[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7568-S7650]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1662. Ms. BALDWIN submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. NEW BUSINESS EXPENDITURES.

       (a) In General.--Subsections (a) and (b) of section 195 are 
     both amended by inserting ``and organizational'' after 
     ``start-up'' each place it appears.
       (b) Organizational Expenditures.--Subsection (c) of section 
     195 is amended by adding at the end the following new 
     paragraph:
       ``(3) Organizational expenditures.--The term 
     `organizational expenditures' means any expenditure which--
       ``(A) is incident to the creation of a corporation or a 
     partnership,
       ``(B) is chargeable to capital account, and
       ``(C) is of a character which, if expended incident to the 
     creation of a corporation or a partnership having a limited 
     life, would be amortizable over such life.''.
       (c) Dollar Amounts.--Clause (ii) of section 195(b)(1)(A) is 
     amended--
       (1) by striking ``$5,000'' and inserting ``$20,000''; and
       (2) by striking ``$50,000'' and inserting ``$120,000''.
       (d) Amortization Treatment.--Subparagraph (B) of section 
     195(b)(1), as amended by subsection (a), is amended to read 
     as follows:
       ``(B) the remainder of such start-up and organizational 
     expenditures shall be charged to capital account and allowed 
     as an amortization deduction determined by amortizing such 
     expenditures ratably over the 15-year period beginning with 
     the midpoint of the taxable year in which the active trade or 
     business begins.''.
       (e) Conforming Amendments.--
       (1) Section 195(b)(1) is amended--
       (A) by inserting ``(or, in the case of a partnership, the 
     partnership elects)'' after ``If a taxpayer elects''; and
       (B) by inserting ``(or the partnership, as the case may 
     be)'' after ``the taxpayer'' in subparagraph (A).
       (2) Section 195(b)(2) is amended--
       (A) by striking ``amortization period.--In any case'' and 
     inserting the following: ``amortization period.--
       ``(A) In general.--In any case''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) Special partnership rule.--In the case of a 
     partnership, subparagraph (A) shall be applied at the 
     partnership level.''.
       (3) Section 195(b) is amended by striking paragraph (3).
       (4)(A) Part VIII of subchapter B of chapter 1 of such Code 
     is amended by striking section 248 (and by striking the item 
     relating to such section in the table of sections for such 
     part).
       (B) Section 170(b)(2)(C)(ii) is amended by striking 
     ``(except section 248)''.
       (C) Section 312(n)(3) is amended by striking ``Sections 173 
     and 248'' and inserting ``Section 173''.
       (D) Section 535(b)(3) is amended by striking ``(except 
     section 248)''.
       (E) Section 545(b)(3) is amended by striking ``(except 
     section 248)''.
       (F) Section 834(c)(7) is amended by striking ``(except 
     section 248)''.
       (G) Section 852(b)(2)(C) is amended by striking ``(except 
     section 248)''.
       (H) Section 857(b)(2)(A) is amended by striking ``(except 
     section 248)''.
       (I) Section 1363(b) is amended by inserting ``and'' at the 
     end of paragraph (2), by striking paragraph (3), and by 
     redesignating paragraph (4) as paragraph (3).
       (J) Section 1375(b)(1)(B)(i) is amended by striking 
     ``(other than the deduction allowed by section 248, relating 
     to organization expenditures)''.
       (5) Part I of subchapter K of chapter 1 is amended by 
     striking section 709 (and by striking the item relating to 
     such section in the table of sections for such part).
       (6) The heading of section 195 (and the item relating to 
     such section in the table of sections for part VI of 
     subchapter B of chapter 1 of such Code) are each amended by 
     inserting ``and organizational'' after ``Start-up''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to expenses paid or incurred in taxable years 
     beginning after December 31, 2017.
                                 ______
                                 
  SA 1663. Ms. BALDWIN (for herself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year

[[Page S7569]]

2018; which was ordered to lie on the table; as follows:

       At the end, add the following:

                        TITLE III--STRONGER WAY

     SEC. 30001. TRANSITIONAL JOBS PROGRAM.

       (a) Purposes.--The purposes of the transitional jobs 
     program under this section are to--
       (1) reduce poverty and unemployment;
       (2) offer unemployed or partially employed individuals the 
     opportunity to work in a transitional job for the purpose of 
     enabling such individuals to gain, through wage-paying jobs, 
     the experience and skills needed to move into regular 
     employment; and
       (3) assist employers to create new regular employment.
       (b) Definitions.--In this section:
       (1) Employer of record.--The term ``employer of record'' 
     means a local government, nonprofit, or for-profit entity 
     selected under subsection (c)(3)(C)(i) to carry out the 
     responsibilities described in subsection (c)(4).
       (2) Host site employer.--The term ``host site employer'' 
     means an employer that--
       (A) provides an individual who is eligible for a 
     transitional job with the opportunity to work in a specific 
     transitional job for which the individual is qualified, as 
     determined by such employer, at a worksite that is under the 
     direct supervision of such employer; and
       (B) agrees to be responsible for--
       (i) selecting, training, and supervising the transitional 
     job worker, including providing a written job description, 
     initial training, ongoing management, and periodic 
     performance reviews;
       (ii) certifying to the employer of record, in the manner 
     prescribed by the Secretary, the number of hours that the 
     transitional job worker has worked for the host site 
     employer; and
       (iii) cooperating with the employer of record in 
     facilitating the movement of the transitional job worker into 
     regular employment.
       (3) Local area.--The term ``local area'' means a city, 
     county, or other general purpose political subdivision of a 
     State.
       (4) Regular employment.--The term ``regular employment'' 
     means regular, unsubsidized employment, as defined by the 
     Secretary.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
       (6) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       (7) Transitional job.--The term ``transitional job'' means 
     a job offered to an eligible individual through the program 
     authorized under subsection (c) that--
       (A) provides the rate of pay described in subsection 
     (c)(4)(F); and
       (B) provides the individual with employment of--
       (i) not less than 16 hours per week; and
       (ii) not more than 40 hours per week, when combined with 
     any hours per week of work that the individual is employed 
     through any other employer (if applicable).
       (c) Transitional Jobs.--
       (1) Program authorized.--From amounts made available under 
     subsection (d), the Secretary shall establish a program, 
     through grant agreements described in paragraph (3) with 
     State and local government agencies, that provides eligible 
     unemployed or partially employed individuals with 
     opportunities to work in a transitional job for the purpose 
     of enabling such individuals to gain, through wage-paying 
     jobs, the experience and skills needed to move into regular 
     employment.
       (2) Eligibility.--To be eligible for a transitional job, an 
     individual shall--
       (A) be a resident of the United States, and a resident of 
     the State in which the individual applies for a transitional 
     job;
       (B) be not less than 18 years of age;
       (C) not be incarcerated in any Federal or State penal 
     institution, unless the individual is participating in a 
     work-release program authorized by the United States or a 
     State and the United States or the State authorizes 
     employment under this circumstance in a transitional job; and
       (D) be unemployed, or employed for less than 30 hours per 
     week, for not less than 4 consecutive weeks preceding the 
     individual's application for a transitional job.
       (3) Transitional jobs program administration.--
       (A) In general.--The Secretary shall enter into agreements 
     with State and local government agencies under which--
       (i) the State and local government agencies carry out all 
     activities described in subparagraph (C); and
       (ii) the Secretary provides grants to the State and local 
     government agencies to carry out such activities.
       (B) Selection criteria.--The Secretary shall select State 
     and local government agencies for the agreements described in 
     subparagraph (A) based on--
       (i) the agencies' level of experience and commitment to 
     transitional jobs programs; and
       (ii) such other criteria as the Secretary determines 
     appropriate, which may include criteria relating to the 
     implementation by such agencies of transitional jobs program 
     models under this section.
       (C) Activities.--The activities described in this paragraph 
     are the following:
       (i) Select, on a competitive basis, and enter into a 
     contract with one or more local government, nonprofit, or 
     for-profit entities to--

       (I) administer the transitional jobs program in the State 
     or local area to be served; and
       (II) function as the employer of record described in 
     paragraph (4).

       (ii) Pay each entity selected to serve as an employer of 
     record, based upon the terms of the contract and full 
     documentation of performance, for the entity's performance of 
     its contractually defined services in administering the 
     transitional jobs program, including reimbursement of the 
     entity for appropriate wages and taxes the entity has paid, 
     as required under subparagraphs (F) and (G) of paragraph (4), 
     to or on behalf of eligible individuals who worked in 
     transitional jobs in the entity's capacity as an employer of 
     record. A State or local governmental agency may require a 
     host employer to pay a portion of the appropriate wages and 
     taxes for the individual.
       (iii) Cooperate with the Comptroller General of the United 
     States, the Congressional Budget Office, and other Federal 
     and State agencies in the performance of audits and the 
     conduct of fiscal and programmatic oversight.
       (iv) Annually submit to the Secretary, and to the Governor 
     or other chief executive officer of the State in which the 
     program is located and the State legislature, a report on the 
     State or local government agency's role and accomplishments 
     in the operation of the transitional jobs program, in a 
     format specified by the Secretary.
       (v) Conduct, or enter into arrangements with independent 
     academic or research organizations to conduct, periodic 
     evaluations of the effectiveness of the program within the 
     State or local area served in--

       (I) reducing poverty and unemployment;
       (II) enabling unemployed and underemployed individuals to 
     gain the experience and skills needed to move into regular 
     employment; and
       (III) assisting employers in creating new regular 
     employment.

       (vi) Promulgate any rules necessary for the agency's 
     operation of the transitional jobs program.
       (D) Scope of program.--
       (i) In general.--The Secretary shall, to the greatest 
     extent practicable and subject to the availability of 
     appropriations, ensure that the agreements described in 
     subparagraph (A) make the transitional jobs program available 
     to eligible individuals in all local areas of all States.
       (ii) Individuals with significant barriers to employment.--
     Notwithstanding clause (i), a State or local government 
     agency entering into an agreement under subparagraph (A) may, 
     in carrying out the activities described in subparagraph (C), 
     choose to target the assistance to eligible individuals under 
     paragraph (2) who have significant barriers to employment.
       (iii) Use of existing systems.--A State or local government 
     agency entering into an agreement under subparagraph (A) may 
     carry out the activities described in subparagraph (C) 
     through, or in alignment with, other subsidized employment 
     and job training activities or systems available within the 
     State or local area.
       (4) Responsibilities of an employer of record.--Each local 
     government, nonprofit, or for-profit entity selected to serve 
     as an employer of record under paragraph (3)(C)(i) shall do 
     each of the following:
       (A) Determine the eligibility of individuals applying for 
     the transitional jobs program under this section.
       (B) Conduct orientation activities for individuals that the 
     employer of record has determined are eligible for the 
     transitional jobs program.
       (C) Assess the education, prior work experience, and other 
     relevant factors of each eligible individual who requests a 
     transitional job, for the purpose of assisting the individual 
     to be successful in applying for and performing well in a 
     specific transitional job.
       (D) Connect each eligible individual requesting a 
     transitional job to the one-stop delivery system established 
     under section 121(e) of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3151(e)), and to other resources 
     that provide assistance to job seekers.
       (E) Offer each eligible individual who desires to work in a 
     transitional job and meets the eligibility requirements under 
     subparagraphs (A) through (D) of paragraph (2) the 
     opportunity to work for a host site employer. The host site 
     employer may be--
       (i) the employer of record; or
       (ii) another organization that has entered into an 
     agreement with the employer of record, and as part of such 
     agreement, agrees to function as, and meet the 
     responsibilities of, a host site employer, for a period not 
     to exceed 30 weeks, subject to the requirements of paragraph 
     (5).
       (F) Pay each individual described in subparagraph (E), for 
     each hour of work performed for the host site employer, an 
     amount at a rate of pay that is equal to, or greater than, 
     the greater of--
       (i) the minimum wage rate applicable in the State in which 
     the applicable position is located;
       (ii) the wage rate applicable under section 6 of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 206); or
       (iii) if the State or local governmental agency determines 
     appropriate, the prevailing wage rate, as determined by the

[[Page S7570]]

     State or local governmental agency, for the type of work 
     performed by the individual.
       (G) With respect to the employment of each individual 
     described in subparagraph (E)--
       (i) pay any applicable Federal taxes for employers, 
     including the employer taxes imposed under sections 3111, 
     3221, and 3301 of the Internal Revenue Code of 1986;
       (ii) pay any other State or local government taxes that 
     employers in the relevant State or local area are required to 
     pay;
       (iii) withhold from the individual's earnings the taxes 
     imposed under sections 3101 and 3201 of the Internal Revenue 
     Code of 1986, and any other Federal, State, or local tax 
     required to be withheld for employees;
       (iv) complete and submit to the appropriate government 
     agencies, all required Federal, State, and local tax-related 
     and employment-related forms that an employer would typically 
     submit, including by ensuring that each individual provides 
     the information necessary for the completion of such forms;
       (v) provide the individual with a Form W-2 Wage and Tax 
     Statement for the calendar year;
       (vi) provide for workers' compensation coverage for the 
     individual under the applicable Federal and State workers' 
     compensation laws;
       (vii) perform, either directly or through an agreement 
     described in subparagraph (E)(ii) with a host site employer, 
     all other functions that an employer would typically perform;
       (viii) comply with any applicable requirements for 
     providing health insurance coverage, including under the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148) and any amendments made by that Act; and
       (ix) provide any benefits that are otherwise required of 
     employers in the relevant State or local area.
       (H) Ensure that no transitional job would result in a 
     violation of any of the worker protections provided in 
     paragraph (6).
       (5) Duration of transitional job.--
       (A) In general.--An individual may work in a transitional 
     job for a period not to exceed 30 weeks, as long as--
       (i) the individual continues to meet the eligibility 
     requirements for a transitional job under paragraphs (A) 
     through (C) of paragraph (2);
       (ii) the individual, during the period of employment in the 
     transitional job, pursues efforts to replace hours of work in 
     the transitional job with regular employment;
       (iii) the individual has not--

       (I) obtained regular employment that consistently equals or 
     exceeds 30 hours of work per week; or
       (II) turned down any appropriate offer for such regular 
     employment, as determined by the Secretary; and

       (iv) if the individual receives and accepts an appropriate 
     offer for such regular employment, the individual does not 
     postpone the starting date for such employment beyond the 
     earliest date practicable, as determined by the Secretary, 
     even if such date occurs before the individual has reached 
     the maximum transitional job time period of 30 weeks.
       (B) Additional transitional job.--A State or local 
     government agency administering a transitional jobs program 
     under this subsection shall, subject to the availability of 
     funds, allow an individual who has completed the maximum 
     number of weeks in a transitional job an opportunity to work 
     in a different transitional job, under the same terms and 
     conditions established under this subsection, if the 
     individual--
       (i) is unable, after the end of 30 weeks of employment in a 
     transitional job, to find regular employment that 
     consistently equals or exceeds 30 hours per week;
       (ii) engages in an intensive job search, as defined by the 
     Secretary, for not less than 4 consecutive weeks following 
     the completion of a transitional job, and remains unable to 
     find regular employment; and
       (iii) meets the eligibility requirements under 
     subparagraphs (A) through (E) of paragraph (2).
       (6) Worker protections.--
       (A) Prohibition against violation of contracts.--A 
     transitional job shall not violate an existing contract for 
     services or a collective bargaining agreement, and a 
     transitional job that would violate a collective bargaining 
     agreement shall not be undertaken without the written 
     concurrence of the labor organization and employer concerned.
       (B) Other prohibitions.--An individual described in 
     paragraph (4)(E) shall not be assigned to a transitional 
     job--
       (i) when any other individual is on layoff from the same or 
     any substantially equivalent job;
       (ii) if the employer has terminated the employment of any 
     regular employee or otherwise caused an involuntary reduction 
     in its workforce with the intention of filling the vacancy so 
     created with the individual working in the transitional job; 
     or
       (iii) if the employer has caused an involuntary reduction 
     to less than full time in hours of any employee in the same 
     or a substantially equivalent job.
       (7) Evaluations.--The Secretary may reserve not more than a 
     total of 10 percent of the amounts made available under 
     subsection (d) for--
       (A) evaluations of transitional jobs program models 
     implemented with grants awarded under this section; and
       (B) other evaluations of grants and activities carried out 
     under this section.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary.

     SEC. 30002. POVERTY REDUCTION TAX CREDITS.

       (a) Reform of Earned Income Credit.--
       (1) In general.--Section 32 of the Internal Revenue Code of 
     1986 is amended--
       (A) by amending subsection (b) to read as follows:
       ``(b) Percentages and Amounts.--For purposes of subsection 
     (a):
       ``(1) Percentages.--The credit percentage and the phaseout 
     percentage shall be determined as follows:


------------------------------------------------------------------------
 ``In the case of an eligible individual    The credit     The phaseout
                  with:                   percentage is:  percentage is:
------------------------------------------------------------------------
No qualifying children..................           23.15           23.15
1 qualifying child......................          70               23.85
2 qualifying children...................          75               24.50
3 or more qualifying children...........          80              29.70.
------------------------------------------------------------------------

       ``(2) Amounts.--
       ``(A) In general.--Subject to subparagraph (B), the earned 
     income amount and the phaseout amount shall be determined as 
     follows:


------------------------------------------------------------------------
                                              The earned
  ``In the case of an eligible individual       income     The phaseout
                   with:                      amount is:    amount is:
------------------------------------------------------------------------
No qualifying children.....................       $6,612         $16,969
1 qualifying child.........................       $8,277         $15,000
2 qualifying children......................       $9,675         $15,000
3 qualifying children......................      $12,220        $15,000.
------------------------------------------------------------------------

       ``(B) Joint returns.--
       ``(i) In general.--Except as provided in clause (ii), in 
     the case of a joint return filed by an eligible individual 
     and such individual's spouse, the phaseout amount determined 
     under subparagraph (A) shall be increased by $5,550.
       ``(ii) Taxpayers with no qualifying children.--In the case 
     of a joint return filed by an eligible individual and such 
     individual's spouse who do not have a qualifying child for 
     the taxable year, the phaseout amount in the third column of 
     the first row of the table in subparagraph (A) shall be 
     increased by $8,000.'';
       (2) in subclause (II) of subsection (c)(1)(A)(ii), by 
     striking ``attained age 25 but not attained age 65'' and 
     inserting ``attained age 21 but not attained age 67''; and
       (3) by amending subsection (j) to read as follows:
       ``(j) Inflation Adjustments.--
       ``(1) In general.--In the case of any taxable year 
     beginning after 2018, each of the dollar amounts in 
     subparagraph (A) of subsection (b)(2) (after being increased 
     under subparagraph (B) thereof) shall be increased by an 
     amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2017'

[[Page S7571]]

     for `calendar year 2016' in subparagraph (A)(ii) thereof.
       ``(2) Rounding.--If any dollar amount increased under 
     paragraph (1) is not a multiple of $50, such dollar amount 
     shall be rounded to the nearest multiple of $50.''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
       (b) Establishment of Fully Refundable Child Tax Credit.--
       (1) Credit made refundable.--
       (A) In general.--The Internal Revenue Code of 1986 is 
     amended--
       (i) by redesignating section 24, as amended by this Act, as 
     section 36C; and
       (ii) by moving section 36C (as so redesignated) from 
     subpart A of part IV of subchapter A of chapter 1 to the 
     location immediately before section 37 in subpart C of part 
     IV of subchapter A of chapter 1.
       (B) Conforming amendments.--
       (i) Section 36C of such Code, as redesignated by subsection 
     (a), is amended by striking subsection (d).
       (ii) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of subtitle A of such Code is 
     amended by striking the item relating to section 24.
       (iii) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of subtitle A of such Code is 
     amended by inserting after the item relating to section 36B 
     the following:

``Sec. 36C. Child tax credit.''.
       (iv) Subparagraph (B) of section 45R(f)(3) of such Code is 
     amended to read as follows:
       ``(B) Special rule.--Any amounts paid pursuant to an 
     agreement under section 3121(l) (relating to agreements 
     entered into by American employers with respect to foreign 
     affiliates) which are equivalent to the taxes referred to in 
     subparagraph (A) shall be treated as taxes referred to in 
     such subparagraph.''.
       (v) Section 152(f)(6)(B)(ii) of such Code is amended by 
     striking ``section 24'' and inserting ``section 36C''.
       (vi) Paragraph (26) of section 501(c) of such Code is 
     amended in the flush matter at the end by striking ``section 
     24(c)'' and inserting ``section 36C(c)''.
       (vii) Section 6211(b)(4)(A) of such Code is amended--

       (I) by striking ``24(d),''; and
       (II) by inserting ``, 36C'' after ``36B''.

       (viii) Section 6213(g)(2) of such Code is amended--

       (I) in subparagraph (I), by striking ``section 24(e)'' and 
     inserting ``section 36C(e)'';
       (II) in subparagraph (L), by striking ``24, or 32'' and 
     inserting ``32, or 36C''; and
       (III) in subparagraph (P)--

       (aa) by striking ``24(h)(2)'' and inserting ``36C(g)(2)'';
       (bb) by striking ``24'' and inserting ``36C''; and
       (cc) by striking ``(h)(2) thereof'' and inserting ``(g)(2) 
     thereof''.
       (ix) Section 6402(m) of such Code is amended by striking 
     ``24 (by reason of subsection (d) thereof) or 32'' and 
     inserting ``32 or 36C''.
       (x) Section 6695(g) of such Code is amended by striking 
     ``24, 25A(a)(1), or 32'' and inserting ``25A(a)(1), 32, or 
     36C''.
       (xi) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``, 36C'' after ``36B''.
       (xii) Section 36C(h) of such Code, as added by this Act, is 
     amended by striking paragraphs (6) and (7).
       (2) Modification of credit.--
       (A) Credit amount.--Subsection (a) of section 36C of the 
     Internal Revenue Code of 1986, as redesignated by subsection 
     (b)(1), is amended to read as follows:
       ``(a) Allowance of Credit.--In the case of a taxpayer with 
     1 or more qualifying children, there shall be allowed as a 
     credit against the tax imposed by this subtitle for the 
     taxable year an amount equal to 45 percent of the taxpayer's 
     earned income (within the meaning of section 32) which is 
     taken into account in computing taxable income for the 
     taxable year.''.
       (B) Limitations.--Subsection (b) of section 36C of such 
     Code, as so redesignated, is amended to read as follows:
       ``(b) Limitation.--
       ``(1) In general.--The amount of the credit determined 
     under subsection (a) for any taxable year shall not exceed an 
     amount equal to the product of $1,000 and the number of 
     qualifying children of the taxpayer for the taxable year.
       ``(2) Reduction based on modified adjusted gross income.--
       ``(A) In general.--The amount which would (but for this 
     paragraph) be allowable as a credit under this section 
     (determined after the application of paragraph (1)) shall be 
     reduced (but not below zero) by $50 for each $1,000 (or 
     fraction thereof) by which the taxpayer's modified adjusted 
     gross income exceeds--
       ``(i) $110,000, in the case of a joint return,
       ``(ii) $75,000, in the case of an individual who is not 
     married, and
       ``(iii) $55,000, in the case of a married individual filing 
     a separate return.
       ``(B) Marital status; adjusted gross income.--For purposes 
     of this paragraph--
       ``(i) marital status shall be determined under section 
     7703, and
       ``(ii) the term `modified adjusted gross income' means 
     adjusted gross income increased by any amount excluded from 
     gross income under section 911, 931, or 933.''.
       (C) Adjustment for inflation.--Section 36C of such Code, as 
     so redesignated, is amended by inserting after subsection (c) 
     the following new subsection:
       ``(d) Adjustment for Inflation.--
       ``(1) In general.--In the case of any taxable year 
     beginning after 2018, the $1,000 amount in subsection (b)(1) 
     shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2017' 
     for `calendar year 2016' in subparagraph (A)(ii) thereof.
       ``(2) Rounding.--If any increase determined under paragraph 
     (1) is not a multiple of $50, such increase shall be rounded 
     to the nearest multiple of $50.''.
       (D) Conforming amendments.--Section 36C(h) of such Code, as 
     added by this Act, is amended--
       (i) by striking paragraphs (2) and (3),
       (ii) by redesignating paragraphs (4), (5), and (8) as 
     paragraphs (2), (3), and (4), respectively, and
       (iii) by striking ``(2) through (8)'' in paragraph (1) and 
     inserting ``(2), (3), and (4)'',
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1664. Ms. BALDWIN submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of subpart B of part IX of subtitle C of title 
     I, insert the following:

     SEC. 13824. INCREASE OF ALTERNATIVE SIMPLIFIED CREDIT.

       (a) In General.--Subparagraph (A) of section 41(c)(5) is 
     amended by striking ``14 percent (12 percent in the case of 
     taxable years ending before January 1, 2009)'' and inserting 
     ``20 percent''.
       (b) Conforming Amendment.--Clause (ii) of section 
     41(c)(5)(B) is amended by striking ``6 percent'' and 
     inserting ``10 percent''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13825. ALLOCATION OF RESEARCH EXPENSES AMONG BUSINESS 
                   COMPONENTS.

       (a) In General.--Subparagraph (A) of section 41(d)(2) is 
     amended by inserting ``, and may be applied using a method 
     that relies on reasonable estimation techniques in lieu of 
     contemporaneous accounting to measure employee hours per 
     business component'' before the period.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13826. INCLUSION OF QUALIFIED UPPER-LEVEL EMPLOYEES IN 
                   RESEARCH EXPENSE CALCULATION.

       (a) In General.--Clause (ii) of section 41(b)(2)(B) is 
     amended by inserting ``, without regard to the employee's 
     position or management level'' before the period.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13827. REPEAL OF EXCLUSION OF ADAPTIVE RESEARCH.

       (a) In General.--Paragraph (4) of section 41(d) is amended 
     by striking subparagraph (B) and by redesignating 
     subparagraphs (C), (D), (E), (F), (G), and (H) as 
     subparagraphs (B), (C), (D), (E), (F), and (G), respectively.
       (b) Conforming Amendment.--Section 174(a)(2)(B), as amended 
     by this Act, is amended by striking ``41(d)(4)(F)'' and 
     inserting ``41(d)(4)(E)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13828. INCLUSION OF COST REDUCTION RESEARCH.

       (a) In General.--Subparagraph (A) of section 41(d)(3) is 
     amended--
       (1) by striking ``or'' at the end of clause (ii),
       (2) by striking the period at the end of clause (iii) and 
     inserting ``, or'', and
       (3) by adding at the end the following new clause:
       ``(iv) reduction of costs associated with--

       ``(I) a business component of the taxpayer, or
       ``(II) research relating to a purpose described in clause 
     (i), (ii), or (iii).''.

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

     SEC. 13829. INCLUSION OF OBSOLESCENCE MITIGATION.

       (a) In General.--Clause (iv) of section 41(d)(3)(A), as 
     added by section 13828, is amended by inserting ``or 
     obsolescence mitigation'' after ``reduction of costs''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13830. ELECTION OF REDUCED CREDIT MAY BE MADE ON AMENDED 
                   RETURN.

       (a) In General.--Subparagraph (C) of section 280C(c)(4), as 
     redesignated by this Act, is amended to read as follows:
       ``(C) Election.--An election under this paragraph shall 
     made in such manner as the Secretary may prescribe and, once 
     made with respect to a taxable year, shall be irrevocable. 
     Such election may be made on the return of tax for the 
     taxable year to which it applies or on an amended return.''.

[[Page S7572]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to amended returns which are permitted to be 
     filed under the applicable provisions of the Internal Revenue 
     Code of 1986 after the date of the enactment of this Act.

     SEC. 13831. INVESTMENT IN CONNECTED MANUFACTURING EQUIPMENT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1, as amended by this Act, is amended by adding at 
     the end the following new section:

     ``SEC. 45T. CONNECTED MANUFACTURING EQUIPMENT.

       ``(a) Amount of Credit.--For purposes of section 38, the 
     connected manufacturing equipment credit for any taxable year 
     is an amount equal to 10 percent of the qualified connected 
     manufacturing equipment expenditures made by the taxpayer 
     during such year.
       ``(b) Qualified Connected Manufacturing Equipment 
     Expenditures.--
       ``(1) In general.--Subject to paragraph (2), for purposes 
     of this section, the term `qualified connected manufacturing 
     equipment expenditures' means an expenditure relating to the 
     purchase or installation of--
       ``(A) industrial equipment components which contain a 
     microprocessor and can be connected to an electronic 
     communication network, and
       ``(B) any software, routing, or local area network 
     components necessary to connect components described in 
     subparagraph (A) to an electronic communication network.
       ``(2) Eligibility.--The Secretary, in consultation with the 
     Secretary of Commerce, shall identify the types of components 
     described in paragraph (1) which are eligible for the credit 
     under this section.
       ``(c) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this subsection) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.''.
       (b) Conforming Amendments.--
       (1) Section 38(b), as amended by this Act, is amended--
       (A) by striking ``plus'' at the end of paragraph (36),
       (B) by striking the period at the end of paragraph (37) and 
     inserting ``, plus'', and
       (C) by adding at the end the following new paragraph:
       ``(38) the connected manufacturing equipment credit 
     determined under section 45T(a).''.
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 45T. Connected manufacturing equipment credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.
                                 ______
                                 
  SA 1665. Ms. CANTWELL (for herself, Mr. Menendez, Mr. Van Hollen, Mr. 
Blumenthal, Mr. Udall, Mr. Leahy, Ms. Harris, and Mr. Cardin) submitted 
an amendment intended to be proposed to amendment SA 1618 proposed by 
Mr. McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the 
bill H.R. 1, to provide for reconciliation pursuant to titles II and V 
of the concurrent resolution on the budget for fiscal year 2018; which 
was ordered to lie on the table; as follows:

       Strike section 11042 and insert the following:

     SEC. 11042. MODIFICATION OF TREATMENT OF DEFERRED FOREIGN 
                   INCOME UPON TRANSITION TO PARTICIPATION 
                   EXEMPTION SYSTEM OF TAXATION.

       (a) In General.--
       (1) Repeal of treatment.--The amendments made by section 
     14103 of this Act shall be null and void.
       (2) Modified treatment.--Section 965 of the Internal 
     Revenue Code of 1986 is amended to read as follows:

     ``SEC. 965. TREATMENT OF DEFERRED FOREIGN INCOME UPON 
                   TRANSITION TO PARTICIPATION SYSTEM OF TAXATION.

       ``(a) Treatment of Deferred Foreign Income as Subpart F 
     Income.--In the case of the last taxable year of a deferred 
     foreign income corporation which begins before January 1, 
     2018--
       ``(1) all property of such foreign corporation shall be 
     treated as sold on the last day of such taxable year for its 
     fair market value, and, notwithstanding any other provision 
     of this title, any gain or loss arising from such sale shall 
     be taken into account for such taxable year to the extent 
     otherwise provided by this title (except that section 1091 
     shall not apply to any such loss), and
       ``(2) the subpart F income of such foreign corporation (as 
     otherwise determined for such taxable year under section 952 
     without regard to this paragraph and after application of 
     paragraph (1)) shall be increased by the accumulated post-
     1986 deferred foreign income of such corporation determined 
     as of the close of such taxable year.
     Proper adjustments shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under paragraph (1).
       ``(b) Reduction in Tax Rate.--In the case of a United 
     States shareholder of a deferred foreign income corporation, 
     there shall be allowed as a deduction for the taxable year in 
     which an amount is included in the gross income of such 
     United States shareholder under section 951(a)(1) by reason 
     of subsection (a)(2) an amount equal to 43 percent of the 
     amount so included in income.
       ``(c) Accumulated Post-1986 Deferred Foreign Income.--For 
     purposes of this section--
       ``(1) In general.--The term `accumulated post-1986 deferred 
     foreign income' means the post-1986 earnings and profits 
     except to the extent such earnings--
       ``(A) are attributable to income of the deferred foreign 
     income corporation which is effectively connected with the 
     conduct of a trade or business within the United States and 
     subject to tax under this chapter,
       ``(B) if distributed, would be excluded from the gross 
     income of a United States shareholder under section 959, or
       ``(C) in the case of any deferred foreign income 
     corporation described in subsection (d)(1)(B) and which is a 
     passive foreign investment company (as defined in section 
     1297)--
       ``(i) if distributed, would have been treated as a 
     distribution which is not a dividend, or
       ``(ii) would have been properly attributable to an 
     unreversed inclusion of a United States person under section 
     1296.
     To the extent provided in regulations or other guidance 
     prescribed by the Secretary, in the case of any controlled 
     foreign corporation which has shareholders which are not 
     United States shareholders, accumulated post-1986 deferred 
     foreign income shall be appropriately reduced by amounts 
     which would be described in subparagraph (B) if such 
     shareholders were United States shareholders. Such 
     regulations or other guidance may provide a similar rule for 
     purposes of subparagraph (C).
       ``(2) Post-1986 earnings and profits.--The term `post-1986 
     earnings and profits' means the earnings and profits of the 
     foreign corporation (computed in accordance with sections 
     964(a) and 986) accumulated in taxable years beginning after 
     December 31, 1986, and determined--
       ``(A) as of the close the taxable year referred to in 
     subsection (a) and after application of subsection (a)(1), 
     and
       ``(B) without diminution by reason of dividends distributed 
     during such taxable year.
       ``(d) Deferred Foreign Income Corporation.--
       ``(1) In general.--For purposes of this section, the term 
     `deferred foreign income corporation' means--
       ``(A) any controlled foreign corporation, and
       ``(B) any section 902 corporation (as defined in section 
     909(d)(5) as in effect before the date of the enactment of 
     the Tax Cuts and Jobs Act).
       ``(2) Application to section 902 corporations.--
       ``(A) In general.--For purposes of section 951, a section 
     902 corporation (as so defined) shall be treated as a 
     controlled foreign corporation solely for purposes of taking 
     into account the subpart F income of such corporation under 
     subsection (a), making proper adjustments in the amount of 
     subsequent gains or losses to reflect such gains and losses 
     (including through application of section 961), and applying 
     subsection (f).
       ``(B) United states shareholder.--For purposes of this 
     section and the application of subparagraph (A), in the case 
     of a section 902 corporation (as so defined), a shareholder 
     which is a domestic corporation which owns 10 percent or more 
     of the voting stock of such section 902 corporation shall be 
     treated as a United States shareholder.
       ``(e) Disallowance of Foreign Tax Credit, etc.--
       ``(1) In general.--No credit shall be allowed under section 
     901 for the applicable percentage of the taxes paid or 
     accrued (or treated as paid or accrued) with respect to any 
     amount which is included in gross income under section 951(a) 
     by reason of subsection (a).
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is the amount (expressed as a 
     percentage) equal to 0.43 multiplied by the ratio of--
       ``(A) the amount included in gross income under section 
     951(a) by reason of subsection (a)(2), to
       ``(B) the amount included in gross income under section 
     951(a) by reason of subsection (a).
       ``(3) Denial of deduction.--No deduction shall be allowed 
     under this chapter for the portion of any tax for which 
     credit is not allowable under section 901 by reason of 
     paragraph (1) (determined by treating the taxpayer as having 
     elected the benefits of subpart A of part III of subchapter 
     N).
       ``(4) Coordination with section 78.--Section 78 shall not 
     apply to any tax for which credit is not allowable under 
     section 901 by reason of paragraph (1).
       ``(f) Election To Pay Liability in Installments.--
       ``(1) In general.--In the case of a United States 
     shareholder of a deferred foreign income corporation, such 
     United States shareholder may elect to pay the net tax 
     liability under this section in 8 installments of the 
     following amounts:
       ``(A) 8 percent of the net tax liability in the case of 
     each of the first 5 of such installments,
       ``(B) 15 percent of the net tax liability in the case of 
     the 6th such installment,
       ``(C) 20 percent of the net tax liability in the case of 
     the 7th such installment, and

[[Page S7573]]

       ``(D) 25 percent of the net tax liability in the case of 
     the 8th such installment.
       ``(2) Date for payment of installments.--If an election is 
     made under paragraph (1), the first installment shall be paid 
     on the due date (determined without regard to any extension 
     of time for filing the return) for the return of tax for the 
     taxable year described in subsection (a) and each succeeding 
     installment shall be paid on the due date (as so determined) 
     for the return of tax for the taxable year following the 
     taxable year with respect to which the preceding installment 
     was made.
       ``(3) Acceleration of payment.--If there is an addition to 
     tax for failure to pay timely assessed with respect to any 
     installment required under this subsection, a liquidation or 
     sale of substantially all the assets of the taxpayer 
     (including in a title 11 or similar case), a cessation of 
     business by the taxpayer, or any similar circumstance, then 
     the unpaid portion of all remaining installments shall be due 
     on the date of such event (or in the case of a title 11 or 
     similar case, the day before the petition is filed). The 
     preceding sentence shall not apply to the sale of 
     substantially all the assets of a taxpayer to a buyer if such 
     buyer enters into an agreement with the Secretary under which 
     such buyer is liable for the remaining installments due under 
     this subsection in the same manner as if such buyer were the 
     taxpayer.
       ``(4) Proration of deficiency to installments.--If an 
     election is made under paragraph (1) to pay the net tax 
     liability under this section in installments and a deficiency 
     has been assessed with respect to such net tax liability, the 
     deficiency shall be prorated to the installments payable 
     under paragraph (1). The part of the deficiency so prorated 
     to any installment the date for payment of which has not 
     arrived shall be collected at the same time as, and as a part 
     of, such installment. The part of the deficiency so prorated 
     to any installment the date for payment of which has arrived 
     shall be paid upon notice and demand from the Secretary. This 
     subsection shall not apply if the deficiency is due to 
     negligence, to intentional disregard of rules and 
     regulations, or to fraud with intent to evade tax.
       ``(5) Election.--Any election under paragraph (1) shall be 
     made not later than the due date for the return of tax for 
     the taxable year described in subsection (a) and shall be 
     made in such manner as the Secretary may provide.
       ``(6) Net tax liability under this section.--For purposes 
     of this subsection--
       ``(A) In general.--The net tax liability under this section 
     with respect to any United States shareholder is the excess 
     (if any) of--
       ``(i) such taxpayer's net income tax for the taxable year 
     described in subsection (a), over
       ``(ii) such taxpayer's net income tax for such taxable year 
     determined without regard to this section.
       ``(B) Net income tax.--The term `net income tax' means the 
     regular tax liability reduced by the credits allowed under 
     subparts A, B, and D of part IV of subchapter A.
       ``(g) Regulations.--The Secretary may prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the provisions of this section, 
     including rules to disregard any transfer of properties or 
     liabilities (including by contribution and distribution) a 
     substantial purpose of which is the avoidance of the purposes 
     of this section.''.
       (b) Clerical Amendment.--The table of section for subpart F 
     of part III of subchapter N of chapter 1 of such Code is 
     amended by striking the item relating to section 965 and 
     inserting the following:

``Sec. 965. Treatment of deferred foreign income upon transition to 
              participation exemption system of taxation.''.
                                 ______
                                 
  SA 1666. Mr. PERDUE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       In Section 14214 of the Act strike (b) and insert:
       ``(b) Limited Attribution Under Section 318(a)(3).
       (1) In general. Notwithstanding subsection (a), a foreign 
     corporation shall not be considered a controlled foreign 
     corporation with respect to a United States shareholder if 
     the ownership requirements of subsection (a) would not be 
     satisfied with respect to such foreign corporation but for 
     the attribution under section 318(a)(3) (pursuant to section 
     958(b)) of ownership to a United States person that is not a 
     related person with respect to such United States 
     shareholder.
       (2) Related person. For purposes of this subsection, the 
     term ``related person'' has the meaning given such term by 
     section 954(d)(3), except that such section shall be applied 
     by substituting ``United States Shareholder'' for 
     ``controlled foreign corporation'' each place it appears.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) the last taxable year of foreign corporations beginning 
     before January 1, 2018, and each subsequent taxable year of 
     such foreign corporations, and
       (2) taxable years of United States shareholders in which or 
     with which such taxable years of foreign corporations end.
                                 ______
                                 
  SA 1667. Mr. PERDUE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       [On page___, beginning with line___, strike all through 
     page___, line___, and insert the following:]
       [After subparagraph (3) in proposed section 59A(d) of the 
     Code (Section 14401 of the Act), strike subparagraph (4) and 
     insert the following:
       ``(4) Exception for certain amounts with respect to 
     services.--Paragraph (1) shall not apply to any amount paid 
     or accrued by a taxpayer for services to the extent of the 
     total services cost with no markup.''
                                 ______
                                 
  SA 1668. Mr. PERDUE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Strike Section 14101 of the Act and insert the following:

     SEC. 14101 DEDUCTION FOR FOREIGN-SOURCE PORTION OF DIVIDENDS 
                   RECEIVED BY DOMESTIC CORPORATIONS FROM 
                   SPECIFIED 10-PERCENT OWNED FOREIGN 
                   CORPORATIONS.

