[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1226 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1226
To amend the Internal Revenue Code of 1986 to make permanent the
individual tax provisions of the tax reform law, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 20, 2023
Mr. Cruz (for himself and Mr. Braun) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to make permanent the
individual tax provisions of the tax reform law, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PERMANENT MODIFICATION OF INDIVIDUAL RATE BRACKETS.
(a) Married Individuals Filing Joint Returns and Surviving
Spouses.--The table contained in subsection (a) of section 1 of the
Internal Revenue Code of 1986 is amended to read as follows:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $19,050..................... 10% of taxable income.
Over $19,050 but not over $77,400.... $1,905, plus 12% of the excess
over $19,050.
Over $77,400 but not over $165,000... $8,907, plus 22% of the excess
over $77,400.
Over $165,000 but not over $315,000.. $28,179, plus 24% of the excess
over $165,000.
Over $315,000 but not over $400,000.. $64,179, plus 32% of the excess
over $315,000.
Over $400,000 but not over $600,000.. $91,379, plus 35% of the excess
over $400,000.
Over $600,000........................ $161,379, plus 37% of the excess
over $600,000.''.
(b) Heads of Households.--The table contained in subsection (b) of
section 1 of the Internal Revenue Code of 1986 is amended to read as
follows:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $13,600..................... 10% of taxable income.
Over $13,600 but not over $51,800.... $1,360, plus 12% of the excess
over $13,600.
Over $51,800 but not over $82,500.... $5,944, plus 22% of the excess
over $51,800.
Over $82,500 but not over $157,500... $12,698, plus 24% of the excess
over $82,500.
Over $157,500 but not over $200,000.. $30,698, plus 32% of the excess
over $157,500.
Over $200,000 but not over $500,000.. $44,298, plus 35% of the excess
over $200,000.
Over $500,000........................ $149,298, plus 37% of the excess
over $500,000.''.
(c) Unmarried Individuals Other Than Surviving Spouses and Heads of
Households.--The table contained in subsection (c) of section 1 of the
Internal Revenue Code of 1986 is amended to read as follows:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $9,525...................... 10% of taxable income.
Over $9,525 but not over $38,700..... $952.50, plus 12% of the excess
over $9,525.
Over $38,700 but not over $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $500,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $500,000........................ $150,689.50, plus 37% of the
excess over $500,000.''.
(d) Married Individuals Filing Separate Returns.--The table
contained in subsection (d) of section 1 of the Internal Revenue Code
of 1986 is amended to read as follows:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $9,525...................... 10% of taxable income.
Over $9,525 but not over $38,700..... $952.50, plus 12% of the excess
over $9,525.
Over $38,700 but not over $82,500.... $4,453.50, plus 22% of the excess
over $38,700.
Over $82,500 but not over $157,500... $14,089.50, plus 24% of the
excess over $82,500.
Over $157,500 but not over $200,000.. $32,089.50, plus 32% of the
excess over $157,500.
Over $200,000 but not over $300,000.. $45,689.50, plus 35% of the
excess over $200,000.
Over $300,000........................ $80,689.50, plus 37% of the
excess over $300,000.''.
(e) Estates and Trusts.--The table contained in subsection (e) of
section 1 of the Internal Revenue Code of 1986 is amended to read as
follows:
``If taxable income is: The tax is:
------------------------------------------------------------------------
Not over $2,550...................... 10% of taxable income.
Over $2,550 but not over $9,150...... $255, plus 24% of the excess over
$2,550.
Over $9,150 but not over $12,500..... $1,839, plus 35% of the excess
over $9,150.
Over $12,500......................... $3,011.50, plus 37% of the excess
over $12,500.''.
(f) Adjustment for Inflation.--Subsection (f) of section 1 of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``1993'' in paragraph (1) and inserting
``2018'',
(2) by striking ``determined--'' and all that follows in
paragraph (2)(A) and inserting ``determined by substituting
`2017' for `2016' in paragraph (3)(A)(ii),'',
(3) by striking ``a married individual filing a separate
return'' in paragraph (7)(B) and inserting ``any unmarried
individual other than a surviving spouse or head of
household'',
(4) by striking ``married individuals filing separately''
in the heading of subparagraph (B) of paragraph (7) and
inserting ``certain unmarried individuals'', and
(5) by striking paragraph (8).
(g) Capital Gains Brackets.--Subsection (h) of section 1 of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``which would (without regard to this
paragraph) be taxed at a rate below 25 percent'' in paragraph
(1)(B)(i) and inserting ``below the maximum zero rate amount'',
(2) by striking ``which would (without regard to this
paragraph) be taxed at a rate below 39.6 percent'' in paragraph
(1)(C)(ii)(I) and inserting ``below the maximum 15-percent rate
amount'', and
(3) by adding at the end the following new paragraph:
``(12) Maximum amounts defined.--For purposes of this
subsection--
``(A) Maximum zero rate amount.--The maximum zero
rate amount shall be--
``(i) in the case of a joint return or
surviving spouse, $77,200,
``(ii) in the case of an individual who is
a head of 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 \1/2\ 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) Maximum 15-percent rate amount.--The maximum
15-percent rate amount shall be--
``(i) in the case of a joint return or
surviving spouse, $479,000 (\1/2\ 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 (f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2017'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
If any increase under this subparagraph is not a
multiple of $50, such increase shall be rounded to the
next lowest multiple of $50.''.
