to in such amendments are adopted or effective before, on, or after such date of enactment.

(2) SPECIAL RULES.—

(A) ELECTION OF EARLIER APPLICATION.—At the election of the plan sponsor, the amendments made by this section shall apply to plan years beginning after December 31, 2013.

(B) CLOSED CLASSES OF PARTICIPANTS.—For purposes of paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and (2)(A)(iv) of section 401(o) of the Internal Revenue Code of 1986 (as added by this section), a closed class of participants shall be treated as being closed before April 5, 2017, if the plan sponsor’s intention to create such closed class is reflected in formal written documents and communicated to participants before such date.

(C) CERTAIN POST-ENACTMENT PLAN AMENDMENTS.—A plan shall not be treated as failing to be eligible for the application of section 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of such Code (as added by this section) to such plan solely because in the case of—

(i) such section 401(o)(1)(A), the plan was amended before the date of the enactment of this Act to eliminate 1 or more benefits, rights, or features, and is further amended after such date of enactment to provide such previously eliminated benefits, rights, or features to a closed class of participants, or

(ii) such section 401(o)(1)(B)(iii) or section 401(a)(26), the plan was amended before the date of the enactment of this Act to cease all benefit accruals, and is further amended after such date of enactment to provide benefit accruals to a closed class of participants. Any such section shall only apply if the plan otherwise meets the requirements of such section and in applying such section, the date the class of participants is closed shall be the effective date of the later amendment.

(a) In general.—Section 2010(c)(3) is amended by striking “$5,000,000” and inserting “$10,000,000”.

(b) Effective date.—The amendments made by this section shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2017.

(a) Estate tax repeal.—

(1) IN GENERAL.—Subchapter C of chapter 11 is amended by adding at the end the following new section:

(2) CONFORMING AMENDMENTS.—Section 1014(b) is amended—

(A) in paragraph (6), by striking “was includible in determining” and all that follows through the end and inserting “was includible (or would have been includible without regard to section 2210) in determining the value of the decedent’s gross estate under chapter 11 of subtitle B” ,

(B) in paragraph (9), by striking “required to be included” through “Code of 1939” and inserting “required to be included (or would have been required to be included without regard to section 2210) in determining the value of the decedent’s gross estate under chapter 11 of subtitle B”, and

(C) in paragraph (10), by striking “Property includible in the gross estate” and inserting “Property includible (or which would have been includible without regard to section 2210) in the gross estate”.

(3) CLERICAL AMENDMENT.—The table of sections for subchapter C of chapter 11 is amended by adding at the end the following new item:

“Sec. 2210. Termination.”.

(b) Generation-skipping transfer tax repeal.—

(1) IN GENERAL.—Subchapter G of chapter 13 of subtitle B of such Code is amended by adding at the end the following new section:

(2) CLERICAL AMENDMENT.—The table of sections for subchapter G of chapter 13 of such Code is amended by adding at the end the following new item:

“Sec. 2664. Termination.”.

(c) Conforming amendments related to gift tax.—

(1) COMPUTATION OF GIFT TAX.—Section 2502 is amended by adding at the end the following new subsection:

“(d) Gifts made after 2024.—

“(1) IN GENERAL.—In the case of a gift made after December 31, 2024, subsection (a) shall be applied by substituting ‘subsection (d)(2)’ for ‘section 2001(c)’ and ‘such subsection’ for ‘such section’.

“(2) RATE SCHEDULE.—

(2) LIFETIME GIFT EXEMPTION.—Section 2505 is amended by adding at the end the following new subsection:

“(d) Gifts made after 2024.—

“(1) IN GENERAL.—In the case of a gift made after December 31, 2024, subsection (a)(1) shall be applied by substituting ‘the amount of the tentative tax which would be determined under the rate schedule set forth in section 2502(a)(2) if the amount with respect to which such tentative tax is to be computed were $10,000,000’ for ‘the applicable credit amount in effect under section 2010(c) which would apply if the donor died as of the end of the calendar year’.

“(2) INFLATION ADJUSTMENT.—

“(A) IN GENERAL.—In the case of any calendar year after 2024, the dollar amount in subsection (a)(1) (after application of this subsection) shall be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(c)(2)(A) of such calendar year by substituting ‘calendar year 2011’ for ‘calendar year 2016’ in clause (ii) thereof.

“(B) ROUNDING.—If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.”.

(3) OTHER CONFORMING AMENDMENTS RELATED TO GIFT TAX.—Section 2801 is amended by adding at the end the following new subsection:

“(g) Gifts received after 2024.—In the case of a gift received after December 31, 2024, subsection (a)(1) shall be applied by substituting ‘section 2502(a)(2)’ for ‘section 2001(c) as in effect on the date of such receipt’.”.

(d) Effective date.—The amendments made by this section shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2024.

(a) In general.—Subchapter A of chapter 1 is amended by striking part VI (and by striking the item relating to such part in the table of parts for subchapter A).

(b) Credit for prior year minimum tax liability.—

(1) LIMITATION.—Subsection (c) of section 53 is amended to read as follows:

“(c) Limitation.—The credit allowable under subsection (a) shall not exceed the regular tax liability of the taxpayer reduced by the sum of the credits allowed under subparts A, B, and D.”.

(2) CREDITS TREATED AS REFUNDABLE.—Section 53 is amended by adding at the end the following new subsection:

“(e) Portion of credit treated as refundable.—

“(1) IN GENERAL.—In the case of any taxable year beginning in 2019, 2020, 2021, or 2022, the limitation under subsection (c) shall be increased by the AMT refundable credit amount for such year.