       (a) In General--Part VIII of subchapter B of chapter 1 is 
     amended by inserting after section 245 the following new 
     section:

     SEC. 245A. DEDUCTION FOR FOREIGN SOURCE-PORTION OF DIVIDENDS 
                   RECEIVED BY DOMESTIC CORPORATIONS FROM 
                   SPECIFIED 10-PERCENT OWNED FOREIGN 
                   CORPORATIONS.

       (a) In General--In the case of any dividend received from a 
     specified 10-percent owned foreign corporation by a domestic 
     corporation which is a United States shareholder with respect 
     to such foreign corporation, there shall be allowed as a 
     deduction an amount equal to the foreign-sources portion of 
     such dividend.
       (b) Specified 10-Percent Owned Foreign Corporation.--for 
     purposes of this section--
       (1) In general--The term `specified 10-percent owned 
     foreign corporation' means any foreign corporation with 
     respect to which any domestic corporation is a United States 
     shareholder with respect to such corporation.
       (2) Exclusion of passive foreign investment companies--Such 
     term shall not include any corporation which is a passive 
     foreign investment company (as defined in section 1297) with 
     respect to the shareholder and which is not a controlled 
     foreign corporation.
       (c) Foreign-Source Portion--for purposes of the section--
       (1) In general.--The foreign-source portion of any dividend 
     form a specified 10-percent owned foreign corporation is an 
     amount which bears the same ratio to such dividend as--
       (A) the undistributed foreign earnings of the specified 10-
     percent owned foreign corporation, bears to
       (B) the total undistributed earnings of such foreign 
     corporation.
       (2) Undistributed earnings.--The term `undistributed 
     earnings' means the amount of the earnings and profits of the 
     specified 10-percent owned foreign corporation (computed in 
     accordance with sections 964(a) and 986)--
       (A) As of the close of the taxable year of the specified 
     10-percent owned foreign corporation in which the dividend is 
     distributed, and
       (B) Without diminution by reason of dividends distributed 
     during such taxable year.
       (3) Undistributed foreign earnings.--The term 
     `undistributed foreign earnings' means the portion of the 
     undistributed earnings which is attributable to neither--
       (A) Income described in subparagraph (A) of section 245 
     (a)(5), nor
       (B) Dividends described in subparagraph or such section 
     (determined without regard to section 245(a)(12)).
       (4) Dividends from lower-tier specified 10-percent owned 
     foreign corporation.--In the case of any dividend received 
     from a specified 10-percent owned foreign corporation by a 
     specified 10-percent owned foreign corporation, the specified 
     10-percent owned foreign corporation receiving the dividend 
     shall be treated as a domestic corporation for purposes of 
     determining whether the deduction under section 245A(a) shall 
     be allowed to such specified 10-percent owned foreign 
     corporation.''
       (d) Disallowance of Foreign Tax Credit, Etc.--
       (1) In general--No credit shall be allowed under section 
     901 for any taxes paid or accrued (or treated as paid or 
     accrued) with respect to any distribution any portion of 
     which constitutes a dividend for which a deduction is allowed 
     under this section.

[[Page S7574]]

       (2) Denial of deduction--No deduction shall be allowed 
     under this chapter for any tax for which credit is not 
     allowable under section 901 by reason of paragraph (1) 
     (determined by treating the taxpayer a having elected the 
     benefits of subpart A of part III of subchapter N).
       (e) Special Rules For Hybrid Dividends--
       (1) In general--Subsection (a) shall not apply to any 
     dividend received by a United States shareholder from a 
     controlled foreign corporation if the dividend is a hybrid 
     dividend.
       (2) Hybrid dividends of tiered corporations.--If a 
     controlled foreign corporation with respect to which a 
     domestic corporation is a United States shareholder receives 
     a hybrid dividends form any other controlled foreign 
     corporation with respect to which such domestic corporation 
     is also a Untied States shareholder, then, notwithstanding 
     any other provisions of this title--
       (A) The hybrid dividend shall be treated for purposes of 
     section 951(a)(1)(A) as subpart F income of the receiving 
     controlled foreign corporation for the taxable year of the 
     controlled foreign corporation with which the dividend was 
     received, and
       (B) The United States shareholder shall include in gross 
     income an amount equal to the shareholder's pro rata share 
     (determined in the same manner as under section 951(a)(2)) of 
     the subpart F income described in subparagraph (A).
       (3) Denial of foreign tax credit, Etc.--The rules of 
     subsection (d) shall apply to any hybrid dividend received 
     by, or any amount included under paragraph (2) In the gross 
     income of, a United States shareholder
       (4) Hybrid dividend--The term `hybrid dividend' means an 
     amount received from a controlled foreign corporation--
       (A) for which a deduction would be allowed under subsection 
     (a) but for this subsection, and
       (B) for which the controlled foreign corporation received a 
     deduction (or other tax benefit) from taxes imposed by any 
     foreign country.
       (f) Special Rule for Purging Distributions of Passive 
     Foreign Investment Companies--Any amount which is treated as 
     a dividend under section 1291(d)(2)(B) shall not be treated 
     as a dividend for purposes of this section.
       (g) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the provisions of this section, 
     including regulations for the treatment of United States 
     shareholders owning stock of a specified 10 percent owned 
     foreign corporation through a partnership.''.
       (b) Application of Holding Period Requirement.--Subsection 
     (c) of section 246 is amended--
       (1) by striking ``or 245'' in paragraph (1) and inserting 
     ``245, or 245A'', and
       (2) by adding at the end the following new paragraph''
       ``(5) Special rules for foreign source portion of dividends 
     received from specified 10-percent owned foreign 
     corporations.--
       ``(A) 1-year holding period requirement--For purposes of 
     Section 245A--
       ``(i) paragraph (1)(A) shall be applied--
       ``(I) by substituting `365 days' for `45 days' each place 
     it appears,
       and
       ``(II) by substituting `731-day period' for `91-day 
     period', and
       ``(ii) paragraph (2) shall not apply
       ``(B) Status must be maintained during the holding 
     period.--For purposes of applying paragraph (1) with respect 
     to section 245A, the taxpayer shall be treated as holding the 
     stock referred to in paragraph (1) for any period only if--
       ``(i) the specified 10-percent owned foreign corporation 
     referred to in section 245A(a) is a specified 10-percent 
     owned foreign corporation at all times during such period, 
     and
       ``(ii) the taxpayer is a United States shareholder with 
     respect to such a specified 10-percent owned foreign 
     corporation at all times during such period.''.
       (C) Application of rules generally applicable to deductions 
     for dividends received.--
       (1) Treatment of dividends from certain corporations.--
     Paragraph( 1) of section 246(a) is amended by striking ``and 
     245'' and inserting ``245, and 245A''.
       (2) Assets generating tax-exempt portion of dividend not 
     taken into account in allocating and apportioning deductible 
     expenses.--Paragraph (3) of section 864(e) is amended by 
     striking ``or 245(a)'' and inserting ``245(a), or 245A''.
       (3) Coordination with section 1059.--Sub-paragraph (B) of 
     section 1059(b) (2) is amended by striking ``or 245'' and 
     inserting ``245A''.
       (d) Coordination With Foreign Tax Credit Limitation.--
     Subsection (b) of section 904 is amended by adding at the end 
     the following new paragraph:
       ``(5) Treatment of dividends for which deduction is allowed 
     under section 245A.--For purposes of subsection (a), in the 
     case of a domestic corporation which is a United States 
     shareholder with respect to a specified 10-percent owned 
     foreign corporation, such domestic corporation's taxable 
     income from sources without the United States shall be 
     determined without regard to--
       ``(A) the foreign-source portion of any dividend received 
     from such foreign corporation, and
       ``(B) any deductions properly allocable to such portion.
       Any term which is used in section 245A and in this 
     paragraph shall have the same meaning for purposes of this 
     paragraph as when used in such section.''.
       (e) Conforming Amendments.--
       (1) Subsection (b) of section 951 is amended by striking 
     ``subpart'' and inserting ``title''.
       (2) Subsection (a) of section 957 is amended by striking 
     ``subpart'' in the matter preceding paragraph (1) and 
     inserting ``title''.
       (3) The table of sections for part VIII of sub-chapter B of 
     chapter 1 is amended by inserting after the item relating to 
     section 245 the following new item:

``Sec 245A. Dividends received by domestic corporations from certain 
              foreign corporations''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2017, and to taxable years of 
     United States shareholders in which or with which such 
     taxable years of foreign corporations end.
                                 ______
                                 
  SA 1669. Mr. PERDUE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the end of part I of subtitle A of title I, insert the 
     following:

     SEC. 11003. ELECTION TO TREAT CAPITAL GAINS AS ORDINARY 
                   INCOME.

       (a) In General.--Section 1(h)(1) is amended by striking 
     ``If'' and inserting ``At the election of the taxpayer, if''.
       (b) Form 1040.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of the Treasury shall 
     modify Form 1040 to allow taxpayers to elect to treat their 
     capital gains as ordinary income.
                                 ______
                                 
  SA 1670. Mr. PERDUE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page 78, strike line 11 and all that follows 
     through page 79, line 8 and insert the following:
       ``(h) Special Rules for Sales or Exchanges in Taxable Years 
     2018 Through 2025.--
       ``(1) In general.--In applying this section with respect to 
     sales or exchanges after December 31, 2017, and before 
     January 1, 2026--
       ``(A) `6-year' shall be substituted for `5-year' each place 
     it appears in subsections (a), (b)(5)(C)(ii)(I), and 
     (c)(1)(B)(i)(I) and paragraphs (7), (9), (10), and (12) of 
     subsection (d),
       ``(B) `3 years' shall be substituted for `2 years' each 
     place it appears in subsections (a), (b)(3), (b)(4), 
     (b)(5)(C)(ii)(III), and (c)(1)(B)(ii), and
       ``(C) `3-year' shall be substituted for `2-year' in 
     subsection (b)(3).
       ``(2) Exception for binding contracts.--Paragraph (1) shall 
     not apply to any sale or exchange with respect to which there 
     was a written binding contract in effect before January 1, 
     2018, and at all times thereafter before the sale or 
     exchange.
       ``(3) Phaseout based on modified adjusted gross income.--In 
     the case of sales or exchanges after December 31, 2017, and 
     before January 1, 2026--
       ``(A) 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.
       ``(B) Modified adjusted gross income.--For purposes of this 
     paragraph, 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 paragraph).
       ``(C) 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.''.
                                 ______
                                 
  SA 1671. Mr. BLUNT submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page __, line ___, strike ``(6) Regulations.--'' and 
     insert:
       ``(6) Transition rules for existing indebtedness and 
     loans.--
       ``(A) Limitation not to apply.--The limitation under 
     paragraph (1) shall not apply to interest paid or accrued by 
     a domestic corporation on pre-November 10, 2017 indebtedness.

[[Page S7575]]

       ``(B) Net interest expense.--In computing the net interest 
     expense of a taxpayer for any taxable year, there shall not 
     be taken into account--
       ``(i) any interest paid or accrued by the taxpayer to which 
     subparagraph (A) applies, or
       ``(ii) any interest on loans made by the taxpayer before 
     November 10, 2017, which is includible in the gross income of 
     such taxpayer for such taxable year.
       ``(C) Pre-november 10, 2017 indebtedness.--For purposes of 
     subparagraph (A), the term `pre-November 10, 2017 
     indebtedness' means any indebtedness issued before November 
     10, 2017. If any such indebtedness is significantly modified 
     after November 9, 2017, such indebtedness shall not be 
     treated as pre-November 10, 2017 indebtedness with respect to 
     any interest paid or accrued on or after the date such 
     modification takes effect.
       ``(7) Regulations.--
                                 ______
                                 
  SA 1672. Mr. BLUNT submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page ___, strike line ___ and all that follows 
     through page ___, line ___, and , insert the following:
       ``(4) Treatment of reasonable compensation and guaranteed 
     payments.--
       ``(A) In general.--Qualified business income shall not 
     include--
       ``(i) reasonable compensation paid to the taxpayer by any 
     qualified trade or business of the taxpayer for services 
     rendered with respect to the trade or business,
       ``(ii) except as provided in subparagraph (B), any 
     guaranteed payment described in section 707(c) paid to a 
     partner for services rendered with respect to the trade or 
     business, and
       ``(iii) to the extent provided in regulations, any payment 
     described in section 707(a) to a partner for services 
     rendered with respect to the trade or business.
       ``(B) Exception for certain guaranteed payments.--In the 
     case of a any qualified trade or business which is a 
     specified service trade or business and is subject to the 
     reporting requirements under section 13 of the Securities 
     Exchange Act of 1934, qualified business income shall include 
     guaranteed payments described in section 707(c) which are 
     paid to a partner who owns less than 1 percent of the of the 
     capital and profits interests of the partnership, but only to 
     the extent that such payments do not exceed the amounts paid 
     for the provision of services in the normal course of the 
     trade or business.
                                 ______
                                 
  SA 1673. Mr. HOEVEN (for himself, Mr. Blunt, Mr. Inhofe, Mr. Wicker, 
Mr. Rounds, Mr. Boozman, Mr. Johnson, Mr. Paul, and Mrs. Capito) 
submitted an amendment intended to be proposed to amendment SA 1618 
proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 1____. FLOOR PLAN FINANCING.

       (a) Application of Interest Limitation.--
       (1) In general.--Section 163(j), as amended by section 
     13301, is amended--
       (A) in paragraph (1), by striking ``plus'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, plus'', and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) the floor plan financing interest of such taxpayer 
     for such taxable year.'', and
       (B) in paragraph (4)(C)(i)(II), by inserting ``, reduced by 
     the floor plan financing interest,'' after ``business 
     interest of the partnership'', and
       (C) by redesignating paragraph (9) as paragraph (10) and 
     inserting after paragraph (8) the following new paragraph:
       ``(9) Floor plan financing interest defined.--For purposes 
     of this subsection--
       ``(A) In general.--The term `floor plan financing interest' 
     means interest which--
       ``(i) is paid or accrued on floor plan financing 
     indebtedness, and
       ``(ii) which the taxpayer elects to treat as floor plan 
     financing interest for purposes of this section.
       ``(B) Floor plan financing indebtedness.--The term `floor 
     plan financing indebtedness' means indebtedness--
       ``(i) used to finance the acquisition of motor vehicles 
     held for sale to retail customers, and
       ``(ii) secured by the inventory so acquired.
       ``(C) Motor vehicle.--The term `motor vehicle' means a 
     motor vehicle that is any of the following:
       ``(i) An automobile.
       ``(ii) A truck.
       ``(iii) A recreational vehicle.
       ``(iv) A motorcycle.
       ``(v) A boat.
       ``(vi) Farm machinery or equipment.
       ``(vii) Construction machinery or equipment.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
       (b) Exception From 100 Percent Expensing.--
       (1) In general.--Paragraph (6) of section 168(k), as added 
     by section 13201(a)(4), is amended--
       (A) by striking ``shall not include any property'' and 
     inserting ``shall not include--
       ``(A) any property'', and
       (B) by adding at the end the following new subparagraph:
       ``(B) any property used in a trade or business that has 
     floor plan financing indebtedness (as defined in paragraph 
     (9) of section 163(j)), if the floor plan financing interest 
     related to such indebtedness was taken into account under 
     paragraph (1)(C) of such section.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after September 27, 
     2017, in taxable years ending after such date.
                                 ______
                                 
  SA 1674. Mr. PAUL submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the end of subtitle D of title I, add the following:

         PART IV--REPEAL OF FOREIGN ACCOUNT TAX COMPLIANCE ACT

     SEC. 14601. REPEAL OF WITHHOLDING AND REPORTING WITH RESPECT 
                   TO CERTAIN FOREIGN ACCOUNTS.

       (a) In General.--Chapter 4 is repealed.
       (b) Conforming Amendments for Rules for Electronically 
     Filed Returns.--Section 6011(e)(4) is amended--
       (1) by inserting ``, as in effect on January 1, 2017'' 
     after ``(as defined in section 1471(d)(5)'', and
       (2) by striking ``or 1474(a)''.
       (c) Conforming Amendment Related to Substitute Dividends.--
     Section 871(m) is amended by striking ``chapters 3 and 4'' 
     both places it appears and inserting ``chapter 3''.
       (d) Other Conforming Amendments.--
       (1) Section 6414 s amended by striking ``or 4''.
       (2) Paragraph (1) of section 6501(b) is amended by striking 
     ``4,''.
       (3) Paragraph (2) of section 6501(b) is amended--
       (A) by striking ``4,'', and
       (B) by striking ``and witholding taxes'' in the heading and 
     inserting ``taxes and tax imposed by chapter 3''.
       (4) Paragraph (3) of section 6513(b) is amended--
       (A) by striking ``or 4'', and
       (B) by striking ``or 1474(b)''.
       (5) Section 6513(c) is amended by striking ``4,''.
       (6) Section 6611(e)(4) is amended by striking ``or 4''.
       (7) Paragraph (1) of section 6724(d) is amended by striking 
     ``under chapter 4 or''.
       (8) Paragraph (2) of section 6724(d) is amended by striking 
     ``or 4''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to payments made after the date of the enactment 
     of this Act.

     SEC. 14602. REPEAL OF INFORMATION REPORTING WITH RESPECT TO 
                   FOREIGN FINANCIAL ASSETS.

       (a) In General.--Subpart A of part III of subchapter A of 
     chapter 61 is amended by striking section 6038D.
       (b) Repeal of Modification of Statute of Limitations for 
     Significant Omission of Income in Connection With Foreign 
     Assets.--
       (1) Paragraph (1) of section 6501(e) is amended by striking 
     subparagraph (A) and by redesignating subparagraphs (B) and 
     (C) as subparagraphs (A) and (B), respectively.
       (2) Subparagraph (A) of section 6501(e), as redesignated by 
     paragraph (1), is amended by striking all that precedes 
     clause (i) and inserting the following:
       ``(A) General rule.--If the taxpayer omits from gross 
     income an amount properly included therein which is in excess 
     of 25 percent of the amount of gross income stated in the 
     return, the tax may be assessed, or a proceeding in court for 
     the collection of such tax may be begun without assessment, 
     at any time within 6 years after the return was filed. For 
     purposes of this subparagraph--''.
       (3) Paragraph (2) of section 6229(c) is amended by striking 
     ``and such amount is described in clause (i) or (ii) of 
     section 6501(e)(1)(A)'' and inserting ``which is in excess of 
     25 percent of the amount of gross income stated in its 
     return''.
       (4) Paragraph (8) of section 6501(c) is amended--
       (A) by striking ``pursuant to an election under section 
     1295(b) or'',
       (B) by striking ``1298(f)'', and
       (C) by striking ``6038D,''.
       (c) Clerical Amendment.--The table of sections for subpart 
     A of part III of subchapter A of chapter 61 is amended by 
     striking the item related to section 6038D.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this

[[Page S7576]]

     section shall apply to taxable years ending after the date of 
     the enactment of this Act.
       (2) Returns.--The amendments made by subsection (b) shall 
     apply to returns filed after the date of the enactment of 
     this Act.

     SEC. 14603. REPEAL OF PENALTIES FOR UNDERPAYMENTS 
                   ATTRIBUTABLE TO UNDISCLOSED FOREIGN FINANCIAL 
                   ASSETS.

       (a) In General.--Section 6662 is amended--
       (1) in subsection (b), by striking paragraph (7) and 
     redesignating paragraph (8) as paragraph (7), and
       (2) by striking subsection (j) and redesignating subsection 
     (k) as subsection (j).
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 14604. REPEAL OF REPORTING OF ACTIVITIES WITH RESPECT TO 
                   PASSIVE FOREIGN INVESTMENT COMPANIES.

       (a) In General.--Section 1298 is amended by striking 
     subsection (f) and by redesignating subsection (g) as 
     subsection (f).
       (b) Conforming Amendment.--Section 1291(e) is amended by 
     striking ``and (d)'' and inserting ``, (d), and (f)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 14605. REPEAL OF REPORTING REQUIREMENT FOR UNITED STATES 
                   OWNERS OF FOREIGN TRUSTS.

       (a) In General.--Paragraph (1) of section 6048(b) is 
     amended by striking ``shall submit such information as the 
     Secretary may prescribe with respect to such trust for such 
     year and''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 14606. REPEAL OF MINIMUM PENALTY WITH RESPECT TO FAILURE 
                   TO REPORT ON CERTAIN FOREIGN TRUSTS.

       (a) In General.--Section 6677(a) is amended--
       (1) by striking ``the greater of $10,000 or'', and
       (2) by striking the last sentence and inserting the 
     following: ``In no event shall the penalty under this 
     subsection with respect to any failure exceed the gross 
     reportable amount.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to notices and returns required to be filed after 
     the date of the enactment of this Act.
                                 ______
                                 
  SA 1675. Mr. WHITEHOUSE (for himself, Mr. Blumenthal, Mr. Van Hollen, 
Mr. Leahy, Mr. Markey, Ms. Baldwin, Mrs. Feinstein, Ms. Duckworth, Mr. 
Reed, and Mr. Booker) submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, add the following:

     SEC. 1_____. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

       (a) In General.--Subchapter A of chapter 1, as amended by 
     this Act, is amended by adding at the end the following new 
     part:

          ``PART VIII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59B. Fair share tax.

     ``SEC. 59B. FAIR SHARE TAX.

       ``(a) General Rule.--
       ``(1) Phase-in of tax.--In the case of any high-income 
     taxpayer, there is hereby imposed for a taxable year (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the product of--
       ``(A) the amount determined under paragraph (2), and
       ``(B) a fraction (not to exceed 1)--
       ``(i) the numerator of which is the excess of--

       ``(I) the taxpayer's adjusted gross income, over
       ``(II) the dollar amount in effect under subsection (c)(1), 
     and

       ``(ii) the denominator of which is the dollar amount in 
     effect under subsection (c)(1).
       ``(2) Amount of tax.--The amount of tax determined under 
     this paragraph is an amount equal to the excess (if any) of--
       ``(A) the tentative fair share tax for the taxable year, 
     over
       ``(B) the excess of--
       ``(i) the sum of--

       ``(I) the regular tax liability (as defined in section 
     26(b)) for the taxable year, determined without regard to any 
     tax liability determined under this section,
       ``(II) the tax imposed by section 55 for the taxable year, 
     plus
       ``(III) the payroll tax for the taxable year, over

       ``(ii) the credits allowable under part IV of subchapter A 
     (other than sections 27(a), 31, and 34).
       ``(b) Tentative Fair Share Tax.--For purposes of this 
     section--
       ``(1) In general.--The tentative fair share tax for the 
     taxable year is 30 percent of the excess of--
       ``(A) the adjusted gross income of the taxpayer, over
       ``(B) the modified charitable contribution deduction for 
     the taxable year.
       ``(2) Modified charitable contribution deduction.--For 
     purposes of paragraph (1)--
       ``(A) In general.--The modified charitable contribution 
     deduction for any taxable year is an amount equal to the 
     amount which bears the same ratio to the deduction allowable 
     under section 170 (section 642(c) in the case of a trust or 
     estate) for such taxable year as--
       ``(i) the amount of itemized deductions allowable under the 
     regular tax (as defined in section 55) for such taxable year, 
     determined after the application of section 68, bears to
       ``(ii) such amount, determined before the application of 
     section 68.
       ``(B) Taxpayer must itemize.--In the case of any individual 
     who does not elect to itemize deductions for the taxable 
     year, the modified charitable contribution deduction shall be 
     zero.
       ``(c) High-Income Taxpayer.--For purposes of this section--
       ``(1) In general.--The term `high-income taxpayer' means, 
     with respect to any taxable year, any taxpayer (other than a 
     corporation) with an adjusted gross income for such taxable 
     year in excess of $1,000,000 (50 percent of such amount in 
     the case of a married individual who files a separate 
     return).
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2018, the $1,000,000 amount under paragraph (1) 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 `calendar year 2017' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $10,000, such amount 
     shall be rounded to the next lowest multiple of $10,000.
       ``(d) Payroll Tax.--For purposes of this section, the 
     payroll tax for any taxable year is an amount equal to the 
     excess of--
       ``(1) the taxes imposed on the taxpayer under sections 
     1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax 
     is attributable to the rate of tax in effect under section 
     3101) with respect to such taxable year or wages or 
     compensation received during such taxable year, over
       ``(2) the deduction allowable under section 164(f) for such 
     taxable year.
       ``(e) Special Rule for Estates and Trusts.--For purposes of 
     this section, in the case of an estate or trust, adjusted 
     gross income shall be computed in the manner described in 
     section 67(e).
       ``(f) Not Treated as Tax Imposed by This Chapter for 
     Certain Purposes.--The tax imposed under this section shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter 
     (other than the credit allowed under section 27(a)) or for 
     purposes of section 55.''.
       (b) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 1 is amended by adding at the end the following 
     new item:

        ``Part VIII--Fair Share Tax on High-Income Taxpayers''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1676. Mr. WHITEHOUSE (for himself and Ms. Baldwin) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DISALLOWANCE OF DEDUCTION FOR PUNITIVE DAMAGES.

       (a) Disallowance of Deduction.--
       (1) In general.--Section 162(g) of the Internal Revenue 
     Code of 1986 is amended--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively,
       (B) by striking ``If'' and inserting:
       ``(1) Treble damages.--If'', and
       (C) by adding at the end the following new paragraph:
       ``(2) Punitive damages.--No deduction shall be allowed 
     under this chapter for any amount paid or incurred for 
     punitive damages in connection with any judgment in, or 
     settlement of, any action between private parties.''.
       (2) Conforming amendment.--The heading for section 162(g) 
     of such Code is amended by inserting ``or Punitive Damages'' 
     after ``Laws''.
       (b) Inclusion in Income of Punitive Damages Paid by Insurer 
     or Otherwise.--
       (1) In general.--Part II of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new section:

     ``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR 
                   OTHERWISE.

       ``Gross income shall include any amount paid to or on 
     behalf of a taxpayer as insurance or otherwise by reason of 
     the taxpayer's liability (or agreement) to pay punitive 
     damages.''.
       (2) Reporting requirements.--Section 6041 of such Code is 
     amended by adding at the end the following new subsection:

[[Page S7577]]

       ``(h) Section To Apply to Punitive Damages Compensation.--
     This section shall apply to payments by a person to or on 
     behalf of another person as insurance or otherwise by reason 
     of the other person's liability (or agreement) to pay 
     punitive damages.''.
       (3) Conforming amendment.--The table of sections for part 
     II of subchapter B of chapter 1 of such Code is amended by 
     adding at the end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to damages paid or incurred on or after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 1677. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, add the following:

     SEC. 1____. LIFETIME LIMITATION ON NONRECOGNITION OF PROPERTY 
                   SOLD TO COMPLY WITH CONFLICT-OF-INTEREST 
                   REQUIREMENTS.

       (a) In General.--Section 1043 is amended by adding at the 
     end the following new subsection:
       ``(d) Limitation.--The amount of gain to which subsection 
     (a) applies with respect to any taxpayer for a taxable year 
     shall not exceed $1,000,000 reduced by the amount of gain to 
     which subsection (a) applied with respect to such taxpayer 
     for all preceding taxable years.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to sales in taxable years beginning after 
     December 31, 2016.
                                 ______
                                 
  SA 1678. Mr. SULLIVAN (for himself and Ms. Murkowski) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       Strike section 14501.
                                 ______
                                 
  SA 1679. Mr. MORAN submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

              Subtitle _--Tribal Tax and Investment Reform

     SEC. _. FINDINGS.

       The Congress finds the following:
       (1) There is a unique Federal legal and political 
     relationship between the United States and Indian tribes.
       (2) Indian tribes have the responsibility and authority to 
     provide governmental programs and services to tribal 
     citizens, develop tribal economies, and build community 
     infrastructure to ensure that Indian reservation lands serve 
     as livable, permanent homes.
       (3) The United States Constitution, U.S. Federal Court 
     decisions, Executive orders, and numerous other Federal laws 
     and regulations recognize that Indian tribes are governments, 
     retaining the inherent authority to tax and operate as other 
     governments, including (inter alia) financing projects with 
     government bonds and maintaining eligibility for general tax 
     exemptions via their government status.
       (4) Codifying tax parity with respect to tribal governments 
     is consistent with Federal treaties recognizing the 
     sovereignty of tribal governments.
       (5) That Indian tribes face historic disadvantages in 
     accessing the underlying capital to build the necessary 
     infrastructure for job creation, and that certain statutory 
     restrictions on tribal governance further inhibit tribes' 
     ability to develop strong governance and economies.
       (6) Indian tribes are sometimes excluded from the Internal 
     Revenue Code of 1986 in key provisions which results in 
     unfair tax treatment for tribal citizens or unequal 
     enforcement authority for tribal enforcement agencies.
       (7) Congress is vested with the authority to regulate 
     commerce with Indian tribes, and hereby exercises that 
     authority in a manner which furthers tribal self-governance, 
     and in doing so, further affirms the United States 
     government-to-government relationship with Indian tribes.

     SEC. _. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO 
                   BOND ISSUANCE.

       (a) In General.--Subsection (c) of section 7871 of the 
     Internal Revenue Code of 1986 (relating to Indian tribal 
     governments treated as States for certain purposes) is 
     amended to read as follows:
       ``(c) Special Rules for Tax-Exempt Bonds.--In applying 
     section 146 to bonds issued by Indian tribal governments (or 
     subdivisions thereof), the Secretary shall annually--
       ``(1) establish a national bond volume cap based on the 
     greater of--
       ``(A) the State population formula approach in section 
     146(d)(1)(A) (using national tribal population estimates 
     supplied annually by the Department of the Interior in 
     consultation with the Census Bureau), and
       ``(B) the minimum State ceiling amount in section 
     146(d)(1)(B) (as adjusted in accordance with the cost of 
     living provision in section 146(d)(2)), and
       ``(2) allocate such national bond volume cap among all 
     Indian tribal governments seeking such an allocation in a 
     particular year under regulations prescribed by the 
     Secretary.''.
       (b) Repeal of Essential Governmental Function 
     Requirements.--Section 7871 of such Code is further amended 
     by striking subsections (b) and (e).
       (c) Effective Date.--
       (1) Subsection (a).--The amendment made by subsection (a) 
     shall apply to obligations issued in calendar years beginning 
     after the date of the enactment of this Act.
       (2) Subsection (b).--The repeals made by subsection (b) 
     shall apply to transactions after, and obligations issued in 
     calendar years beginning after, the date of the enactment of 
     this Act.

     SEC. _. TREATMENT OF PENSION AND EMPLOYEE BENEFIT PLANS 
                   MAINTAINED BY TRIBAL GOVERNMENTS.

       (a) Amendments to the Internal Revenue Code of 1986.--
       (1) Qualified public safety employee.--Section 72(t)(10)(B) 
     of the Internal Revenue Code of 1986 (defining qualified 
     public safety employee) is amended by--
       (A) striking ``or political subdivision of a State'' and 
     inserting ``, political subdivision of a State, or Indian 
     tribe''; and
       (B) striking ``such State or political subdivision'' and 
     inserting ``such State, political subdivision, or tribe''.
       (2) Governmental plan.--The last sentence of section 414(d) 
     of such Code (defining governmental plan) is amended to read 
     as follows: ``The term `governmental plan' includes a plan 
     established or maintained for its employees by an Indian 
     tribal government (as defined in section 7701(a)(40)), a 
     subdivision of an Indian tribal government (determined in 
     accordance with section 7871(d)), an agency, instrumentality, 
     or subdivision of an Indian tribal government, or an entity 
     established under Federal, State, or tribal law which is 
     wholly owned or controlled by any of the foregoing.''.
       (3) Domestic relations order.--Section 414(p)(1)(B)(ii) of 
     such Code (defining domestic relations order) is amended by 
     inserting ``or tribal'' after ``State''.
       (4) Exempt governmental deferred compensation plan.--
     Section 3121(v)(3) of such Code (defining governmental 
     deferred compensation plan) is amended by inserting ``by an 
     Indian tribal government or subdivision thereof,'' after 
     ``political subdivision thereof,''.
       (5) Grandfather of certain deferred compensation plans.--
     Section 457 of such Code is amended by adding at the end the 
     following new subsection:
       ``(h) Certain Tribal Government Plans Grandfathered.--Plans 
     established before the date of enactment of this subsection 
     and maintained by an Indian tribal government (as defined in 
     section 7701(a)(40)), a subdivision of an Indian tribal 
     government (determined in accordance with section 7871(d)), 
     an agency, instrumentality, or subdivision of an Indian 
     tribal government, or an entity established under Federal, 
     State, or tribal law which is wholly owned or controlled by 
     any of the foregoing, in compliance with subsection (b) or 
     (f) shall be treated as if established by an eligible 
     employer under subsection (e)(1)(A).''.
       (b) Amendments to the Employee Retirement Income Security 
     Act of 1974.--
       (1) In general.--The last sentence of section 3(32) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002(32)) is amended to read as follows: ``The term 
     `governmental plan' includes a plan established or maintained 
     for its employees by an Indian tribal government (as defined 
     in section 7701(a)(40) of the Internal Revenue Code of 1986), 
     a subdivision of an Indian tribal government (determined in 
     accordance with section 7871(d) of such Code), an agency, 
     instrumentality, or subdivision of an Indian tribal 
     government, or an entity established under Federal, State, or 
     tribal law which is wholly owned or controlled by any of the 
     foregoing.''.
       (2) Domestic relations order.--Section 206(d)(3)(B)(ii)(II) 
     of such Act (29 U.S.C. 1056(d)(3)(B)(ii)(II)) is amended by 
     inserting ``or tribal'' after ``State''.
       (3) Conforming amendments.--
       (A) Section 4021(b) of such Act (29 U.S.C. 1321(b)) is 
     amended by striking ``or'' at the end of paragraph (12), by 
     striking the period at the end of paragraph (13) and 
     inserting ``; or'', and by inserting after paragraph (13) the 
     following new paragraph:
       ``(14) established or maintained for its employees by an 
     Indian tribal government (as defined in section 7701(a)(40) 
     of the Internal Revenue Code of 1986), a subdivision of an 
     Indian tribal government (determined in accordance with 
     section 7871(d) of such Code), an agency, instrumentality, or 
     subdivision of an Indian tribal government, or an entity 
     established under Federal, State, or tribal law which is 
     wholly owned or controlled by any of the foregoing.''.

[[Page S7578]]

       (B) Section 4021(b)(2) of such Act (29 U.S.C. 1321(b)(2)) 
     is amended by striking ``, or which is described in the last 
     sentence of section 3(32)'' and inserting a comma.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after the date of the 
     enactment of this Act.

     SEC. _. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE 
                   CHARITIES FUNDED AND CONTROLLED BY OTHER 
                   GOVERNMENTAL FUNDERS AND SPONSORS.

       (a) In General.--Section 170(b)(1)(A) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following: ``For purposes of clause (vi), the term 
     `governmental unit' includes an Indian tribal government 
     (determined in accordance with section 7871(d)), an agency, 
     instrumentality, or subdivision of an Indian tribal 
     government, or an entity established under Federal, State, or 
     tribal law which is wholly owned or controlled by any of the 
     foregoing.''.
       (b) Certain Supporting Organizations.--Section 509(a) of 
     such Code is amended by adding at the end the following: 
     ``For purposes of paragraph (3), an organization described in 
     paragraph (2) shall be deemed to include an Indian tribal 
     government (determined in accordance with section 7871(d)), 
     an agency, instrumentality, or subdivision of an Indian 
     tribal government, or an entity established under Federal, 
     State, or tribal law which is wholly owned or controlled by 
     any of the foregoing.''.
       (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. _. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF 
                   DETERMINING UNDER THE ADOPTION CREDIT WHETHER A 
                   CHILD HAS SPECIAL NEEDS.

       (a) In General.--Section 23(d)(3) of the Internal Revenue 
     Code of 1986 (defining child with special needs) is amended--
       (1) in subparagraph (A), by inserting ``or Indian tribal 
     government'' after ``a State''; and
       (2) in subparagraph (B), by inserting ``or Indian tribal 
     government'' after ``such State''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 1680. Mr. MORAN submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of subpart A of part VI of subtitle C of title 
     I, add the following:

     SEC. 1____. TREATMENT OF PUBLICLY TRADED PARTNERSHIPS.

       (a) Extension of Publicly Traded Partnership Ownership 
     Structure to Energy Power Generation Projects, Transportation 
     Fuels, and Related Energy Activities.--
       (1) In general.--Subparagraph (E) of section 7704(d)(1) is 
     amended--
       (A) by striking ``income and gains derived from the 
     exploration'' and inserting ``income and gains derived from 
     the following:
       ``(i) Minerals, natural resources, etc.--The exploration'',
       (B) by inserting ``or'' before ``industrial source'',
       (C) by inserting a period after ``carbon dioxide'', and
       (D) by striking ``, or the transportation or storage'' and 
     all that follows and inserting the following:
       ``(ii) Renewable energy.--The generation of electric power 
     (including the leasing of tangible personal property used for 
     such generation) exclusively utilizing any resource described 
     in section 45(c)(1) or energy property described in section 
     48 (determined without regard to any termination date), or in 
     the case of a facility described in paragraph (3) or (7) of 
     section 45(d) (determined without regard to any placed in 
     service date or date by which construction of the facility is 
     required to begin), the accepting or processing of such 
     resource.
       ``(iii) Energy storage property.--The sale of electric 
     power, capacity, resource adequacy, demand response 
     capabilities, or ancillary services that is produced or made 
     available from any equipment or facility (operating as a 
     single unit or as an aggregation of units) the principal 
     function of which is to--

       ``(I) use mechanical, chemical, electrochemical, 
     hydroelectric, or thermal processes to store energy that was 
     generated at one time for conversion to electricity at a 
     later time; or
       ``(II) store thermal energy for direct use for heating or 
     cooling at a later time in a manner that avoids the need to 
     use electricity at that later time.

       ``(iv) Combined heat and power.--The generation, storage, 
     or distribution of thermal energy exclusively utilizing 
     property described in section 48(c)(3) (determined without 
     regard to subparagraphs (B) and (D) thereof and without 
     regard to any placed in service date).
       ``(v) Renewable thermal energy.--The generation, storage, 
     or distribution of thermal energy exclusively using any 
     resource described in section 45(c)(1) or energy property 
     described in clause (i) or (iii) of section 48(a)(3)(A).
       ``(vi) Waste heat to power.--The use of recoverable waste 
     energy, as defined in section 371(5) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6341(5)) (as in effect on the 
     date of the enactment of the Tax Cuts and Jobs Act).
       ``(vii) Renewable fuel infrastructure.--The storage or 
     transportation of any fuel described in subsection (b), (c), 
     (d), or (e) of section 6426.
       ``(viii) Renewable fuels.--The production, storage, or 
     transportation of any renewable fuel described in section 
     211(o)(1)(J) of the Clean Air Act (42 U.S.C. 7545(o)(1)(J)) 
     (as in effect on the date of the enactment of the Tax Cuts 
     and Jobs Act) or section 40A(d)(1).
       ``(ix) Fuel derived from captured carbon dioxide.--The 
     production, storage, or transportation of any fuel which--

       ``(I) uses carbon dioxide captured from an anthropogenic 
     source or the atmosphere as its primary feedstock, and
       ``(II) is determined by the Secretary, in consultation with 
     the Secretary of Energy and the Administrator of the 
     Environmental Protection Agency, to achieve a reduction of 
     not less than a 60 percent in lifecycle greenhouse gas 
     emissions (as defined in section 211(o)(1)(H) of the Clean 
     Air Act) compared to baseline lifecycle greenhouse gas 
     emissions (as defined in section 211(o)(1)(C) of such Act).