(h) Conforming Amendments.--
(1) Section 1 of the Internal Revenue Code of 1986 is
amended by striking subsections (i) and (j).
(2) Section 3402(q)(1) of such Code is amended by striking
``third lowest'' and inserting ``fourth lowest''.
(i) Section 15 Not To Apply.--Section 15 of the Internal Revenue
Code of 1986 shall not apply to any change in a rate of tax by reason
of this section.
(j) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 2. PERMANENT EXTENSION OF DEDUCTION FOR QUALIFIED BUSINESS INCOME
OF PASS-THRU ENTITIES.
(a) In General.--Section 199A of the Internal Revenue Code of 1986
is amended by striking subsection (i).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2022.
SEC. 3. PERMANENT EXTENSION OF LIMITATION ON LOSSES FOR TAXPAYERS OTHER
THAN CORPORATIONS.
(a) In General.--Paragraph (1) of section 461(l) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) Limitation.--In the case of taxable year of a
taxpayer other than a corporation, any excess business loss of
the taxpayer for the taxable year shall not be allowed.''.
(b) Conforming Amendment.--Section 461 of the Internal Revenue Code
of 1986 is amended by striking subsection (j) (relating to limitation
on excess farm losses of certain taxpayers).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 4. PERMANENT EXTENSION OF INCREASE IN STANDARD DEDUCTION.
(a) In General.--Section 63(c)(2) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``$4,400'' in subparagraph (B) and
inserting ``$18,800'', and
(2) by striking ``$3,000'' in subparagraph (C) and
inserting ``$12,000''.
(b) Inflation Adjustment.--Paragraph (4) of section 63(c) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(4) Adjustments for inflation.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2018, the $18,000
and $12,000 amounts in paragraph (2) shall each be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
by substituting `2017' for `2016' in
subparagraph (A)(ii) thereof.
``(B) Certain amounts.--In the case of any taxable
year beginning in a calendar year after 1988, each
dollar amount contained in paragraph (5) or subsection
(f) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
by substituting for `calendar year 2016' in
subparagraph (A)(ii) thereof--
``(I) `calendar year 1987' in the
case of the dollar amounts contained in
paragraph (5)(A) or subsection (f), and
``(II) `calendar year 1997' in the
case of the dollar amount contained in
paragraph (5)(B).''.
(c) Conforming Amendment.--Section 63(c) of the Internal Revenue
Code of 1986 is amended by striking paragraph (7).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 5. PERMANENT INCREASE AND MODIFICATION OF CHILD TAX CREDIT.
(a) Increase in Credit Amount.--Section 24(a) of the Internal
Revenue Code of 1986 is amended by striking ``$1,000'' and inserting
``$2,000''.
(b) Limitation.--Paragraph (2) of section 24(b) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(2) Threshold amount.--For purposes of paragraph (1), the
term `threshold amount' means--
``(A) $400,000 in the case of a joint return, and
``(B) $200,000 in any other case.''.
(c) Partial Credit Allowed for Certain Other Dependents.--
Subsection (h) of section 24 of the Internal Revenue Code of 1986 is
amended to read as follows:
``(h) Partial Credit Allowed for Certain Other Dependents.--
``(1) In general.--The credit determined under subsection
(a) shall be increased by $500 for each dependent of the
taxpayer (as defined in section 7706) other than a qualifying
child described in subsection (c).
``(2) Exception for certain noncitizens.--Paragraph (1)
shall not apply with respect to any individual who would not be
a dependent if subparagraph (A) of section 7706(b)(3) were
applied without regard to all that follows `resident of the
United States'.
``(3) Certain qualifying children.--In the case of any
qualifying child with respect to whom a credit is not allowed
under this section by reason of subsection (e)(1), such child
shall be treated as a dependent to whom subparagraph (A)
applies.''.
(d) Maximum Amount of Refundable Credit.--Subsection (d) of section
24 of the Internal Revenue Code of 1986 is amended by inserting after
paragraph (2) the following new paragraph:
``(3) Limitation.--
``(A) In general.--The amount determined under
paragraph (1)(A) with respect to any qualifying child
shall not exceed $1,400, and such paragraph shall be
applied without regard to subsection (h).
``(B) Adjustment for inflation.--In the case of a
taxable year beginning after 2018, the $1,400 amount in
subparagraph (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(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `2017' for `2016' in
subparagraph (A)(ii) thereof.
If any increase under this clause is not a multiple of
$100, such increase shall be rounded to the next lowest
multiple of $100.''.
(e) Earned Income Threshold for Refundable Credit.--Section
24(d)(1)(B) of the Internal Revenue Code of 1986 is amended by striking
``$3,000'' and inserting ``$2,500''.
(f) Social Security Number Required.--Paragraph (1) of section
24(e) of the Internal Revenue Code of 1986 is amended to read as
follows:
``(1) Qualifying child social security number
requirement.--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
child on the return of tax for the taxable year. For purposes
of the preceding sentence, the term `social security number'
means a social security number issued to an individual by the
Social Security Administration, but only if the social security
number is issued--
``(A) to a citizen of the United States or pursuant
to subclause (I) (or that portion of subclause (III)
that relates to subclause (I)) of section
205(c)(2)(B)(i) of the Social Security Act, and
``(B) before the due date for such return.''.