“(2) AMT REFUNDABLE CREDIT AMOUNT.—For purposes of paragraph (1), the AMT refundable credit amount is an amount equal to 50 percent (100 percent in the case of a taxable year beginning in 2022) of the excess (if any) of—

“(A) the minimum tax credit determined under subsection (b) for the taxable year, over

“(B) the minimum tax credit allowed under subsection (a) for such year (before the application of this subsection for such year).

“(3) CREDIT REFUNDABLE.—For purposes of this title (other than this section), the credit allowed by reason of this subsection shall be treated as a credit allowed under subpart C (and not this subpart).

“(4) SHORT TAXABLE YEARS.—In the case of any taxable year of less than 365 days, the AMT refundable credit amount determined under paragraph (2) with respect to such taxable year shall be the amount which bears the same ratio to such amount determined without regard to this paragraph as the number of days in such taxable year bears to 365.”.

(3) TREATMENT OF REFERENCES.—Section 53(d) is amended by adding at the end the following new paragraph:

“(3) AMT TERM REFERENCES.—Any references in this subsection to section 55, 56, or 57 shall be treated as a reference to such section as in effect before its repeal by the Tax Cuts and Jobs Act”..”.

(c) Conforming amendments related to AMT repeal.—

(1) Section 2(d) is amended by striking “sections 1 and 55” and inserting “section 1”.

(2) Section 5(a) is amended by striking paragraph (4).

(3) Section 11(d) is amended by striking “the taxes imposed by subsection (a) and section 55” and inserting “the tax imposed by subsection (a)”.

(4) Section 12 is amended by striking paragraph (7).

(5) Section 26(a) is amended to read as follows:

“(a) Limitation based on amount of tax.—The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the taxpayer’s regular tax liability for the taxable year.”.

(6) Section 26(b)(2) is amended by striking subparagraph (A).

(7) Section 26 is amended by striking subsection (c).

(8) Section 38(c) is amended—

(A) by striking paragraphs (1) through (5),

(B) by redesignating paragraph (6) as paragraph (2),

(C) by inserting before paragraph (2) (as so redesignated) the following new paragraph:

“(1) IN GENERAL.—The credit allowed under subsection (a) for any taxable year shall not exceed the excess (if any) of—

“(A) the sum of—

“(i) so much of the regular tax liability as does not exceed $25,000, plus

“(ii) 75 percent of so much of the regular tax liability as exceeds $25,000, over

“(B) the sum of the credits allowable under subparts A and B of this part.”, and

(D) by striking “subparagraph (B) of paragraph (1)” each place it appears in paragraph (2) (as so redesignated) and inserting “clauses (i) and (ii) of paragraph (1)(A)”.

(9) Section 39(a) is amended—

(A) by striking “or the eligible small business credits” in paragraph (3)(A), and

(B) by striking paragraph (4).

(10) Section 45D(g)(4)(B) is amended by striking “or for purposes of section 55”.

(11) Section 54(c)(1) is amended to read as follows:

“(1) regular tax liability (as defined in section 26(b)), over”.

(12) Section 54A(c)(1)(A) is amended to read as follows:

“(A) regular tax liability (as defined in section 26(b)), over”.

(13) Section 148(b)(3) is amended to read as follows:

“(3) TAX-EXEMPT BONDS NOT TREATED AS INVESTMENT PROPERTY.—The term ‘investment property’ does not include any tax-exempt bond.”.

(14) Section 168(k)(2) is amended by striking subparagraph (G).

(15) Section 168(k) is amended by striking paragraph (4).

(16) Section 168(k)(5) is amended by striking subparagraph (E).

(17) Section 168(m)(2)(B)(i) is amended by striking “(determined without regard to paragraph (4) thereof)”.

(18) Section 168(m)(2) is amended by striking subparagraph (D).

(19) Section 173 is amended by striking subsection (b).

(20) Section 263(c) is amended by striking “section 59(e) or 291” and inserting “section 291”.

(21) Section 263A(c) is amended by striking paragraph (6) and by redesignating paragraph (7) (as amended) as paragraph (6).

(22) Section 382(l) is amended by striking paragraph (7) and by redesignating paragraph (8) as paragraph (7).

(23) Section 443 is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d).

(24) Section 616 is amended by striking subsection (e).

(25) Section 617 is amended by striking subsection (i).

(26) Section 641(c) is amended—

(A) in paragraph (2) by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively, and

(B) in paragraph (3), by striking “paragraph (2)(C)” and inserting “paragraph (2)(B)”.

(27) Subsections (b) and (c) of section 666 are each amended by striking “(other than the tax imposed by section 55)”.

(28) Section 848 is amended by striking subsection (i).

(29) Section 860E(a) is amended by striking paragraph (4).

(30) Section 871(b)(1) is amended by striking “or 55”.

(31) Section 882(a)(1) is amended by striking “55,”.

(32) Section 897(a) is amended to read as follows:

“(a) Treatment as effectively connected with united states trade or business.—For purposes of this title, gain or loss of a nonresident alien individual or a foreign corporation from the disposition of a United States real property interest shall be taken into account—

“(1) in the case of a nonresident alien individual, under section 871(b)(1), or

“(2) in the case of a foreign corporation, under section 882(a)(1),

as if the taxpayer were engaged in a trade or business within the United States during the taxable year and as if such gain or loss were effectively connected with such trade or business.”.