     This clause shall not apply to any fuel which uses as its 
     primary feedstock carbon dioxide which is deliberately 
     released from naturally-occurring subsurface springs.
       ``(x) Renewable chemicals.--The production, storage, or 
     transportation of any qualifying renewable chemical (as 
     defined in paragraph (6)).
       ``(xi) Energy efficient buildings.--The audit and 
     installation through contract or other agreement of any 
     energy efficient building property described in section 
     179D(c)(1).
       ``(xii) Gasification with sequestration.--The production of 
     any product or the generation of electric power from a 
     project--

       ``(I) which meets the requirements of subparagraphs (A) and 
     (B) of section 48B(c)(1), and
       ``(II) not less than 75 percent of the total carbon dioxide 
     emissions of which is qualified carbon dioxide (as defined in 
     section 45Q(b)) which is disposed of or utilized as provided 
     in paragraph (7).

       ``(xiii) Carbon capture and sequestration.--

       ``(I) Power generation facilities.--The generation or 
     storage of electric power (including associated income from 
     the sale or marketing of energy, capacity, resource adequacy, 
     and ancillary services) produced from any power generation 
     facility which is, or from any power generation unit within, 
     a qualified facility which is described in section 45Q(c) and 
     not less than 50 percent (30 percent in the case of a 
     facility or unit placed in service before January 1, 2017) of 
     the total carbon dioxide emissions of which is qualified 
     carbon dioxide which is disposed of or utilized as provided 
     in paragraph (7).
       ``(II) Other facilities.--The sale of any good or service 
     from any facility (other than a power generation facility) 
     which is a qualified facility described in section 45Q(c) and 
     the captured qualified carbon dioxide (as so defined) of 
     which is disposed of as provided in paragraph (7).''.

       (2) Renewable chemical.--
       (A) In general.--Section 7704(d) is amended by adding at 
     the end the following new paragraph:
       ``(6) Qualifying renewable chemical.--
       ``(A) In general.--The term `qualifying renewable chemical' 
     means any renewable chemical (as defined in section 9001 of 
     the Agriculture Act of 2014)--
       ``(i) which is produced by the taxpayer in the United 
     States or in a territory or possession of the United States,
       ``(ii) which is the product of, or reliant upon, biological 
     conversion, thermal conversion, or a combination of 
     biological and thermal conversion, of renewable biomass (as 
     defined in section 9001(13) of the Farm Security and Rural 
     Investment Act of 2002),
       ``(iii) the biobased content of which is 95 percent or 
     higher,
       ``(iv) which is sold or used by the taxpayer--

       ``(I) for the production of chemical products, polymers, 
     plastics, or formulated products, or
       ``(II) as chemicals, polymers, plastics, or formulated 
     products,

       ``(v) which is not sold or used for the production of any 
     food, feed, or fuel, and
       ``(vi) which is--

       ``(I) acetic acid, acrylic acid, acyl glutamate, adipic 
     acid, algae oils, algae sugars, 1,4-butanediol (BDO), iso-
     butanol, n-butanol, C10 and higher hydrocarbons produced from 
     olefin metathesis, carboxylic acids produced from olefin 
     metathesis, cellulosic sugar, diethyl methylene malonate, 
     dodecanedioic acid (DDDA), esters produced from olefin 
     metathesis, ethyl acetate, ethylene glycol, farnesene, 2,5-
     furandicarboxylic acid, gamma-butyrolactone, glucaric acid, 
     hexamethylenediamine (HMD), 3-hydroxy propionic acid, iso-
     butene, isoprene, itaconic acid, lactide, levulinic acid, 
     polyhydroxyalkonate (PHA), polylactic acid (PLA), 
     polyethylene furanoate (PEF), polyethylene terephthalate 
     (PET), polyitaconic acid, polyols from vegetable oils, 
     poly(xylitan levulinate ketal), 1,3-propanediol, 1,2-
     propanediol, rhamnolipids, short and medium chain carboxylic 
     acids produced from anaerobic digestion, succinic acid, 
     terephthalic acid, vegetable fatty acid

[[Page S7579]]

     derived from ethyl esters containing vegetable oil, or p-
     Xylene, or
       ``(II) any chemical not described in clause (i) which is a 
     chemical listed by the Secretary for purposes of this 
     paragraph.

       ``(B) Biobased content.--For purposes of subparagraph 
     (A)(iii), the term `biobased content percentage' means, with 
     respect to any renewable chemical, the biobased content of 
     such chemical (expressed as a percentage) determined by 
     testing representative samples using the American Society for 
     Testing and Materials (ASTM) D6866.''.
       (B) List of other qualifying renewable chemicals.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Secretary of the Treasury (or the Secretary's 
     delegate), in consultation with the Secretary of Agriculture, 
     shall establish a program to consider applications from 
     taxpayers for the listing of chemicals under section 
     7874(d)(6)(A)(vi)(II) (as added by paragraph (1)).
       (3) Disposal and utilization of of captured carbon 
     dioxide.--Section 7704(d), as amended by paragraph (2), is 
     amended by adding at the end the following new paragraph:
       ``(7) Disposal and utilization of captured carbon 
     dioxide.--For purposes of clauses (xii)(III) and (xiii)(I) of 
     paragraph (1)(E), carbon dioxide is disposed of or utilized 
     as provided in this paragraph if such carbon dioxide is--
       ``(A) placed into secure geological storage (as determined 
     under section 45Q(d)(2)),
       ``(B) used as a tertiary injectant (as defined in section 
     45Q(d)(3)) in a qualified enhanced oil or natural gas 
     recovery project (as defined in section 45Q(d)(4)) and placed 
     into secure geological storage (as so determined),
       ``(C) fixated through photosynthesis or chemosynthesis 
     (such as through the growing of algae or bacteria),
       ``(D) chemically converted to a material or chemical 
     compound in which it is securely stored, or
       ``(E) used for any other purpose which the Secretary 
     determines has the potential to strengthen or significantly 
     develop a competitive market for carbon dioxide captured from 
     man-made sources.''.
       (4) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act, 
     in taxable years ending after such date.
       (b) Application of Qualified Business Income Deduction to 
     Publicly Traded Partnerships.--
       (1) In general.--Section 199A(b)(1)(B), as added by 
     subsection (a), is amended by striking ``and qualified 
     cooperative dividends'' and inserting ``, qualified 
     cooperative dividends, and qualified publicly traded 
     partnership income''.
       (2) Qualified publicly traded partnership income.--Section 
     199A(e), as added by subsection (a), is amended by adding at 
     the end the following new paragraph:
       ``(5) Qualified publicly traded partnership income.--The 
     term `qualified publicly traded partnership income' means, 
     with respect to any taxpayer, the sum of--
       ``(A) the net amount of such taxpayer's allocable share of 
     each qualified item of income, gain, deduction, and loss (as 
     defined in subsection (c)(3) and determined after the 
     application of subsection (c)(4)) from a publicly traded 
     partnership (as defined in section 7704(a)) which is not 
     treated as a corporation under section 7704(c), plus
       ``(B) any gain recognized by such taxpayer upon disposition 
     of its interest in such partnership to the extent such gain 
     is treated as an amount realized from the sale or exchange of 
     property other than a capital asset under section 751(a).''.
       (3) Conforming amendment.--Section 199A(c)(1), as added by 
     subsection (a), is amended by adding at the end the following 
     new sentence: ``Such term shall not include any qualified 
     publicly traded partnership income.''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1681. Mr. BENNET submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page 104, strike line 1 and all that follows 
     through page 112, line 12 and insert the following:

                     Subtitle B--Revenue Neutrality

     SEC. 12001. ADJUSTMENT OF HIGHEST RATE BRACKETS.

       (a) Joint Returns.--The last 2 rows of the table contained 
     in section 1(j)(2)(A), as added by section 11001(a), are 
     amended to read as follows:

``Over $400,000 but not over $480,050.....  $91,479, plus 35% of the
                                             excess over $400,000.
Over $480,050.............................  $119,496.50, plus 39.6% of
                                             the excess over
                                             $480,050.''.

       (b) Heads of Households.--The last 2 rows of the table 
     contained in section 1(j)(2)(B), as added by section 
     11001(a), are amended to read as follows:

``Over $200,000 but not over $453,350.....  $44,348, plus 35% of the
                                             excess over $200,000.
Over $453,350.............................  $133,020.50, plus 39.6% of
                                             the excess over
                                             $453,350.''.

       (c) Unmarried Individuals.--The last 2 rows of the table 
     contained in section 1(j)(2)(C), as added by section 
     11001(a), are amended to read as follows:

``Over $200,000 but not over $426,700.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $426,700.............................  $125,084.50, plus 39.6% of
                                             the excess over
                                             $426,700.''.

       (d) Married Individuals Filing Separate Returns.--The last 
     2 rows of the table contained in section 1(j)(2)(D), as added 
     by section 11001(a), are amended to read as follows:

``Over $200,000 but not over $240,026.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $240,026.............................  $59,748.60, plus 39.6% of
                                             the excess over
                                             $240,026.''.

       (e) Estates and Trusts.--The last 2 rows of the table 
     contained in section 1(j)(2)(E), as added by section 
     11001(a), are amended to read as follows:

``Over $9,150 but not over $12,700........  $1,839, plus 35% of the
                                             excess over $9,150.
Over $12,700..............................  $3,081.50, plus 39.6% of the
                                             excess over $12,700.''.

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

     SEC. 12002. CORPORATE TAX RATE.

       (a) In General.--Section 11(b), as amended by section 
     13001, is amended by striking ``20 percent'' and inserting 
     ``28 percent''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 12003. DECREASE IN ESTATE AND GIFT TAX EXEMPTION.

       (a) In General.--Section 2010(c)(3) is amended by striking 
     subparagraph (C), as added by this Act.
       (b) Conforming Amendment.--Subsection (g) of section 2001 
     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, 2017.

     SEC. 12004. ORDINARY INCOME TREATMENT IN THE CASE OF 
                   PARTNERSHIP INTERESTS HELD IN CONNECTION WITH 
                   PERFORMANCE OF SERVICES.

       (a) In General.--Section 1061, as amended by section 
     13310(a) of this Act, is amended to read as follows:

     ``SEC. 1061. PARTNERSHIP INTERESTS HELD IN CONNECTION WITH 
                   PERFORMANCE OF SERVICES.

       ``(a) In General.--If one or more applicable partnership 
     interests are held by a taxpayer at any time during the 
     taxable year, so much of--
       ``(1) the taxpayer's net capital gain with respect to such 
     interests for such taxable year, as does not exceed
       ``(2) the taxpayer's recharacterization account balance for 
     such taxable year,
     shall be treated as ordinary income.
       ``(b) Net Capital Gain.--
       ``(1) In general.--For purposes of subsection (a)(1), net 
     capital gain shall be determined under section 1222, except 
     that such section shall be applied--
       ``(A) without regard to the recharacterization of any item 
     as ordinary income under this section,
       ``(B) by only taking into account items of gain and loss--
       ``(i) taken into account by the taxpayer under section 702 
     with respect to any applicable partnership interest,
       ``(ii) recognized by the taxpayer on the disposition of any 
     such interest, or
       ``(iii) recognized by the taxpayer under paragraph (4) on a 
     distribution of property with respect to such interest, and
       ``(C) in the case of a taxable year for which section 1231 
     gains (as defined in section 1231(a)(3)(A)) exceed section 
     1231 losses (as defined in section 1231(a)(3)(B)), by 
     treating property which is taken into account in determining 
     such gains and losses as capital assets held for more than 1 
     year.
       ``(2) Allocation to items of gain.--The amount treated as 
     ordinary income under subsection (a) shall be allocated 
     ratably among the items of long-term capital gain taken into 
     account in determining net capital gain under paragraph (1).
       ``(3) Recognition of gain on disposition of applicable 
     partnership interests.--Any gain on the disposition of any 
     applicable partnership interest shall be recognized 
     notwithstanding any other provision of this title.

[[Page S7580]]

       ``(4) Recognition of gain on distributions of partnership 
     property.--
       ``(A) In general.--In the case of any distribution of 
     property by a partnership with respect to any applicable 
     partnership interest, the partner receiving such property 
     shall recognize gain equal to the excess (if any) of--
       ``(i) the fair market value of such property at the time of 
     such distribution, over
       ``(ii) the adjusted basis of such property in the hands of 
     such partner (determined without regard to subparagraph (B)).
       ``(B) Adjustment of basis.--In the case of a distribution 
     to which subparagraph (A) applies, the basis of the 
     distributed property in the hands of the distributee partner 
     shall be the amount determined under subparagraph (A)(i).
       ``(c) Recharacterization Account Balance.--
       ``(1) In general.--For purposes of this section, the term 
     `recharacterization account balance' means, with respect to 
     any taxpayer for any taxable year, the excess (if any) of--
       ``(A) the sum of--
       ``(i) the taxpayer's aggregate annual recharacterization 
     amounts with respect to applicable partnership interests for 
     such taxable year, plus
       ``(ii) the taxpayer's recharacterization account balance 
     for the taxable year preceding such taxable year, over
       ``(B) the sum of--
       ``(i) the taxpayer's net ordinary income with respect to 
     applicable partnership interests for such taxable year 
     (determined without regard to this section), plus
       ``(ii) the amount treated as ordinary income of the 
     taxpayer under this section for the taxable year preceding 
     such taxable year.
       ``(2) Annual recharacterization amount.--For purposes of 
     this subsection--
       ``(A) In general.--The term `annual recharacterization 
     amount' means, with respect to any applicable partnership 
     interest for any partnership taxable year, an amount equal to 
     the product of--
       ``(i) the specified rate determined under subparagraph (B) 
     for the calendar year in which such taxable year begins, 
     multiplied by
       ``(ii) the excess (if any) of--

       ``(I) an amount equal to the applicable percentage of the 
     partnership's aggregate invested capital for such taxable 
     year, over
       ``(II) the specified capital contribution of the partner 
     with respect to the applicable partnership interest for such 
     taxable year.

     If a taxpayer holds an applicable partnership interest for 
     less than the entire taxable year, the amount determined 
     under the preceding sentence shall be ratably reduced.
       ``(B) Specified rate.--For purposes of subparagraph (A), 
     the term `specified rate' means, with respect to any calendar 
     year, a percentage equal to--
       ``(i) the Federal long-term rate determined under section 
     1274(d)(1) for the last month of the calendar year, plus
       ``(ii) 10 percentage points.
       ``(C) Applicable percentage.--
       ``(i) In general.--The term `applicable percentage' means, 
     with respect to any applicable partnership interest, the 
     highest percentage of profits of the partnership that could 
     be allocated with respect to such interest for the taxable 
     year (consistent with the partnership agreement and assuming 
     such facts and circumstances with respect to such taxable 
     year as would result in such highest percentage).
       ``(ii) Secretarial authority.--The Secretary shall 
     prescribe rules for the determination of the applicable 
     percentage in cases in which the percentage of profits of a 
     partnership that are to be allocated with respect to an 
     applicable partnership interest varies on the basis of the 
     aggregate amount of such profits. Such rules may provide a 
     percentage which may be used in lieu of the highest 
     percentage determined under clause (i) in cases where such 
     other percentage is consistent with the purposes of this 
     section.
       ``(D) Aggregate invested capital.--
       ``(i) In general.--The term `aggregate invested capital' 
     means, with respect to any taxable year, the average daily 
     amount of invested capital of the partnership for such 
     taxable year.
       ``(ii) Invested capital.--The term `invested capital' 
     means, with respect to any partnership as of any day, the 
     total cumulative value, determined at the time of 
     contribution, of all money or other property contributed to 
     the partnership on or before such day.
       ``(iii) Reduction for liquidation of partnership 
     interests.--The invested capital of a partnership shall be 
     reduced by the aggregate amount distributed in liquidation of 
     interests in the partnership.
       ``(iv) Treatment of certain indebtedness as invested 
     capital.--The following amounts shall be treated as invested 
     capital:

       ``(I) Partner loans.--The aggregate value (determined as of 
     the time of the loan) of money or other property which a 
     partner loans to the partnership.
       ``(II) Indebtedness eligible to share in equity of the 
     partnership.--The face amount of any convertible debt of the 
     partnership or any debt obligation providing equity 
     participation in the partnership.

       ``(E) Specified capital contribution.--
       ``(i) In general.--The term `specified capital 
     contribution' means, with respect to any applicable 
     partnership interest for any taxable year, the average daily 
     amount of contributed capital with respect to such interest 
     for such year.
       ``(ii) Contributed capital.--The term `contributed capital' 
     means, with respect to applicable partnership interest as of 
     any day, the excess (if any) of--

       ``(I) the total cumulative value, determined at the time of 
     contribution, of all money or other property contributed by 
     the partner to the partnership with respect to such interest 
     as of such day, over
       ``(II) the total cumulative value, determined at the time 
     of distribution, of all money or other property distributed 
     by the partnership to the partner with respect to such 
     interest as of such day.

       ``(iii) Treatment of related party borrowings.--Any amount 
     borrowed directly or indirectly from the partnership or any 
     other partner of the partnership or any person related to 
     such other partner or such partnership shall not be taken 
     into account under this subparagraph. For purposes of the 
     preceding sentence, a person shall be treated as related to 
     another person if the relationship between such persons would 
     be described in section 267(b) or 707(b) if such sections and 
     section 267(f) were applied by substituting `10 percent' for 
     `50 percent' each place it appears.
       ``(F) Multiple interests.--If at any time during a taxable 
     year a taxpayer holds directly or indirectly more than 1 
     applicable partnership interest in a single partnership, such 
     interests shall be treated as 1 applicable partnership 
     interest for purposes of applying this paragraph.
       ``(3) Net ordinary income.--For purposes of this 
     subsection, the net ordinary income with respect to 
     applicable partnership interests for any taxable year is the 
     excess (if any) of--
       ``(A) the taxpayer's distributive share of items of income 
     and gain under section 702 with respect to applicable 
     partnership interests for such taxable year (determined 
     without regard to any items of gain taken into account in 
     determining net capital gain under subsection (b)(1)), over
       ``(B) the taxpayer's distributive share of items of 
     deduction and loss under section 702 with respect to such 
     interests for such taxable year (determined without regard to 
     any items of loss taken into account in determining net 
     capital gain under subsection (b)(1)).
       ``(d) Applicable Partnership Interest.--For purposes of 
     this section--
       ``(1) In general.--The term `applicable partnership 
     interest' means any interest in a partnership which, directly 
     or indirectly, is transferred to (or is held by) the taxpayer 
     in connection with the performance of services by the 
     taxpayer, or any other person, in any applicable trade or 
     business.
       ``(2) Applicable trade or business.--
       ``(A) In general.--The term `applicable trade or business' 
     means any trade or business conducted on a regular, 
     continuous, and substantial basis which, regardless of 
     whether the activities are conducted in one or more entities, 
     consists, in whole or in part, of--
       ``(i) raising or returning capital,
       ``(ii) investing in (or disposing of) trades or businesses 
     (or identifying trades or businesses for such investing or 
     disposition), and
       ``(iii) developing such trades or businesses.
       ``(B) Treatment of research and experimentation 
     activities.--Any activity involving research or 
     experimentation (within the meaning of section 469(c)(5)) 
     shall be treated as a trade or business for purposes of 
     clauses (ii) and (iii) of subparagraph (A).
       ``(C) Treatment of real property trades or businesses.--Any 
     activity involving real property development, redevelopment, 
     construction, reconstruction, acquisition, conversion, 
     rental, operation, management, leasing, or brokerage shall be 
     treated as a trade or business for purposes of clauses (ii) 
     and (iii) of subparagraph (A).
       ``(e) Transfer of Applicable Partnership Interest to 
     Related Person.--
       ``(1) In general.--If a taxpayer transfers any applicable 
     partnership interest, directly or indirectly, to a person 
     related to the taxpayer, the taxpayer shall include in gross 
     income (as ordinary income) so much of the taxpayer's 
     recharacterization account balance for such taxable year as 
     is allocable to such interest (determined in such manner as 
     the Secretary may provide and reduced by any amount treated 
     as ordinary income under subsection (a) with respect to the 
     transfer of such interest).
       ``(2) Related person.--For purposes of this paragraph, a 
     person is related to the taxpayer if--
       ``(A) the person is a member of the taxpayer's family 
     within the meaning of section 318(a)(1), or
       ``(B) the person performed a service within the current 
     calendar year or the preceding three calendar years in any 
     applicable trade or business in which or for which the 
     taxpayer performed a service.
       ``(f) Reporting by Entity of Taxpayer's Annual 
     Recharacterization Amount.--A partnership shall report to the 
     Secretary, and include with the information required to be 
     furnished under section 6031(b) to each partner, the amount 
     of the partner's annual recharacterization amount for the 
     taxable year, if any. A similar rule applies to any entity 
     that receives a report of an annual recharacterization amount 
     for the taxable year.
       ``(g) Coordination With Section 199A.--No item of income, 
     gain, deduction, or loss, or W-2 wages, which are properly 
     allocable to an applicable partnership interest shall be

[[Page S7581]]

     taken into account in computing the qualified business income 
     of a taxpayer for purposes of section 199A or the amount of 
     the deduction under such section.
       ``(h) Regulations.--The Secretary shall issue such 
     regulations or other guidance as necessary to carry out this 
     section, including regulations--
       ``(1) to prevent the abuse of the purposes of this section, 
     including through--
       ``(A) the allocation of income to tax indifferent parties, 
     or
       ``(B) a reduction in the invested capital of the 
     partnership (including attempts to undervalue contributed or 
     loaned property),
       ``(2) which provide that partnership interests shall not 
     fail to be treated as transferred or held in connection with 
     the performance of services merely because the taxpayer also 
     made contributions to the partnership,
       ``(3) which provide for the application of this section in 
     cases where the taxpayer has more than 1 applicable interest 
     in a partnership, and
       ``(4) which provide for the application of this section in 
     cases of tiered structures of entities.''.
       (b) Coordination With Section 83.--Subsection (e) of 
     section 83 is amended by striking ``or'' at the end of 
     paragraph (4), by striking the period at the end of paragraph 
     (5) and inserting ``, or'', and by adding at the end the 
     following new paragraph:
       ``(6) a transfer of a partnership interest to which section 
     1061 applies.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendments made by 
     section 13310 of this Act.
                                 ______
                                 
  SA 1682. Mr. BENNET submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page 104, strike line 1 and all that follows 
     through page 112, line 12 and insert the following:

                     Subtitle B--Revenue Neutrality

                  PART I--ENSURING REVENUE NEUTRALITY

     SEC. 12001. ADJUSTMENT OF HIGHEST RATE BRACKETS.

       (a) Joint Returns.--The last 2 rows of the table contained 
     in section 1(j)(2)(A), as added by section 11001(a), are 
     amended to read as follows:


``Over $400,000 but not over $480,050.....  $91,479, plus 35% of the
                                             excess over $400,000.
Over $480,050.............................  $119,496.50, plus 39.6% of
                                             the excess over
                                             $480,050.''.

       (b) Heads of Households.--The last 2 rows of the table 
     contained in section 1(j)(2)(B), as added by section 
     11001(a), are amended to read as follows:


``Over $200,000 but not over $453,350.....  $44,348, plus 35% of the
                                             excess over $200,000.
Over $453,350.............................  $133,020.50, plus 39.6% of
                                             the excess over
                                             $453,350.''.

       (c) Unmarried Individuals.--The last 2 rows of the table 
     contained in section 1(j)(2)(C), as added by section 
     11001(a), are amended to read as follows:


``Over $200,000 but not over $426,700.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $426,700.............................  $125,084.50, plus 39.6% of
                                             the excess over
                                             $426,700.''.

       (d) Married Individuals Filing Separate Returns.--The last 
     2 rows of the table contained in section 1(j)(2)(D), as added 
     by section 11001(a), are amended to read as follows:


``Over $200,000 but not over $240,026.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $240,026.............................  $59,748.60, plus 39.6% of
                                             the excess over
                                             $240,026.''.

       (e) Estates and Trusts.--The last 2 rows of the table 
     contained in section 1(j)(2)(E), as added by section 
     11001(a), are amended to read as follows:


``Over $9,150 but not over $12,700........  $1,839, plus 35% of the
                                             excess over $9,150.
Over $12,700..............................  $3,081.50, plus 39.6% of the
                                             excess over $12,700.''.

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

     SEC. 12002. CORPORATE TAX RATE.

       (a) In General.--Section 11(b), as amended by section 
     13001, is amended by striking ``20 percent'' and inserting 
     ``28 percent''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 12003. DECREASE IN ESTATE AND GIFT TAX EXEMPTION.

       (a) In General.--Section 2010(c)(3) is amended by striking 
     subparagraph (C), as added by this Act.
       (b) Conforming Amendment.--Subsection (g) of section 2001 
     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, 2017.

     SEC. 12004. ORDINARY INCOME TREATMENT IN THE CASE OF 
                   PARTNERSHIP INTERESTS HELD IN CONNECTION WITH 
                   PERFORMANCE OF SERVICES.

       (a) In General.--Section 1061, as amended by section 
     13310(a) of this Act, is amended to read as follows:

     ``SEC. 1061. PARTNERSHIP INTERESTS HELD IN CONNECTION WITH 
                   PERFORMANCE OF SERVICES.

       ``(a) In General.--If one or more applicable partnership 
     interests are held by a taxpayer at any time during the 
     taxable year, so much of--
       ``(1) the taxpayer's net capital gain with respect to such 
     interests for such taxable year, as does not exceed
       ``(2) the taxpayer's recharacterization account balance for 
     such taxable year,
     shall be treated as ordinary income.
       ``(b) Net Capital Gain.--
       ``(1) In general.--For purposes of subsection (a)(1), net 
     capital gain shall be determined under section 1222, except 
     that such section shall be applied--
       ``(A) without regard to the recharacterization of any item 
     as ordinary income under this section,
       ``(B) by only taking into account items of gain and loss--
       ``(i) taken into account by the taxpayer under section 702 
     with respect to any applicable partnership interest,
       ``(ii) recognized by the taxpayer on the disposition of any 
     such interest, or
       ``(iii) recognized by the taxpayer under paragraph (4) on a 
     distribution of property with respect to such interest, and
       ``(C) in the case of a taxable year for which section 1231 
     gains (as defined in section 1231(a)(3)(A)) exceed section 
     1231 losses (as defined in section 1231(a)(3)(B)), by 
     treating property which is taken into account in determining 
     such gains and losses as capital assets held for more than 1 
     year.
       ``(2) Allocation to items of gain.--The amount treated as 
     ordinary income under subsection (a) shall be allocated 
     ratably among the items of long-term capital gain taken into 
     account in determining net capital gain under paragraph (1).
       ``(3) Recognition of gain on disposition of applicable 
     partnership interests.--Any gain on the disposition of any 
     applicable partnership interest shall be recognized 
     notwithstanding any other provision of this title.
       ``(4) Recognition of gain on distributions of partnership 
     property.--
       ``(A) In general.--In the case of any distribution of 
     property by a partnership with respect to any applicable 
     partnership interest, the partner receiving such property 
     shall recognize gain equal to the excess (if any) of--
       ``(i) the fair market value of such property at the time of 
     such distribution, over
       ``(ii) the adjusted basis of such property in the hands of 
     such partner (determined without regard to subparagraph (B)).
       ``(B) Adjustment of basis.--In the case of a distribution 
     to which subparagraph (A) applies, the basis of the 
     distributed property in the hands of the distributee partner 
     shall be the amount determined under subparagraph (A)(i).
       ``(c) Recharacterization Account Balance.--
       ``(1) In general.--For purposes of this section, the term 
     `recharacterization account balance' means, with respect to 
     any taxpayer for any taxable year, the excess (if any) of--
       ``(A) the sum of--
       ``(i) the taxpayer's aggregate annual recharacterization 
     amounts with respect to applicable partnership interests for 
     such taxable year, plus
       ``(ii) the taxpayer's recharacterization account balance 
     for the taxable year preceding such taxable year, over
       ``(B) the sum of--
       ``(i) the taxpayer's net ordinary income with respect to 
     applicable partnership interests for such taxable year 
     (determined without regard to this section), plus
       ``(ii) the amount treated as ordinary income of the 
     taxpayer under this section for the taxable year preceding 
     such taxable year.
       ``(2) Annual recharacterization amount.--For purposes of 
     this subsection--
       ``(A) In general.--The term `annual recharacterization 
     amount' means, with respect to any applicable partnership 
     interest for any partnership taxable year, an amount equal to 
     the product of--
       ``(i) the specified rate determined under subparagraph (B) 
     for the calendar year in

[[Page S7582]]

     which such taxable year begins, multiplied by
       ``(ii) the excess (if any) of--

       ``(I) an amount equal to the applicable percentage of the 
     partnership's aggregate invested capital for such taxable 
     year, over
       ``(II) the specified capital contribution of the partner 
     with respect to the applicable partnership interest for such 
     taxable year.

     If a taxpayer holds an applicable partnership interest for 
     less than the entire taxable year, the amount determined 
     under the preceding sentence shall be ratably reduced.

       ``(B) Specified rate.--For purposes of subparagraph (A), 
     the term `specified rate' means, with respect to any calendar 
     year, a percentage equal to--
       ``(i) the Federal long-term rate determined under section 
     1274(d)(1) for the last month of the calendar year, plus
       ``(ii) 10 percentage points.
       ``(C) Applicable percentage.--
       ``(i) In general.--The term `applicable percentage' means, 
     with respect to any applicable partnership interest, the 
     highest percentage of profits of the partnership that could 
     be allocated with respect to such interest for the taxable 
     year (consistent with the partnership agreement and assuming 
     such facts and circumstances with respect to such taxable 
     year as would result in such highest percentage).
       ``(ii) Secretarial authority.--The Secretary shall 
     prescribe rules for the determination of the applicable 
     percentage in cases in which the percentage of profits of a 
     partnership that are to be allocated with respect to an 
     applicable partnership interest varies on the basis of the 
     aggregate amount of such profits. Such rules may provide a 
     percentage which may be used in lieu of the highest 
     percentage determined under clause (i) in cases where such 
     other percentage is consistent with the purposes of this 
     section.
       ``(D) Aggregate invested capital.--
       ``(i) In general.--The term `aggregate invested capital' 
     means, with respect to any taxable year, the average daily 
     amount of invested capital of the partnership for such 
     taxable year.
       ``(ii) Invested capital.--The term `invested capital' 
     means, with respect to any partnership as of any day, the 
     total cumulative value, determined at the time of 
     contribution, of all money or other property contributed to 
     the partnership on or before such day.
       ``(iii) Reduction for liquidation of partnership 
     interests.--The invested capital of a partnership shall be 
     reduced by the aggregate amount distributed in liquidation of 
     interests in the partnership.
       ``(iv) Treatment of certain indebtedness as invested 
     capital.--The following amounts shall be treated as invested 
     capital:

       ``(I) Partner loans.--The aggregate value (determined as of 
     the time of the loan) of money or other property which a 
     partner loans to the partnership.
       ``(II) Indebtedness eligible to share in equity of the 
     partnership.--The face amount of any convertible debt of the 
     partnership or any debt obligation providing equity 
     participation in the partnership.

       ``(E) Specified capital contribution.--
       ``(i) In general.--The term `specified capital 
     contribution' means, with respect to any applicable 
     partnership interest for any taxable year, the average daily 
     amount of contributed capital with respect to such interest 
     for such year.
       ``(ii) Contributed capital.--The term `contributed capital' 
     means, with respect to applicable partnership interest as of 
     any day, the excess (if any) of--

       ``(I) the total cumulative value, determined at the time of 
     contribution, of all money or other property contributed by 
     the partner to the partnership with respect to such interest 
     as of such day, over
       ``(II) the total cumulative value, determined at the time 
     of distribution, of all money or other property distributed 
     by the partnership to the partner with respect to such 
     interest as of such day.

       ``(iii) Treatment of related party borrowings.--Any amount 
     borrowed directly or indirectly from the partnership or any 
     other partner of the partnership or any person related to 
     such other partner or such partnership shall not be taken 
     into account under this subparagraph. For purposes of the 
     preceding sentence, a person shall be treated as related to 
     another person if the relationship between such persons would 
     be described in section 267(b) or 707(b) if such sections and 
     section 267(f) were applied by substituting `10 percent' for 
     `50 percent' each place it appears.
       ``(F) Multiple interests.--If at any time during a taxable 
     year a taxpayer holds directly or indirectly more than 1 
     applicable partnership interest in a single partnership, such 
     interests shall be treated as 1 applicable partnership 
     interest for purposes of applying this paragraph.
       ``(3) Net ordinary income.--For purposes of this 
     subsection, the net ordinary income with respect to 
     applicable partnership interests for any taxable year is the 
     excess (if any) of--
       ``(A) the taxpayer's distributive share of items of income 
     and gain under section 702 with respect to applicable 
     partnership interests for such taxable year (determined 
     without regard to any items of gain taken into account in 
     determining net capital gain under subsection (b)(1)), over
       ``(B) the taxpayer's distributive share of items of 
     deduction and loss under section 702 with respect to such 
     interests for such taxable year (determined without regard to 
     any items of loss taken into account in determining net 
     capital gain under subsection (b)(1)).
       ``(d) Applicable Partnership Interest.--For purposes of 
     this section--
       ``(1) In general.--The term `applicable partnership 
     interest' means any interest in a partnership which, directly 
     or indirectly, is transferred to (or is held by) the taxpayer 
     in connection with the performance of services by the 
     taxpayer, or any other person, in any applicable trade or 
     business.
       ``(2) Applicable trade or business.--
       ``(A) In general.--The term `applicable trade or business' 
     means any trade or business conducted on a regular, 
     continuous, and substantial basis which, regardless of 
     whether the activities are conducted in one or more entities, 
     consists, in whole or in part, of--
       ``(i) raising or returning capital,
       ``(ii) investing in (or disposing of) trades or businesses 
     (or identifying trades or businesses for such investing or 
     disposition), and
       ``(iii) developing such trades or businesses.
       ``(B) Treatment of research and experimentation 
     activities.--Any activity involving research or 
     experimentation (within the meaning of section 469(c)(5)) 
     shall be treated as a trade or business for purposes of 
     clauses (ii) and (iii) of subparagraph (A).
       ``(C) Treatment of real property trades or businesses.--Any 
     activity involving real property development, redevelopment, 
     construction, reconstruction, acquisition, conversion, 
     rental, operation, management, leasing, or brokerage shall be 
     treated as a trade or business for purposes of clauses (ii) 
     and (iii) of subparagraph (A).
       ``(e) Transfer of Applicable Partnership Interest to 
     Related Person.--
       ``(1) In general.--If a taxpayer transfers any applicable 
     partnership interest, directly or indirectly, to a person 
     related to the taxpayer, the taxpayer shall include in gross 
     income (as ordinary income) so much of the taxpayer's 
     recharacterization account balance for such taxable year as 
     is allocable to such interest (determined in such manner as 
     the Secretary may provide and reduced by any amount treated 
     as ordinary income under subsection (a) with respect to the 
     transfer of such interest).
       ``(2) Related person.--For purposes of this paragraph, a 
     person is related to the taxpayer if--
       ``(A) the person is a member of the taxpayer's family 
     within the meaning of section 318(a)(1), or
       ``(B) the person performed a service within the current 
     calendar year or the preceding three calendar years in any 
     applicable trade or business in which or for which the 
     taxpayer performed a service.
       ``(f) Reporting by Entity of Taxpayer's Annual 
     Recharacterization Amount.--A partnership shall report to the 
     Secretary, and include with the information required to be 
     furnished under section 6031(b) to each partner, the amount 
     of the partner's annual recharacterization amount for the 
     taxable year, if any. A similar rule applies to any entity 
     that receives a report of an annual recharacterization amount 
     for the taxable year.
       ``(g) Coordination With Section 199A.--No item of income, 
     gain, deduction, or loss, or W-2 wages, which are properly 
     allocable to an applicable partnership interest shall be 
     taken into account in computing the qualified business income 
     of a taxpayer for purposes of section 199A or the amount of 
     the deduction under such section.
       ``(h) Regulations.--The Secretary shall issue such 
     regulations or other guidance as necessary to carry out this 
     section, including regulations--
       ``(1) to prevent the abuse of the purposes of this section, 
     including through--
       ``(A) the allocation of income to tax indifferent parties, 
     or
       ``(B) a reduction in the invested capital of the 
     partnership (including attempts to undervalue contributed or 
     loaned property),
       ``(2) which provide that partnership interests shall not 
     fail to be treated as transferred or held in connection with 
     the performance of services merely because the taxpayer also 
     made contributions to the partnership,
       ``(3) which provide for the application of this section in 
     cases where the taxpayer has more than 1 applicable interest 
     in a partnership, and
       ``(4) which provide for the application of this section in 
     cases of tiered structures of entities.''.
       (b) Coordination With Section 83.--Subsection (e) of 
     section 83 is amended by striking ``or'' at the end of 
     paragraph (4), by striking the period at the end of paragraph 
     (5) and inserting ``, or'', and by adding at the end the 
     following new paragraph:
       ``(6) a transfer of a partnership interest to which section 
     1061 applies.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendments made by 
     section 13310 of this Act.

     PART II--FISCAL COMMISSION ON REVENUE NEUTRALITY ALTERNATIVES

     SEC. 12010. ESTABLISHMENT OF FISCAL COMMISSION.

       (a) Definitions.--In this part:
       (1) Commission.--The term ``fiscal commission'' means the 
     Fiscal Commission on Revenue Neutrality Alternatives 
     established under subsection (b)(1).
       (2) Fiscal commission bill.--The term ``fiscal commission 
     bill'' means a bill consisting of the proposed legislative 
     language

[[Page S7583]]

     of the fiscal commission recommended under subsection 
     (b)(3)(B)(i)(II) and introduced under section 12011.
       (b) Establishment of Fiscal Commission.--
       (1) Establishment.--There is established a joint select 
     committee of Congress to be known as the ``Fiscal Commission 
     on Revenue Neutrality Alternatives''.
       (2) Goal.--The goal of the fiscal commission shall be to 
     increase revenue to the Treasury over the period of fiscal 
     years 2018 to 2027 by an amount that is not less than the 
     amount by which such revenue would be increased over such 
     period as a result of the amendments made by part I of this 
     subtitle.
       (3) Duties.--
       (A) In general.--The fiscal commission shall provide 
     recommendations and legislative language for increasing 
     revenue as an alternative to the amendments made by part I of 
     this subtitle.
       (B) Report, recommendations, and legislative language.--
       (i) In general.--Not later than November 15, 2018, the 
     fiscal commission shall vote on--

       (I) a report that contains a detailed statement of the 
     findings, conclusions, and recommendations of the fiscal 
     commission and the estimate of the Congressional Budget 
     Office required by paragraph (5)(D)(ii); and
       (II) proposed legislative language to carry out such 
     recommendations as described in subclause (I), which--

       (aa) would repeal or modify some or all of the amendments 
     made by part I of this subtitle;
       (bb) relates only to revenue; and
       (cc) if enacted into law, would result in an increase in 
     revenue to the Treasury over the period of fiscal years 2018 
     to 2027 in an amount that is not less than the amount by 
     which such revenue would be increased over such period as a 
     result of the amendments made by part I of this subtitle.