(g) Repeal of Deadwood.--
(1) In general.--Section 24 of the Internal Revenue Code of
1986 is amended by striking subsections (i) and (j) and by
redesignating subsection (k) as subsection (i).
(2) Conforming amendments.--Subsection (i) of section 24 of
such Code, as redesignated by paragraph (1), is amended--
(A) by striking paragraph (2)(A),
(B) in paragraph (2)(B)--
(i) by striking and all that precedes ``In
the case'', and
(ii) by redesignating clauses (i) and (ii)
as subparagraphs (A) and (B), respectively, and
by moving such subparagraphs 2 ems to the left,
(C) in paragraph (3)(A), by striking ``and without
regard to the application of this section to bona fide
residents of Puerto Rico under subsection (i)(1)'', and
(D) in paragraph (3)(C)(ii)--
(i) by striking ``under subparagraph (B)''
and all that follows through ``December 31,
2021,'' and inserting ``under subparagraph
(B),'', and
(ii) by striking ``paragraph (2)(B)'' and
inserting ``paragraph (2)''.
(h) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 6. PERMANENT EXTENSION OF INCREASED LIMITATION FOR CERTAIN
CHARITABLE CONTRIBUTIONS.
(a) In General.--Section 170(b)(1)(G) of the Internal Revenue Code
of 1986 is amended--
(1) by striking ``for any taxable year beginning after
December 31, 2017, and before January 1, 2026,'' in clause (i),
(2) by striking ``for any taxable year described in such
clause'' in clause (ii), and
(3) by striking ``For each taxable year described in clause
(i), and each taxable year to which any contribution under this
subparagraph is carried over under clause (ii), subparagraph
(A)'' in clause (iii) and inserting ``Subparagraph (A)''.
(b) Effective Date.--The amendments made by this section shall
apply to contributions in taxable years beginning after December 31,
2025.
SEC. 7. PERMANENT EXTENSION OF INCREASED CONTRIBUTIONS TO ABLE
ACCOUNTS.
(a) In General.--Section 529A(b)(2)(B)(ii) of the Internal Revenue
Code of 1986 is amended by striking ``before January 1, 2026''.
(b) Allowance of Savers Credit.--Section 25B(d)(1)(D) of the
Internal Revenue Code of 1986 is amended by striking ``before January
1, 2026,''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 8. PERMANENT EXTENSION OF ROLLOVERS TO ABLE PROGRAMS FROM 529
PROGRAMS.
(a) In General.--Section 529(c)(3)(C)(i)(III) is amended by
striking ``before January 1, 2026,''.
(b) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act.
SEC. 9. PERMANENT EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS
PERFORMING SERVICES IN THE SINAI PENINSULA OF EGYPT.
(a) In General.--Subsection (c) of section 11026 of Public Law 115-
97 is amended--
(1) by striking ``beginning before January 1, 2026'' in
paragraph (1)(B), and
(2) by striking ``beginning before January 1, 2026'' in
paragraph (2)(B).
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 10. PERMANENT EXTENSION OF TREATMENT OF STUDENT LOANS DISCHARGED
ON ACCOUNT OF DEATH OR DISABILITY.
(a) In General.--Subparagraph (A) of section 108(f)(5) of the
Internal Revenue Code of 1986 is amended by striking ``and before
January 1, 2026,''.
(b) Effective Date.--The amendment made by this section shall apply
to discharges of indebtedness after December 31, 2022.
SEC. 11. REPEAL OF DEDUCTION FOR PERSONAL EXEMPTIONS.
(a) In General.--Part V of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is hereby repealed.
(b) Definition of Dependent Retained.--Section 152 of the Internal
Revenue Code of 1986, prior to repeal by subsection (a), is hereby
redesignated as section 7706 of such Code and moved to the end of
chapter 79 of such Code.
(c) Application to Estates and Trusts.--Subparagraph (C) of section
642(b)(2) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``the exemption amount under section
151(d)'' in clause (i) and inserting ``$4,150'', and
(2) by striking clause (iii) and inserting the following:
``(iii) Inflation adjustment.--In the case
of any taxable year beginning in a calendar
year after 2018, the $4,150 amount in clause
(i) shall be increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year in which
the taxable begins, determined by
substituting `2017' for `2016' in
subparagraph (A)(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.''.
(d) Application to Nonresident Aliens.--Section 873(b) of the
Internal Revenue Code of 1986 is amended by striking paragraph (3).
(e) Modification of Return Requirement.--
(1) In general.--Section 6012 of the Internal Revenue Code
of 1986 is amended--
(A) by striking paragraph (1) of subsection (a) and
inserting the following:
``(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).'', and
(B) by striking subsection (f).
(2) Bankruptcy estates.--Paragraph (8) of section 6012(a)
of such Code 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)''.
(f) Conforming Amendments.--
(1) Section 1(f)(7) of the Internal Revenue Code of 1986 is
amended--
(A) by striking ``section 151(d)(4)'' in
subparagraph (A) and inserting ``section 7706(d)(6)'',
and
(B) by striking ``151(d)(4)'' in subparagraph (B)
and inserting ``7706(d)(6)''.