     Any change to the Rules of the House of Representatives or 
     the Standing Rules of the Senate included in the report or 
     legislative language shall be considered to be merely 
     advisory.
       (ii) Approval of report and legislative language.--The 
     report of the fiscal commission and the proposed legislative 
     language described in clause (i) shall require the approval 
     of a majority of the members of the fiscal commission.
       (iii) Transmission of report and legislative language.--If 
     the report and legislative language are approved by the 
     fiscal commission pursuant to clause (ii), then not later 
     than November 15, 2018, the fiscal commission shall submit 
     the fiscal commission report and legislative language 
     described in clause (i) to the President, the Vice President, 
     the Speaker of the House of Representatives, and the majority 
     and minority Leaders of each House of Congress.
       (4) Membership.--
       (A) In general.--The fiscal commission shall be composed of 
     12 members appointed pursuant to subparagraph (B).
       (B) Appointment.--Members of the fiscal commission shall be 
     appointed as follows:
       (i) The majority leader of the Senate shall appoint 3 
     members from among Members of the Senate.
       (ii) The minority leader of the Senate shall appoint 3 
     members from among Members of the Senate.
       (iii) The Speaker of the House of Representatives shall 
     appoint 3 members from among Members of the House of 
     Representatives.
       (iv) The minority leader of the House of Representatives 
     shall appoint 3 members from among Members of the House of 
     Representatives.
       (C) Co-chairs.--
       (i) In general.--There shall be two Co-Chairs of the fiscal 
     commission. The majority leader of the Senate shall appoint 
     one Co-Chair from among the members of the fiscal commission. 
     The Speaker of the House of Representatives shall appoint the 
     second Co-Chair from among the members of the fiscal 
     commission. The Co-Chairs shall be appointed not later than 
     14 calendar days after the date of enactment of this Act.
       (ii) Staff director.--The Co-Chairs, acting jointly, shall 
     hire the staff director of the fiscal commission.
       (D) Date.--Members of the fiscal commission shall be 
     appointed not later than 14 calendar days after the date of 
     enactment of this Act.
       (E) Period of appointment.--Members shall be appointed for 
     the life of the fiscal commission. Any vacancy in the fiscal 
     commission shall not affect its powers, but shall be filled 
     not later than 14 calendar days after the date on which the 
     vacancy occurs, in the same manner as the original 
     designation was made. If a member of the fiscal commission 
     ceases to be a Member of the House of Representatives or the 
     Senate, as the case may be, the member is no longer a member 
     of the fiscal commission and a vacancy shall exist.
       (5) Administration.--
       (A) In general.--To enable the fiscal commission to 
     exercise its powers, functions, and duties, there are 
     authorized to be disbursed by the Senate the actual and 
     necessary expenses of the fiscal commission approved by the 
     co-chairs, subject to the rules and regulations of the 
     Senate.
       (B) Expenses.--In carrying out its functions, the fiscal 
     commission is authorized to incur expenses in the same manner 
     and under the same conditions as the Joint Economic Committee 
     is authorized by section 11 of Public Law 79-304 (15 U.S.C. 
     1024 (d)).
       (C) Quorum.--Seven members of the fiscal commission shall 
     constitute a quorum for purposes of voting, meeting, and 
     holding hearings.
       (D) Voting.--
       (i) Proxy voting.--No proxy voting shall be allowed on 
     behalf of the members of the fiscal commission.
       (ii) Congressional budget office estimates.--The 
     Congressional Budget Office shall provide estimates of the 
     legislation (as described in paragraph (3)(B)) in accordance 
     with sections 308(a) and 201(f) of the Congressional Budget 
     Act of 1974 (2 U.S.C. 639(a) and 601(f))(including estimates 
     of the effect of interest payment on the debt). The fiscal 
     commission may not vote on any version of the report, 
     recommendations, or legislative language unless such 
     estimates are available for consideration by all members of 
     the fiscal commission at least 48 hours prior to the vote as 
     certified by the Co-Chairs.
       (E) Meetings.--
       (i) Initial meeting.--Not later than 45 calendar days after 
     the date of enactment of this Act, the fiscal commission 
     shall hold its first meeting.
       (ii) Agenda.--The Co-Chairs of the fiscal commission shall 
     provide an agenda to the fiscal commission members not less 
     than 48 hours in advance of any meeting.
       (F) Hearings.--
       (i) In general.--The fiscal commission may, for the purpose 
     of carrying out this section, hold such hearings, sit and act 
     at such times and places, require attendance of witnesses and 
     production of books, papers, and documents, take such 
     testimony, receive such evidence, and administer such oaths 
     as the fiscal commission considers advisable.
       (ii) Hearing procedures and responsibilities of co-
     chairs.--

       (I) Announcement.--The Co-Chairs of the fiscal commission 
     shall make a public announcement of the date, place, time, 
     and subject matter of any hearing to be conducted, not less 
     than 7 days in advance of such hearing, unless the Co-Chairs 
     determine that there is good cause to begin such hearing at 
     an earlier date.
       (II) Written statement.--A witness appearing before the 
     fiscal commission shall file a written statement of proposed 
     testimony at least 2 calendar days before the appearance of 
     the witness, unless the requirement is waived by the Co-
     Chairs, following their determination that there is good 
     cause for failure to comply with such requirement.

       (G) Technical assistance.--Upon written request of the Co-
     Chairs, a Federal agency shall provide technical assistance 
     to the fiscal commission in order for the fiscal commission 
     to carry out its duties.
       (c) Staff of Fiscal Commission.--
       (1) In general.--The Co-Chairs of the fiscal commission may 
     jointly appoint and fix the compensation of staff as they 
     deem necessary, within the guidelines for employees of the 
     Senate and following all applicable rules and employment 
     requirements of the Senate.
       (2) Ethical standards.--Members on the fiscal commission 
     who serve in the House of Representatives shall be governed 
     by the ethics rules and requirements of the House. Members of 
     the Senate who serve on the fiscal commission and staff of 
     the fiscal commission shall comply with the ethics rules of 
     the Senate.
       (d) Termination.--The fiscal commission shall terminate on 
     January 1, 2019.

     SEC. 12011. EXPEDITED CONSIDERATION OF FISCAL COMMISSION 
                   RECOMMENDATIONS.

       (a) Introduction.--If approved by the majority required by 
     section 12010(b)(3)(B)(ii), the proposed legislative language 
     submitted pursuant to section 12010(b)(3)(B)(iii) shall be 
     introduced in the Senate (by request) on the next day on 
     which the Senate is in session by the majority leader of the 
     Senate or by a Member of the Senate designated by the 
     majority leader of the Senate and shall be introduced in the 
     House of Representatives (by request) on the next legislative 
     day by the majority leader of the House or by a Member of the 
     House designated by the majority leader of the House.
       (b) Consideration in the House of Representatives.--
       (1) Reporting and discharge.--Any committee of the House of 
     Representatives to which a fiscal commission bill is referred 
     shall report it to the House without amendment not later than 
     5 calendar days after the date of introduction of a fiscal 
     commission bill described in subsection (a). If a committee 
     fails to report the fiscal commission bill within that 
     period, the committee shall be discharged from further 
     consideration of the fiscal commission bill and the fiscal 
     commission bill shall be referred to the appropriate 
     calendar.
       (2) Proceeding to consideration.--After each committee 
     authorized to consider a fiscal commission bill reports it to 
     the House or has been discharged from its consideration, it 
     shall be in order, not later than the sixth day after 
     introduction of a fiscal commission bill under subsection 
     (a), to move to proceed to consider the fiscal commission 
     bill in the House. All points of order against the motion are 
     waived. Such a motion shall not be in order after the House 
     has disposed of a motion to proceed on a fiscal commission 
     bill addressing a particular submission. The previous 
     question shall be considered as ordered on the motion to its 
     adoption without intervening motion. The motion shall not be 
     debatable. A motion to reconsider the vote by which the 
     motion is disposed of shall not be in order.

[[Page S7584]]

       (3) Consideration.--The fiscal commission bill shall be 
     considered as read. All points of order against the fiscal 
     commission bill and against its consideration are waived. The 
     previous question shall be considered as ordered on the 
     fiscal commission bill to its passage without intervening 
     motion except two hours of debate equally divided and 
     controlled by the proponent and an opponent. A motion to 
     reconsider the vote on passage of the fiscal commission bill 
     shall not be in order.
       (4) Vote on passage.--The vote on passage of the fiscal 
     commission bill shall occur not later than November 30, 2018.
       (c) Expedited Procedure in the Senate.--
       (1) Committee consideration.--A fiscal commission bill 
     introduced in the Senate under subsection (a) shall be 
     jointly referred to the committee or committees of 
     jurisdiction, which committees shall report the bill without 
     any revision and with a favorable recommendation, an 
     unfavorable recommendation, or without recommendation, not 
     later than 5 calendar days after the date of introduction 
     described in subsection (a). If any committee fails to report 
     the bill within that period, that committee shall be 
     automatically discharged from consideration of the bill, and 
     the bill shall be placed on the appropriate calendar.
       (2) Motion to proceed.--Notwithstanding Rule XXII of the 
     Standing Rules of the Senate, it is in order, not later than 
     2 days of session after the date on which a fiscal commission 
     bill is reported or discharged from all committees to which 
     it was referred, for the majority leader of the Senate or the 
     majority leader's designee to move to proceed to the 
     consideration of the fiscal commission bill. It shall also be 
     in order for any Member of the Senate to move to proceed to 
     the consideration of the fiscal commission bill at any time 
     after the conclusion of such 2-day period. A motion to 
     proceed is in order even though a previous motion to the same 
     effect has been disagreed to. All points of order against the 
     motion to proceed to the fiscal commission bill are waived. 
     The motion to proceed is not debatable. The motion is not 
     subject to a motion to postpone. A motion to reconsider the 
     vote by which the motion is agreed to or disagreed to shall 
     not be in order. If a motion to proceed to the consideration 
     of the fiscal commission bill is agreed to, the fiscal 
     commission bill shall remain the unfinished business until 
     disposed of.
       (3) Consideration.--All points of order against the fiscal 
     commission bill and against consideration of the fiscal 
     commission bill are waived. Consideration of the fiscal 
     commission bill and of all debatable motions and appeals in 
     connection therewith shall not exceed a total of 30 hours 
     which shall be divided equally between the Majority and 
     Minority Leaders or their designees. A motion further to 
     limit debate on the fiscal commission bill is in order, shall 
     require an affirmative vote of three-fifths of the Members 
     duly chosen and sworn, and is not debatable. Any debatable 
     motion or appeal is debatable for not to exceed 1 hour, to be 
     divided equally between those favoring and those opposing the 
     motion or appeal. All time used for consideration of the 
     fiscal commission bill, including time used for quorum calls 
     and voting, shall be counted against the total 30 hours of 
     consideration.
       (4) No amendments.--An amendment to the fiscal commission 
     bill, or a motion to postpone, or a motion to proceed to the 
     consideration of other business, or a motion to recommit the 
     fiscal commission bill, is not in order.
       (5) Vote on passage.--If the Senate has voted to proceed to 
     the fiscal commission bill, the vote on passage of the fiscal 
     commission bill shall occur immediately following the 
     conclusion of the debate on a fiscal commission bill, and a 
     single quorum call at the conclusion of the debate if 
     requested. The vote on passage of the fiscal commission bill 
     shall occur not later than December 15, 2018.
       (6) Rulings of the chair on procedure.--Appeals from the 
     decisions of the Chair relating to the application of the 
     rules of the Senate, as the case may be, to the procedure 
     relating to a fiscal commission bill shall be decided without 
     debate.
       (d) Amendment.--The fiscal commission bill shall not be 
     subject to amendment in either the House of Representatives 
     or the Senate.
       (e) Consideration by the Other House.--
       (1) In general.--If, before passing the fiscal commission 
     bill, one House receives from the other a fiscal commission 
     bill--
       (A) the fiscal commission bill of the other House shall not 
     be referred to a committee; and
       (B) the procedure in the receiving House shall be the same 
     as if no fiscal commission bill had been received from the 
     other House until the vote on passage, when the fiscal 
     commission bill received from the other House shall supplant 
     the fiscal commission bill of the receiving House.
       (2) Revenue measure.--This subsection shall not apply to 
     the House of Representatives if the fiscal commission bill 
     received from the Senate is a revenue measure.
       (f) Rules to Coordinate Action With Other House.--
       (1) Treatment of fiscal commission bill of other house.--If 
     the Senate fails to introduce or consider a fiscal commission 
     bill under this section, the fiscal commission bill of the 
     House shall be entitled to expedited floor procedures under 
     this section.
       (2) Treatment of companion measures in the senate.--If 
     following passage of the fiscal commission bill in the 
     Senate, the Senate then receives the fiscal commission bill 
     from the House of Representatives, the House-passed fiscal 
     commission bill shall not be debatable. The vote on passage 
     of the fiscal commission bill in the Senate shall be 
     considered to be the vote on passage of the fiscal commission 
     bill received from the House of Representatives.
       (3) Vetoes.--If the President vetoes the fiscal commission 
     bill, debate on a veto message in the Senate under this 
     section shall be 1 hour equally divided between the majority 
     and minority leaders or their designees.
       (g) Loss of Privilege.--The provisions of this section 
     shall cease to apply to the fiscal commission bill if--
       (1) the fiscal commission fails to vote on the report or 
     proposed legislative language required under section 
     12010(b)(3)(B)(i) not later than November 15, 2018;
       (2) the fiscal commission bill does not meet the 
     requirements of section 12010(b)(3)(B)(i)(II); or
       (3) the fiscal commission bill does not pass both Houses 
     not later than December 15, 2018.

     SEC. 12012. FUNDING.

       Funding for the fiscal commission shall be derived in equal 
     portions from--
       (1) the applicable accounts of the House of 
     Representatives; and
       (2) the contingent fund of the Senate from the 
     appropriations account ``Miscellaneous Items'', subject to 
     the rules and regulations of the Senate.

     SEC. 12013. RULEMAKING.

       The provisions of this part are enacted by Congress--
       (1) as an exercise of the rulemaking power of the House of 
     Representatives and the Senate, respectively, and as such 
     they shall be considered as part of the rules of each House, 
     respectively, or of that House to which they specifically 
     apply, and such rules shall supersede other rules only to the 
     extent that they are inconsistent therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of such House.
                                 ______
                                 
  SA 1683. Mr. BENNET submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page 104, strike line 1 and all that follows 
     through page 112, line 12 and insert the following:

                     Subtitle B--Revenue Neutrality

                  PART I--ENSURING REVENUE NEUTRALITY

     SEC. 12001. ADJUSTMENT OF HIGHEST RATE BRACKETS.

       (a) Joint Returns.--The last 2 rows of the table contained 
     in section 1(j)(2)(A), as added by section 11001(a), are 
     amended to read as follows:


``Over $400,000 but not over $480,050.....  $91,479, plus 35% of the
                                             excess over $400,000.
Over $480,050.............................  $119,496.50, plus 39.6% of
                                             the excess over
                                             $480,050.''.

       (b) Heads of Households.--The last 2 rows of the table 
     contained in section 1(j)(2)(B), as added by section 
     11001(a), are amended to read as follows:


``Over $200,000 but not over $453,350.....  $44,348, plus 35% of the
                                             excess over $200,000.
Over $453,350.............................  $133,020.50, plus 39.6% of
                                             the excess over
                                             $453,350.''.

       (c) Unmarried Individuals.--The last 2 rows of the table 
     contained in section 1(j)(2)(C), as added by section 
     11001(a), are amended to read as follows:


``Over $200,000 but not over $426,700.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $426,700.............................  $125,084.50, plus 39.6% of
                                             the excess over
                                             $426,700.''.

       (d) Married Individuals Filing Separate Returns.--The last 
     2 rows of the table contained in section 1(j)(2)(D), as added 
     by section 11001(a), are amended to read as follows:


``Over $200,000 but not over $240,026.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $240,026.............................  $59,748.60, plus 39.6% of
                                             the excess over
                                             $240,026.''.

       (e) Estates and Trusts.--The last 2 rows of the table 
     contained in section 1(j)(2)(E), as added by section 
     11001(a), are amended to read as follows:


``Over $9,150 but not over $12,700........  $1,839, plus 35% of the
                                             excess over $9,150.
Over $12,700..............................  $3,081.50, plus 39.6% of the
                                             excess over $12,700.''.

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

     SEC. 12002. CORPORATE TAX RATE.

       (a) In General.--Section 11(b), as amended by section 
     13001, is amended by striking ``20 percent'' and inserting 
     ``28 percent''.

[[Page S7585]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 12003. DECREASE IN ESTATE AND GIFT TAX EXEMPTION.

       (a) In General.--Section 2010(c)(3) is amended by striking 
     subparagraph (C), as added by this Act.
       (b) Conforming Amendment.--Subsection (g) of section 2001 
     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, 2017.

     SEC. 12004. ORDINARY INCOME TREATMENT IN THE CASE OF 
                   PARTNERSHIP INTERESTS HELD IN CONNECTION WITH 
                   PERFORMANCE OF SERVICES.

       (a) In General.--Section 1061, as amended by section 
     13310(a) of this Act, is amended to read as follows:

     ``SEC. 1061. PARTNERSHIP INTERESTS HELD IN CONNECTION WITH 
                   PERFORMANCE OF SERVICES.

       ``(a) In General.--If one or more applicable partnership 
     interests are held by a taxpayer at any time during the 
     taxable year, so much of--
       ``(1) the taxpayer's net capital gain with respect to such 
     interests for such taxable year, as does not exceed
       ``(2) the taxpayer's recharacterization account balance for 
     such taxable year,
     shall be treated as ordinary income.
       ``(b) Net Capital Gain.--
       ``(1) In general.--For purposes of subsection (a)(1), net 
     capital gain shall be determined under section 1222, except 
     that such section shall be applied--
       ``(A) without regard to the recharacterization of any item 
     as ordinary income under this section,
       ``(B) by only taking into account items of gain and loss--
       ``(i) taken into account by the taxpayer under section 702 
     with respect to any applicable partnership interest,
       ``(ii) recognized by the taxpayer on the disposition of any 
     such interest, or
       ``(iii) recognized by the taxpayer under paragraph (4) on a 
     distribution of property with respect to such interest, and
       ``(C) in the case of a taxable year for which section 1231 
     gains (as defined in section 1231(a)(3)(A)) exceed section 
     1231 losses (as defined in section 1231(a)(3)(B)), by 
     treating property which is taken into account in determining 
     such gains and losses as capital assets held for more than 1 
     year.
       ``(2) Allocation to items of gain.--The amount treated as 
     ordinary income under subsection (a) shall be allocated 
     ratably among the items of long-term capital gain taken into 
     account in determining net capital gain under paragraph (1).
       ``(3) Recognition of gain on disposition of applicable 
     partnership interests.--Any gain on the disposition of any 
     applicable partnership interest shall be recognized 
     notwithstanding any other provision of this title.
       ``(4) Recognition of gain on distributions of partnership 
     property.--
       ``(A) In general.--In the case of any distribution of 
     property by a partnership with respect to any applicable 
     partnership interest, the partner receiving such property 
     shall recognize gain equal to the excess (if any) of--
       ``(i) the fair market value of such property at the time of 
     such distribution, over
       ``(ii) the adjusted basis of such property in the hands of 
     such partner (determined without regard to subparagraph (B)).
       ``(B) Adjustment of basis.--In the case of a distribution 
     to which subparagraph (A) applies, the basis of the 
     distributed property in the hands of the distributee partner 
     shall be the amount determined under subparagraph (A)(i).
       ``(c) Recharacterization Account Balance.--
       ``(1) In general.--For purposes of this section, the term 
     `recharacterization account balance' means, with respect to 
     any taxpayer for any taxable year, the excess (if any) of--
       ``(A) the sum of--
       ``(i) the taxpayer's aggregate annual recharacterization 
     amounts with respect to applicable partnership interests for 
     such taxable year, plus
       ``(ii) the taxpayer's recharacterization account balance 
     for the taxable year preceding such taxable year, over
       ``(B) the sum of--
       ``(i) the taxpayer's net ordinary income with respect to 
     applicable partnership interests for such taxable year 
     (determined without regard to this section), plus
       ``(ii) the amount treated as ordinary income of the 
     taxpayer under this section for the taxable year preceding 
     such taxable year.
       ``(2) Annual recharacterization amount.--For purposes of 
     this subsection--
       ``(A) In general.--The term `annual recharacterization 
     amount' means, with respect to any applicable partnership 
     interest for any partnership taxable year, an amount equal to 
     the product of--
       ``(i) the specified rate determined under subparagraph (B) 
     for the calendar year in which such taxable year begins, 
     multiplied by
       ``(ii) the excess (if any) of--

       ``(I) an amount equal to the applicable percentage of the 
     partnership's aggregate invested capital for such taxable 
     year, over
       ``(II) the specified capital contribution of the partner 
     with respect to the applicable partnership interest for such 
     taxable year.

     If a taxpayer holds an applicable partnership interest for 
     less than the entire taxable year, the amount determined 
     under the preceding sentence shall be ratably reduced.
       ``(B) Specified rate.--For purposes of subparagraph (A), 
     the term `specified rate' means, with respect to any calendar 
     year, a percentage equal to--
       ``(i) the Federal long-term rate determined under section 
     1274(d)(1) for the last month of the calendar year, plus
       ``(ii) 10 percentage points.
       ``(C) Applicable percentage.--
       ``(i) In general.--The term `applicable percentage' means, 
     with respect to any applicable partnership interest, the 
     highest percentage of profits of the partnership that could 
     be allocated with respect to such interest for the taxable 
     year (consistent with the partnership agreement and assuming 
     such facts and circumstances with respect to such taxable 
     year as would result in such highest percentage).
       ``(ii) Secretarial authority.--The Secretary shall 
     prescribe rules for the determination of the applicable 
     percentage in cases in which the percentage of profits of a 
     partnership that are to be allocated with respect to an 
     applicable partnership interest varies on the basis of the 
     aggregate amount of such profits. Such rules may provide a 
     percentage which may be used in lieu of the highest 
     percentage determined under clause (i) in cases where such 
     other percentage is consistent with the purposes of this 
     section.
       ``(D) Aggregate invested capital.--
       ``(i) In general.--The term `aggregate invested capital' 
     means, with respect to any taxable year, the average daily 
     amount of invested capital of the partnership for such 
     taxable year.
       ``(ii) Invested capital.--The term `invested capital' 
     means, with respect to any partnership as of any day, the 
     total cumulative value, determined at the time of 
     contribution, of all money or other property contributed to 
     the partnership on or before such day.
       ``(iii) Reduction for liquidation of partnership 
     interests.--The invested capital of a partnership shall be 
     reduced by the aggregate amount distributed in liquidation of 
     interests in the partnership.
       ``(iv) Treatment of certain indebtedness as invested 
     capital.--The following amounts shall be treated as invested 
     capital:

       ``(I) Partner loans.--The aggregate value (determined as of 
     the time of the loan) of money or other property which a 
     partner loans to the partnership.
       ``(II) Indebtedness eligible to share in equity of the 
     partnership.--The face amount of any convertible debt of the 
     partnership or any debt obligation providing equity 
     participation in the partnership.

       ``(E) Specified capital contribution.--
       ``(i) In general.--The term `specified capital 
     contribution' means, with respect to any applicable 
     partnership interest for any taxable year, the average daily 
     amount of contributed capital with respect to such interest 
     for such year.
       ``(ii) Contributed capital.--The term `contributed capital' 
     means, with respect to applicable partnership interest as of 
     any day, the excess (if any) of--

       ``(I) the total cumulative value, determined at the time of 
     contribution, of all money or other property contributed by 
     the partner to the partnership with respect to such interest 
     as of such day, over
       ``(II) the total cumulative value, determined at the time 
     of distribution, of all money or other property distributed 
     by the partnership to the partner with respect to such 
     interest as of such day.

       ``(iii) Treatment of related party borrowings.--Any amount 
     borrowed directly or indirectly from the partnership or any 
     other partner of the partnership or any person related to 
     such other partner or such partnership shall not be taken 
     into account under this subparagraph. For purposes of the 
     preceding sentence, a person shall be treated as related to 
     another person if the relationship between such persons would 
     be described in section 267(b) or 707(b) if such sections and 
     section 267(f) were applied by substituting `10 percent' for 
     `50 percent' each place it appears.
       ``(F) Multiple interests.--If at any time during a taxable 
     year a taxpayer holds directly or indirectly more than 1 
     applicable partnership interest in a single partnership, such 
     interests shall be treated as 1 applicable partnership 
     interest for purposes of applying this paragraph.
       ``(3) Net ordinary income.--For purposes of this 
     subsection, the net ordinary income with respect to 
     applicable partnership interests for any taxable year is the 
     excess (if any) of--
       ``(A) the taxpayer's distributive share of items of income 
     and gain under section 702

[[Page S7586]]

     with respect to applicable partnership interests for such 
     taxable year (determined without regard to any items of gain 
     taken into account in determining net capital gain under 
     subsection (b)(1)), over
       ``(B) the taxpayer's distributive share of items of 
     deduction and loss under section 702 with respect to such 
     interests for such taxable year (determined without regard to 
     any items of loss taken into account in determining net 
     capital gain under subsection (b)(1)).
       ``(d) Applicable Partnership Interest.--For purposes of 
     this section--
       ``(1) In general.--The term `applicable partnership 
     interest' means any interest in a partnership which, directly 
     or indirectly, is transferred to (or is held by) the taxpayer 
     in connection with the performance of services by the 
     taxpayer, or any other person, in any applicable trade or 
     business.
       ``(2) Applicable trade or business.--
       ``(A) In general.--The term `applicable trade or business' 
     means any trade or business conducted on a regular, 
     continuous, and substantial basis which, regardless of 
     whether the activities are conducted in one or more entities, 
     consists, in whole or in part, of--
       ``(i) raising or returning capital,
       ``(ii) investing in (or disposing of) trades or businesses 
     (or identifying trades or businesses for such investing or 
     disposition), and
       ``(iii) developing such trades or businesses.
       ``(B) Treatment of research and experimentation 
     activities.--Any activity involving research or 
     experimentation (within the meaning of section 469(c)(5)) 
     shall be treated as a trade or business for purposes of 
     clauses (ii) and (iii) of subparagraph (A).
       ``(C) Treatment of real property trades or businesses.--Any 
     activity involving real property development, redevelopment, 
     construction, reconstruction, acquisition, conversion, 
     rental, operation, management, leasing, or brokerage shall be 
     treated as a trade or business for purposes of clauses (ii) 
     and (iii) of subparagraph (A).
       ``(e) Transfer of Applicable Partnership Interest to 
     Related Person.--
       ``(1) In general.--If a taxpayer transfers any applicable 
     partnership interest, directly or indirectly, to a person 
     related to the taxpayer, the taxpayer shall include in gross 
     income (as ordinary income) so much of the taxpayer's 
     recharacterization account balance for such taxable year as 
     is allocable to such interest (determined in such manner as 
     the Secretary may provide and reduced by any amount treated 
     as ordinary income under subsection (a) with respect to the 
     transfer of such interest).
       ``(2) Related person.--For purposes of this paragraph, a 
     person is related to the taxpayer if--
       ``(A) the person is a member of the taxpayer's family 
     within the meaning of section 318(a)(1), or
       ``(B) the person performed a service within the current 
     calendar year or the preceding three calendar years in any 
     applicable trade or business in which or for which the 
     taxpayer performed a service.
       ``(f) Reporting by Entity of Taxpayer's Annual 
     Recharacterization Amount.--A partnership shall report to the 
     Secretary, and include with the information required to be 
     furnished under section 6031(b) to each partner, the amount 
     of the partner's annual recharacterization amount for the 
     taxable year, if any. A similar rule applies to any entity 
     that receives a report of an annual recharacterization amount 
     for the taxable year.
       ``(g) Coordination With Section 199A.--No item of income, 
     gain, deduction, or loss, or W-2 wages, which are properly 
     allocable to an applicable partnership interest shall be 
     taken into account in computing the qualified business income 
     of a taxpayer for purposes of section 199A or the amount of 
     the deduction under such section.
       ``(h) Regulations.--The Secretary shall issue such 
     regulations or other guidance as necessary to carry out this 
     section, including regulations--
       ``(1) to prevent the abuse of the purposes of this section, 
     including through--
       ``(A) the allocation of income to tax indifferent parties, 
     or
       ``(B) a reduction in the invested capital of the 
     partnership (including attempts to undervalue contributed or 
     loaned property),
       ``(2) which provide that partnership interests shall not 
     fail to be treated as transferred or held in connection with 
     the performance of services merely because the taxpayer also 
     made contributions to the partnership,
       ``(3) which provide for the application of this section in 
     cases where the taxpayer has more than 1 applicable interest 
     in a partnership, and
       ``(4) which provide for the application of this section in 
     cases of tiered structures of entities.''.
       (b) Coordination With Section 83.--Subsection (e) of 
     section 83 is amended by striking ``or'' at the end of 
     paragraph (4), by striking the period at the end of paragraph 
     (5) and inserting ``, or'', and by adding at the end the 
     following new paragraph:
       ``(6) a transfer of a partnership interest to which section 
     1061 applies.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendments made by 
     section 13310 of this Act.

     PART II--FISCAL COMMISSION ON REVENUE NEUTRALITY ALTERNATIVES

     SEC. 12010. ESTABLISHMENT OF FISCAL COMMISSION.

       (a) Definitions.--In this part:
       (1) Commission.--The term ``fiscal commission'' means the 
     Fiscal Commission on Revenue Neutrality Alternatives 
     established under subsection (b)(1).
       (2) Fiscal commission bill.--The term ``fiscal commission 
     bill'' means a bill consisting of the proposed legislative 
     language of the fiscal commission recommended under 
     subsection (b)(3)(B)(i)(II) and introduced under section 
     12011.
       (b) Establishment of Fiscal Commission.--
       (1) Establishment.--There is established a joint select 
     committee of Congress to be known as the ``Fiscal Commission 
     on Revenue Neutrality Alternatives''.
       (2) Goal.--The goal of the fiscal commission shall be to 
     reduce the deficit over the period of fiscal years 2018 
     through 2027 by an amount that is not less than the amount by 
     which the amendments made by part I of this subtitle would 
     reduce the deficit over such period..
       (3) Duties.--
       (A) In general.--The fiscal commission shall provide 
     recommendations and legislative language for alternatives to 
     the amendments made in part I of this subtitle that would 
     reduce the deficit over the period of fiscal years 2018 
     through 2027 by an amount that is not less than the amount by 
     which the amendments made by part I of this subtitle would 
     reduce the deficit over such period.
       (B) Report, recommendations, and legislative language.--
       (i) In general.--Not later than November 15, 2018, the 
     fiscal commission shall vote on--

       (I) a report that contains a detailed statement of the 
     findings, conclusions, and recommendations of the fiscal 
     commission and the estimate of the Congressional Budget 
     Office required by paragraph (5)(D)(ii); and
       (II) proposed legislative language to carry out such 
     recommendations as described in subclause (I) that--

       (aa) would repeal or modify some or all of the amendments 
     made by part I of this subtitle;
       (bb) consists only of provisions which would result in 
     changes in outlays or revenues; and
       (cc) if enacted into law, would reduce the deficit over the 
     period of fiscal years 2018 through 2027 by an amount that is 
     not less than the amount by which the amendments made by part 
     I of this subtitle would reduce the deficit over such period.

     Any change to the Rules of the House of Representatives or 
     the Standing Rules of the Senate included in the report or 
     legislative language shall be considered to be merely 
     advisory.
       (ii) Approval of report and legislative language.--The 
     report of the fiscal commission and the proposed legislative 
     language described in clause (i) shall require the approval 
     of a majority of the members of the fiscal commission.
       (iii) Transmission of report and legislative language.--If 
     the report and legislative language are approved by the 
     fiscal commission pursuant to clause (ii), then not later 
     than November 15, 2018, the fiscal commission shall submit 
     the fiscal commission report and legislative language 
     described in clause (i) to the President, the Vice President, 
     the Speaker of the House of Representatives, and the majority 
     and minority Leaders of each House of Congress.
       (4) Membership.--
       (A) In general.--The fiscal commission shall be composed of 
     12 members appointed pursuant to subparagraph (B).
       (B) Appointment.--Members of the fiscal commission shall be 
     appointed as follows:
       (i) The majority leader of the Senate shall appoint 3 
     members from among Members of the Senate.
       (ii) The minority leader of the Senate shall appoint 3 
     members from among Members of the Senate.
       (iii) The Speaker of the House of Representatives shall 
     appoint 3 members from among Members of the House of 
     Representatives.
       (iv) The minority leader of the House of Representatives 
     shall appoint 3 members from among Members of the House of 
     Representatives.
       (C) Co-chairs.--
       (i) In general.--There shall be two Co-Chairs of the fiscal 
     commission. The majority leader of the Senate shall appoint 
     one Co-Chair from among the members of the fiscal commission. 
     The Speaker of the House of Representatives shall appoint the 
     second Co-Chair from among the members of the fiscal 
     commission. The Co-Chairs shall be appointed not later than 
     14 calendar days after the date of enactment of this Act.
       (ii) Staff director.--The Co-Chairs, acting jointly, shall 
     hire the staff director of the fiscal commission.
       (D) Date.--Members of the fiscal commission shall be 
     appointed not later than 14 calendar days after the date of 
     enactment of this Act.
       (E) Period of appointment.--Members shall be appointed for 
     the life of the fiscal commission. Any vacancy in the fiscal 
     commission shall not affect its powers, but shall be filled 
     not later than 14 calendar days after the date on which the 
     vacancy occurs, in the same manner as the original 
     designation was made. If a member of the fiscal commission 
     ceases to be a Member of the House of Representatives or the 
     Senate, as the case may be, the member is no longer a member 
     of the fiscal commission and a vacancy shall exist.

[[Page S7587]]

       (5) Administration.--
       (A) In general.--To enable the fiscal commission to 
     exercise its powers, functions, and duties, there are 
     authorized to be disbursed by the Senate the actual and 
     necessary expenses of the fiscal commission approved by the 
     co-chairs, subject to the rules and regulations of the 
     Senate.
       (B) Expenses.--In carrying out its functions, the fiscal 
     commission is authorized to incur expenses in the same manner 
     and under the same conditions as the Joint Economic Committee 
     is authorized by section 11 of Public Law 79-304 (15 U.S.C. 
     1024 (d)).
       (C) Quorum.--Seven members of the fiscal commission shall 
     constitute a quorum for purposes of voting, meeting, and 
     holding hearings.
       (D) Voting.--
       (i) Proxy voting.--No proxy voting shall be allowed on 
     behalf of the members of the fiscal commission.
       (ii) Congressional budget office estimates.--The 
     Congressional Budget Office shall provide estimates of the 
     legislation (as described in paragraph (3)(B)) in accordance 
     with sections 308(a) and 201(f) of the Congressional Budget 
     Act of 1974 (2 U.S.C. 639(a) and 601(f))(including estimates 
     of the effect of interest payment on the debt). The fiscal 
     commission may not vote on any version of the report, 
     recommendations, or legislative language unless such 
     estimates are available for consideration by all members of 
     the fiscal commission at least 48 hours prior to the vote as 
     certified by the Co-Chairs.
       (E) Meetings.--
       (i) Initial meeting.--Not later than 45 calendar days after 
     the date of enactment of this Act, the fiscal commission 
     shall hold its first meeting.
       (ii) Agenda.--The Co-Chairs of the fiscal commission shall 
     provide an agenda to the fiscal commission members not less 
     than 48 hours in advance of any meeting.
       (F) Hearings.--
       (i) In general.--The fiscal commission may, for the purpose 
     of carrying out this section, hold such hearings, sit and act 
     at such times and places, require attendance of witnesses and 
     production of books, papers, and documents, take such 
     testimony, receive such evidence, and administer such oaths 
     as the fiscal commission considers advisable.
       (ii) Hearing procedures and responsibilities of co-
     chairs.--

       (I) Announcement.--The Co-Chairs of the fiscal commission 
     shall make a public announcement of the date, place, time, 
     and subject matter of any hearing to be conducted, not less 
     than 7 days in advance of such hearing, unless the Co-Chairs 
     determine that there is good cause to begin such hearing at 
     an earlier date.
       (II) Written statement.--A witness appearing before the 
     fiscal commission shall file a written statement of proposed 
     testimony at least 2 calendar days before the appearance of 
     the witness, unless the requirement is waived by the Co-
     Chairs, following their determination that there is good 
     cause for failure to comply with such requirement.

       (G) Technical assistance.--Upon written request of the Co-
     Chairs, a Federal agency shall provide technical assistance 
     to the fiscal commission in order for the fiscal commission 
     to carry out its duties.
       (c) Staff of Fiscal Commission.--
       (1) In general.--The Co-Chairs of the fiscal commission may 
     jointly appoint and fix the compensation of staff as they 
     deem necessary, within the guidelines for employees of the 
     Senate and following all applicable rules and employment 
     requirements of the Senate.
       (2) Ethical standards.--Members on the fiscal commission 
     who serve in the House of Representatives shall be governed 
     by the ethics rules and requirements of the House. Members of 
     the Senate who serve on the fiscal commission and staff of 
     the fiscal commission shall comply with the ethics rules of 
     the Senate.
       (d) Termination.--The fiscal commission shall terminate on 
     January 1, 2019.

     SEC. 12011. EXPEDITED CONSIDERATION OF FISCAL COMMISSION 
                   RECOMMENDATIONS.