(2) Section 2(a)(1)(B) of the Internal Revenue Code of 1986
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''.
(3) Section 21 of such Code is amended--
(A) in subsection (b)(1)(A), by striking ``section
152(a)(1)'' and inserting ``section 7706(a)(1)'',
(B) in subsection (b)(1)(B), by striking ``section
152'' and inserting ``section 7706'',
(C) in subsection (e)(5)--
(i) by striking ``section 152(e)'' in
subparagraph (A) and inserting ``section
7706(e)'', and
(ii) by striking ``section 152(e)(4)(A)''
and inserting ``section 7706(e)(4)(A)'', and
(D) in subsection (e)(6)(B), by striking ``section
152(f)(1)'' and inserting ``section 7706(f)(1)''.
(4) Section 24(a) of such Code is amended by striking ``for
which the taxpayer is allowed a deduction under section 151''
and inserting ``which is a dependent of the taxpayer''.
(5) Section 24(c) of such Code is amended--
(A) in paragraph (1), by striking ``section
152(c)'' and inserting ``section 7706(c)'', and
(B) in paragraph (2), by striking ``section
152(b)(3)'' and inserting ``section 7706(b)(3)''.
(6) Section 25A(f)(1)(A)(iii) of such Code is amended by
striking ``with respect to whom the taxpayer is allowed a
deduction under section 151''.
(7) Section 25A(g)(3) of such Code is amended by striking
``If a deduction under section 151 with respect to an
individual is allowed to another taxpayer'' and inserting ``If
an individual is a dependent (as defined in section 7706) of
another taxpayer''.
(8) Section 25B(c)(2) of such Code is amended--
(A) in subparagraph (A), by striking ``with respect
to whom a deduction under section 151 is allowed to
another taxpayer'' and inserting ``who is a dependent
of another taxpayer'', and
(B) in subparagraph (B), by striking ``section
152(f)(2)'' and inserting ``section 7706(f)(2)''.
(9) Section 25E(c)(3)(C) is amended by striking ``with
respect to whom no deduction is allowable with respect to
another taxpayer under section 151'' and inserting ``who is a
dependent (as defined in section 7706) of another taxpayer''.
(10) Section 32(c)(1)(A)(iii) of such Code is amended by
striking ``for whom a deduction is allowable under section 151
to'' and inserting ``of''.
(11) Section 32(c)(3) of such Code is amended--
(A) in subparagraph (A)--
(i) by striking ``section 152(c)'' and
inserting ``section 7706(c)'', and
(ii) by striking ``section 152(e)'' and
inserting ``section 7706(e)'',
(B) in subparagraph (B), by striking ``unless the
taxpayer is entitled to a deduction under section 151
for such taxable year with respect to such individual
(or would be so entitled but for section 152(e))'' and
inserting ``unless such individual is a dependent (as
defined in section 7706) of such taxpayer for such
taxable year (or would be a dependent bu for section
7706(e)'', and
(C) in subparagraph (C), by striking ``section
152(c)(1)(B)'' and inserting ``section 7706(c)(1)(B)''.
(12) Section 35(d)(1) of such Code is amended by striking
``with respect to whom the taxpayer is entitled to a deduction
under section 151(c)''.
(13) Section 35(d)(2) of such Code is amended--
(A) by striking ``section 152(e)'' and inserting
``section 7706(e)'', and
(B) by striking ``section 152(e)(4)(A)'' and
inserting ``section 7706(e)(4)(A)''.
(14) Section 35(g)(4) of such Code is amended by striking
``with respect to whom a deduction under section 151 is
allowable to'' and inserting ``is a dependent (as defined in
section 7706) of''.
(15) Section 35(g)(10)(C)(ii) of such Code is amended by
striking ``the taxpayer to whom the deduction under section 151
is allowable'' and inserting ``the taxpayer of whom such
individual is a dependent of''.
(16) Section 36(d)(3) of such Code is amended by striking
``a deduction under section 151 with respect to such taxpayer
is allowable to another taxpayer for such taxable year'' and
inserting ``such taxpayer is a dependent of another taxpayer
for such taxable year''.
(17) Section 36B(b)(2)(A) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(18) Section 36B(b)(3)(B) of such Code is amended--
(A) by striking ``who is not allowed a deduction
under section 151 for the taxable year with respect to
a dependent'' and inserting ``who does not have any
dependents for the taxable year'', and
(B) 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''.
(19) Section 36B(c)(1)(D) of such Code 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''.
(20) Section 36B(d)(1) of such Code 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''.
(21) Section 36B(e)(1) of such Code 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''.
(22) Section 42(i)(3)(D)(ii)(I) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(23) Section 45R(e)(1)(A)(iv) of such Code is amended--
(A) by striking ``section 152(d)(2)'' and inserting
``section 7706(d)(2)'', and
(B) by striking ``section 152(d)(2)(H)'' and
inserting ``section 7706(d)(2)(H)''.
(24) Section 51(i)(1) of such Code is amended--
(A) by striking ``section 152(d)(2)'' each place it
appears and inserting ``section 7706(d)(2)'', and
(B) by striking ``section 152(d)(2)(H)'' in
subparagraph (C) thereof and inserting ``section
7706(d)(2)(H)''.
(25) Section 56(b)(1)(D) of such Code is amended by
striking ``, the deduction for personal exemptions under
section 151,''.