       (a) Introduction.--If approved by the majority required by 
     section 12010(b)(3)(B)(ii), the proposed legislative language 
     submitted pursuant to section 12010(b)(3)(B)(iii) shall be 
     introduced in the Senate (by request) on the next day on 
     which the Senate is in session by the majority leader of the 
     Senate or by a Member of the Senate designated by the 
     majority leader of the Senate and shall be introduced in the 
     House of Representatives (by request) on the next legislative 
     day by the majority leader of the House or by a Member of the 
     House designated by the majority leader of the House.
       (b) Consideration in the House of Representatives.--
       (1) Reporting and discharge.--Any committee of the House of 
     Representatives to which a fiscal commission bill is referred 
     shall report it to the House without amendment not later than 
     5 calendar days after the date of introduction of a fiscal 
     commission bill described in subsection (a). If a committee 
     fails to report the fiscal commission bill within that 
     period, the committee shall be discharged from further 
     consideration of the fiscal commission bill and the fiscal 
     commission bill shall be referred to the appropriate 
     calendar.
       (2) Proceeding to consideration.--After each committee 
     authorized to consider a fiscal commission bill reports it to 
     the House or has been discharged from its consideration, it 
     shall be in order, not later than the sixth day after 
     introduction of a fiscal commission bill under subsection 
     (a), to move to proceed to consider the fiscal commission 
     bill in the House. All points of order against the motion are 
     waived. Such a motion shall not be in order after the House 
     has disposed of a motion to proceed on a fiscal commission 
     bill addressing a particular submission. The previous 
     question shall be considered as ordered on the motion to its 
     adoption without intervening motion. The motion shall not be 
     debatable. A motion to reconsider the vote by which the 
     motion is disposed of shall not be in order.
       (3) Consideration.--The fiscal commission bill shall be 
     considered as read. All points of order against the fiscal 
     commission bill and against its consideration are waived. The 
     previous question shall be considered as ordered on the 
     fiscal commission bill to its passage without intervening 
     motion except two hours of debate equally divided and 
     controlled by the proponent and an opponent. A motion to 
     reconsider the vote on passage of the fiscal commission bill 
     shall not be in order.
       (4) Vote on passage.--The vote on passage of the fiscal 
     commission bill shall occur not later than November 30, 2018.
       (c) Expedited Procedure in the Senate.--
       (1) Committee consideration.--A fiscal commission bill 
     introduced in the Senate under subsection (a) shall be 
     jointly referred to the committee or committees of 
     jurisdiction, which committees shall report the bill without 
     any revision and with a favorable recommendation, an 
     unfavorable recommendation, or without recommendation, not 
     later than 5 calendar days after the date of introduction 
     described in subsection (a). If any committee fails to report 
     the bill within that period, that committee shall be 
     automatically discharged from consideration of the bill, and 
     the bill shall be placed on the appropriate calendar.
       (2) Motion to proceed.--Notwithstanding Rule XXII of the 
     Standing Rules of the Senate, it is in order, not later than 
     2 days of session after the date on which a fiscal commission 
     bill is reported or discharged from all committees to which 
     it was referred, for the majority leader of the Senate or the 
     majority leader's designee to move to proceed to the 
     consideration of the fiscal commission bill. It shall also be 
     in order for any Member of the Senate to move to proceed to 
     the consideration of the fiscal commission bill at any time 
     after the conclusion of such 2-day period. A motion to 
     proceed is in order even though a previous motion to the same 
     effect has been disagreed to. All points of order against the 
     motion to proceed to the fiscal commission bill are waived. 
     The motion to proceed is not debatable. The motion is not 
     subject to a motion to postpone. A motion to reconsider the 
     vote by which the motion is agreed to or disagreed to shall 
     not be in order. If a motion to proceed to the consideration 
     of the fiscal commission bill is agreed to, the fiscal 
     commission bill shall remain the unfinished business until 
     disposed of.
       (3) Consideration.--All points of order against the fiscal 
     commission bill and against consideration of the fiscal 
     commission bill are waived. Consideration of the fiscal 
     commission bill and of all debatable motions and appeals in 
     connection therewith shall not exceed a total of 30 hours 
     which shall be divided equally between the Majority and 
     Minority Leaders or their designees. A motion further to 
     limit debate on the fiscal commission bill is in order, shall 
     require an affirmative vote of three-fifths of the Members 
     duly chosen and sworn, and is not debatable. Any debatable 
     motion or appeal is debatable for not to exceed 1 hour, to be 
     divided equally between those favoring and those opposing the 
     motion or appeal. All time used for consideration of the 
     fiscal commission bill, including time used for quorum calls 
     and voting, shall be counted against the total 30 hours of 
     consideration.
       (4) No amendments.--An amendment to the fiscal commission 
     bill, or a motion to postpone, or a motion to proceed to the 
     consideration of other business, or a motion to recommit the 
     fiscal commission bill, is not in order.
       (5) Vote on passage.--If the Senate has voted to proceed to 
     the fiscal commission bill, the vote on passage of the fiscal 
     commission bill shall occur immediately following the 
     conclusion of the debate on a fiscal commission bill, and a 
     single quorum call at the conclusion of the debate if 
     requested. The vote on passage of the fiscal commission bill 
     shall occur not later than December 15, 2018.
       (6) Rulings of the chair on procedure.--Appeals from the 
     decisions of the Chair relating to the application of the 
     rules of the Senate, as the case may be, to the procedure 
     relating to a fiscal commission bill shall be decided without 
     debate.
       (d) Amendment.--The fiscal commission bill shall not be 
     subject to amendment in either the House of Representatives 
     or the Senate.
       (e) Consideration by the Other House.--
       (1) In general.--If, before passing the fiscal commission 
     bill, one House receives from the other a fiscal commission 
     bill--
       (A) the fiscal commission bill of the other House shall not 
     be referred to a committee; and
       (B) the procedure in the receiving House shall be the same 
     as if no fiscal commission bill had been received from the 
     other House until the vote on passage, when the fiscal 
     commission bill received from the other

[[Page S7588]]

     House shall supplant the fiscal commission bill of the 
     receiving House.
       (2) Revenue measure.--This subsection shall not apply to 
     the House of Representatives if the fiscal commission bill 
     received from the Senate is a revenue measure.
       (f) Rules to Coordinate Action With Other House.--
       (1) Treatment of fiscal commission bill of other house.--If 
     the Senate fails to introduce or consider a fiscal commission 
     bill under this section, the fiscal commission bill of the 
     House shall be entitled to expedited floor procedures under 
     this section.
       (2) Treatment of companion measures in the senate.--If 
     following passage of the fiscal commission bill in the 
     Senate, the Senate then receives the fiscal commission bill 
     from the House of Representatives, the House-passed fiscal 
     commission bill shall not be debatable. The vote on passage 
     of the fiscal commission bill in the Senate shall be 
     considered to be the vote on passage of the fiscal commission 
     bill received from the House of Representatives.
       (3) Vetoes.--If the President vetoes the fiscal commission 
     bill, debate on a veto message in the Senate under this 
     section shall be 1 hour equally divided between the majority 
     and minority leaders or their designees.
       (g) Loss of Privilege.--The provisions of this section 
     shall cease to apply to the fiscal commission bill if--
       (1) the fiscal commission fails to vote on the report or 
     proposed legislative language required under section 
     12010(b)(3)(B)(i) not later than November 15, 2018;
       (2) the fiscal commission bill does not meet the 
     requirements of section 12010(b)(3)(B)(i)(II); or
       (3) the fiscal commission bill does not pass both Houses 
     not later than December 15, 2018.

     SEC. 12012. FUNDING.

       Funding for the fiscal commission shall be derived in equal 
     portions from--
       (1) the applicable accounts of the House of 
     Representatives; and
       (2) the contingent fund of the Senate from the 
     appropriations account ``Miscellaneous Items'', subject to 
     the rules and regulations of the Senate.

     SEC. 12013. RULEMAKING.

       The provisions of this part are enacted by Congress--
       (1) as an exercise of the rulemaking power of the House of 
     Representatives and the Senate, respectively, and as such 
     they shall be considered as part of the rules of each House, 
     respectively, or of that House to which they specifically 
     apply, and such rules shall supersede other rules only to the 
     extent that they are inconsistent therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of such House.
                                 ______
                                 
  SA 1684. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of part IV of subtitle C of title I, add the 
     following:

     SEC. 13311. PROHIBITION ON CASH, GIFT CARDS, AND OTHER NON-
                   TANGIBLE PERSONAL PROPERTY AS EMPLOYEE 
                   ACHIEVEMENT AWARDS.

       (a) In General.--Subparagraph (A) of section 274(j)(3) is 
     amended--
       (1) by striking ``The term'' and inserting the following:
       ``(i) In general.--The term''.
       (2) by redesignating clauses (i), (ii), and (iii) as 
     subclauses (I), (II), and (III), respectively, and conforming 
     the margins accordingly, and
       (3) by adding at the end the following new clause:
       ``(ii) Tangible personal property.--For purposes of clause 
     (i), the term `tangible personal property' shall not 
     include--

       ``(I) cash, cash equivalents, gift cards, gift coupons, or 
     gift certificates (other than arrangements conferring only 
     the right to select and receive tangible personal property 
     from a limited array of such items pre-selected or pre-
     approved by the employer), or
       ``(II) vacations, meals, lodging, tickets to theater or 
     sporting events, stocks, bonds, other securities, and other 
     similar items.''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to prizes and awards granted in taxable years 
     beginning after December 31, 2017.
                                 ______
                                 
  SA 1685. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 11030. DEDUCTION FOR TUITION PAYMENTS FOR QUALIFIED 
                   RELIGIOUS INSTRUCTION.

       (a) In General.--Section 170 is amended by redesignating 
     subsection (p) as subsection (q), and by inserting after 
     subsection (o) the following new subsection:
       ``(p) Treatment of Certain Tuition Payments Paid for 
     Qualified Religious Instruction.--
       ``(1) In general.--For purposes of this section, 25 percent 
     of any amount described in paragraph (2) shall be treated as 
     a charitable contribution.
       ``(2) Amount described.--For purposes of paragraph (1), an 
     amount is described in this paragraph if--
       ``(A) such amount would be treated as payment of qualified 
     tuition and related expenses for purposes of section 
     25A(f)(1) but for the fact that such payment is made to a 
     primary or secondary educational organization described in 
     subparagraph (b)(1)(A)(ii) rather than an eligible 
     educational institution (as defined in section 25A(f)(2)),
       ``(B) such payment is made after December 31, 2018, and 
     before January 1, 2021,
       ``(C) such organization certifies that 30 percent of the 
     instruction it provides each academic year consists of 
     qualified religious instruction, and
       ``(D) such organization has provided the taxpayer a 
     statement which contains the information required by section 
     6050T.
       ``(3) Qualified religious instruction.--For purposes of 
     this subsection, the term `qualified religious instruction' 
     means academic instruction or training regarding a particular 
     religion (including tenets, doctrines, beliefs, rituals, 
     customs, and rites) of a type not generally offered in public 
     school curricula, which is provided by a teacher or other 
     instructor who is certified as having had significant post-
     secondary religious studies.
       ``(4) No double benefit.--No deduction shall be allowed 
     under this subsection for the amount of any expense for which 
     a deduction, credit, or exclusion is allowed to the taxpayer 
     under any other provision of this chapter.''.
       (b) Information Returns.--Subpart B of part III of 
     subchapter A of chapter 61 is amended by adding at the end 
     the following new section:

     ``SEC. 6050X. RETURNS RELATING TO TUITION FOR QUALIFIED 
                   RELIGIOUS EDUCATION.

       ``(a) In General.--Any educational institution described in 
     section 170(p)(2)(A) which meets the requirements of section 
     170(p)(2)(B) shall make a return with respect to any 
     individual from whom it receives tuition payments and related 
     expenses, in such manner and at such time as the Secretary 
     may by regulations prescribe, which contains:
       ``(1) the name, address, and TIN of the individual with 
     respect to whom tuition payments and related expenses are 
     received,
       ``(2) the net amount of payments for tuition and related 
     expenses described in section 170(p)(2)(A) received with 
     respect to the individual during the calendar year,
       ``(3) a certification that the institution meets the 
     requirements of section 170(p)(2)(B), and
       ``(4) such other information as the Secretary may 
     prescribe.
       ``(b) Statements to Be Furnished to Individuals With 
     Respect to Whom Information Is Required.--Every person 
     required to make a return under subsection (a) shall furnish 
     to each individual whose name is required to be set forth in 
     such return under subparagraph (a)(1) a written statement 
     showing--
       ``(1) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(2) the information described in subsection (a).
     The written statement required under the preceding sentence 
     shall be furnished on or before January 31 of the year 
     following the calendar year for which the return under 
     subsection (a) was required to be made.''.
       (c) Exemption From Substantiation Requirement.--Section 
     170(f)(8)(A) is amended by adding at the end the following: 
     ``The preceding sentence shall not apply to any amount 
     treated as a charitable contribution by reason of subsection 
     (p).''
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2018.
       (2) No inference.--Nothing in the amendments made by this 
     section shall create any inference regarding the tax 
     treatment of any other payment for religious education or 
     training made before, on, or after such date.
                                 ______
                                 
  SA 1686. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page 485, between lines 4 and 5, insert the following:
       ``(5) Exception for amounts included in subpart f income.--
     Paragraph (1) shall not apply to any amount paid or accrued 
     by the taxpayer to the extent such payment is included in the 
     gross income of a United States shareholder under section 
     951(a).''
                                 ______
                                 
  SA 1687. Mr. BARRASSO submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:


[[Page S7589]]


  

       At the appropriate place, insert the following:

     SEC. __. REPEAL OF HEALTH INSURANCE TAX.

       Subsection (j) of section 9010 of the Patient Protection 
     and Affordable Care Act is amended by striking ``, and'' at 
     the end of paragraph (1) and all that follows through 
     ``2017''.
                                 ______
                                 
  SA 1688. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 11030. RIGHT START CHILD CARE AND EDUCATION ACT.

       (a) Increase in Employer-provided Child Care Credit.--
       (1) Increase in creditable percentage of child care 
     expenditures.--Paragraph (1) of section 45F(a) is amended by 
     striking ``25 percent'' and inserting ``35 percent''.
       (2) Increase in creditable percentage of resource and 
     referral expenditures.--Paragraph (2) of section 45F(a) is 
     amended by striking ``10 percent'' and inserting ``20 
     percent''.
       (3) Increase in maximum credit.--Subsection (b) of section 
     45F is amended by striking ``$150,000'' and inserting 
     ``$225,000''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
       (b) Increase in Dependent Care Credit.--
       (1) Increase in incomes eligible for full credit.--
     Paragraph (2) of section 21(a) is amended by striking 
     ``$15,000'' and inserting ``$30,000''.
       (2) Increase in percentage of expenses allowable.--
     Paragraph (2) of section 21(a) is amended--
       (A) by striking ``35 percent'' and inserting ``50 
     percent'', and
       (B) by striking ``20 percent'' and inserting ``35 
     percent''.
       (3) Increase in dollar limit on amount creditable.--
     Subsection (c) of section 21 is amended--
       (A) by striking ``$3,000'' in paragraph (1) and inserting 
     ``$6,000'', and
       (B) by striking ``$6,000'' in paragraph (2) and inserting 
     ``$12,000''.
       (4) Credit to be refundable.--
       (A) In general.--The Internal Revenue Code of 1986 is 
     amended--
       (i) by redesignating section 21 as section 36C, and
       (ii) by moving section 36C, as so redesignated, from 
     subpart A of part IV of subchapter A of chapter 1 to the 
     location immediately before section 37 in subpart C of part 
     IV of subchapter A of chapter 1.
       (B) Technical amendments.--
       (i) Paragraph (1) of section 23(f) is amended by striking 
     ``21(e)'' and inserting ``36C(e)''.
       (ii) Paragraph (6) of section 35(g) is amended by striking 
     ``21(e)'' and inserting ``36C(e)''.
       (iii) Paragraph (1) of section 36C(a) (as redesignated by 
     subparagraph (A)) is amended by striking ``this chapter'' and 
     inserting ``this subtitle''.
       (iv) Subparagraph (C) of section 129(a)(2) is amended by 
     striking ``section 21(e)'' and inserting ``section 36C(e)''.
       (v) Paragraph (2) of section 129(b) is amended by striking 
     ``section 21(d)(2)'' and inserting ``section 36C(d)(2)''.
       (vi) Paragraph (1) of section 129(e) is amended by striking 
     ``section 21(b)(2)'' and inserting ``section 36C(b)(2)''.
       (vii) Subsection (e) of section 213 is amended by striking 
     ``section 21'' and inserting ``section 36C''.
       (viii) Subparagraph (H) of section 6213(g)(2) is amended by 
     striking ``section 21'' and inserting ``section 36C''.
       (ix) Subparagraph (L) of section 6213(g)(2) is amended by 
     striking ``section 21, 24, or 32'' and inserting ``section 
     24, 32, or 36C''.
       (x) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``36C,'' after ``36B,''.
       (xi) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 36B the following:

``Sec. 36C. Expenses for household and dependent care services 
              necessary for gainful employment.''.
       (xii) The table of sections for subpart A of such part IV 
     is amended by striking the item relating to section 21.
       (5) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
       (c) 3-year Credit for Individuals Holding Child Care-
     related Degrees Who Work in Licensed Child Care Facilities.--
       (1) In general.--Subpart A of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 25D the 
     following new section:

     ``SEC. 25E. RIGHT START CHILD CARE AND EDUCATION CREDIT.

       ``(a) Allowance of Credit.--In the case of an individual 
     who is an eligible child care provider for the taxable year, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year the amount of $2,000.
       ``(b) 3-Year Credit.--
       ``(1) In general.--The credit allowable by subsection (a) 
     for any taxable year to an individual shall be allowed for 
     such year only if the individual elects the application of 
     this section for such year.
       ``(2) Election.--An election to have this section apply may 
     not be made by an individual for any taxable year if such an 
     election by such individual is in effect for any 3 prior 
     taxable years.
       ``(c) Eligible Child Care Provider.--For purposes of this 
     section--
       ``(1) In general.--The term `eligible child care provider' 
     means, for any taxable year, any individual if--
       ``(A) as of the close of such taxable year, such individual 
     holds a bachelor's degree in early childhood education, child 
     care, or a related degree and such degree was awarded by an 
     eligible educational institution (as defined in section 
     25A(f)(2)), and
       ``(B) during such taxable year, such individual performs at 
     least 1,200 hours of child care services at a facility if--
       ``(i) the principal use of the facility is to provide child 
     care services,
       ``(ii) no more than 25 percent of the children receiving 
     child care services at the facility are children (as defined 
     in section 152(f)) of the individual or such individual's 
     spouse, and
       ``(iii) the facility meets the requirements of all 
     applicable laws and regulations of the State or local 
     government in which it is located, including the licensing of 
     the facility as a child care facility.
     Subparagraph (B)(i) shall not apply to a facility which is 
     the principal residence (within the meaning of section 121) 
     of the operator of the facility.
       ``(2) Child care services.--The term `child care services' 
     means child care and early childhood education.''.
       (2) Clerical amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 25D the 
     following new item:

``Sec. 25E. Right Start Child Care and Education Credit.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
       (d) Increase in Exclusion for Employer-provided Dependent 
     Care Assistance.--
       (1) In general.--Subparagraph (A) of section 129(a)(2) is 
     amended by striking ``$5,000 ($2,500'' and inserting ``$7,500 
     ($3,750''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1689. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 1____. REPEAL OF PERCENTAGE DEPLETION ALLOWANCE FOR 
                   CERTAIN HARDROCK MINES.

       (a) In General.--Section 613(a) is amended by inserting 
     ``(other than hardrock mines located on lands subject to the 
     general mining laws or on land patented under the general 
     mining laws)'' after ``In the case of the mines''.
       (b) General Mining Laws Defined.--Section 613 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following:
       ``(f) General Mining Laws.--For purposes of subsection (a), 
     the term `general mining laws' means those Acts which 
     generally comprise chapters 2, 12A, and 16, and sections 161 
     and 162 of title 30 of the United States Code.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1690. Mr. TOOMEY (for himself and Mr. Cruz) submitted an amendment 
intended to be proposed by him to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       On page 304, strike lines 17 through 20 and insert the 
     following:
       ``(B) which participated in and received funds through a 
     program described in section 25A(f)(2)(B) during the 
     preceding taxable year,
       ``(C) which is not described in the first sentence of 
     section 511(a)(2)(B) (relating to State colleges and 
     universities), and
       ``(D) the aggregate fair market value of
                                 ______
                                 
  SA 1691. Mr. JOHNSON (for himself and Mr. Graham) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of part V of subtitle A of title I, insert the 
     following:

     SEC. 11052. SUSPENSION OF CORPORATE DEDUCTION FOR STATE AND 
                   LOCAL INCOME TAXES.

       (a) Corporate State and Local Income Taxes.--
       (1) In general. Paragraph (6) of section 164(b), as added 
     by section 11042(a) of this Act, is amended--

[[Page S7590]]

       (A) in the heading, by striking ``INDIVIDUAL'',
       (B) in the matter preceding subparagraph (A), by striking 
     ``an individual and'', and
       (C) in subparagraph (A)--
       (1) by inserting ``in the ease of all individual,'' before 
     ``paragraphs (1) and (2)'', and
       (ii) by striking ``and'' at the end,
       (D) in subparagraph (B), by striking the period and 
     inserting ``, and'', and
       (E) by adding at the end the following new subparagraph:
       ``(C) in the case of a corporation, the second sentence of 
     subsection (a) shall not apply.''.
       (2) Trade or business expense.--Section 162, as amended by 
     sections 13307, 13308, and 13531 of this Act, is amended by 
     redesignating subsection (t) as subsection (u) and by 
     inserting after subsection (s) the following new subsection:
       ``(t) Suspension of Deduction for State and Local Taxes.--
     --In the case of a corporation and a taxable year beginning 
     after December 31, 2017, and before January 1, 2026, no 
     deduction otherwise allowable under this section shall be 
     allowed for any State or local income, war profits, and 
     excess profits taxes (as described in section 164(a)(3)).''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the amendment made by 
     section 11042(a) of this Act.
       (b) Increase in Rate for Deduction for Qualified Business 
     Income of Pass-thru Entities.--
       (1) In general.--Section 199A of the Internal Revenue Code 
     of 1986, as added by section 11011 of this Act, is amended--
       (A) in paragraph (2) of subsection (a), by striking ``17.4 
     percent'' and inserting ``the applicable percentage (as 
     determined under subsection (g))'', and
       (B) in paragraphs (1)(B) and (2)(A) of subsection (b), by 
     striking ``17.4 percent'' each place it appears and inserting 
     ``the applicable percentage (as determined under subsection 
     (g))''.
       (2) Applicable percentage.--Section 199A of the Internal 
     Revenue Code of 1986, as added by section 11011 of this Act, 
     is amended--
       (A) by redesignating subsection (g) as subsection (h), and
       (B) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Applicable Percentage.--
       ``(1) In general.--For purposes of this section, the 
     applicable percentage shall be equal to the sum of 17.4 
     percent plus the additional percentage (as determined under 
     paragraph (2)).
       ``(2) Additional percentage.--The additional percentage 
     shall be the amount (expressed as a percentage) which is 
     determined by the Secretary to permit an increase in the 
     deduction allowed under this section in an amount equal to 
     the increase in revenue resulting from the amendments made by 
     subsection (a) of section 11052 of the Tax Cuts and Jobs 
     Act.''.
       (3) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1692. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. EXTENDING INVESTMENT TAX CREDITS FOR NEW QUALIFIED 
                   FUEL CELL MOTOR VEHICLES AND ALTERNATIVE FUEL 
                   INFRASTRUCTURE.

       (a) New Qualified Fuel Cell Motor Vehicle.--
       (1) In general.--Section 30B(k)(1) is amended by striking 
     ``December 31, 2016'' and inserting ``December 31, 2021''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to property purchased after December 31, 2016.
       (b) Qualified Alternative Fuel Vehicle Refueling 
     Property.--
       (1) In general.--Section 30C(g) is amended by striking 
     ``December 31, 2016'' and inserting ``December 31, 2021''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2016.
                                 ______
                                 
  SA 1693. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of subpart B of part IX of subtitle C of title 
     I, insert the following:

     SEC. 13824. SPLIT 100 PERCENT RESEARCH CREDIT FOR CONTRACT 
                   RESEARCH EXPENSES.

       (a) In General.--Subparagraph (A) of section 41(b)(3) is 
     amended to read as follows:
       ``(A) In general.--
       ``(i) Taxpayers paying for contracted research.--The term 
     `contract research expenses' means 65 percent of any amount 
     paid or incurred by the taxpayer to any person (other than an 
     employee of the taxpayer) for qualified research.
       ``(ii) Taxpayers performing contracted research.--In the 
     case of a taxpayer (other than an entity described in 
     subparagraph (C) or (D) or subsection (e)(6)) who receives 
     amounts from any person (other than an employer of the 
     taxpayer) for qualified research on behalf of such person, 
     the term `contract research expenses' means so much of the 
     qualified research expenses paid or incurred by the taxpayer 
     as does not exceed 35 percent of the amounts so received from 
     such person.
       ``(iii) Special rules.--For purposes of clause (ii)--

       ``(I) Trade or business.--The qualified research expenses 
     of the taxpayer shall be determined as if the trade or 
     business of the taxpayer were the conduct of qualified 
     research on behalf of other persons.
       ``(II) Research not treated as funded research.--
     Subparagraph (H) of subsection (d)(4) shall not apply.
       ``(III) Qualified research.--The qualified research 
     expenses of a taxpayer shall be determined as if the 
     conditions of subparagraph (B) of subsection (d)(1) are 
     satisfied if the business component described in subparagraph 
     (B)(ii) thereof is a business component of either of the 
     taxpayers described in clauses (i) and (ii).
       ``(IV) Limitation.--The qualified research expenses of a 
     taxpayer shall not include any expenses that would not be 
     eligible as in-house research expenses for purposes of 
     paragraph (2).

       ``(iv) Denial of double benefit.--The amount of any in-
     house research expenses taken into account under this section 
     with respect to a taxpayer described in clause (ii) shall be 
     reduced by the amount of the contract research expenses taken 
     into account under such clause with respect to such taxpayer 
     for the taxable year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1694. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       Strike part VI of subtitle A of title I.
                                 ______
                                 
  SA 1695. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of part I of subtitle A of title I, insert the 
     following:

     SEC. 11003. ADJUSTMENT OF HIGHEST RATE BRACKETS.

       (a) Joint Returns.--The last 2 rows of the table contained 
     in section 1(j)(2)(A), as added by section 11001(a), are 
     amended to read as follows:

``Over $400,000 but not over $480,050.....  $91,479, plus 35% of the
                                             excess over $400,000.
Over $480,050.............................  $119,496.50, plus 39.6% of
                                             the excess over
                                             $480,050.''.

       (b) Heads of Households.--The last 2 rows of the table 
     contained in section 1(j)(2)(B), as added by section 
     11001(a), are amended to read as follows:

``Over $200,000 but not over $453,350.....  $44,348, plus 35% of the
                                             excess over $200,000.
Over $453,350.............................  $133,020.50, plus 39.6% of
                                             the excess over
                                             $453,350.''.

       (c) Unmarried Individuals.--The last 2 rows of the table 
     contained in section 1(j)(2)(C), as added by section 
     11001(a), are amended to read as follows:


``Over $200,000 but not over $426,700.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $426,700.............................  $125,084.50, plus 39.6% of
                                             the excess over
                                             $426,700.''.

       (d) Married Individuals Filing Separate Returns.--The last 
     2 rows of the table contained in section 1(j)(2)(D), as added 
     by section 11001(a), are amended to read as follows:

``Over $200,000 but not over $240,026.....  $45,739.50, plus 35% of the
                                             excess over $200,000.
Over $240,026.............................  $59,748.60, plus 39.6% of
                                             the excess over
                                             $240,026.''.

       (e) Estates and Trusts.--The last 2 rows of the table 
     contained in section 1(j)(2)(E), as added by section 
     11001(a), are amended to read as follows:

``Over $9,150 but not over $12,700........  $1,839, plus 35% of the
                                             excess over $9,150.
Over $12,700..............................  $3,081.50, plus 39.6% of the
                                             excess over $12,700.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1696. Mr. CARPER (for himself, Mr. Casey, Mr. Coons, Mr. Bennet, 
and Mrs. Feinstein) submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:


[[Page S7591]]


  

       At the end of subpart B of part IX of subtitle C of title 
     I, insert the following:

     SEC. 13824. EXTENSION AND PHASEOUT OF RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY.

       (a) Extension.--Section 25D(h) is amended by striking 
     ``December 31, 2016 (December 31, 2021, in the case of any 
     qualified solar electric property expenditures and qualified 
     solar water heating property expenditures)'', and inserting 
     ``December 31, 2021''.
       (b) Phaseout.--
       (1) In general.--Paragraphs (3), (4), and (5) of section 
     25D(a) are amended by striking ``30 percent'' each place it 
     appears and inserting ``the applicable percentage''.
       (2) Conforming amendment.--Section 25D(g) is amended by 
     striking ``paragraphs (1) and (2) of''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2017.

     SEC. 13825. EXTENSION AND PHASEOUT OF ENERGY CREDIT.

       (a) Credit Percentage for Geothermal Energy Property.--
     Section 48(a)(2)(A)(i)(II) is amended by striking ``paragraph 
     (3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph 
     (3)(A)''.
       (b) Extension of Solar and Thermal Energy Property.--
     Section 48(a)(3)(A) is amended--
       (1) in clause (ii) by striking ``periods ending before 
     January 1, 2017'' and inserting ``property the construction 
     of which begins before January 1, 2022''; and
       (2) in clause (vii) by striking ``periods ending before 
     January 1, 2017'' and inserting ``property the construction 
     of which begins before January 1, 2022''.
       (c) Phaseout of 30-Percent Credit Rate for Geothermal 
     Energy Property.--Section 48(a)(6) is amended--
       (1) in the heading, by inserting ``and geothermal'' after 
     ``solar'';
       (2) in subparagraph (A), by striking ``paragraph 
     (3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph 
     (3)(A)''; and
       (3) in subparagraph (B), by striking ``property energy 
     property described in paragraph (3)(A)(i)'' and inserting 
     ``energy property described in clause (i) or (iii) of 
     paragraph (3)(A)''.
       (d) Phaseout of 30-Percent Credit Rate for Fiber-Optic 
     Solar, Qualified Fuel Cell, and Qualified Small Wind Energy 
     Property.--
       (1) In general.--Section 48(a) is amended by adding the 
     following:
       ``(7) Phaseout for fiber-optic solar, qualified fuel cell, 
     and qualified small wind energy property.--In the case of any 
     energy property described in paragraph (3)(A)(ii), qualified 
     fuel cell property, or qualified small wind property, the 
     energy percentage determined under paragraph (2) shall be 
     equal to--
       ``(A) in the case of any property the construction of which 
     begins after December 31, 2019, and before January 1, 2021, 
     26 percent, and
       ``(B) in the case of any property the construction of which 
     begins after December 31, 2020, and before January 1, 2022, 
     22 percent.''.
       (2) Conforming amendment.--Section 48(a)(2)(A) is amended 
     by striking ``paragraph (6)'' and inserting ``paragraphs (6) 
     and (7)''.
       (e) Extension of Qualified Fuel Cell Property.--Section 
     48(c)(1)(D) is amended by striking ``for any period after 
     December 31, 2016'' and inserting ``the construction of which 
     does not begin before January 1, 2022''.
       (f) Extension of Qualified Microturbine Property.--Section 
     48(c)(2)(D) is amended by striking ``for any period after 
     December 31, 2016'' and inserting ``the construction of which 
     does not begin before January 1, 2022''.
       (g) Extension of Combined Heat and Power System Property.--
     Section 48(c)(3)(A)(iv) is amended by striking ``which is 
     placed in service before January 1, 2017'' and inserting 
     ``the construction of which begins before January 1, 2022''.
       (h) Extension of Qualified Small Wind Energy Property.--
     Section 48(c)(4)(C) is amended by striking ``for any period 
     after December 31, 2016'' and inserting ``the construction of 
     which does not begin before January 1, 2022''.
       (i) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2017.

     SEC. 13826. WASTE HEAT TO POWER PROPERTY.

       (a) In General.--
       (1) Introduction of waste to heat power energy property.--
     Section 48(a)(3)(A) is amended--
       (A) at the end of clause (vi) by striking ``or''; and
       (B) at the end of clause (vii) by inserting ``or'' after 
     the comma; and
       (C) by adding the following:
       ``(viii) waste heat to power property,''.
       (2) Definitions and limitations.--Section 48(c) is amended 
     by adding at the end the following:
       ``(5) Waste heat to power property.--
       ``(A) In general.--The term `waste heat to power property' 
     means property--
       ``(i) comprising a system which generates electricity 
     through the recovery of a qualified waste heat resource, and
       ``(ii) the construction of which begins before January 1, 
     2022.
       ``(B) Qualified waste heat resource.--The term `qualified 
     waste heat resource' means--
       ``(i) exhaust heat or flared gas from an industrial process 
     that does not have, as its primary purpose, the production of 
     electricity, and
       ``(ii) a pressure drop in any gas for an industrial or 
     commercial process.
       ``(C) Limitations.--
       ``(i) In general.--For purposes of subsection (a)(1), the 
     basis of any waste heat to power property taken into account 
     under this section shall not exceed the excess of--

       ``(I) the basis of such property, over
       ``(II) the fair market value of comparable property which 
     does not have the capacity to capture and convert a qualified 
     waste heat resource to electricity.

       ``(ii) Capacity limitation.--The term `waste heat to power 
     property' shall not include any property comprising a system 
     if such system has a capacity in excess of 50 megawatts.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2016, in taxable 
     years ending after such date, under rules similar to the 
     rules of section 48(m) of the Internal Revenue Code of 1986 
     (as in effect on the day before the date of the enactment of 
     the Revenue Reconciliation Act of 1990).
                                 ______
                                 
  SA 1697. Mr. BLUMENTHAL (for himself and Mr. Murphy) submitted an 
amendment intended to be proposed by him to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       Strike section 11044.

                                 ______
                                 
  SA 1698. Mr. VAN HOLLEN submitted an amendment intended to be 
proposed by him to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. CERTIFICATION OF NO PRESIDENTIAL BENEFIT.

       (a) In General.--The provisions of this Act shall be null 
     and void and of no effect until--
       (1) the Commissioner of the Internal Revenue Service 
     certifies that, based on a review of the tax returns of the 
     President of the United States for the 3 most recent taxable 
     years, the President would not have benefited in any of such 
     taxable years if the provisions of this Act had been in 
     effect in such year; and
       (2) the Commissioner makes publicly available the tax 
     returns on which such certification is based.
       (b) Redaction of Certain Information.--The tax returns 
     which must be made publicly available by the Commissioner of 
     the Internal Revenue Service under subsection (a) may be 
     redacted to remove such information as the Director of the 
     Office of Government Ethics, in consultation with the 
     Secretary of the Treasury, determines appropriate.
                                 ______
                                 
  SA 1699. Mr. VAN HOLLEN submitted an amendment intended to be 
proposed by him to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. PRESIDENTIAL TAX RETURN DISCLOSURE REQUIREMENT.

       (a) In General.--The provisions of this Act shall be null 
     and void and of no effect until the President of the United 
     States makes available to the public the President's tax 
     returns for not less than the 3 most recent taxable years.
       (b) Redaction of Certain Information.--The tax returns 
     which must be made public under subsection (a) may be 
     redacted to remove such information as the Director of the 
     Office of Government Ethics, in consultation with the 
     Secretary of the Treasury, determines appropriate.
                                 ______
                                 
  SA 1700. Ms. STABENOW (for herself, Ms. Baldwin, Ms. Heitkamp, and 
Ms. Klobuchar) submitted an amendment intended to be proposed by her to 
the bill H.R. 1, to provide for reconciliation pursuant to titles II 
and V of the concurrent resolution on the budget for fiscal year 2018; 
which was ordered to lie on the table; as follows:

       Strike section 13305 and insert the following:

     SEC. 13305. REPEAL OF DEDUCTION FOR DOMESTIC PRODUCTION 
                   ACTIVITIES FOR FOSSIL FUELS; DELAY IN CORPORATE 
                   RATE REDUCTION.

       (a) Repeal of Deduction for Domestic Production Activities 
     for Fossil Fuels.--
       (1) In general.--Subparagraph (B) of section 199(c)(4) is 
     amended by striking ``or'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, or'', and by adding at the end the following new clauses:
       ``(iv) the production, refining, processing, 
     transportation, or distribution of oil, gas, or any primary 
     product thereof.''.
       (2) Conforming amendments.--
       (A) Section 199(c)(3) is amended by striking subparagraph 
     (C).
       (B) Section 199(c)(4)(A)(i)(III) is amended by striking ``, 
     natural gas,''.

[[Page S7592]]

       (C) Section 199(d)(9) is amended by striking all through 
     ``the term `primary product' '' in subparagraph (C) and 
     inserting the following:
       ``(9) Primary product.--For purposes of subsection 
     (c)(4)(B), the term `primary product''.' ''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to gross receipts received after December 31, 
     2017.
       (b) Delay of Corporate Rate Reduction.--Section 13001(c) 
     and 13002(f) of this Act are each amended by striking 
     ``2018'' each place it appears and inserting ``2019''.
                                 ______
                                 
  SA 1701. Ms. STABENOW (for herself, Mr. Casey, Mr. Van Hollen, Mr. 
Cardin, Mr. Wyden, Mr. Menendez, Mr. Udall, Mr. Booker, and Mr. Reed) 
submitted an amendment intended to be proposed by her to the bill H.R. 
1, to provide for reconciliation pursuant to titles II and V of the 
concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of subpart A of part I of subtitle C, add the 
     following:

     SEC. 13303. EXCEPTION TO REDUCED RATES BASED ON REAL 
                   HOUSEHOLD WAGES.

       (a) Publication of Average Real Household Wages.--Not later 
     than December 31, 2017, the Congressional Budget Office shall 
     publish a report indicating average household wage income in 
     the United States for 2017. For each subsequent calendar 
     year, not later than December 31 of that year, the 
     Congressional Budget Office shall publish a report indicating 
     average household wage income in the United States for the 
     year, adjusted for inflation.
       (b) Exception.--If for any calendar year after 2019, 
     average real household wage income has not increased by at 
     least $4,000 as compared to 2017 (as determined in the 
     reports published under subsection (a)), then the provisions 
     of the Internal Revenue Code of 1986 which are amended by 
     section 13001 and 13002 shall each be amended to read as if 
     the amendments made by such section had not been enacted.
                                 ______
                                 
  SA 1702. Ms. STABENOW (for herself, Mr. Casey, and Mr. Van Hollen) 
submitted an amendment intended to be proposed by her to the bill H.R. 
1, to provide for reconciliation pursuant to titles II and V of the 
concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of subpart A of part I of subtitle C, add the 
     following:

     SEC. 13303. EXCEPTION TO REDUCED RATES BASED ON REAL 
                   HOUSEHOLD WAGES.

       If changes in the Employment Cost Index between December 
     31, 2017 and any calendar year after 2019 do not equate to at 
     least a $4,000 increase per household, then the provisions of 
     the Internal Revenue Code of 1986 which are amended by 
     section 13001 and 13002 shall each be amended to read as if 
     the amendments made by such section had not been enacted.
                                 ______
                                 
  SA 1703. Ms. STABENOW (for herself, Mr. Casey, Mr. Van Hollen, Mr. 
Cardin, Mr. Brown, Mr. Wyden, Mr. Udall, Mr. Booker, and Mr. Reed) 
submitted an amendment intended to be proposed by her to the bill H.R. 
1, to provide for reconciliation pursuant to titles II and V of the 
concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of subpart A of part I of subtitle C, add the 
     following:

     SEC. 13303. EXCEPTION TO REDUCED RATES BASED ON REAL 
                   HOUSEHOLD WAGES.

       (a) Determination of Average Real Household Wages.--Not 
     later than December 31 of each calendar year, the Secretary 
     of the Treasury (in consultation with the Secretary of Labor) 
     shall determine the average real household wages for the 
     calendar year.
       (b) Certification.--If the Secretary of the Treasury does 
     not certify that the average real household wages for any 
     calendar year after December 31, 2019, (as determined under 
     subsection (a)) exceeds the average real household wages for 
     calendar year 2017 (as so determined) by $4,000 or more, the 
     provisions of the Internal Revenue Code of 1986 which are 
     amended by section 13001 and 13002 shall each be amended to 
     read as if the amendments made by such section had not been 
     enacted.
       (c) Effective Date.--The amendments made by this subsection 
     (b) shall apply to taxable years beginning after December 31 
     of the first calendar year for which no certification is made 
     under subsection (b).
                                 ______
                                 
  SA 1704. Mr. KAINE (for himself and Mr. Manchin) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       Beginning on page 104, strike line 15 and all that follows 
     through page 112, line 12 and insert the following:

  Subtitle B--Permanent Individual Income Tax Relief for Middle Class

     SEC. 12001. AMENDMENT OF INCOME TAX BRACKETS.

       (a) Married Individuals Filing Joint Returns and Surviving 
     Spouses.--The table contained in subsection (a) of section 1 
     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 $140,000.  $8,907, plus 22% of the excess over
                                      $77,400.
Over $140,000 but not over $320,000  $22,679, plus 24% of the excess
                                      over $140,000.
Over $320,000 but not over $400,000  $65,879, plus 32% of the excess
                                      over $320,000.
Over $400,000 but not over $480,050  $91,479, plus 35% of the excess
                                      over $400,000.
Over $480,050......................  $119,496.50, plus 39.6% of the
                                      excess over $480,050.

       (b) Heads of Households.--The table contained in subsection 
     (b) of section 1 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 $70,000..  $5,944, plus 22% of the excess over
                                      $51,800.
Over $70,000 but not over $160,000.  $9,948, plus 24% of the excess over
                                      $70,000.
Over $160,000 but not over $200,000  $31,548, plus 32% of the excess
                                      over $160,000.
Over $200,000 but not over $453,350  $44,348, plus 35% of the excess
                                      over $200,000.
Over $453,350......................  $133,020.50, plus 39.6% of the
                                      excess over $453,350.

       (c) Unmarried Individuals Other Than Surviving Spouses and 
     Heads of Households.--The table contained in subsection (c) 
     of section 1 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 $70,000..  $4,453.50, plus 22% of the excess
                                      over $38,700.
Over $70,000 but not over $160,000.  $11,339.50, plus 24% of the excess
                                      over $70,000.
Over $160,000 but not over $200,000  $32,939.50, plus 32% of the excess
                                      over $160,000.
Over $200,000 but not over $426,700  $45,739.50, plus 35% of the excess
                                      over $200,000.
Over $426,700......................  $125,084.50, plus 39.6% of the
                                      excess over $426,700.


[[Page S7593]]

       (d) Married Individuals Filing Separate Returns.--The table 
     contained in subsection (d) of section 1 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 $70,000..  $4,453.50, plus 22% of the excess
                                      over $38,700.
Over $70,000 but not over $160,000.  $11,339.50, plus 24% of the excess
                                      over $70,000.
Over $160,000 but not over $200,000  $32,939.50, plus 32% of the excess
                                      over $160,000.
Over $200,000 but not over $240,026  $45,739.50, plus 35% of the excess
                                      over $200,000.
Over $240,026......................  $59,748.60, plus 39.6% of the
                                      excess over $240,026.

       (e) Estates and Trusts.--The table contained in subsection 
     (e) of section 1 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 $12,700...  $1,839, plus 35% of the excess over
                                      $9,150.
Over $12,700.......................  $3,081.50, plus 39.6% of the excess
                                      over $12,700.