(26) Section 63(b) of such Code is amended by striking
paragraph (2) and by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively.
(27) Section 63(c)(5) is amended by striking ``with respect
to whom a deduction under section 151 is allowable to'' and
inserting ``who is a dependent of''.
(28) Subparagraph (B) of section 63(f)(1) of such Code is
amended to read as follows:
``(B) for the spouse of the taxpayer if--
``(i) the spouse has attained age 65 before
the close of the taxable year, and
``(ii) a joint return is not made by the
taxpayer and his spouse, and the spouse, for
the calendar year in which the taxable year of
the taxpayer begins, has no gross income and is
not the dependent of another taxpayer.''.
(29) Subparagraph (B) of section 63(f)(2) of such Code is
amended to read as follows:
``(B) for the spouse of the taxpayer if--
``(i) the spouse is blind as of the close
of the taxable year, and
``(ii) a joint return is not made by the
taxpayer and his spouse, and the spouse, for
the calendar year in which the taxable year of
the taxpayer begins, has no gross income and is
not the dependent of another taxpayer.''.
(30) Section 72(t)(2)(D)(i)(III) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(31) Section 72(t)(7)(A)(iii) of such Code is amended by
striking ``section 152(f)(1)'' and inserting ``section
7706(f)(1)''.
(32) Section 105(b) of such Code 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)''.
(33) Section 105(c)(1) of such Code is amended by striking
``section 152'' and inserting ``section 7706''.
(34) Section 125(e)(1)(D) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(35) Section 129(c) of such Code is amended--
(A) by striking ``with respect to whom, for such
taxable year, a deduction is allowable under section
151(c) (relating to personal exemptions for dependents)
to'' in paragraph (1) and inserting ``who is a
dependent of'', and
(B) by striking ``section 152(f)(1)'' in paragraph
(2) and inserting ``section 7706(f)(1)''.
(36) Section 132(h)(2)(B) of such Code 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)''.
(37) Section 135(c)(2)(A)(iii) is amended by striking
``with respect to whom the taxpayer is allowed a deduction
under section 151''.
(38) Section 139D(c)(5) of such Code is amended by striking
``section 152'' and inserting ``section 7706''.
(39) Section 139E(c)(2) of such Code is amended by striking
``section 152'' and inserting ``section 7706''.
(40) Section 162(l)(1)(D) of such Code is amended by
striking ``section 152(f)(1)'' and inserting ``section
7706(f)(1)''.
(41) Section 170(g)(1) of such Code is amended by striking
``section 152'' and inserting ``section 7706''.
(42) Section 170(g)(3) of such Code is amended by striking
``section 152(d)(2)'' and inserting ``section 7706(d)(2)''.
(43) Section 172(d) of such Code is amended by striking
paragraph (3).
(44) Section 213(a) of such Code is amended by striking
``section 152'' and inserting ``section 7706''.
(45) Section 213(d)(5) of such Code is amended by striking
``section 152(e)'' and inserting ``section 7706(e)''.
(46) Section 213(e)(11) of such Code is amended by striking
``section 152(d)(2)'' and inserting ``section 7706(d)(2)''.
(47) Section 220(b)(6) of such Code is amended by striking
``with respect to whom a deduction under section 151 is
allowable to'' and inserting ``who is a dependent of''.
(48) Section 220(d)(2)(A) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(49) Section 221(c) of such Code is amended by striking ``a
deduction under section 151 with respect to such individual is
allowed to'' and inserting ``such individual is a dependent
of''.
(50) Section 221(d)(4) of such Code is amended by striking
``section 152'' and inserting ``section 7706''.
(51) Section 223(b)(6) of such Code is amended by striking
``with respect to whom a deduction under section 151 is
allowable to'' and inserting ``who is a dependent of''.
(52) Section 223(d)(2)(A) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(53) Section 401(h) of such Code is amended by striking
``section 152(f)(1)'' in the last sentence and inserting
``section 7706(f)(1)''.
(54) Section 402(l)(4)(D) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(55) Section 409A(a)(2)(B)(ii)(I) of such Code is amended
by striking ``section 152(a)'' and inserting ``section
7706(a)''.
(56) Section 443 is amended by striking subsection (c).
(57) Section 501(c)(9) of such Code is amended by striking
``section 152(f)(1)'' and inserting ``section 7706(f)(1)''.
(58) Section 529(c)(9)(C)(iii) of such Code is amended by
striking ``section 152(d)(2)(B)'' and inserting ``section
7706(d)(2)(B)''.
(59) Section 529(e)(2)(B) of such Code is amended by
striking ``section 152(d)(2)'' and inserting ``section
7706(d)(2)''.
(60) Section 529A(e)(4) of such Code is amended--
(A) by striking ``section 152(d)(2)(B)'' and
inserting ``section 7706(d)(2)(B)'', and
(B) by striking ``section 152(f)(1)(B)'' and
inserting ``section 7706(f)(1)(B)''.
(61) Section 703(a)(2) of such Code is amended by striking
subparagraph (A) and by redesignating subparagraphs (B) through
(F) as subparagraphs (A) through (E), respectively.
(62) Section 873(b) is amended by striking paragraph (3).
(63) Section 874 of such Code is amended by striking
subsection (b) and by redesignating subsection (c) as
subsection (b).
(64) Section 891 of such Code is amended by striking
``under section 151 and''.
(65) Section 904(b) of such Code is amended by striking
paragraph (1).
(66) Section 931(b)(1) of such Code is amended by striking
``(other than the deduction under section 151, relating to
personal exemptions)''.
(67) Section 933 of such Code 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).
(68) Section 1212(b)(2)(B)(ii) of such Code 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).''.
(69) Section 1361(c)(1)(C) of such Code is amended by
striking ``section 152(f)(1)(C)'' and inserting ``section
7706(f)(1)(C)''.
(70) Section 1402(a) of such Code is amended by striking
paragraph (7).
(71) Section 2032A(c)(7)(D) of such Code is amended by
striking ``section 152(f)(2)'' and inserting ``section
7706(f)(2)''.
(72) Section 3402(f)(1)(A) of such Code is amended by
striking ``for whom a deduction is allowed with respect to
another taxpayer under section 151'' and inserting ``who is a
dependent of another taxpayer''.
(73) Section 3402(m)(1) of such Code is amended by striking
``other than the deductions referred to in section 151 and''.
(74) Section 3402(r)(2) of such Code is amended by striking
``the sum of--'' and all that follows and inserting ``the
standard deduction in effect under section 63(c)(1)(B).''.
(75) Section 5000A(b)(3)(A) of such Code is amended by
striking ``section 152'' and inserting ``section 7706''.
(76) Section 5000A(c)(4)(A) of such Code 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''.
(77) Section 6013(b)(3)(A) of such Code 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).
(78) Section 6103(l)(21)(A)(iii) of such Code is amended to
read as follows:
``(iii) the number of the taxpayer's
dependents,''.
(79) Section 6213(g)(2)(H) of such Code is amended by
striking ``or section 151 (relating to allowance of deductions
for personal exemptions)''.
(80) Section 6334(d)(2) of such Code 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 sum of the amount determined
under subparagraph (B) and the standard
deduction, divided by
``(ii) 52.
``(B) Amount determined.--For purposes of
subparagraph (A), the amount determined under this
subparagraph is $4,150 multiplied by the number of the
taxpayer's dependents for the taxable year in which the
levy occurs.
``(C) Inflation adjustment.--In the case of any
taxable year beginning after 2018, the $4,150 amount in
subparagraph (B) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
by substituting `calendar year 2017' for
`calendar year 2016' in subparagraph (A)
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.
``(D) 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.''.
(81) Section 6334(d) of such Code is amended by striking
paragraph (4).
(82) Section 7702B(f)(2)(C)(iii) of such Code is amended by
striking ``section 152(d)(2)'' and inserting ``section
7706(d)(2)''.
(83) Section 7703(a) of such Code is amended by striking
``part V of subchapter B of chapter 1 and''.
(84) Section 7703(b)(1) of such Code is amended--
(A) by striking ``section 152(f)(1)'' and all that
follows and inserting ``section 7706(f)(1),'', and
(B) by striking ``section 152(e)'' and inserting
``section 7706(e)''.
(85) Section 7706(a) of such Code, as redesignated by this
section, is amended by striking ``this subtitle'' and inserting
``subtitle A''.
(86)(A) Section 7706(d)(1)(B) of such Code, 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) of such Code, 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(f)(3) for such calendar year,
determined by substituting `calendar year 2017' for
`calendar year 2016' in subparagraph (A)(ii) thereof.
If any increase determined under the preceding sentence is not
a multiple of $100, such increase shall be rounded to the next
lowest multiple of $100.''.
(87) The table of sections for chapter 79 of such Code is
amended by adding at the end the following new item:
``Sec. 7706. Dependent defined.''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 12. PERMANENT EXTENSION OF LIMITATION ON DEDUCTION FOR STATE AND
LOCAL, ETC., TAXES.
(a) In General.--Paragraph (6) of section 164(b) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 through 2025'' in the heading and
inserting ``after 2017''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 13. PERMANENT EXTENSION OF LIMITATION ON DEDUCTION FOR QUALIFIED
RESIDENCE INTEREST.
(a) Repeal of Home Equity Indebtedness.--
(1) In general.--Section 163(h)(3)(A) of the Internal
Revenue Code of 1986 is amended by striking ``during the
taxable year on'' and all that follows through ``For purposes
of'' and inserting ``during the taxable year on acquisition
indebtedness with respect to any qualified principal residence
of the taxpayer. For purposes of''.
(2) Conforming amendment.--Section 163(h)(3) of such Code
is amended by striking subparagraph (C).
(b) Limitation on Acquisition Indebtedness.--
(1) In general.--Section 163(h)(3)(B)(ii) of the Internal
Revenue Code of 1986 is amended by striking ``$1,000,000
($500,000'' and inserting ``$750,000 ($375,000''.
(2) Treatment of indebtedness incurred on or before
december 31, 2017; refinancings.--Section 163(h)(3) of the
Internal Revenue Code of 1986, as amended by subsection (a)(2),
is amended by inserting after subparagraph (B) the following
new subparagraph:
``(C) Treatment of indebtedness incurred on or
before december 15, 2017; refinancings.--
``(i) In general.--In the case of any
indebtedness incurred on or before December 15,
2017, subparagraph (B)(ii) shall apply as in
effect immediately before the enactment of the
Public Law 115-97, and, in applying such
subparagraph to any indebtedness incurred after
such date, the limitation under such
subparagraph shall be reduced (but not below
zero) by the amount of any indebtedness
incurred on or before December 15, 2017, which
is treated as acquisition indebtedness for
purposes of this subsection for the taxable
year.