       (f) Inflation Adjustment.--Section 1(f)(2)(A), as amended 
     by this Act, is amended by striking ``1992'' and inserting 
     ``2017''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2025.

     SEC. 12002. DECREASE IN ESTATE AND GIFT TAX EXEMPTION.

       (a) In General.--Section 2010(c)(3) is amended by striking 
     subparagraph (C), as added by this Act.
       (b) Conforming Amendment.--Subsection (g) of section 2001 
     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, 2017.

     SEC. 12003. CORPORATE TAX RATE.

       (a) In General.--Section 11(b), as amended by this Act, is 
     amended by striking ``20 percent'' and inserting ``25 
     percent''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.
                                 ______
                                 
  SA 1705. Mr. KAINE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 11030. WORK OPPORTUNITY TAX CREDIT FOR MILITARY SPOUSES.

       (a) In General.--Section 51(d)(1) is amended--
       (1) by striking ``or'' at the end of subparagraph (I),
       (2) by striking the period at the end of subparagraph (J) 
     and inserting ``, or'', and
       (3) by adding at the end the following new subparagraph:
       ``(K) a qualified military spouse.''.
       (b) Qualified Military Spouse.--Section 51(d) is amended by 
     adding at the end the following new paragraph:
       ``(16) Qualified military spouse.--The term `qualified 
     military spouse' means the spouse or domestic partner (as 
     recognized under State law or by the Armed Forces) of a 
     member of the Armed Forces.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2017.
                                 ______
                                 
  SA 1706. Mr. KAINE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page 75, strike line 7 and all that follows 
     through page 76, line 3.
                                 ______
                                 
  SA 1707. Mr. KAINE (for himself and Mr. Cardin) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       Strike section 13402.
                                 ______
                                 
  SA 1708. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page 269, strike line 21 and all that follows 
     through page 273, line 4 and insert the following:

     SEC. 13601. EXPANSION OF DENIAL OF DEDUCTION FOR CERTAIN 
                   EXCESSIVE EMPLOYEE REMUNERATION.

       (a) Application to All Current and Former Employees.--
       (1) In general.--Section 162(m) is amended--
       (A) by striking ``covered employee'' each place it appears 
     in paragraphs (1) and (4) and inserting ``covered 
     individual'', and
       (B) by striking ``such employee'' each place it appears in 
     subparagraphs (A) and (G) of paragraph (4) and inserting 
     ``such individual''.
       (2) Covered individual.--Paragraph (3) of section 162(m) is 
     amended to read as follows:
       ``(3) Covered individual.--For purposes of this subsection, 
     the term `covered individual' means any individual who is an 
     officer, director, or employee of the taxpayer or a former 
     officer, director, or employee of the taxpayer.''.
       (3) Conforming amendments.--
       (A) Section 48D(b)(3)(A) is amended by inserting ``(as in 
     effect for taxable years beginning before January 1, 2018)'' 
     after ``section 162(m)(3)''.
       (B) Section 409A(b)(3)(D)(ii) is amended by inserting ``(as 
     in effect for taxable years beginning before January 1, 
     2018)'' after ``section 162(m)(3)''.
       (b) Expansion of Applicable Employee Remuneration.--
       (1) Elimination of exception for commission-based pay.--
       (A) In general.--Paragraph (4) of section 162(m), as 
     amended by subsection (a), is amended by striking 
     subparagraph (B) and by redesignating subparagraphs (C) 
     through (G) as subparagraphs (B) through (F), respectively.
       (B) Conforming amendments.--
       (i) Section 162(m)(5) is amended--

       (I) by striking ``subparagraphs (B), (C), and (D) thereof'' 
     in subparagraph (E) and inserting ``subparagraphs (B) and (C) 
     thereof'', and
       (II) by striking ``subparagraphs (F) and (G)'' in 
     subparagraph (G) and inserting ``subparagraphs (E) and (F)''.

       (ii) Section 162(m)(6) is amended--

       (I) by striking ``subparagraphs (B), (C), and (D) thereof'' 
     in subparagraph (D) and inserting ``subparagraphs (B) and (C) 
     thereof'', and
       (II) by striking ``subparagraphs (F) and (G)'' in 
     subparagraph (G) and inserting ``subparagraphs (E) and (F)''.

       (2) Inclusion of performance-based compensation.--
       (A) In general.--Paragraph (4) of section 162(m), as 
     amended by subsection (a) and paragraph (1) of this 
     subsection, is amended

[[Page S7594]]

     by striking subparagraph (B) and redesignating subparagraphs 
     (C) through (F) as subparagraphs (B) through (E), 
     respectively.
       (B) Conforming amendments.--
       (i) Section 162(m)(5), as amended by paragraph (1), is 
     amended--

       (I) by striking ``subparagraphs (B) and (C) thereof'' in 
     subparagraph (E) and inserting ``subparagraph (B) thereof'', 
     and
       (II) by striking ``subparagraphs (E) and (F)'' in 
     subparagraph (G) and inserting ``subparagraphs (D) and (E)''.

       (ii) Section 162(m)(6), as amended by paragraph (1), is 
     amended--

       (I) by striking ``subparagraphs (B) and (C) thereof'' in 
     subparagraph (D) and inserting ``subparagraph (B) thereof'', 
     and
       (II) by striking ``subparagraphs (E) and (F)'' in 
     subparagraph (G) and inserting ``subparagraphs (D) and (E)''.

       (c) Expansion of Applicable Employer.--Paragraph (2) of 
     section 162(m) is amended to read as follows:
       ``(2) Publicly held corporation.--For purposes of this 
     subsection, the term `publicly held corporation' means any 
     corporation which is an issuer (as defined in section 3 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78c))--
       ``(A) the securities of which are registered under section 
     12 of such Act (15 U.S.C. 78l), or
       ``(B) that is required to file reports under section 15(d) 
     of such Act (15 U.S.C. 780(d)).''.
       (d) Regulatory Authority.--
       (1) In general.--Section 162(m) is amended by adding at the 
     end the following new paragraph:
       ``(7) Regulations.--The Secretary may prescribe such 
     guidance, rules, or regulations, including with respect to 
     reporting, as are necessary to carry out the purposes of this 
     subsection.''.
       (2) Conforming amendment.--Paragraph (6) of section 162(m) 
     is amended by striking subparagraph (H).
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1709. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. CORPORATE EXCISE TAX FOR EXCESSIVE SHARE 
                   REPURCHASES.

       (a) In General.--Chapter 36 of subtitle D is amended by 
     adding after subchapter D the following new subchapter:

  ``Subchapter E--Corporate Excise Tax for Excessive Share Repurchases

``Sec. 4491. Corporate excise tax for excessive share repurchases.

     ``SEC. 4491. CORPORATE EXCISE TAX FOR EXCESSIVE SHARE 
                   REPURCHASES.

       ``(a) Tax Imposed.--In the case of a corporation which 
     purchases not less than $10,000,000 of outstanding shares of 
     stock in itself during the taxable year, there is hereby 
     imposed on such corporation for the taxable year a tax equal 
     to 15 percent of the taxable income of such corporation.''.
       (b) Clerical Amendment.--The table of subchapters for 
     chapter 36 is amended by adding at the end the following new 
     item:

 ``subchapter e-corporate excise tax for excessive share repurchases''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1710. Mr. BOOKER (for himself, Ms. Hirono, Mr. Markey, Mr. 
Menendez, Mr. Heinrich, Mrs. Feinstein, and Mr. Blumenthal) submitted 
an amendment intended to be proposed to amendment SA 1618 proposed by 
Mr. McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the 
bill H.R. 1, to provide for reconciliation pursuant to titles II and V 
of the concurrent resolution on the budget for fiscal year 2018; which 
was ordered to lie on the table; as follows:

       At the end of subpart A of part I of subtitle C, add the 
     following:

     SEC. 13303. EXCEPTION TO REDUCED RATES BASED ON MEDICARE 
                   PROGRAM SEQUESTRATION.

       (a) In General.--In any case in which there is a 
     sequestration under the Statutory Pay-As-You-Go Act of 2010 
     (2 U.S.C. 931 et seq.) that reduces budgetary resources for 
     the Medicare program under title XVIII of the Social Security 
     Act (42 U.S.C. 1395 et seq.) because of a debit that is 
     attributable to the enactment of this title or the amendments 
     made by this title, the provisions of the Internal Revenue 
     Code of 1986 which are amended by section 13001 and 13002 
     shall each be amended to read as if the amendments made by 
     such section had not been enacted.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the first fiscal 
     year to which a sequestration under subsection (a) applies.
                                 ______
                                 
  SA 1711. Mr. THUNE (for himself, Mr. Roberts, Mr. Grassley, Mr. 
Rounds, and Mr. Hoeven) submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       On page __, line ___, strike ``(g) Termination.--'' and 
     insert:
       ``(g) Deduction Allowed to Specified Agricultural or 
     Horticultural Cooperatives.--
       ``(1) In general.--In the case of any taxable year of a 
     specified agricultural or horticultural cooperative beginning 
     after December 31, 2017, there shall be allowed a deduction 
     in an amount equal to the lesser of--
       ``(A) 17.4 percent of the cooperative's taxable income for 
     the taxable year, or
       ``(B) 50 percent of the W-2 wages of the cooperative with 
     respect to its trade or business.
       ``(2) Specified agricultural or horticultural 
     cooperative.--For purposes of this subsection, the term 
     `specified agricultural or horticultural cooperative' means 
     an organization to which part I of subchapter T applies which 
     is engaged in--
       ``(A) the manufacturing, production, growth, or extraction 
     in whole or significant part of any agricultural or 
     horticultural product,
       ``(B) the marketing of agricultural or horticultural 
     products which its patrons have so manufactured, produced, 
     grown, or extracted, or
       ``(C) the provision of supplies, equipment, or services to 
     farmers or to organizations described in subparagraph (A) or 
     (B).
       ``(h) Termination.--
                                 ______
                                 
  SA 1712. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place in subtitle D of title I, insert 
     the following:

     SEC. __. CLARIFICATION OF DEFINITION OF QUALIFYING INCOME FOR 
                   A PUBLICLY TRADED PARTNERSHIP.

       (a) In General.--Section 7704(d)(1) is amended--
       (1) in subparagraph (F), by striking ``and'' at the end;
       (2) in subparagraph (G), by striking the period at the end 
     and inserting ``, and''; and
       (3) by inserting after subparagraph (G) the following new 
     subparagraph:
       ``(H) income inclusions under sections 951 and 951A, and 
     other similar amounts included in gross income with respect 
     to the ownership of stock.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to income inclusions on or after November 2, 
     2017.
                                 ______
                                 
  SA 1713. Mr. ISAKSON submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       On page 76, strike lines 4 through 12 and insert the 
     following:

     SEC. 11043. SUSPENSION OF DEDUCTION FOR CERTAIN RESIDENCE 
                   INTEREST.

       (a) Home Equity Interest.--Section 163(h)(3)(A)(ii) is 
     amended by inserting ``in the case of taxable years beginning 
     before January 1, 2018, or after December 31, 2025,'' before 
     ``home equity indebtedness''.
       (b) Certain Additional Indebtedness.--Section 163(h)(3)(B) 
     is amended by adding at the end the following new clause:
       ``(iii) Additional limitation.--Such term shall not include 
     any indebtedness incurred after December 31, 2017, and before 
     January 1, 2026, which does not have priority (within the 
     meaning of such term as used in section 6323) over all other 
     indebtedness secured by the qualified residence which is also 
     incurred in acquiring, constructing, or substantially 
     improving the residence.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 2017.
                                 ______
                                 
  SA 1714. Mr. DAINES (for himself, Mrs. Ernst, Mr. Lankford, Mr. 
Moran, Mr. Inhofe, Mr. Blunt, Mrs. Fischer, and Mr. Lee) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       Beginning on page 43, strike line 16 and all that follows 
     through page 45, line 20 and insert the following:
       ``(4) Partial credit allowed for certain other 
     dependents.--
       ``(A) In general.--The credit determined under subsection 
     (a) (after the application of

[[Page S7595]]

     paragraph (2)) shall be increased by $500 for each dependent 
     of the taxpayer (as defined in section 152) other than a 
     qualifying child described in subsection (c).
       ``(B) Exception for certain noncitizens.--Subparagraph (A) 
     shall not apply with respect to any individual who would not 
     be a dependent if subparagraph (A) of section 152(b)(3) were 
     applied without regard to all that follows `resident of the 
     United States'.
       ``(5) Maximum amount of refundable credit.--
       ``(A) In general.--Subsection (d)(1)(A) shall be applied 
     without regard to paragraphs (2) and (5) of this subsection.
       ``(B) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2017, subsection (d)(1)(A) shall be 
     applied as if the $1,000 amount in subsection (a) were 
     increased (but not to exceed the amount under paragraph (2) 
     of this subsection) 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.
     Any increase determined under the preceding sentence shall be 
     rounded to the next highest multiple of $100.
       ``(6) Earned income threshold for refundable credit.--
     Subsection (d)(1)(B)(i) shall be applied by substituting 
     `$2,500' for `$3,000'.
       ``(7) Social security number required.--No credit shall be 
     allowed under subsection (d) to a taxpayer with respect to 
     any qualifying child unless the taxpayer includes the 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 to a citizen of the United States or is issued 
     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.
       ``(8) Credit allowed with respect to unborn children.--
       ``(A) In general.--The term `qualifying child' includes an 
     unborn child (as defined in section 1841(d) of title 18, 
     United States Code) for any such taxable year if such child 
     is born and issued a social security number (as defined in 
     subsection (h)(7)) before the due date for the return of tax 
     (without regard to extensions) for the taxable year.
       ``(B) Double credit in case of children unable to claim 
     credit.--In the case of any child born during a taxable year 
     described in paragraph (1) who is not taken into account 
     under subparagraph (A) for the taxable year immediately 
     preceding the taxable year in which the child is born, the 
     amount of the credit determined under this section with 
     respect to such child for the taxable year of the child's 
     birth shall be increased by 100 percent.''.
                                 ______
                                 
  SA 1715. Mr. CORNYN (for himself, Mr. Inhofe, and Mr. Roberts) 
submitted an amendment intended to be proposed to amendment SA 1618 
proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       In section 11011, after subsection (a), insert the 
     following:
       (b) Application to Publicly Traded Partnerships.--
       (1) In general.--Section 199A(b)(1)(B), as added by 
     subsection (a), is amended by striking ``and qualified 
     cooperative dividends'' and inserting ``, qualified 
     cooperative dividends, and qualified publicly traded 
     partnership income''.
       (2) Qualified publicly traded partnership income.--Section 
     199A(e), as added by subsection (a), is amended by adding at 
     the end the following new paragraph:
       ``(5) Qualified publicly traded partnership income.--The 
     term `qualified publicly traded partnership income' means, 
     with respect to any taxpayer, the sum of--
       ``(A) the net amount of such taxpayer's allocable share of 
     each qualified item of income, gain, deduction, and loss (as 
     defined in subsection (c)(3) and determined after the 
     application of subsection (c)(4)) from a publicly traded 
     partnership (as defined in section 7704(a)) which is not 
     treated as a corporation under section 7704(c), plus
       ``(B) any gain recognized by such taxpayer upon disposition 
     of its interest in such partnership to the extent such gain 
     is treated as an amount realized from the sale or exchange of 
     property other than a capital asset under section 751(a).''.
       (3) Conforming amendment.--Section 199A(c)(1), as added by 
     subsection (a), is amended by adding at the end the following 
     new sentence: ``Such term shall not include any qualified 
     publicly traded partnership income.''.
                                 ______
                                 
  SA 1716. Mr. BLUNT submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page 457, line 7, strike ``(6) Regulations.--'' and 
     insert:
       ``(6) Transition rules for existing indebtedness.--
       ``(A) Limitation not to apply.--The limitation under 
     paragraph (1) shall not apply to interest paid or accrued by 
     a domestic corporation on--
       ``(i) pre-November 10, 2017 indebtedness, or
       ``(ii) indebtedness issued after November 9, 2017, and 
     before January 1, 2019, in connection with a transaction 
     which was publicly announced before November 9, 2017, and was 
     waiting for regulatory approval on such date.
       ``(B) Indebtedness.--For purposes of subparagraph (A)--
       ``(i) Pre-november 10, 2017 indebtedness.--The term `pre-
     November 10, 2017 indebtedness' means any indebtedness issued 
     before November 10, 2017.
       ``(ii) Significant modifications.--If any indebtedness 
     described in subparagraph (A) is significantly modified after 
     November 9, 2017 (the date of issuance in the case of 
     indebtedness described in subparagraph (A)(ii)), this 
     paragraph shall not apply any interest paid or accrued on 
     such indebtedness on or after the date such modification 
     takes effect.
       ``(7) Regulations.--
                                 ______
                                 
  SA 1717. Ms. CANTWELL (for herself, Mr. Markey, Mr. Bennet, Mr. 
Leahy, Mr. Wyden, Mr. Udall, Ms. Stabenow, Mr. Heinrich, and Ms. Cortez 
Masto) submitted an amendment intended to be proposed to amendment SA 
1618 proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       Strike title II.
                                 ______
                                 
  SA 1718. Mr. MANCHIN submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       Strike subsection (a) of section 13001 and insert the 
     following:
       (a) In General.--Subsection (b) of section 11 is amended to 
     read as follows:
       ``(b) Amount of Tax.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amount of the tax imposed by subsection (a) shall be 25 
     percent of taxable income.
       ``(2) Further reduction.--
       ``(A) In general.--Subject to subparagraph (B)--
       ``(i) in the case of any taxable year beginning after 
     December 31, 2022, and before January 1, 2026, paragraph (1) 
     shall be applied by substituting `23 percent' for `25 
     percent', and
       ``(ii) in the case of any taxable year beginning after 
     December 31, 2025, paragraph (1) shall be applied by 
     substituting `20 percent' for `25 percent'.
       ``(B) Revenue projection trigger.--Subparagraph (A) shall 
     not apply to any taxable year beginning in a calendar year 
     unless the revenues estimated for all preceding calendar 
     years beginning after December 31, 2018, (as determined by 
     the Joint Committee on Taxation on the date of the enactment 
     of the Tax Cuts and Jobs Act) equals or exceeds actual 
     revenue for such calendar years (as determined by the 
     Secretary of the Treasury).''.
                                 ______
                                 
  SA 1719. Mr. COONS submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. FULL RECOVERY FUNDING FOR PUERTO RICO AND THE U.S. 
                   VIRGIN ISLANDS BEFORE TAX CUTS FOR THE WEALTHY.

       Any provision of this Act which provides a reduction in 
     taxes for the wealthiest Americans shall apply only to 
     taxable years beginning after the date on which full funding 
     is provided to the residents of Puerto Rico and the U.S. 
     Virgin Islands for their hurricane recovery efforts and all 
     such residents have access to electricity, 
     telecommunications, safe drinking water, and wastewater 
     services.
                                 ______
                                 
  SA 1720. Mr. SANDERS (for himself, Mr. Leahy, Mr. Brown, Ms. Harris, 
Ms. Baldwin, Mr. Udall, Mr. Reed, Mr. Markey, Mr. Heinrich, Ms. Hirono, 
Mr. Franken, Mr. Wyden, and Mr. Nelson) submitted an amendment intended 
to be proposed to amendment SA 1618 proposed by Mr. McConnell (for Mr. 
Hatch (for himself and Ms. Murkowski)) to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

[[Page S7596]]

  


     SEC. __. POINT OF ORDER AGAINST LEGISLATION THAT CUTS SOCIAL 
                   SECURITY, MEDICARE, OR MEDICAID BENEFITS.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, motion, amendment, 
     amendment between the Houses, or conference report that 
     would--
       (1) result in a reduction of guaranteed benefits scheduled 
     under title II of the Social Security Act;
       (2) increase either the early or full retirement age for 
     the benefits described in paragraph (1);
       (3) privatize Social Security;
       (4) result in a reduction of guaranteed benefits for 
     individuals entitled to, or enrolled for, benefits under the 
     Medicare program under title XVIII of such Act; or
       (5) result in a reduction of benefits or eligibility for 
     individuals enrolled in, or eligible to receive medical 
     assistance through, a State Medicaid plan or waiver under 
     title XIX of such Act.
       (b) Waiver and Appeal.--Subsection (a) may be waived or 
     suspended in the Senate only by an affirmative vote of two-
     thirds of the Members, duly chosen and sworn. An affirmative 
     vote of two-thirds of the Members of the Senate, duly chosen 
     and sworn, shall be required to sustain an appeal of the 
     ruling of the Chair on a point of order raised under 
     subsection (a).
                                 ______
                                 
  SA 1721. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. INCLUSION OF QUALIFIED MEMBERS OF A RESERVE 
                   COMPONENT.

       (a) In General.--Subsection (d) of section 51 is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (I), by striking ``or'' at the end,
       (B) in subparagraph (J), by striking the period at the end 
     and inserting ``, or'', and
       (C) by adding at the end the following new subparagraph:
       ``(K) a qualified member of a reserve component.'', and
       (2) by adding at the end the following new paragraph:
       ``(16) Qualified member of a reserve component.--The term 
     `qualified member of a reserve component' means any 
     individual who is certified by the designated local agency 
     as, for not less than 60 days during the 12-month period 
     ending on the hiring date, being on orders for--
       ``(A) training under section 502, 503, 504, or 505 of title 
     32, United States Code, or
       ``(B) active duty under section 12301, 12302, 12304, 
     12304a, or 12304b of title 10, United States Code.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after December 31, 2017.
                                 ______
                                 
  SA 1722. Mr. UDALL (for himself and Mr. Heinrich) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. POINT OF ORDER AGAINST LEGISLATION THAT CUTS 
                   MEDICARE OR MEDICAID BENEFITS.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, motion, amendment, 
     amendment between the Houses, or conference report that 
     would--
       (1) result in a reduction of guaranteed benefits for 
     individuals entitled to, or enrolled for, benefits under the 
     Medicare program under title XVIII of such Act; or
       (2) result in a reduction of benefits or eligibility for 
     individuals enrolled in, or eligible to receive medical 
     assistance through, a State Medicaid plan or waiver under 
     title XIX of such Act.
       (b) Waiver and Appeal.--Subsection (a) may be waived or 
     suspended in the Senate only by an affirmative vote of two-
     thirds of the Members, duly chosen and sworn. An affirmative 
     vote of two-thirds of the Members of the Senate, duly chosen 
     and sworn, shall be required to sustain an appeal of the 
     ruling of the Chair on a point of order raised under 
     subsection (a).
                                 ______
                                 
  SA 1723. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of subpart B of part VII of subtitle C of title 
     I, insert the following:

     SEC. 13615. REDUCTION IN MINIMUM AGE FOR ALLOWABLE IN-SERVICE 
                   DISTRIBUTIONS.

       (a) In General.--Section 401(a)(36) is amended by striking 
     ``age 62'' and inserting ``age 59 \1/2\''.
       (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 \1/2\)'' 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.
                                 ______
                                 
  SA 1724. Mr. HATCH (for himself, Mr. Cassidy, Mr. Portman, Mr. 
Grassley, Mr. Roberts, Mr. Crapo, Mr. Cornyn, Mr. Thune, Mr. Risch, Ms. 
Murkowski, Mr. Inhofe, Mr. Sullivan, Mr. Cochran, Mr. Kennedy, Mr. 
Wicker, and Mr. Boozman) submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page 307, strike line 1 and all that follows through 
     line 22.
                                 ______
                                 
  SA 1725. Mr. CRUZ (for himself, Mr. Cotton, Mr. Lee, and Mr. Sasse) 
submitted an amendment intended to be proposed to amendment SA 1618 
proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       At the end of part IV of subtitle A of title I, insert the 
     following:

     SEC. 11033. 529 ACCOUNT FUNDING FOR ELEMENTARY AND SECONDARY 
                   EDUCATION.

       (a) In General.--
       (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--
       ``(A) expenses for tuition in connection with enrollment or 
     attendance at an elementary or secondary public, private, or 
     religious school, and
       ``(B) expenses for--
       ``(i) curriculum and curricular materials,
       ``(ii) books or other instructional materials,
       ``(iii) online educational materials,
       ``(iv) tuition for tutoring or educational classes outside 
     of the home (but only if the tutor or instructor is not 
     related to the student),
       ``(v) dual enrollment in an institution of higher 
     education, and
       ``(vi) educational therapies for students with 
     disabilities,
     in connection with a homeschool (whether treated as a 
     homeschool or a private school for purposes of applicable 
     State law).''.
       (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 described in subsection (c)(7) incurred 
     during the taxable year.''.
       (b) Offset.--Paragraph (2) of section 127(a) is amended--
       (1) by striking ``$5,250'' in the heading and inserting 
     ``$2,500'', and
       (2) by striking ``$5,250'' each place it appears and 
     inserting ``$2,500''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made after December 31, 2017.
                                 ______
                                 
  SA 1726. Mr. RISCH (for himself and Mr. Crapo) submitted an amendment 
intended to be proposed to amendment SA 1618 proposed by Mr. McConnell 
(for Mr. Hatch (for himself and Ms. Murkowski)) to the bill H.R. 1, to 
provide for reconciliation pursuant to titles II and V of the 
concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       On page 402, strike lines 12 through 24 and insert the 
     following:
       ``(2) Accumulated post-1986 deferred foreign income.--The 
     term `accumulated post-1986 deferred foreign income' means 
     post-1986 earnings and profits--
       ``(A) except to the extent such earnings--
       ``(i) are attributable to income of the specified foreign 
     corporation which is effectively connected with the conduct 
     of a trade or business within the United States and subject 
     to tax under this chapter, or
       ``(ii) in the case of a controlled foreign corporation, if 
     distributed, would be excluded from the gross income of a 
     United States shareholder under section 959, and
       ``(B) reduced by the amount of deductions recognized by a 
     specified foreign corporation in taxable years beginning 
     after December 31, 2017, with respect to income recognized by 
     a United States shareholder in taxable years beginning before 
     December 31, 2017.

[[Page S7597]]

  

                                 ______
                                 
  SA 1727. Mr. RISCH (for himself and Mr. Crapo) submitted an amendment 
intended to be proposed to amendment SA 1618 proposed by Mr. McConnell 
(for Mr. Hatch (for himself and Ms. Murkowski)) to the bill H.R. 1, to 
provide for reconciliation pursuant to titles II and V of the 
concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the appropriate place in title I, insert the following:

     SEC. __. MODIFICATION TO CALCULATION OF INTEREST LIMITATIONS.

       (a) Limitation on Deduction for Interest.--Paragraph (6) of 
     section 163(j) (as amended by section 13301 of this Act) is 
     amended by inserting ``, including related party interest 
     includible under sections 951 or 954 and operating lease 
     income'' after ``business''.
       (b) Denial of Deduction for Interest Expense of Certain 
     United States Shareholders.--Subsection (n)(4)(B)(ii) of 
     section 163 (as added by section 14221 of this Act) is 
     amended by inserting ``and operating lease income'' after 
     ``interest''.
                                 ______
                                 
  SA 1728. Mr. HATCH submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page 164, strike lines 5 through 25, and insert the 
     following:
       (c) Effective Date.--
       (1) In general.--
       (A) Application.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     placed in service after December 31, 2017.
       (B) Shorter recovery period or more accelerated 
     depreciation method.--In the case of property placed in 
     service before January 1, 2018, if the amendments made by 
     this section result in--
       (i) an applicable recovery period which is less than the 
     remaining applicable recovery period for such property before 
     enactment of such amendments, or
       (ii) an applicable depreciation method which is more 
     accelerated than the applicable depreciation method for such 
     property before enactment of such amendments,
     the depreciation deduction for such property shall, for any 
     taxable year beginning after December 31, 2017, be determined 
     as if such property were placed in service on January 1, 
     2018.
       (2) Amendments related to electing real property trade or 
     business.--The amendments made by subsection (b)(4)(A) shall 
     apply to taxable years beginning after December 31, 2017.
                                 ______
                                 
  SA 1729. Mr. HATCH submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Strike section 13305 and insert the following:

     SEC. 13305. REPEAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION ACTIVITIES.

       (a) Repeal.--
       (1) Noncorporate taxpayers.--Section 199 is amended by 
     adding at the end the following new subsection:
       ``(e) Termination for Taxpayers Other Than Corporations.--
     In the case of a taxpayer other than a C corporation, this 
     section shall not apply to any taxable year beginning after 
     December 31, 2017.''.
       (2) All other taxpayers.--Part VI of subchapter B of 
     chapter 1, as amended by paragraph (1), is amended by 
     striking section 199 (and by striking the item relating to 
     such section in the table of sections for such part).
       (b) Conforming Amendments.--
       (1) Sections 74(d)(2)(B), 86(b)(2)(A), 135(c)(4)(A), 
     137(b)(3)(A), 219(g)(3)(A)(ii), 221(b)(2)(C), 222(b)(2)(C), 
     246(b)(1), and 469(i)(3)(F)(iii) are each amended by striking 
     ``199,''.
       (2) Section 170(b)(2)(D), as amended by section 11011, is 
     amended by striking clause (iv) and by redesignating clauses 
     (v) and (vi) as redesignating clauses (iv) as clause (v), 
     respectively.
       (3) Section 172(d) is amended by striking paragraph (7).
       (4) Section 613(a) is amended by striking ``and without the 
     deduction under section 199''.
       (5) Section 613A(d)(1) is amended by striking subparagraph 
     (B) and by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (B), (C), and (D).
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2018.
       (2) Termination for noncorporate taxpayers.--The amendment 
     made by subsection (a)(1) shall apply to taxable years 
     beginning after December 31, 2017.
                                 ______
                                 
  SA 1730. Mr. HATCH submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page 181, lines 16 through 18, strike ``the non-
     separately stated taxable income or loss of such 
     partnership'' and insert ``any items of income, gain, 
     deduction, or loss of such partnership''.
                                 ______
                                 
  SA 1731. Mr. HATCH submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page 453, strike lines 9 through 16, and insert the 
     following:
       (C) Total equity.--For purposes of subparagraph (B), the 
     term ``total equity'' means, with respect to one or more 
     corporations, an amount equal to--
       (i) the sum of the money and all other assets of such 
     corporations, reduced (but not below one) by
       (ii) the total indebtedness of such corporations.
                                 ______
                                 
  SA 1732. Mr. GARDNER submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       Strike section 13702.
                                 ______
                                 
  SA 1733. Mr. MORAN submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

              Subtitle _--Tribal Tax and Investment Reform

     SEC. _. FINDINGS.

       The Congress finds the following:
       (1) There is a unique Federal legal and political 
     relationship between the United States and Indian tribes.
       (2) Indian tribes have the responsibility and authority to 
     provide governmental programs and services to tribal 
     citizens, develop tribal economies, and build community 
     infrastructure to ensure that Indian reservation lands serve 
     as livable, permanent homes.
       (3) The United States Constitution, U.S. Federal Court 
     decisions, Executive orders, and numerous other Federal laws 
     and regulations recognize that Indian tribes are governments, 
     retaining the inherent authority to tax and operate as other 
     governments, including (inter alia) financing projects with 
     government bonds and maintaining eligibility for general tax 
     exemptions via their government status.
       (4) Codifying tax parity with respect to tribal governments 
     is consistent with Federal treaties recognizing the 
     sovereignty of tribal governments.
       (5) That Indian tribes face historic disadvantages in 
     accessing the underlying capital to build the necessary 
     infrastructure for job creation, and that certain statutory 
     restrictions on tribal governance further inhibit tribes' 
     ability to develop strong governance and economies.
       (6) Indian tribes are sometimes excluded from the Internal 
     Revenue Code of 1986 in key provisions which results in 
     unfair tax treatment for tribal citizens or unequal 
     enforcement authority for tribal enforcement agencies.
       (7) Congress is vested with the authority to regulate 
     commerce with Indian tribes, and hereby exercises that 
     authority in a manner which furthers tribal self-governance, 
     and in doing so, further affirms the United States 
     government-to-government relationship with Indian tribes.

     SEC. _. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO 
                   BOND ISSUANCE.

       (a) In General.--Subsection (c) of section 7871 (relating 
     to Indian tribal governments treated as States for certain 
     purposes) is amended to read as follows:
       ``(c) Special Rules for Tax-Exempt Bonds.--In applying 
     section 146 to bonds issued by Indian tribal governments (or 
     subdivisions thereof), the Secretary shall annually--
       ``(1) establish a national bond volume cap based on the 
     greater of--
       ``(A) the State population formula approach in section 
     146(d)(1)(A) (using national

[[Page S7598]]

     tribal population estimates supplied annually by the 
     Department of the Interior in consultation with the Census 
     Bureau), and
       ``(B) the minimum State ceiling amount in section 
     146(d)(1)(B) (as adjusted in accordance with the cost of 
     living provision in section 146(d)(2)), and
       ``(2) allocate such national bond volume cap among all 
     Indian tribal governments seeking such an allocation in a 
     particular year under regulations prescribed by the 
     Secretary.''.
       (b) Repeal of Essential Governmental Function 
     Requirements.--Section 7871 is further amended by striking 
     subsections (b) and (e).
       (c) Effective Date.--
       (1) Subsection (a).--The amendment made by subsection (a) 
     shall apply to obligations issued in calendar years beginning 
     after the date of the enactment of this Act.
       (2) Subsection (b).--The repeals made by subsection (b) 
     shall apply to transactions after, and obligations issued in 
     calendar years beginning after, the date of the enactment of 
     this Act.

     SEC. _. TREATMENT OF PENSION AND EMPLOYEE BENEFIT PLANS 
                   MAINTAINED BY TRIBAL GOVERNMENTS.

       (a) In General.--
       (1) Qualified public safety employee.--Section 72(t)(10)(B) 
     (defining qualified public safety employee) is amended by--
       (A) striking ``or political subdivision of a State'' and 
     inserting ``, political subdivision of a State, or Indian 
     tribe''; and
       (B) striking ``such State or political subdivision'' and 
     inserting ``such State, political subdivision, or tribe''.
       (2) Governmental plan.--The last sentence of section 414(d) 
     (defining governmental plan) is amended to read as follows: 
     ``The term `governmental plan' includes a plan established or 
     maintained for its employees by an Indian tribal government 
     (as defined in section 7701(a)(40)), a subdivision of an 
     Indian tribal government (determined in accordance with 
     section 7871(d)), an agency, instrumentality, or subdivision 
     of an Indian tribal government, or an entity established 
     under Federal, State, or tribal law which is wholly owned or 
     controlled by any of the foregoing.''.
       (3) Domestic relations order.--Section 414(p)(1)(B)(ii) 
     (defining domestic relations order) is amended by inserting 
     ``or tribal'' after ``State''.
       (4) Exempt governmental deferred compensation plan.--
     Section 3121(v)(3) (defining governmental deferred 
     compensation plan) is amended by inserting ``by an Indian 
     tribal government or subdivision thereof,'' after ``political 
     subdivision thereof,''.
       (5) Grandfather of certain deferred compensation plans.--
     Section 457 is amended by adding at the end the following new 
     subsection:
       ``(h) Certain Tribal Government Plans Grandfathered.--Plans 
     established before the date of enactment of this subsection 
     and maintained by an Indian tribal government (as defined in 
     section 7701(a)(40)), a subdivision of an Indian tribal 
     government (determined in accordance with section 7871(d)), 
     an agency, instrumentality, or subdivision of an Indian 
     tribal government, or an entity established under Federal, 
     State, or tribal law which is wholly owned or controlled by 
     any of the foregoing, in compliance with subsection (b) or 
     (f) shall be treated as if established by an eligible 
     employer under subsection (e)(1)(A).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to years beginning after the date of the 
     enactment of this Act.

     SEC. _. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE 
                   CHARITIES FUNDED AND CONTROLLED BY OTHER 
                   GOVERNMENTAL FUNDERS AND SPONSORS.

       (a) In General.--Section 170(b)(1)(A) is amended by adding 
     at the end the following: ``For purposes of clause (vi), the 
     term `governmental unit' includes an Indian tribal government 
     (determined in accordance with section 7871(d)), an agency, 
     instrumentality, or subdivision of an Indian tribal 
     government, or an entity established under Federal, State, or 
     tribal law which is wholly owned or controlled by any of the 
     foregoing.''.
       (b) Certain Supporting Organizations.--Section 509(a) is 
     amended by adding at the end the following: ``For purposes of 
     paragraph (3), an organization described in paragraph (2) 
     shall be deemed to include an Indian tribal government 
     (determined in accordance with section 7871(d)), an agency, 
     instrumentality, or subdivision of an Indian tribal 
     government, or an entity established under Federal, State, or 
     tribal law which is wholly owned or controlled by any of the 
     foregoing.''.
       (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. _. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF 
                   DETERMINING UNDER THE ADOPTION CREDIT WHETHER A 
                   CHILD HAS SPECIAL NEEDS.

       (a) In General.--Section 23(d)(3) (defining child with 
     special needs) is amended--
       (1) in subparagraph (A), by inserting ``or Indian tribal 
     government'' after ``a State''; and
       (2) in subparagraph (B), by inserting ``or Indian tribal 
     government'' after ``such State''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 1734. Mr. GRAHAM (for himself and Mr. Heller) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. TECHNOLOGIES FOR ENERGY JOBS AND SECURITY.

       (a) Extension and Phaseout of Residential Energy Efficient 
     Property.--
       (1) Extension.--Section 25D(h) is amended by striking 
     ``December 31, 2016 (December 31, 2021, in the case of any 
     qualified solar electric property expenditures and qualified 
     solar water heating property expenditures)'', and inserting 
     ``December 31, 2021''.
       (2) Phaseout.--
       (A) In general.--Paragraphs (3), (4), and (5) of section 
     25D(a) are amended by striking ``30 percent'' each place it 
     appears and inserting ``the applicable percentage''.
       (B) Conforming amendment.--Section 25D(g) is amended by 
     striking ``paragraphs (1) and (2) of''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on January 1, 2017.
       (b) Extension and Phaseout of Energy Credit.--
       (1) Credit percentage for geothermal energy property.--
     Section 48(a)(2)(A)(i)(II) is amended by striking ``paragraph 
     (3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph 
     (3)(A)''.
       (2) Extension of solar and thermal energy property.--
     Section 48(a)(3)(A) is amended--
       (A) in clause (ii) by striking ``periods ending before 
     January 1, 2017'' and inserting ``property the construction 
     of which begins before January 1, 2022''; and
       (B) in clause (vii) by striking ``periods ending before 
     January 1, 2017'' and inserting ``property the construction 
     of which begins before January 1, 2022''.
       (3) Phaseout of 30-percent credit rate for geothermal 
     energy property.--Section 48(a)(6) is amended--
       (A) in the heading, by inserting ``and geothermal'' after 
     ``solar'';
       (B) in subparagraph (A), by striking ``paragraph 
     (3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph 
     (3)(A)''; and
       (C) in subparagraph (B), by striking ``property energy 
     property described in paragraph (3)(A)(i)'' and inserting 
     ``energy property described in clause (i) or (iii) of 
     paragraph (3)(A)''.
       (4) Phaseout of 30-percent credit rate for fiber-optic 
     solar, qualified fuel cell, and qualified small wind energy 
     property.--
       (A) In general.--Section 48(a) is amended by adding the 
     following:
       ``(7) Phaseout for fiber-optic solar, qualified fuel cell, 
     and qualified small wind energy property.--In the case of any 
     energy property described in paragraph (3)(A)(ii), qualified 
     fuel cell property, or qualified small wind property, the 
     energy percentage determined under paragraph (2) shall be 
     equal to--
       ``(A) in the case of any property the construction of which 
     begins after December 31, 2019, and before January 1, 2021, 
     26 percent, and
       ``(B) in the case of any property the construction of which 
     begins after December 31, 2020, and before January 1, 2022, 
     22 percent.''.
       (B) Conforming amendment.--Section 48(a)(2)(A) is amended 
     by striking ``paragraph (6)'' and inserting ``paragraphs (6) 
     and (7)''.
       (5) Extension of qualified fuel cell property.--Section 
     48(c)(1)(D) is amended by striking ``for any period after 
     December 31, 2016'' and inserting ``the construction of which 
     does not begin before January 1, 2022''.
       (6) Extension of qualified microturbine property.--Section 
     48(c)(2)(D) is amended by striking ``for any period after 
     December 31, 2016'' and inserting ``the construction of which 
     does not begin before January 1, 2022''.
       (7) Extension of combined heat and power system property.--
     Section 48(c)(3)(A)(iv) is amended by striking ``which is 
     placed in service before January 1, 2017'' and inserting 
     ``the construction of which begins before January 1, 2022''.
       (8) Extension of qualified small wind energy property.--
     Section 48(c)(4)(C) is amended by striking ``for any period 
     after December 31, 2016'' and inserting ``the construction of 
     which does not begin before January 1, 2022''.
       (9) Effective date.--The amendments made by this subsection 
     shall take effect on January 1, 2017.
       (c) Waste Heat to Power Property.--
       (1) In general.--
       (A) Introduction of waste to heat power energy property.--
     Section 48(a)(3)(A) is amended--
       (i) at the end of clause (vi) by striking ``or''; and
       (ii) at the end of clause (vii) by inserting ``or'' after 
     the comma; and
       (iii) by adding the following:
       ``(viii) waste heat to power property,''.