``(ii) Binding contract exception.--In the
case of a taxpayer who enters into a written
binding contract before December 15, 2017, to
close on the purchase of a principal residence
before January 1, 2018, and who purchases such
residence before April 1, 2018, subclause (III)
shall be applied by substituting `April 1,
2018' for `December 15, 2017'.
``(iii) Treatment of refinancings of
indebtedness.--
``(I) In general.--In the case of
any indebtedness which is incurred to
refinance indebtedness, such refinanced
indebtedness shall be treated for
purposes of clause (i) as incurred on
the date that the original indebtedness
was incurred to the extent the amount
of the indebtedness resulting from such
refinancing does not exceed the amount
of the refinanced indebtedness.
``(II) Limitation on period of
refinancing.--Subclause (I) shall not
apply to any indebtedness after the
expiration of the term of the original
indebtedness or, if the principal of
such original indebtedness is not
amortized over its term, the expiration
of the term of the 1st refinancing of
such indebtedness (or if earlier, the
date which is 30 years after the date
of such 1st refinancing).''.
(c) Coordination With Exclusion of Income From Discharge of
Indebtedness.--Section 108(h)(2) of the Internal Revenue Code of 1986
is amended by striking ``, applied by substituting'' and all that
follows through ``section 163(h)(3)(F)(i)(II)''.
(d) Conforming Amendments.--Section 163(h)(3) of the Internal
Revenue Code of 1986 is amended--
(1) in the heading of subparagraph (D)(ii), by striking
``$1,000,000'', and
(2) by striking subparagraph (F).
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 14. PERMANENT EXTENSION OF MODIFICATIONS TO DEDUCTION FOR PERSONAL
CASUALTY LOSSES.
(a) In General.--Paragraph (5) of section 165(h) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``, and before January 1, 2026'' in
subparagraph (A), and
(2) by striking ``2018 through 2025'' in the heading and
inserting ``after 2017''.
(b) Effective Date.--The amendments made by this section shall
apply to losses incurred in taxable years beginning after December 31,
2022.
SEC. 15. REPEAL OF MISCELLANEOUS ITEMIZED DEDUCTIONS.
(a) In General.--Section 67 of the Internal Revenue Code of 1986 is
amended--
(1) by striking subsection (a) and inserting the following:
``(a) General Rule.--No miscellaneous itemized deduction shall be
allowed for any taxable year beginning after December 31, 2017.'',
(2) by striking subsection (g), and
(3) by striking ``2-percent floor on'' in the heading and
inserting ``treatment of''.
(b) Conforming Amendment.--The table of sections for part I of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by striking ``2-percent floor on'' in the item relating to
section 67 and inserting ``Treatment of''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 16. REPEAL OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.
(a) In General.--Part 1 of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by striking section 68 (and
the item relating to such section in the table of sections for such
part).
(b) Conforming Amendments.--
(1) Section 1(f)(7) of the Internal Revenue Code of 1986,
as amended by this Act, is amended by striking ``section
63(c)(4), or section 68(b)(2)'' and inserting ``or section
63(c)(4)''.
(2) Section 56(b)(1) of such Code is amended by striking
subparagraph (E).
(3) Section 164(b)(5)(H)(ii)(III) of such Code is amended
by inserting ``(as in effect before the date of the enactment
of the Tax Cuts and Jobs Act)'' after ``68(b)''.
(4) Section 642(b)(2)(C)(i)(I) of such Code is amended by
striking ``as an individual described in section 68(b)(1)(C)''
and inserting ``as an individual who is not married and who is
not a surviving spouse or head of household''.
(5) Section 773(a)(3)(B) of such Code is amended by
striking clause (i) and redesignating clauses (ii) through (iv)
as clauses (i) through (iii), respectively.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 17. REPEAL OF EXCLUSION FOR QUALIFIED BICYCLE COMMUTING
REIMBURSEMENT.
(a) In General.--Section 132(f)(1) of the Internal Revenue Code of
1986 is amended by striking subparagraph (D).
(b) Conforming Amendments.--
(1) Section 132(f)(2) of the Internal Revenue Code of 1986
is amended by inserting ``and'' at the end of subparagraph (A),
by striking ``, and'' at the end of subparagraph (B) and
inserting a period, and by striking subparagraph (C).
(2) Section 132(f)(4) of such Code is amended by striking
``(other than a qualified bicycle commuting reimbursement)''.
(3) Section 132(f)(5) of such Code is amended by striking
subparagraph (F).
(4) Section 132(f) of such Code is amended by striking
paragraph (8).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 18. PERMANENT EXTENSION OF MODIFICATION OF EXCLUSION FOR QUALIFIED
MOVING EXPENSE REIMBURSEMENT.
(a) In General.--Section 132(g) of the Internal Revenue Code of
1986 is amended--
(1) in paragraph (1), by striking ``individual'' and
inserting ``qualified military member'', and
(2) by striking paragraph (2) and inserting the following:
``(2) Qualified military member.--For purposes of paragraph
(1), the term `qualified military member' means a member of the
Armed Forces of the United States on active duty who moves
pursuant to a military order and incident to a permanent change
of station.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 19. REPEAL OF DEDUCTION FOR MOVING EXPENSES.
(a) In General.--Subsection (a) of section 217 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(a) Deduction Allowed.--There shall be allowed as a deduction
moving expenses paid or incurred during the taxable year in connection
with the commencement of work by a member of the Armed Forces of the
United States on active duty who moves pursuant to a military order and
incident to a permanent change of station.''.
(b) Conforming Amendments.--
(1) Section 217 of the Internal Revenue Code of 1986 is
amended--
(A) by striking subsections (c), (d), (f), and (i),
(B) by redesignating subsections (g), (h), and (j)
as subsections (c), (d), and (e), respectively, and
(C) in subsection (c), as so redesignated--
(i) by striking paragraph (1) and
redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively, and
(ii) in paragraph (2) (as so redesignated),
by striking ``moving expenses of his spouse and
dependents'' and all that follows and inserting
``moving expenses of his spouse and dependents
as if his spouse commenced work as an employee
at a new principal place of work at such
location.''.
(2) Section 23 of such Code is amended by striking
``217(h)(3)'' each place it appears in subsections (d)(3) and
(e) and inserting ``217(d)(3)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 20. PERMANENT EXTENSION OF LIMITATION ON WAGERING LOSSES.
(a) In General.--The second sentence of section 165(d) of the
Internal Revenue Code of 1986 is amended by striking ``in the case of
taxable years beginning after December 31, 2017, and before January 1,
2026,''.
(b) Effective Date.--The amendments made by this section shall not
apply to taxable years beginning after December 31, 2022.
SEC. 21. INCREASE IN ESTATE AND GIFT TAX EXEMPTION MADE PERMANENT.
(a) In General.--Section 2010(c)(3)(A) of the Internal Revenue Code
of 1986 is amended by striking ``$5,000,000'' and inserting
``$10,000,000''.
(b) Conforming Amendments.--
(1) Section 2010(c)(3) of the Internal Revenue Code of 1986
is amended by striking subparagraph (C).
(2) Subsection (g) of section 2001 of such Code is amended
to read as follows:
``(g) Modifications To Gift Tax Payable To Reflect Different Tax
Rates.--For purposes of applying subsection (b)(2) with respect to 1 or
more gifts, the rates of tax under subsection (c) in effect at the
decedent's death shall, in lieu of the rates of tax in effect at the
time of such gifts, be used both to compute--
``(1) the tax imposed by chapter 12 with respect to such
gifts, and
``(2) the credit allowed against such tax under section
2505, including in computing--
``(A) the applicable credit amount under section
2505(a)(1), and
``(B) the sum of the amounts allowed as a credit
for all preceding periods under section 2505(a)(2).''.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying and gifts made after December 31,
2022.
SEC. 22. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION MADE PERMANENT.
(a) In General.--Section 55(d) of the Internal Revenue Code of 1986
is amended--
(1) in paragraph (1)--
(A) by striking ``$78,750'' in subparagraph (A) and
inserting ``$109,400'', and
(B) by striking ``$50,600'' in subparagraph (B) and
inserting ``$70,300'', and
(2) in paragraph (2)--
(A) by striking ``$150,000'' in subparagraph (A)
and inserting ``$1,000,000'', and
(B) by striking subparagraphs (B) and (C) and
inserting the following:
``(B) 50 percent of the dollar amount applicable
under subparagraph (A) in the case of a taxpayer
described in subparagraph (B) or (C) of paragraph (1),
and
``(C) 50 percent of $150,000 in the case of a
taxpayer described in paragraph (1)(D).''.
(b) Inflation Adjustment.--
(1) In general.--Section 55(d)(3)(A)(ii) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
by substituting for `calendar year 2016' in
subparagraph (A)(ii) thereof--
``(I) `calendar year 2011' in the
case of the dollar amounts described in
clauses (i), (iv), and (v) of
subparagraph (B), and
``(II) `calendar year 2017' in the
case of the dollar amounts described in
clauses (ii) and (iii) of subparagraph
(B).''.
(2) Conforming amendments.--Section 55(d)(3)(B) of such
Code is amended--
(A) by striking ``subparagraphs (A), (B), and (D)
of paragraph (1), and'' in clause (ii) and inserting
``subparagraphs (A) and (B) of paragraph (1),'',
(B) by striking ``subparagraphs (A) and (B) of
paragraph (2).'' in clause (iii) and inserting
``paragraph (2)(A),'', and
(C) by adding at the end the following:
``(iv) the dollar amount contained in
paragraph (1)(D), and
``(v) the dollar amount contained in
paragraph (2)(C).''.
(c) Treatment of Unearned Income of Minor Children.--Section 59 of
the Internal Revenue Code of 1986 is amended by striking subsection
(j).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 23. TECHNICAL AMENDMENT.
Section 11000 of Public Law 115-97 is amended by redesignating
subsection (a) as subsection (b) and by inserting before subsection (b)
(as so redesignated) the following new subsection:
``(a) Short Title.--This title may be cited as the `Tax Cuts and
Jobs Act'.''.
<all>