[[Page S7599]]

       (B) Definitions and limitations.--Section 48(c) is amended 
     by adding the following:
       ``(5) Waste heat to power property.--
       ``(A) In general.--The term `waste heat to power property' 
     means property--
       ``(i) comprising a system which generates electricity 
     through the recovery of a qualified waste heat resource, and
       ``(ii) the construction of which begins before January 1, 
     2022.
       ``(B) Qualified waste heat resource.--The term `qualified 
     waste heat resource' means--
       ``(i) exhaust heat or flared gas from an industrial process 
     that does not have, as its primary purpose, the production of 
     electricity, and
       ``(ii) a pressure drop in any gas for an industrial or 
     commercial process.
       ``(C) Limitations.--
       ``(i) In general.--For purposes of subsection (a)(1), the 
     basis of any waste heat to power property taken into account 
     under this section shall not exceed the excess of--

       ``(I) the basis of such property, over
       ``(II) the fair market value of comparable property which 
     does not have the capacity to capture and convert a qualified 
     waste heat resource to electricity.

       ``(ii) Capacity limitation.--The term `waste heat to power 
     property' shall not include any property comprising a system 
     if such system has a capacity in excess of 50 megawatts.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to periods after December 31, 2016, in taxable 
     years ending after such date, under rules similar to the 
     rules of section 48(m) of the Internal Revenue Code of 1986 
     (as in effect on the day before the date of the enactment of 
     the Revenue Reconciliation Act of 1990).
       (d) Modifications of Credit for Production From Advanced 
     Nuclear Power Facilities.--
       (1) Treatment of unutilized limitation amounts.--Section 
     45J(b) is amended--
       (A) in paragraph (4), by inserting ``or any amendment to'' 
     after ``enactment of'', and
       (B) by adding at the end the following new paragraph:
       ``(5) Allocation of unutilized limitation.--
       ``(A) In general.--Any unutilized national megawatt 
     capacity limitation shall be allocated by the Secretary under 
     paragraph (3) as rapidly as is practicable after December 31, 
     2020--
       ``(i) first to facilities placed in service on or before 
     such date to the extent that such facilities did not receive 
     an allocation equal to their full nameplate capacity, and
       ``(ii) then to facilities placed in service after such date 
     in the order in which such facilities are placed in service.
       ``(B) Unutilized national megawatt capacity limitation.--
     The term `unutilized national megawatt capacity limitation' 
     means the excess (if any) of--
       ``(i) 6,000 megawatts, over
       ``(ii) the aggregate amount of national megawatt capacity 
     limitation allocated by the Secretary before January 1, 2021, 
     reduced by any amount of such limitation which was allocated 
     to a facility which was not placed in service before such 
     date.
       ``(C) Coordination with other provisions.--In the case of 
     any unutilized national megawatt capacity limitation 
     allocated by the Secretary pursuant to this paragraph--
       ``(i) such allocation shall be treated for purposes of this 
     section in the same manner as an allocation of national 
     megawatt capacity limitation, and
       ``(ii) subsection (d)(1)(B) shall not apply to any facility 
     which receives such allocation.''.
       (2) Transfer of credit by certain public entities.--
       (A) In general.--Section 45J is amended--
       (i) by redesignating subsection (e) as subsection (f), and
       (ii) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Transfer of Credit by Certain Public Entities.--
       ``(1) In general.--If, with respect to a credit under 
     subsection (a) for any taxable year--
       ``(A) the taxpayer would be a qualified public entity, and
       ``(B) such entity elects the application of this paragraph 
     for such taxable year with respect to all (or any portion 
     specified in such election) of such credit,
     the eligible project partner specified in such election (and 
     not the qualified public entity) shall be treated as the 
     taxpayer for purposes of this title with respect to such 
     credit (or such portion thereof).
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) Qualified public entity.--The term `qualified public 
     entity' means--
       ``(i) a Federal, State, or local government entity, or any 
     political subdivision, agency, or instrumentality thereof,
       ``(ii) a mutual or cooperative electric company described 
     in section 501(c)(12) or section 1381(a)(2), or
       ``(iii) a not-for-profit electric utility which has or had 
     received a loan or loan guarantee under the Rural 
     Electrification Act of 1936.
       ``(B) Eligible project partner.--The term `eligible project 
     partner' means--
       ``(i) any person responsible for, or participating in, the 
     design or construction of the advanced nuclear power facility 
     to which the credit under subsection (a) relates,
       ``(ii) any person who participates in the provision of the 
     nuclear steam supply system to the advanced nuclear power 
     facility to which the credit under subsection (a) relates,
       ``(iii) any person who participates in the provision of 
     nuclear fuel to the advanced nuclear power facility to which 
     the credit under subsection (a) relates, or
       ``(iv) any person who has an ownership interest in such 
     facility.
       ``(3) Special rules.--
       ``(A) Application to partnerships.--In the case of a credit 
     under subsection (a) which is determined at the partnership 
     level--
       ``(i) for purposes of paragraph (1)(A), a qualified public 
     entity shall be treated as the taxpayer with respect to such 
     entity's distributive share of such credit, and
       ``(ii) the term `eligible project partner' shall include 
     any partner of the partnership.
       ``(B) Taxable year in which credit taken into account.--In 
     the case of any credit (or portion thereof) with respect to 
     which an election is made under paragraph (1), such credit 
     shall be taken into account in the first taxable year of the 
     eligible project partner ending with, or after, the qualified 
     public entity's taxable year with respect to which the credit 
     was determined.
       ``(C) Treatment of transfer under private use rules.--For 
     purposes of section 141(b)(1), any benefit derived by an 
     eligible project partner in connection with an election under 
     this subsection shall not be taken into account as a private 
     business use.''.
       (B) Special rule for proceeds of transfers for mutual or 
     cooperative electric companies.--Section 501(c)(12) is 
     amended by adding at the end the following new subparagraph:
       ``(I) In the case of a mutual or cooperative electric 
     company described in this paragraph or an organization 
     described in section 1381(a)(2), income received or accrued 
     in connection with an election under section 45J(e)(1) shall 
     be treated as an amount collected from members for the sole 
     purpose of meeting losses and expenses.''.
       (3) Effective dates.--
       (A) Treatment of unutilized limitation amounts.--The 
     amendment made by paragraph (1) shall take effect on the date 
     of the enactment of this Act.
       (B) Transfer of credit by certain public entities.--The 
     amendments made by paragraph (2) shall apply to taxable years 
     beginning after December 31, 2017.
                                 ______
                                 
  SA 1735. Mr. ROUNDS (for himself, Mr. Hatch, Mr. Perdue, and Mr. 
Crapo) submitted an amendment intended to be proposed to amendment SA 
1618 proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       On page 171, beginning with line 17, strike all through 
     page 172, line 17, and insert the following:
       ``(b) Inclusion Not Later Than for Financial Accounting 
     Purposes.--
       ``(1) Income taken into account in financial statement.--
       ``(A) In general.--In the case of a taxpayer the taxable 
     income of which is computed under an accrual method of 
     accounting, the all events test with respect to any item of 
     gross income (or portion thereof) shall not be treated as met 
     any later than when such item (or portion thereof) is taken 
     into account as revenue in--
       ``(i) an applicable financial statement of the taxpayer, or
       ``(ii) such other financial statement as the Secretary may 
     specify for purposes of this subsection.
       ``(B) Exception.--This paragraph shall not apply to--
       ``(i) a taxpayer which does not have a financial statement 
     described in clause (i) or (ii) of subparagraph (A) for a 
     taxable year, or
       ``(ii) any item of gross income in connection with a 
     mortgage servicing contract.
       ``(C) All events test.--For purposes of this section, the 
     all events test is met with respect to any item of gross 
     income if all the events have occurred which fix the right to 
     receive such income and the amount of such income can be 
     determined with reasonable accuracy.
       ``(2) Coordination with special methods of accounting.--
     Paragraph (1) shall not apply with respect to any item of 
     gross income for which the taxpayer uses a special method of 
     accounting provided under any other provision of this 
     chapter, other than any provision of part V of subchapter P 
     (except as provided in clause (ii) of paragraph (1)(B)).
                                 ______
                                 
  SA 1736. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page 34, line 23, strike ``trust or''.
                                 ______
                                 
  SA 1737. Mr. ALEXANDER (for himself and Mr. Gardner) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr.

[[Page S7600]]

McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       On page 306, strike line 16 and insert the following:
     ``able year with respect to such institution.
       ``(3) Exempt purpose assets.--For purposes of subsection 
     (b)(1)(C), the amount of assets treated as being used 
     directly in carrying out the institution's exempt purpose 
     shall include--
       ``(A) the fair market value of tangible and real property 
     assets of the institution,
       ``(B) financial assets of the institution which are subject 
     to restrictions for use solely for financial aid or other 
     educational or research activities of the institution, and
       ``(C) assets designated by the institution's governing 
     board to be used solely for specific purposes which are 
     directly related to the institution's exempt purpose.''.
                                 ______
                                 
  SA 1738. Mr. ALEXANDER (for himself, Mr. Gardner, Mr. Isakson, and 
Mr. Perdue) submitted an amendment intended to be proposed to amendment 
SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       On page 305, line 1, strike ``$250,000'' and insert 
     ``$500,000''.
                                 ______
                                 
  SA 1739. Mr. UDALL (for himself, Mr. Heinrich, Mr. Wyden, and Mr. 
Bennet) submitted an amendment intended to be proposed to amendment SA 
1618 proposed by Mr. McConnell (for Mr. Hatch (for himself and Ms. 
Murkowski)) to the bill H.R. 1, to provide for reconciliation pursuant 
to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       At the end of title II, add the following:

     SEC. 20004. FUNDING FOR THE PAYMENT IN LIEU OF TAXES PROGRAM.

       Section 6906 of title 31, United States Code, is amended in 
     the matter preceding paragraph (1), by striking ``each of 
     fiscal years 2008 through 2014'' and inserting ``fiscal year 
     2018 and each fiscal year thereafter''.

     SEC. 20005. PERMANENT AUTHORIZATION FOR THE SECURE RURAL 
                   SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 
                   2000.

       (a) Secure Payments for States and Counties Containing 
     Federal Land.--
       (1) Calculation of payments.--Section 101 of the Secure 
     Rural Schools and Community Self-Determination Act of 2000 
     (16 U.S.C. 7111) is amended by striking ``of fiscal years 
     2008 through 2015'' each place it appears and inserting 
     ``fiscal year''.
       (2) Elections.--Section 102(b)(2)(B) of the Secure Rural 
     Schools and Community Self-Determination Act of 2000 (16 
     U.S.C. 7112(b)(2)(B)) is amended by striking ``through fiscal 
     year 2015''.
       (3) Notification of election.--Section 102(d)(1)(E) of the 
     Secure Rural Schools and Community Self-Determination Act of 
     2000 (16 U.S.C. 7112(d)(1)(E)) is amended by striking 
     ``fiscal years 2014 and 2015'' and inserting ``fiscal year 
     2014 and each fiscal year thereafter''.
       (4) Distribution of payments to eligible counties.--Section 
     103(d)(2) of the Secure Rural Schools and Community Self-
     Determination Act of 2000 (16 U.S.C. 7113(d)(2)) is amended 
     by striking ``each of fiscal years 2011 through 2015'' and 
     inserting ``fiscal year 2011 and each fiscal year 
     thereafter''.
       (b) Authority to Conduct Special Projects on Federal 
     Land.--
       (1) In general.--The Secure Rural Schools and Community 
     Self-Determination Act of 2000 is amended by striking section 
     208 (16 U.S.C. 7128).
       (2) Conforming amendments.--Section 207 of the Secure Rural 
     Schools and Community Self-Determination Act of 2000 (16 
     U.S.C. 7127) is amended--
       (A) in subsection (b), by striking ``Subject to section 
     208, if'' and inserting ``If''; and
       (B) in subsection (c), by striking ``Subject to section 
     208, any'' and inserting ``any''.
       (c) Termination of Authority.--The Secure Rural Schools and 
     Community Self-Determination Act of 2000 is amended by 
     striking section 304 (16 U.S.C. 7144).

     SEC. 20006. CORPORATE TAX RATE.

       Section 11(b) of the Internal Revenue Code of 1986 (as 
     amended by section 13001(a)) is amended by striking ``20 
     percent'' and inserting ``20.1 percent''.
                                 ______
                                 
  SA 1740. Ms. COLLINS (for herself and Mr. King) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 2. REFUNDABILITY OF CHILD AND DEPENDENT CARE TAX CREDIT.

       (a) In General.--The Internal Revenue Code of 1986 is 
     amended--
       (1) by redesignating section 21 as section 36C, and
       (2) by moving section 36C, as so redesignated, from subpart 
     A of part IV of subchapter A of chapter 1 to the location 
     immediately before section 37 in subpart C of part IV of 
     subchapter A of chapter 1.
       (b) Technical Amendments.--
       (1) Paragraph (1) of section 23(f) is amended by striking 
     ``21(e)'' and inserting ``36C(e)''.
       (2) Paragraph (6) of section 35(g) is amended by striking 
     ``21(e)'' and inserting ``36C(e)''.
       (3) Paragraph (1) of section 36C(a) (as redesignated by 
     subsection (a)) is amended by striking ``this chapter'' and 
     inserting ``this subtitle''.
       (4) Subparagraph (C) of section 129(a)(2) is amended by 
     striking ``section 21(e)'' and inserting ``section 36C(e)''.
       (5) Paragraph (2) of section 129(b) is amended by striking 
     ``section 21(d)(2)'' and inserting ``section 36C(d)(2)''.
       (6) Paragraph (1) of section 129(e) is amended by striking 
     ``section 21(b)(2)'' and inserting ``section 36C(b)(2)''.
       (7) Subsection (e) of section 213 is amended by striking 
     ``section 21'' and inserting ``section 36C''.
       (8) Subparagraph (H) of section 6213(g)(2) is amended by 
     striking ``section 21'' and inserting ``section 36C''.
       (9) Subparagraph (L) of section 6213(g)(2) is amended by 
     striking ``section 21, 24, or 32,'' and inserting ``section 
     24, 32, or 36C,''.
       (10) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``36C,'' after ``36B,''.
       (11) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 36B the following:

``Sec. 36C. Expenses for household and dependent care services 
              necessary for gainful employment.''.

       (12) The table of sections for subpart A of such part IV is 
     amended by striking the item relating to section 21.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1741. Ms. COLLINS (for herself and Mr. King) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 2. REFUNDABILITY OF CHILD AND DEPENDENT CARE TAX CREDIT.

       (a) In General.--The Internal Revenue Code of 1986 is 
     amended--
       (1) by redesignating section 21 as section 36C, and
       (2) by moving section 36C, as so redesignated, from subpart 
     A of part IV of subchapter A of chapter 1 to the location 
     immediately before section 37 in subpart C of part IV of 
     subchapter A of chapter 1.
       (b) Technical Amendments.--
       (1) Paragraph (1) of section 23(f) is amended by striking 
     ``21(e)'' and inserting ``36C(e)''.
       (2) Paragraph (6) of section 35(g) is amended by striking 
     ``21(e)'' and inserting ``36C(e)''.
       (3) Paragraph (1) of section 36C(a) (as redesignated by 
     subsection (a)) is amended by striking ``this chapter'' and 
     inserting ``this subtitle''.
       (4) Subparagraph (C) of section 129(a)(2) is amended by 
     striking ``section 21(e)'' and inserting ``section 36C(e)''.
       (5) Paragraph (2) of section 129(b) is amended by striking 
     ``section 21(d)(2)'' and inserting ``section 36C(d)(2)''.
       (6) Paragraph (1) of section 129(e) is amended by striking 
     ``section 21(b)(2)'' and inserting ``section 36C(b)(2)''.
       (7) Subsection (e) of section 213 is amended by striking 
     ``section 21'' and inserting ``section 36C''.
       (8) Subparagraph (H) of section 6213(g)(2) is amended by 
     striking ``section 21'' and inserting ``section 36C''.
       (9) Subparagraph (L) of section 6213(g)(2) is amended by 
     striking ``section 21, 24, or 32,'' and inserting ``section 
     24, 32, or 36C,''.
       (10) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``36C,'' after ``36B,''.
       (11) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 36B the following:

``Sec. 36C. Expenses for household and dependent care services 
              necessary for gainful employment.''.

       (12) The table of sections for subpart A of such part IV is 
     amended by striking the item relating to section 21.
       (c) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply to taxable years beginning 
     after December 31, 2017.
                                 ______
                                 
  SA 1742. Mr. HOEVEN submitted an amendment intended to be proposed to

[[Page S7601]]

amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT 
                   TO BOND ISSUANCE.

       (a) Repeal of Essential Governmental Function 
     Requirement.--Paragraph (1) of section 7871(c) is amended to 
     read as follows:
       ``(1) In general.--Subsection (a) of section 103 shall 
     apply to any obligation (not described in paragraph (2)) 
     issued by an Indian tribal government (or subdivision 
     thereof) except in the case of any obligation issued as part 
     of an issue if any portion of the proceeds of such issue are 
     used to finance--
       ``(A) any portion of a building in which class II or class 
     III gaming (as defined in section 4 of the Indian Gaming 
     Regulatory Act) is conducted or housed or any other property 
     actually used in the conduct of such gaming, or
       ``(B) any facility located outside the Indian reservation 
     (as defined in section 168(j)(6)).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to obligations issued in calendar years beginning 
     after the date of the enactment of this Act.
                                 ______
                                 
  SA 1743. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. 1____. MODIFICATIONS TO CORPORATE TAX RATE AND 
                   EXPENSING.

       (a) Increase in Corporate Tax Rate.--
       (1) In general.--Section 11(b), as amended by section 
     13001, is amended by striking ``20 percent'' and inserting 
     ``21 percent''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2018.
       (b) Extension of 100 Percent Expensing.--
       (1) In general.--Section 168(k), as amended by section 
     13201 of this Act, is amended--
       (A) in the heading, by striking ``January 1, 2023'' and 
     inserting ``January 1, 2027'',
       (B) in paragraph (2)--
       (i) in subparagraph (A)(iii), clauses (i)(III) and (ii) of 
     subparagraph (B), and subparagraph (E)(i), by striking 
     ``January 1, 2023'' each place it appears and inserting 
     ``January 1, 2027'', and
       (ii) in subparagraph (B)--

       (I) in clause (i)(II), by striking ``January 1, 2024'' and 
     inserting ``January 1, 2028'', and
       (II) in the heading of clause (ii), by striking ``pre-
     january 1, 2023'' and inserting ``pre-january 1, 2027'', and

       (C) in paragraph (5)(A), by striking ``January 1, 2023'' 
     and inserting ``January 1, 2027''.
       (2) Conforming amendment.--Clause (ii) of section 
     460(c)(6)(B) is amended by striking ``January 1, 2023 
     (January 1, 2024'' and inserting ``January 1, 2027 (January 
     1, 2028''.
       (3) Effective dates.--The amendments made by this 
     subsection shall take effect as if included in the amendments 
     made by section 13201 of this Act.
                                 ______
                                 
  SA 1744. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Strike section 11051 and insert the following:

     SEC. ___. ELIMINATION OF WAGERING LOSS DEDUCTION.

       (a) In General.--Subsection (d) of section 165 is amended 
     to read as follows:
       ``(d) No Deduction of Wagering Losses.--Losses from 
     wagering transactions shall not be allowed.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1745. Mr. BURR submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page 50, between lines 4 and 5, insert the following:
       (3) Responsibility for contribution limitation.--Paragraph 
     (2) of section 529A(b) is amended by adding at the end the 
     following: ``A designated beneficiary (or a person acting on 
     behalf of such beneficiary) shall maintain adequate records 
     for purposes of ensuring, and shall be responsible for 
     ensuring, that the requirements of subparagraph (B)(ii) are 
     met.''
                                 ______
                                 
  SA 1746. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ____. TERMINATION OF CREDIT FOR NEW QUALIFIED PLUG-IN 
                   ELECTRIC DRIVE MOTOR VEHICLES.

       (a) 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).
       (b) Conforming Amendments.--
       (1) Section 38(b) is amended by striking paragraph (35).
       (2) Section 1016(a) is amended by striking paragraph (37).
       (3) Section 6501(m) is amended by striking ``30D(e)(4),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to vehicles placed in service in taxable years 
     beginning after December 31, 2017.
                                 ______
                                 
  SA 1747. Mr. ALEXANDER submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of subpart A of part V of subtitle C of title I, 
     add the following:

     SEC. 13405. TERMINATION OF CREDIT FOR ELECTRICITY PRODUCED 
                   FROM WIND.

       (a) In General.--Paragraph (1) of section 45(d) is amended 
     by striking ``2020'' and inserting ``2018''.
       (b) Conforming Amendments.--
       (1) Paragraph (5) of section 45(b) is amended by striking 
     ``shall be reduced by'' and all that follows through the 
     period and inserting ``shall be reduced by 20 percent in the 
     case of any facility the construction of which begins after 
     December 31, 2016, and before January 1, 2018.''.
       (2) Clause (ii) of section 48(a)(5)(C) is amended by 
     striking ``January 1, 2020'' and inserting ``January 1, 
     2018''.
       (3) Subparagraph (E) of section 48(a)(5) is amended by 
     striking ``shall be reduced by'' and all that follows through 
     the period and inserting ``shall be reduced by 20 percent in 
     the case of any facility the construction of which begins 
     after December 31, 2016, and before January 1, 2018.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to electricity 
     produced and sold in taxable years beginning after the date 
     of the enactment of this Act.
       (2) Treatment as energy property.--The amendments made by 
     paragraphs (2) and (3) of subsection (b) shall apply to 
     property placed in service in taxable years beginning after 
     the date of the enactment of this Act.
                                 ______
                                 
  SA 1748. Mr. CARDIN (for himself, Mrs. Murray, Mr. Casey, and Ms. 
Stabenow) submitted an amendment intended to be proposed by him to the 
bill H.R. 1, to provide for reconciliation pursuant to titles II and V 
of the concurrent resolution on the budget for fiscal year 2018; which 
was ordered to lie on the table; as follows:

       At the end of part IX of subtitle C of title I, insert the 
     following new subpart:

             Subpart C--Incentives for Economic Development

                    CHAPTER 1--REHABILITATION CREDIT

     SEC. 13901. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN 
                   SMALL PROJECTS.

       (a) In General.--Section 47 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(e) Special Rule Regarding Certain Small Projects.--
       ``(1) In general.--In the case of any qualified 
     rehabilitated building or portion thereof--
       ``(A) which is placed in service after the date of the 
     enactment of this subsection, and
       ``(B) which is a small project,
     subsection (a)(2) shall be applied by substituting `30 
     percent' for `20 percent'.
       ``(2) Maximum credit.--The credit under this section (after 
     application of this subsection) with respect to any project 
     for all taxable years shall not exceed $750,000.
       ``(3) Small project.--
       ``(A) In general.--For purposes of this subsection, the 
     term `small project' means any certified historic structure 
     or portion thereof if--
       ``(i) the total qualified rehabilitation expenditures taken 
     into account for purposes of this section with respect to the 
     rehabilitation do not exceed $3,750,000, and
       ``(ii) no credit was allowed under this section for either 
     of the two immediately preceding taxable years with respect 
     to such building.
       ``(B) Progress expenditures.--Credit allowable by reason of 
     subsection (d) shall not

[[Page S7602]]

     be taken into account under subparagraph (A)(ii).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. 13902. ALLOWANCE FOR THE TRANSFER OF CREDITS FOR CERTAIN 
                   SMALL PROJECTS.

       (a) In General.--Section 47(e) of the Internal Revenue Code 
     of 1986, as added by section 13901, is amended by adding at 
     the end the following new paragraph:
       ``(4) Transfer of small project credit.--
       ``(A) In general.--Subject to subparagraph (B) and such 
     regulations or other guidance as the Secretary may provide, 
     the taxpayer may transfer to any other taxpayer all or a 
     portion of the credit allowable to the taxpayer under 
     subsection (a) for a small project.
       ``(B) Certification.--A transfer under subparagraph (A) 
     shall be accompanied by a certificate which includes--
       ``(i) the certification for the certified historic 
     structure,
       ``(ii) the taxpayer's name, address, and tax identification 
     number,
       ``(iii) the transferee's name, address, and tax 
     identification number,
       ``(iv) the date of project completion and the amount of 
     credit being transferred, and
       ``(v) such other information as may be required by the 
     Secretary.
       ``(C) Credit may only be transferred once.--A credit 
     transferred under subparagraph (A) is not transferable by the 
     transferee to any other taxpayer.
       ``(D) Tax treatment of transfer.--
       ``(i) Disallowance of deduction.--No deduction shall be 
     allowed for any amount of consideration paid or incurred by 
     the transferee in return for the transfer of any credit under 
     this paragraph.
       ``(ii) Allowance of credit.--The amount of credit 
     transferred under subparagraph (A)--

       ``(I) shall not be allowed to the transferor for any 
     taxable year, and
       ``(II) shall be allowable to the transferee as a credit 
     under this section for the taxable year of the transferee in 
     which such credit is transferred.

       ``(E) Recapture and other special rules.--For purposes of 
     section 50, the transferee of a credit with respect to a 
     smaller project under this paragraph shall be treated as the 
     taxpayer with respect to the smaller project.
       ``(F) Information reporting.--The transferor and the 
     transferee shall each make such reports regarding the 
     transfer of an amount of credit under subparagraph (A), and 
     containing such information, as the Secretary may require. 
     The reports required by this subparagraph shall be filed at 
     such time and in such manner as may be required by the 
     Secretary.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to periods after December 31, 2016.

     SEC. 13903. INCREASING THE TYPE OF BUILDINGS ELIGIBLE FOR 
                   REHABILITATION.

       (a) In General.--Section 47(c)(1)(C)(i)(I) of the Internal 
     Revenue Code of 1986 is amended by inserting ``50 percent 
     of'' before ``the adjusted basis''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2016.

     SEC. 13904. REDUCTION OF BASIS ADJUSTMENT FOR REHABILITATION 
                   PROPERTY.

       (a) In General.--Section 50(c) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following:
       ``(6) Special rule relating to the rehabilitation credit.--
     In the case of any rehabilitation credit--
       ``(A) only 50 percent of such credit shall be taken into 
     account under paragraph (1), and
       ``(B) only 50 percent of any recapture amount attributable 
     to such credit shall be taken into account under paragraph 
     (2).''.
       (b) Coordination With Basis Adjustment.--Subsection (d) of 
     section 50 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new sentence: ``For purposes 
     of paragraph (5), in applying the provisions of section 
     48(d)(5)(B) (as so in effect) to a lease of property eligible 
     for the credit under section 47, gross income of the lessee 
     of such property shall include, ratably over the shortest 
     recovery period applicable to such property under section 
     168, an amount equal to 50 percent of the amount of the 
     credit allowable under section 38 to such lessee with respect 
     to such property.''.
       (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. 13905. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE 
                   PROPERTY.

       (a) In General.--Section 47(c)(2)(B)(v)(I) of the Internal 
     Revenue Code of 1986 is amended by inserting ``, and 
     subclauses (I), (II), and (III) of section 168(h)(1)(B)(ii) 
     shall not apply'' after ``thereof''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

                   CHAPTER 2--NEW MARKETS TAX CREDIT

     SEC. 13911. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.

       (a) Extension.--
       (1) In general.--Subparagraph (G) of section 45D(f)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``for each of calendar years 2010 through 2019'' and 
     inserting ``for calendar year 2010 and each calendar year 
     thereafter''.
       (2) Conforming amendment.--Section 45D(f)(3) of such Code 
     is amended by striking the last sentence.
       (b) Inflation Adjustment.--Subsection (f) of section 45D of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new paragraph:
       ``(4) Inflation adjustment.--
       ``(A) In general.--In the case of any calendar year 
     beginning after 2016, the dollar amount in paragraph (1)(G) 
     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, determined by 
     substituting `calendar year 2000' for `calendar year 1992' in 
     subparagraph (B) thereof.
       ``(B) Rounding rule.--Any increase under subparagraph (A) 
     which is not a multiple of $1,000,000 shall be rounded to the 
     nearest multiple of $1,000,000.''.
       (c) Allocations Designated for Areas Impacted by Decline in 
     Manufacturing.--Section 45D(f) of such Code, as amended by 
     subsection (b), is amended by adding at the end the following 
     new paragraph:
       ``(5) Allocations for areas impacted by decline in 
     manufacturing.--The new markets tax credit limitation 
     otherwise determined under paragraph (1) for each calendar 
     year shall be increased by $1,000,000,000. A qualified 
     community development entity shall be eligible for an 
     allocation under paragraph (2) of the increase described in 
     the preceding sentence only if a significant mission of such 
     entity is providing investments and services to persons in 
     the trade or business of manufacturing products in 
     communities which have suffered major manufacturing job 
     losses or a major manufacturing job loss event, as designated 
     by the Secretary. Paragraph (3) shall be applied separately 
     with respect to the increase provided under this 
     paragraph.''.
       (d) Alternative Minimum Tax Relief.--Subparagraph (B) of 
     section 38(c)(4) of the Internal Revenue Code of 1986 is 
     amended--
       (1) by redesignating clauses (v) through (xi) as clauses 
     (vi) through (xii), respectively, and
       (2) by inserting after clause (iv) the following new 
     clause:
       ``(v) the credit determined under section 45D, but only 
     with respect to credits determined with respect to qualified 
     equity investments (as defined in section 45D(b)) initially 
     made after December 31, 2016,''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2016.
       (2) Alternative minimum tax relief.--The amendments made by 
     subsection (d) shall apply to credits determined with respect 
     to qualified equity investments (as defined in section 45D(b) 
     of the Internal Revenue Code of 1986) initially made after 
     December 31, 2016.

                CHAPTER 3--LOW INCOME HOUSING TAX CREDIT

     SEC. 13921. INCREASES IN STATE ALLOCATIONS.

       (a) Phase-In of Increases.--
       (1) In general.--Clause (ii) of section 42(h)(3)(C) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``$1.75'' in subclause (I) and inserting 
     ``the per capita dollar amount'', and
       (B) by striking ``$2,000,000'' in subclause (II) and 
     inserting ``the minimum ceiling amount''.
       (2) Per capita dollar amount; minimum ceiling amount.--
     Subparagraph (I) of section 42(h)(3) of such Code is amended 
     to read as follows:
       ``(I) Per capita dollar amount; minimum ceiling amount.--
     For purposes of this paragraph--
       ``(i) Per capita dollar amount.--The per capita dollar 
     amount is--

       ``(I) for calendar year 2017, $2.35,
       ``(II) for calendar year 2018, $2.59,
       ``(III) for calendar year 2019, $2.82,
       ``(IV) for calendar year 2020, $3.06,
       ``(V) for calendar year 2021, $3.29, and
       ``(VI) $3.53 thereafter.

       ``(ii) Minimum ceiling amount.--The minimum ceiling amount 
     is--

       ``(I) for calendar year 2017, $2,710,000,
       ``(II) for calendar year 2018, $2,981,000,
       ``(III) for calendar year 2019, $3,252,000,
       ``(IV) for calendar year 2020, $3,523,000,
       ``(V) for calendar year 2021, $3,794,000, and
       ``(VI) $4,065,000 thereafter.''.

       (3) Modification of cost-of-living adjustment.--
     Subparagraph (H) of section 42(h)(3) of such Code is 
     amended--
       (A) by striking ``2002'' in clause (i) and inserting 
     ``2017'',
       (B) by striking ``the $2,000,000 and $1.75 amounts in 
     subparagraph (C)'' in clause (i) and inserting ``the dollar 
     amounts applicable to such calendar year under clauses (i) 
     and (ii) of subparagraph (I)'',
       (C) by striking ``2001'' in clause (i)(II) and inserting 
     ``2016'',
       (D) by striking ``$2,000,000'' in clause (ii)(I) and 
     inserting ``minimum ceiling'', and
       (E) by striking ``$1.75'' in clause (ii)(II) and inserting 
     ``per capita dollar''.

[[Page S7603]]

       (4) Effective date.--The amendments made by this subsection 
     shall apply to calendar years beginning after December 31, 
     2017.
       (b) Permanent Increases.--
       (1) In general.--Clause (ii) of section 42(h)(3)(C) of the 
     Internal Revenue Code of 1986, as amended by subsection 
     (a)(1), is amended--
       (A) by striking ``the per capita dollar amount'' in 
     subclause (I) and inserting ``$3.53'', and
       (B) by striking ``the minimum ceiling amount'' in subclause 
     (II) and inserting ``$4,065,000''.
       (2) Conforming amendment.--Paragraph (3) of section 42(h) 
     of such Code is amended by striking subparagraph (I), as 
     amended by subsection (a)(2).
       (3) Cost-of-living adjustment.--Subparagraph (H) of section 
     42(h)(3) of such Code, as amended by subsection (a)(3), is 
     amended--
       (A) by striking ``the dollar amounts applicable to such 
     calendar year under clauses (i) and (ii) of subparagraph 
     (I)'' in clause (i) and inserting ``the $4,065,000 and $3.53 
     amounts in subparagraph (C)'',
       (B) by striking ``minimum ceiling'' in clause (ii)(I) and 
     inserting ``$4,065,000'', and
       (C) by striking ``per capita dollar'' in clause (ii)(II) 
     and inserting ``$3.53''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to calendar years beginning after December 31, 
     2022.

     SEC. 13922. AVERAGE INCOME TEST.

       (a) In General.--Paragraph (1) of section 42(g) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``subparagraph (A) or (B)'' and inserting 
     ``subparagraph (A), (B), or (C)'', and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Average income test.--
       ``(i) In general.--The project meets the minimum 
     requirements of this subparagraph if 40 percent or more (25 
     percent or more in the case of a project described in section 
     142(d)(6)) of the residential units in such project are both 
     rent-restricted and occupied by individuals whose income does 
     not exceed the imputed income limitation designated by the 
     taxpayer with respect to the respective unit.
       ``(ii) Special rules relating to income limitation.--For 
     purposes of clause (i)--

       ``(I) Designation.--The taxpayer shall designate the 
     imputed income limitation of each unit taken into account 
     under such clause.
       ``(II) Average test.--The average of the imputed income 
     limitations designated under subclause (I) shall not exceed 
     60 percent of area median gross income.
       ``(III) 10-percent increments.--The designated imputed 
     income limitation of any unit under subclause (I) shall be 20 
     percent, 30 percent, 40 percent, 50 percent, 60 percent, 70 
     percent, or 80 percent of area median gross income.''.

       (b) Rules Relating to Next Available Unit.--Subparagraph 
     (D) of section 42(g)(2) of the Internal Revenue Code of 1986 
     is amended--
       (1) in clause (i), by striking ``clause (ii)'' and 
     inserting ``clauses (ii), (iii), and (iv)'',
       (2) in clause (ii)--
       (A) by striking ``If'' and inserting ``In the case of a 
     project with respect to which the taxpayer elects the 
     requirements of subparagraph (A) or (B) of paragraph (1), 
     if'',
       (B) by striking the second sentence, and
       (C) by striking ``Next available unit must be rented to 
     low-income tenant if income rises above 140 percent of income 
     limit'' in the heading and inserting ``Rental of next 
     available unit in case of 20-50 or 40-60 test'', and
       (3) by adding at the end the following new clauses:
       ``(iii) Rental of next available unit in case of average 
     income test.--In the case of a project with respect to which 
     the taxpayer elects the requirements of subparagraph (C) of 
     paragraph (1), if the income of the occupants of the unit 
     increases above 140 percent of the greater of--

       ``(I) 60 percent of area median gross income, or
       ``(II) the imputed income limitation designated with 
     respect to the unit under paragraph (1)(C)(ii)(I),

     clause (i) shall cease to apply to any such unit if any 
     residential rental unit in the building (of a size comparable 
     to, or smaller than, such unit) is occupied by a new resident 
     whose income exceeds the limitation described in clause (v).
       ``(iv) Deep rent skewed projects.--In the case of a project 
     described in section 142(d)(4)(B), clause (ii) or (iii), 
     whichever is applicable, shall be applied by substituting 
     `170 percent' for `140 percent', and--

       ``(I) in the case of clause (ii), by substituting `any low-
     income unit in the building is occupied by a new resident 
     whose income exceeds 40 percent of area median gross income' 
     for `any residential rental unit' and all that follows in 
     such clause, and
       ``(II) in the case of clause (iii), by substituting `any 
     low-income unit in the building is occupied by a new resident 
     whose income exceeds the lesser of 40 percent of area median 
     gross income or the imputed income limitation designated with 
     respect to such unit under paragraph (1)(C)(ii)(I)' for `any 
     residential rental unit' and all that follows in such clause.

       ``(v) Limitation described.--For purposes of clause (iii), 
     the limitation described in this clause with respect to any 
     unit is--

       ``(I) the imputed income limitation designated with respect 
     to such unit under paragraph (1)(C)(ii)(I), in the case of a 
     unit which was taken into account as a low-income unit prior 
     to becoming vacant, and
       ``(II) the imputed income limitation which would have to be 
     designated with respect to such unit under such paragraph in 
     order for the project to continue to meet the requirements of 
     paragraph (1)(C)(ii)(II), in the case of any other unit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to elections made under section 42(g)(1) of the 
     Internal Revenue Code of 1986 after the date of the enactment 
     of this Act.

     SEC. 13923. UNIFORM INCOME ELIGIBILITY FOR RURAL PROJECTS.

       (a) In General.--Paragraph (8) of section 42(i) of the 
     Internal Revenue Code of 1986 is amended by striking the 
     second sentence.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13924. CODIFICATION OF RULES RELATING TO INCREASED 
                   TENANT INCOME.

       (a) In General.--Clause (i) of section 42(g)(2)(D) of the 
     Internal Revenue Code of 1986, as amended by this Act, is 
     amended by striking ``clauses (ii), (iii), and (iv)'' and all 
     that follows and inserting ``clauses (ii), (iii), (iv), and 
     (vi), notwithstanding an increase in the income of the 
     occupants above the income limitation applicable under 
     paragraph (1)--

       ``(I) a low-income unit shall continue to be treated as a 
     low-income unit if the income of such occupants initially was 
     60 percent or less of area median gross income and such unit 
     continues to be rent-restricted, and
       ``(II) a unit to which, at the time of initial occupancy by 
     such occupants, any Federal, State, or local government 
     income restriction applied, and which subsequently becomes 
     part of a building with respect to which rehabilitation 
     expenditures are taken into account under subsection (e), 
     shall be treated as a low-income unit if the income of such 
     occupants initially was 60 percent or less of area median 
     gross income and does not exceed 120 percent of area median 
     gross income as of the date of acquisition of the property by 
     the taxpayer.''.

       (b) Exception.--Subparagraph (D) of section 42(g)(2) of the 
     Internal Revenue Code of 1986, as amended by this Act, is 
     amended by adding at the end the following new clause:
       ``(vi) Exception to rule relating to increased tenant 
     income.--In the case of an occupant of a low-income unit who 
     initially qualified to occupy such unit by reason of 
     paragraph (1)(C) with an income in excess of 60 percent of 
     area median gross income but not in excess of 80 percent of 
     area median gross income, clause (i) shall be applied for 
     substituting `80 percent' for `60 percent' each place it 
     appears.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2016.

     SEC. 13925. MODIFICATION OF STUDENT OCCUPANCY RULES.

       (a) In General.--Subparagraph (D) of section 42(i)(3) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(D) Rules relating to students.--
       ``(i) In general.--A unit occupied solely by individuals 
     who--

       ``(I) have not attained age 24, and
       ``(II) are enrolled in a full-time course of study at an 
     institution of higher education (as defined in section 
     3304(f)),

     shall not be treated as a low-income unit.
       ``(ii) Exception for certain federal programs.--In the case 
     of a federally assisted building (as defined in subsection 
     (d)(6)(C)(i)), clause (i) shall not apply to a unit the 
     occupants of which meet all requirements applicable under the 
     housing program described in subsection (d)(6)(C)(i) through 
     which the building is assisted, financed, or operated.
       ``(iii) Other exceptions.--Clause (i) shall not apply to a 
     unit occupied by an individual who--

       ``(I) is married,
       ``(II) is a person with disabilities (as defined in section 
     3(b)(3)(E) of the United States Housing Act of 1937),
       ``(III) is a veteran (as defined in section 101(2) of title 
     38, United States Code),
       ``(IV) has one or more qualifying children (as defined in 
     section 152(c)), or
       ``(V) meets the income limitation applicable under 
     subsection (g)(1) to the project of which the building is a 
     part and is, or was immediately prior to attaining the age of 
     majority--

       ``(aa) an emancipated minor or in legal guardianship as 
     determined by a court of competent jurisdiction in the 
     individual's State of legal residence,
       ``(bb) under the care and placement responsibility of the 
     State agency responsible for administering a plan under part 
     B or part E of title IV of the Social Security Act, or
       ``(cc) was an unaccompanied youth (within the meaning of 
     section 725(6) of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11434a(6))) or a homeless child or youth (within 
     the meaning of section 725(2) of such Act (42 U.S.C. 
     11434a(2))).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13926. TENANT VOUCHER PAYMENTS TAKEN INTO ACCOUNT AS 
                   RENT FOR CERTAIN PURPOSES.

       (a) In General.--Subparagraph (B) of section 42(g)(2) of 
     the Internal Revenue Code of

[[Page S7604]]

     1986 is amended by adding at the end the following new 
     sentence: ``In the case of a project with respect to which 
     the taxpayer elects the requirements of subparagraph (C) of 
     paragraph (1), or the portion of a project to which 
     subsection (d)(5)(C) applies, clause (i) shall not apply with 
     respect to any tenant-based assistance (as defined in section 
     8(f)(7) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(f)(7))).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to rent paid in taxable years beginning after 
     December 31, 2017.

     SEC. 13927. MINIMUM CREDIT RATE.

       (a) In General.--Subsection (b) of section 42 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by redesignating paragraph (3) as paragraph (4), and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Minimum credit rate.--In the case of any new or 
     existing building to which paragraph (2) does not apply and 
     which is placed in service by the taxpayer after December 31, 
     2016, the applicable percentage shall not be less than 4 
     percent.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to buildings placed in service after December 31, 
     2016.

     SEC. 13928. RECONSTRUCTION OR REPLACEMENT PERIOD AFTER 
                   CASUALTY LOSS.

       (a) In General.--Subparagraph (E) of section 42(j)(4) of 
     the Internal Revenue Code of 1986 is amended by striking ``a 
     reasonable period established by the Secretary'' and 
     inserting ``a reasonable period established by the applicable 
     housing credit agency (not to exceed 25 months from the date 
     on which the casualty loss arises). The determination under 
     paragraph (1) shall not be made with respect to a property 
     the basis of which is affected by a casualty loss until the 
     period described in the preceding sentence with respect to 
     such property has expired.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to casualty losses arising after the date of the 
     enactment of this Act.

     SEC. 13929. MODIFICATION OF RIGHTS RELATING TO BUILDING 
                   PURCHASE.

       (a) In General.--Subparagraph (A) of section 42(i)(7) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``a right of 1st refusal'' and inserting 
     ``an option'', and
       (2) by striking ``the property'' and inserting ``the 
     property or a partnership interest relating to the 
     property''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     42(i)(7) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new sentence: ``In the case 
     of a purchase of a partnership interest, the minimum purchase 
     price is an amount equal to such interest's ratable share of 
     the amount determined under the first sentence of this 
     subparagraph.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to agreements entered into or amended after the 
     date of the enactment of this Act.

     SEC. 13930. MODIFICATION OF 10-YEAR RULE; LIMITATION ON 
                   ACQUISITION BASIS.

       (a) In General.--Clause (ii) of section 42(d)(2)(B) of the 
     Internal Revenue Code of 1986 is amended by inserting ``, or 
     the taxpayer elects the application of subparagraph (C)(ii)'' 
     after ``service''.
       (b) Limitation on Acquisition Basis.--Subparagraph (C) of 
     section 42(d)(2) of the Internal Revenue Code of 1986 is 
     amended--
       (1) by striking ``For purposes of subparagraph (A), the 
     adjusted basis'' and inserting ``For purposes of subparagraph 
     (A)--
       ``(i) In general.--The adjusted basis'', and
       (2) by adding at the end the following new clauses:
       ``(ii) Buildings in service within previous 10 years.--If 
     the period between the date of acquisition of the building by 
     the taxpayer and the date the building was last placed in 
     service is less than 10 years, the taxpayer's basis 
     attributable to the acquisition of the building which is 
     taken into account in determining the adjusted basis shall 
     not exceed the sum of--

       ``(I) the lowest amount paid for acquisition of the 
     building by any person during the 10 years preceding the date 
     of the acquisition of the building by the taxpayer, adjusted 
     as provided in clause (iii), and
       ``(II) the value of any capital improvements made by the 
     person who sells the building to the taxpayer which are 
     reflected in such seller's basis.

       ``(iii) Adjustment.--With respect to a basis determination 
     made in any taxable year, the amount described in clause 
     (ii)(I) shall be increased by an amount equal to--

       ``(I) such amount, multiplied by
       ``(II) a cost-of-living adjustment, determined in the same 
     manner as under section 1(f)(3) for the calendar year in 
     which the taxable year begins by taking into account the 
     acquisition year in lieu of calendar year 1992.

     For purposes of the preceding sentence, the acquisition year 
     is the calendar year in which the lowest amount referenced in 
     clause (ii)(I) was paid for the acquisition of the 
     building.''.
       (c) Conforming Amendments.--Clause (i) of section 
     42(d)(2)(D) of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``for subparagraph (b)'' in the heading, 
     and
       (2) by striking ``subparagraph (B)(ii)'' in the matter 
     preceding subclause (I) and inserting ``subparagraph (B)(ii) 
     or (C)(ii)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to buildings placed in service after December 31, 
     2016.

     SEC. 13931. CERTAIN RELOCATION COSTS TAKEN INTO ACCOUNT AS 
                   REHABILITATION EXPENDITURES.

       (a) In General.--Paragraph (2) of section 42(e) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(C) Certain relocation costs.--In the case of a 
     rehabilitation of a building to which section 280B does not 
     apply, costs relating to the relocation of occupants, 
     including--
       ``(i) amounts paid to occupants,
       ``(ii) amounts paid to third parties for services relating 
     to such relocation, and
       ``(iii) amounts paid for temporary housing for occupants,
     shall be treated as chargeable to capital account and taken 
     into account as rehabilitation expenditures.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2016.

     SEC. 13932. REPEAL OF QUALIFIED CENSUS TRACT POPULATION CAP.

       (a) In General.--Clause (ii) of section 42(d)(5)(B) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking subclauses (II) and (III), and
       (2) by striking ``Qualified census tract.--

       ``(I) In general.--The term'',

     and inserting ``Qualified census tract.--The term''.
       (b) Technical Corrections.--Sections 42(d)(4)(C)(i) and 
     42(m)(1)(B)(ii)(III) of the Internal Revenue Code of 1986 are 
     each amended by striking ``as defined in paragraph (5)(C)'' 
     and inserting ``as defined in paragraph (5)(B)(ii)''.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to designations of qualified census tracts under 
     section 42(d)(5)(B)(ii) of the Internal Revenue Code of 1986 
     after December 31, 2017.

     SEC. 13933. DETERMINATION OF COMMUNITY REVITALIZATION PLAN TO 
                   BE MADE BY HOUSING CREDIT AGENCY.

       (a) In General.--Subclause (III) of section 42(m)(1)(B)(ii) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     ``, as determined by the housing credit agency according to 
     criteria established by such agency,'' after ``(d)(5)(C)) 
     and''.
       (b) Criteria.--Paragraph (1) of section 42(m) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(E) Criteria for determination relating to concerted 
     community revitalization plan.--For purposes of subparagraph 
     (B)(ii)(III), the criteria which shall be established by a 
     housing credit agency for determining whether the development 
     of a project contributes to a concerted community development 
     plan shall take into account any factors the agency deems 
     appropriate, including the extent to which the proposed 
     plan--
       ``(i) is geographically specific,
       ``(ii) outlines a clear plan for implementation and goals 
     for outcomes,
       ``(iii) includes a strategy for applying for or obtaining 
     commitments of public or private investment (or both) in 
     nonhousing infrastructure, amenities, or services, and
       ``(iv) demonstrates the need for community 
     revitalization.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to allocations of housing credit dollar amounts 
     made under qualified allocation plans (as defined in section 
     42(m)(1)(B) of the Internal Revenue Code of 1986) adopted 
     after December 31, 2017.

     SEC. 13934. PROHIBITION OF LOCAL APPROVAL AND CONTRIBUTION 
                   REQUIREMENTS.

       (a) In General.--Paragraph (1) of section 42(m) of the 
     Internal Revenue Code of 1986, as amended by section 13933, 
     is further amended--
       (1) by striking clause (ii) of subparagraph (A) and by 
     redesignating clauses (iii) and (iv) thereof as clauses (ii) 
     and (iii), and
       (2) by adding at the end the following new subparagraph:
       ``(F) Local approval or contribution not taken into 
     account.--The selection criteria under a qualified allocation 
     plan shall not include consideration of--
       ``(i) any support or opposition with respect to the project 
     from local or elected officials, or
       ``(ii) any local government contribution to the project, 
     except to the extent such contribution is taken into account 
     as part of a broader consideration of the project's ability 
     to leverage outside funding sources, and is not prioritized 
     over any other source of outside funding.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to allocations of housing credit dollar amounts 
     made after December 31, 2017.

     SEC. 13935. INCREASE IN CREDIT FOR CERTAIN PROJECTS 
                   DESIGNATED TO SERVE EXTREMELY LOW-INCOME 
                   HOUSEHOLDS.

       (a) In General.--Paragraph (5) of section 42(d) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(C) Increase in credit for projects designated to serve 
     extremely low-income households.--In the case of any 
     building--
       ``(i) 20 percent or more of the residential units in which 
     are designated by the taxpayer for occupancy by households 
     the aggregate household income of which does not exceed the 
     greater of--

[[Page S7605]]

       ``(I) 30 percent of area median gross income, or
       ``(II) 100 percent of an amount equal to the Federal 
     poverty line (within the meaning of section 36B(d)(3)), and

       ``(ii) which is designated by the housing credit agency as 
     requiring the increase in credit under this subparagraph in 
     order for such building to be financially feasible as part of 
     a qualified low-income housing project,
     subparagraph (B) shall not apply to the portion of such 
     building which is comprised of such units, and the eligible 
     basis of such portion of the building shall be 150 percent of 
     such basis determined without regard to this subparagraph.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to buildings placed in service after December 31, 
     2016.

     SEC. 13936. INCREASE IN CREDIT FOR BOND-FINANCED PROJECTS 
                   DESIGNATED BY STATE AGENCY.

       (a) In General.--Clause (v) of section 42(d)(5)(B) of the 
     Internal Revenue Code of 1986 is amended by striking the 
     second sentence.
       (b) Technical Amendment.--Clause (v) of section 42(d)(5)(B) 
     of the Internal Revenue Code of 1986, as amended by 
     subsection (a), is further amended--
       (1) by striking ``State'' in the heading, and
       (2) by striking ``State housing credit agency'' and 
     inserting ``housing credit agency''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to buildings placed in service after December 31, 
     2016.

     SEC. 13937. ELIMINATION OF BASIS REDUCTION FOR LOW-INCOME 
                   HOUSING PROPERTIES RECEIVING CERTAIN ENERGY 
                   BENEFITS.

       (a) New Energy Efficient Home Credit.--Subsection (e) of 
     section 45L of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``Adjustment.--For purposes'' and inserting 
     ``Adjustment.--
       ``(1) In general.--For purposes'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Exception for affordable housing properties.--
     Paragraph (1) shall not apply to any property with respect to 
     which a credit is allowed under section 42.''.
       (b) Energy Efficient Commercial Buildings Deduction.--
     Subsection (e) of section 179D of the Internal Revenue Code 
     of 1986 is amended--
       (1) by striking ``Reduction.--For purposes'' and inserting 
     ``Reduction.--
       ``(1) In general.--For purposes'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Exception for affordable housing properties.--
     Paragraph (1) shall not apply to any property with respect to 
     which a credit is allowed under section 42.''.
       (c) Energy Credit.--Paragraph (3) of section 50(c) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subparagraph (A),
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``, and'', and
       (3) by adding at the end the following new subparagraph:
       ``(C) paragraph (1) shall not apply to any property with 
     respect to which a credit is allowed under section 42.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2016.

     SEC. 13938. RESTRICTION OF PLANNED FORECLOSURES.

       (a) In General.--Subclause (I) of section 42(h)(6)(E)(i) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:

       ``(I) on the 61st day after the taxpayer (or a successor in 
     interest) provides notice to the housing credit agency that 
     the building has been acquired by foreclosure (or instrument 
     in lieu of foreclosure) and that the taxpayer intends the 
     termination of such period, unless the housing credit agency 
     determines that such acquisition is part of an arrangement 
     with the taxpayer a purpose of which is to terminate such 
     period, or''.

       (b) Conforming Amendment.--The second sentence of clause 
     (i) of section 42(h)(6)(E) of the Internal Revenue Code of 
     1986 is amended by striking ``Subclause (II)'' and inserting 
     ``Subclauses (I) and (II)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to acquisitions by foreclosure (or instrument in 
     lieu of foreclosure) after December 31, 2017.

     SEC. 13939. INCREASE OF POPULATION CAP FOR DIFFICULT 
                   DEVELOPMENT AREAS.

       (a) In General.--Subclause (II) of section 42(d)(5)(B)(iii) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``20 percent'' and inserting ``30 percent''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to designations made under section 
     42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 after 
     December 31, 2017.

     SEC. 13940. SELECTION CRITERIA UNDER QUALIFIED ALLOCATION 
                   PLANS.

       (a) In General.--Subparagraph (C) of section 42(m)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of clause (ix), by striking the period at 
     the end of clause (x) and inserting ``, and'', and by adding 
     at the end the following new clause:
       ``(xi) the affordable housing needs of individuals in the 
     State who are members of Indian tribes (as defined in section 
     45A(c)(6)).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to allocations of credits under section 42 of the 
     Internal Revenue Code of 1986 made after December 31, 2017.

     SEC. 13941. INCLUSION OF INDIAN AREAS AS DIFFICULT 
                   DEVELOPMENT AREAS FOR PURPOSES OF CERTAIN 
                   BUILDINGS.

       (a) In General.--Subclause (I) of section 42(d)(5)(B)(iii) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     before the period the following: ``, and any Indian area''.
       (b) Indian Area.--Clause (iii) of section 42(d)(5)(B) of 
     the Internal Revenue Code of 1986 is amended by redesignating 
     subclause (II) as subclause (III) and by inserting after 
     subclause (I) the following new subclause:

       ``(II) Indian area.--For purposes of subclause (I), the 
     term `Indian area' means any Indian area (as defined in 
     section 4(11) of the Native American Housing Assistance and 
     Self Determination Act of 1996 (25 U.S.C. 4103(11)).''.

       (c) Eligible Buildings.--Clause (iii) of section 
     42(d)(5)(B) of the Internal Revenue Code of 1986, as amended 
     by subsection (b), is amended by adding at the end the 
     following new subclause:

       ``(IV) Special rule for buildings in indian areas.--In the 
     case of an area which is a difficult development area solely 
     because it is an Indian area, a building shall not be treated 
     as located in such area unless such building is assisted or 
     financed under the Native American Housing Assistance and 
     Self Determination Act of 1996 (25 U.S.C. 4101 et seq.) or 
     the project sponsor is an Indian tribe (as defined in section 
     45A(c)(6)), a tribally designated housing entity (as defined 
     in section 4(22) of such Act (25 U.S.C. 4103(22))), or wholly 
     owned or controlled by such an Indian tribe or tribally 
     designated housing entity.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to buildings placed in service after December 31, 
     2017.

     SEC. 13942. AFFORDABLE HOUSING TAX CREDIT.

       (a) In General.--The heading of section 42 of the Internal 
     Revenue Code of 1986 is amended by striking ``low-income'' 
     and inserting ``affordable''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 42 of the Internal Revenue 
     Code of 1986 is amended by striking ``low-income'' and 
     inserting ``affordable''.
       (2) Paragraph (5) of section 38(b) of such Code is amended 
     by striking ``low-income'' and inserting ``affordable''.
       (3) The heading of subparagraph (D) of section 469(i)(3) of 
     such Code is amended by striking ``low-income'' and inserting 
     ``affordable''.
       (4) The heading of subparagraph (B) of section 469(i)(6) of 
     such Code is amended by striking ``low-income'' and inserting 
     ``affordable''.
       (5) Paragraph (7) of section 772(a) of such Code is amended 
     by striking ``low-income'' and inserting ``affordable''.
       (6) Paragraph (5) of section 772(d) of such Code is amended 
     by striking ``low-income'' and inserting ``affordable''.
       (c) Clerical Amendment.--The item relating to section 42 in 
     the table of sections for subpart D of part IV of subchapter 
     A of chapter 1 of the Internal Revenue Code of 1986 is 
     amended to read as follows:

``Sec. 42. Affordable housing credit.''.

              CHAPTER 4--MANUFACTURING AND EDUCATION BONDS

     SEC. 13951. MODIFICATIONS TO QUALIFIED SMALL ISSUE BONDS.

       (a) Manufacturing Facilities To Include Production of 
     Intangible Property and Functionally Related Facilities.--
     Section 144(a)(12)(C) of the Internal Revenue Code of 1986 is 
     amended to read as follows:
       ``(C) Manufacturing facility.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `manufacturing facility' means 
     any facility which--

       ``(I) is used in the manufacturing or production of 
     tangible personal property (including the processing 
     resulting in a change in the condition of such property),
       ``(II) is used in the creation or production of intangible 
     property which is described in section 197(d)(1)(C)(iii), or
       ``(III) is functionally related and subordinate to a 
     facility described in subclause (I) or (II) if such facility 
     is located on the same site as the facility described in 
     subclause (I) or (II).

       ``(ii) Certain facilities included.--The term 
     `manufacturing facility' includes facilities that are 
     directly related and ancillary to a manufacturing facility 
     (determined without regard to this clause) if--

       ``(I) those facilities are located on the same site as the 
     manufacturing facility, and
       ``(II) not more than 25 percent of the net proceeds of the 
     issue are used to provide those facilities.

       ``(iii) Limitation on office space.--A rule similar to the 
     rule of section 142(b)(2) shall apply for purposes of clause 
     (i).
       ``(iv) Limitation on refundings for certain property.--
     Subclauses (II) and (III) of clause (i) shall not apply to 
     any bond issued on or before the date of the enactment of the 
     Tax Cuts and Jobs Act, or to any bond issued to refund a bond 
     issued on or before such date (other than a bond to which 
     clause (iii) of this subparagraph (as in effect before the 
     date of the enactment of the Tax Cuts and Jobs Act applies)), 
     either directly or in a series of refundings.''.
       (b) Increase in Limitations.--Section 144(a)(4) of such 
     Code is amended--
       (1) by striking ``$10,000,000'' in subparagraph (A)(i) and 
     inserting ``$30,000,000'', and
       (2) by striking ``$10,000,000'' in the heading and 
     inserting ``$30,000,000''.

[[Page S7606]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 13952. EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

       (a) Construction of a Public School Facility.--Subparagraph 
     (A) of section 54E(d)(3) of the Internal Revenue Code of 1986 
     is amended by striking ``rehabilitating or repairing'' and 
     inserting ``constructing, rehabilitating, retrofitting, or 
     repairing''.
       (b) Removal of Private Business Contribution Requirement.--
     Section 54E of the Internal Revenue Code of 1986 is amended--
       (1) in subsection (a)(3)--
       (A) in subparagraph (A), by inserting ``and'' at the end;
       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B);
       (2) by striking subsection (b) and redesignating 
     subsections (c) and (d) as subsections (b) and (c), 
     respectively; and
       (3) in paragraph (1) of subsection (b) (as so 
     redesignated)--
       (A) by striking ``and $400,000,0000'' and inserting 
     ``$400,000,000''; and
       (B) by striking ``and, except as provided'' and all that 
     follows through the period at the end and inserting ``, and 
     $1,400,000,000 for 2018 and each year thereafter.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2017.

                CHAPTER 5--REPEAL OF CERTAIN PROVISIONS

     SEC. 13961. REHABILITATION CREDIT.

       The amendments made by section 13402 of this Act shall be 
     null and void.

     SEC. 13962. LOW-INCOME HOUSING CREDIT.

       The amendments made by subpart B of part V of this subtitle 
     shall be null and void.

     SEC. 13963. ADVANCE REFUNDING BONDS.

       The amendments made by section 13532 of this Act shall be 
     null and void.
                                 ______
                                 
  SA 1749. Mr. ROBERTS submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ENHANCED RESEARCH CREDIT FOR DOMESTIC MANUFACTURERS.

       (a) In General.--Section 41 is amended by adding at the end 
     the following new subsection:
       ``(i) Enhanced Credit for Domestic Manufacturers.--
       ``(1) In general.--In the case of a qualified domestic 
     manufacturer, this section shall be applied--
       ``(A) except as provided in subparagraph (B), by increasing 
     the 20 percent amount in subsection (a)(1) by the bonus 
     amount, and
       ``(B) in the case of a qualified domestic manufacturer 
     making an election under subsection (c)(5)--
       ``(i) by increasing the 14 percent amount under subsection 
     (c)(5)(A) by the alternative simplified bonus amount, and
       ``(ii) by increasing the 6 percent amount under subsection 
     (c)(5)(B)(ii) by the subsection (c)(5)(B) bonus amount.
       ``(2) Qualified domestic manufacturer.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified domestic 
     manufacturer' means a taxpayer who has domestic production 
     gross receipts which are more than 50 percent of total gross 
     receipts.
       ``(B) Domestic production gross receipts.--The term 
     `domestic production gross receipts' has the meaning given to 
     such term under section 199(c)(4).
       ``(3) Bonus amount; alternative simplified bonus amount; 
     subsection (c)(5)(B) amount.--For purposes of paragraph (1):


 
    ``If the percentage of total gross                                            The alternative simplified bonus      The subsection (c)(5)(B) bonus
  receipts which are domestic production     The bonus amountis the following    amount is the following number of    amount is the following number of
            gross receipts is:                 number of percentage points:              percentage points:                   percentage points:
 
More than 50% but not more than 60%......                                   1                                  0.7                                  0.3
More than 60% but not more than 70%......                                   2                                  1.4                                  0.6
More than 70% but not more than 80%......                                   3                                  2.1                                  0.9
More than 80% but not more than 90%......                                   4                                  2.8                                  1.2
More than 90%............................                                   5                                  3.5                              1.5.''.
 

       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2017, and ending before January 
     1, 2023.
                                 ______
                                 
  SA 1750. Mr. DONNELLY submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ENDING OUTSOURCING.

       (a) Outsourcing Statement in Worker Adjustment and 
     Retraining Notice.--
       (1) Outsourcing statement.--Section 3 of the Worker 
     Adjustment and Retraining Notification Act (29 U.S.C. 2102) 
     is amended by adding at the end the following:
       ``(e) Outsourcing Statement.--
       ``(1) In general.--For purposes of subsection (a), the 
     employer shall include an outsourcing statement in the notice 
     described in that subsection. The outsourcing statement shall 
     specify whether part or all of the positions held by affected 
     employees covered by subsection (a) will be moved to a 
     country outside the United States, regardless of whether the 
     positions are moved within the business enterprise involved 
     or to another business enterprise. The employer shall make 
     the determination of whether the positions are being so moved 
     in accordance with regulations issued by the Secretary. The 
     employer shall serve the notice as required under subsection 
     (a) and submit the notice to the Secretary of Labor.
       ``(2) List.--Not less often than annually, the Secretary 
     shall publish and make available on the website of the 
     Department of Labor, a list including each employer who--
       ``(A) has included an outsourcing statement in a notice 
     under paragraph (1); or
       ``(B) has incurred liability under section 5, in part or in 
     whole, because the employer ordered a plant closing or mass 
     layoff without having served a notice that is required, under 
     this section, to include an outsourcing statement.''.
       (2) Implementation report.--The Worker Adjustment and 
     Retraining Notification Act is amended by inserting after 
     section 10 (29 U.S.C. 2109) the following:

     ``SEC. 10A. IMPLEMENTATION STUDY.

       ``(a) Study.--The Comptroller General of the United States 
     shall conduct a study of the implementation of section 3(e) 
     of the Worker Adjustment and Retraining Notification Act (29 
     U.S.C. 2102(e)) by the Department of Labor.
       ``(b) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to the appropriate committees of Congress a report containing 
     the results of the study.''.
       (b) Denial of Deduction for Outsourcing Expenses.--
       (1) In general.--Part IX of subchapter B of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 280I. OUTSOURCING EXPENSES.

       ``(a) In General.--No deduction otherwise allowable under 
     this chapter shall be allowed for any specified outsourcing 
     expense.
       ``(b) Specified Outsourcing Expense.--For purposes of this 
     section--
       ``(1) In general.--The term `specified outsourcing expense' 
     means--
       ``(A) any eligible expense paid or incurred by the taxpayer 
     in connection with the elimination of any business unit of 
     the taxpayer (or of any member of any expanded affiliated 
     group in which the taxpayer is also a member) located within 
     the United States, and
       ``(B) any eligible expense paid or incurred by the taxpayer 
     in connection with the establishment of any business unit of 
     the taxpayer (or of any member of any expanded affiliated 
     group in which the taxpayer is also a member) located outside 
     the United States,

     if such establishment constitutes the relocation of the 
     business unit so eliminated. For purposes of the preceding 
     sentence, a relocation shall not be treated as failing to 
     occur merely because such elimination occurs in a different 
     taxable year than such establishment.
       ``(2) Eligible expenses.--The term `eligible expenses' 
     means--
       ``(A) any amount for which a deduction is allowed to the 
     taxpayer under section 162, and

[[Page S7607]]

       ``(B) permit and license fees, lease brokerage fees, 
     equipment installation costs, and, to the extent provided by 
     the Secretary, other similar expenses.

     Such term does not include any compensation which is paid or 
     incurred in connection with severance from employment and, to 
     the extent provided by the Secretary, any similar amount.
       ``(3) Business unit.--The term `business unit' means--
       ``(A) any trade or business, and
       ``(B) any line of business, or functional unit, which is 
     part of any trade or business.
       ``(4) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group as defined in 
     section 1504(a), determined without regard to section 
     1504(b)(3) and by substituting `more than 50 percent' for `at 
     least 80 percent' each place it appears in section 1504(a). A 
     partnership or any other entity (other than a corporation) 
     shall be treated as a member of an expanded affiliated group 
     if such entity is controlled (within the meaning of section 
     954(d)(3)) by members of such group (including any entity 
     treated as a member of such group by reason of this 
     paragraph).
       ``(5) Operating expenses not taken into account.--Any 
     amount paid or incurred in connection with the ongoing 
     operation of a business unit shall not be treated as an 
     amount paid or incurred in connection with the establishment 
     or elimination of such business unit.
       ``(c) Special Rules.--
       ``(1) Application to deductions for depreciation and 
     amortization.--In the case of any portion of a specified 
     outsourcing expense which is not deductible in the taxable 
     year in which paid or incurred, such portion shall neither be 
     chargeable to capital account nor amortizable.
       ``(2) Possessions treated as part of the united states.--
     For purposes of this section, the term `United States' shall 
     be treated as including each possession of the United States 
     (including the Commonwealth of Puerto Rico and the 
     Commonwealth of the Northern Mariana Islands).
       ``(d) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including regulations which provide (or create a rebuttable 
     presumption) that certain establishments of business units 
     outside the United States will be treated as relocations 
     (based on timing or such other factors as the Secretary may 
     provide) of business units eliminated within the United 
     States.''.
       (2) Limitation on subpart f income of controlled foreign 
     corporations determined without regard to specified 
     outsourcing expenses.--Subsection (c) of section 952 is 
     amended by adding at the end he following new paragraph:
       ``(4) Earnings and profits determined without regard to 
     specified outsourcing expenses.--For purposes of this 
     subsection, earnings and profits of any controlled foreign 
     corporation shall be determined without regard to any 
     specified outsourcing expense (as defined in section 
     280I(b)).''.
       (3) Clerical amendment.--The table of sections for part IX 
     of subchapter B of chapter 1 is amended by adding at the end 
     the following new item:

``Sec. 280I. Outsourcing expenses.''.

       (4) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
       (c) Denial of Certain Deductions and Accounting Methods for 
     Outsourcing Employers.--
       (1) In general.--Part IX of subchapter B of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 280J. LIMITATIONS FOR OUTSOURCING EMPLOYERS.

       ``(a) In General.--During the disallowance period, an 
     applicable taxpayer--
       ``(1) shall not be allowed any deduction under section 199 
     for any income of the taxpayer,
       ``(2) may not use the method provided in section 472(b) in 
     inventorying goods,
       ``(3) may not use the lower of cost or market method of 
     determining inventories for purposes of determining income, 
     and
       ``(4) shall not be allowed any deduction under section 163 
     for interest paid or accrued on indebtedness.
       ``(b) Applicable Taxpayer.--For purposes of subsection (a), 
     the term `applicable taxpayer' means a taxpayer which--
       ``(1) during the taxable year, has served written notice 
     under subsection (a) of section 3 of the Worker Adjustment 
     and Retraining Notification Act which includes an outsourcing 
     statement described in subsection (e) of such section, and
       ``(2) the cumulative employment loss (excluding any part-
     time employees) for positions at facilities owned by such 
     taxpayer which will be moved to a country outside of the 
     United States, as determined pursuant to any outsourcing 
     statements served by such taxpayer during such taxable year, 
     exceeds 50 employees.
       ``(c) Disallowance Period.--For purposes of subsection (a), 
     the disallowance period is the period of 3 taxable years 
     after the taxable year in which the statements described in 
     subsection (b)(2) are required to be served.
       ``(d) Expanded Affiliated Group Treated as Single 
     Taxpayer.--For purposes of this section, the members of an 
     expanded affiliated group (as defined in section 280I(b)(4)) 
     shall be treated as a single taxpayer.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section.''.
       (2) Clerical amendment.--The table of sections for part IX 
     of subchapter B of chapter 1 is amended by adding at the end 
     the following new item:

``Sec. 280J. Limitations for outsourcing employers.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
       (d) Recapture of Credits for Outsourcing Employers.--
       (1) In general.--Part IV of subchapter A of chapter 1 is 
     amended by adding at the end the following new subpart:

      ``Subpart K--Recapture of Credits for Outsourcing Employers

``Sec. 54BB. Recapture of credits for outsourcing employers.

     ``SEC. 54BB. RECAPTURE OF CREDITS FOR OUTSOURCING EMPLOYERS.

       ``(a) In General.--Pursuant to regulations prescribed by 
     the Secretary, in the case of a taxpayer which owns a 
     facility for which there is an outsourcing event during the 
     taxable year, the tax under this chapter for such taxable 
     year shall be increased by the amount equal to the sum of--
       ``(1) any credits allowed under this chapter relating to 
     expenses for design, construction, operation, or maintenance 
     of such facility during the 5 taxable years preceding such 
     taxable year, and
       ``(2) any grants provided by the Secretary in lieu of 
     credits described in paragraph (1) during the 5 taxable years 
     preceding such taxable year.
       ``(b) Outsourcing Event.--For purposes of subsection (a), 
     the term `outsourcing event' means a plant closing or mass 
     layoff (as described in section 2(a) of the Worker Adjustment 
     and Retraining Notification Act) in which the employment loss 
     (excluding any part-time employees) for positions which will 
     be moved to a country outside of the United States, as 
     determined pursuant to the outsourcing statement (as 
     described in paragraph (1) of such section 3(e) of such Act) 
     served by the taxpayer during the taxable year, exceeds 50 
     employees.
       ``(c) Expanded Affiliated Group Treated as Single 
     Taxpayer.--For purposes of this section, the members of an 
     expanded affiliated group (as defined in section 280I(b)(4)) 
     shall be treated as a single taxpayer.''.
       (2) Clerical amendment.--The table of subparts for part IV 
     of subchapter A of chapter 1 is amended by adding at the end 
     the following new item:

     ``subpart k. recapture of credits for outsourcing employers''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
       (e) Credit for Insourcing Expenses.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 45S. CREDIT FOR INSOURCING EXPENSES.

       ``(a) In General.--For purposes of section 38, the 
     insourcing expenses credit for any taxable year is an amount 
     equal to 20 percent of the eligible insourcing expenses of 
     the taxpayer which are taken into account in such taxable 
     year under subsection (d).
       ``(b) Eligible Insourcing Expenses.--For purposes of this 
     section--
       ``(1) In general.--The term `eligible insourcing expenses' 
     means--
       ``(A) eligible expenses paid or incurred by the taxpayer in 
     connection with the elimination of any business unit of the 
     taxpayer (or of any member of any expanded affiliated group 
     in which the taxpayer is also a member) located outside the 
     United States, and
       ``(B) eligible expenses paid or incurred by the taxpayer in 
     connection with the establishment of any business unit of the 
     taxpayer (or of any member of any expanded affiliated group 
     in which the taxpayer is also a member) located within--
       ``(i) a HUBZone (as defined in section 3(p)(2) of the Small 
     Business Act (15 U.S.C. 632(p)(2))), or
       ``(ii) a low-income community (as described in section 
     45D(e)),

     if such establishment constitutes the relocation of the 
     business unit so eliminated. For purposes of the preceding 
     sentence, a relocation shall not be treated as failing to 
     occur merely because such elimination occurs in a different 
     taxable year than such establishment.
       ``(2) Eligible expenses.--The term `eligible expenses' 
     means--
       ``(A) any amount for which a deduction is allowed to the 
     taxpayer under section 162, and
       ``(B) permit and license fees, lease brokerage fees, 
     equipment installation costs, and, to the extent provided by 
     the Secretary, other similar expenses.

     Such term does not include any compensation which is paid or 
     incurred in connection with severance from employment and, to 
     the extent provided by the Secretary, any similar amount.
       ``(3) Business unit.--The term `business unit' means--
       ``(A) any trade or business, and
       ``(B) any line of business, or functional unit, which is 
     part of any trade or business.

[[Page S7608]]

       ``(4) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group as defined in 
     section 1504(a), determined without regard to section 
     1504(b)(3) and by substituting `more than 50 percent' for `at 
     least 80 percent' each place it appears in section 1504(a). A 
     partnership or any other entity (other than a corporation) 
     shall be treated as a member of an expanded affiliated group 
     if such entity is controlled (within the meaning of section 
     954(d)(3)) by members of such group (including any entity 
     treated as a member of such group by reason of this 
     paragraph).
       ``(5) Expenses must be pursuant to insourcing plan.--
     Amounts shall be taken into account under paragraph (1) only 
     to the extent that such amounts are paid or incurred pursuant 
     to a written plan to carry out the relocation described in 
     paragraph (1).
       ``(6) Operating expenses not taken into account.--Any 
     amount paid or incurred in connection with the on-going 
     operation of a business unit shall not be treated as an 
     amount paid or incurred in connection with the establishment 
     or elimination of such business unit.
       ``(c) Increased Domestic Employment Requirement.--No credit 
     shall be allowed under this section unless the number of 
     full-time equivalent employees of the taxpayer for the 
     taxable year for which the credit is claimed exceeds the 
     number of full-time equivalent employees of the taxpayer for 
     the last taxable year ending before the first taxable year in 
     which such eligible insourcing expenses were paid or 
     incurred. For purposes of this subsection, full-time 
     equivalent employees has the meaning given such term under 
     section 45R(d) (and the applicable rules of section 45R(e)). 
     All employers treated as a single employer under subsection 
     (b), (c), (m), or (o) of section 414 shall be treated as a 
     single employer for purposes of this subsection.
       ``(d) Credit Allowed Upon Completion of Insourcing Plan.--
       ``(1) In general.--Except as provided in paragraph (2), 
     eligible insourcing expenses shall be taken into account 
     under subsection (a) in the taxable year during which the 
     plan described in subsection (b)(5) has been completed and 
     all eligible insourcing expenses pursuant to such plan have 
     been paid or incurred.
       ``(2) Election to apply employment test and claim credit in 
     first full taxable year after completion of plan.--If the 
     taxpayer elects the application of this paragraph, eligible 
     insourcing expenses shall be taken into account under 
     subsection (a) in the first taxable year after the taxable 
     year described in paragraph (1).
       ``(e) Possessions Treated as Part of the United States.--
     For purposes of this section, the term `United States' shall 
     be treated as including each possession of the United States 
     (including the Commonwealth of Puerto Rico and the 
     Commonwealth of the Northern Mariana Islands).
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section.''.
       (2) Credit to be part of general business credit.--
     Subsection (b) of section 38 is amended by striking ``plus'' 
     at the end of paragraph (35), by striking the period at the 
     end of paragraph (36) and inserting ``, plus'', and by adding 
     at the end the following new paragraph:
       ``(37) the insourcing expenses credit determined under 
     section 45S(a).''.
       (3) Clerical amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45S. Credit for insourcing expenses.''.

       (4) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act.
       (5) Application to united states possessions.--
       (A) Payments to possessions.--
       (i) Mirror code possessions.--The Secretary of the Treasury 
     shall make periodic payments to each possession of the United 
     States with a mirror code tax system in an amount equal to 
     the loss to that possession by reason of section 45S of the 
     Internal Revenue Code of 1986. Such amount shall be 
     determined by the Secretary of the Treasury based on 
     information provided by the government of the respective 
     possession.
       (ii) Other possessions.--The Secretary of the Treasury 
     shall make annual payments to each possession of the United 
     States which does not have a mirror code tax system in an 
     amount estimated by the Secretary of the Treasury as being 
     equal to the aggregate benefits that would have been provided 
     to residents of such possession by reason of section 45S of 
     such Code if a mirror code tax system had been in effect in 
     such possession. The preceding sentence shall not apply with 
     respect to any possession of the United States unless such 
     possession has a plan, which has been approved by the 
     Secretary of the Treasury, under which such possession will 
     promptly distribute such payment to the residents of such 
     possession.
       (B) Coordination with credit allowed against united states 
     income taxes.--No credit shall be allowed against United 
     States income taxes under section 45S of such Code to any 
     person--
       (i) to whom a credit is allowed against taxes imposed by 
     the possession by reason of such section, or
       (ii) who is eligible for a payment under a plan described 
     in paragraph (1)(B).
       (C) Definitions and special rules.--
       (i) Possessions of the united states.--For purposes of this 
     section, the term ``possession of the United States'' 
     includes the Commonwealth of Puerto Rico and the Commonwealth 
     of the Northern Mariana Islands.
       (ii) Mirror code tax system.--For purposes of this section, 
     the term ``mirror code tax system'' means, with respect to 
     any possession of the United States, the income tax system of 
     such possession if the income tax liability of the residents 
     of such possession under such system is determined by 
     reference to the income tax laws of the United States as if 
     such possession were the United States.
       (iii) Treatment of payments.--For purposes of section 
     1324(b)(2) of title 31, United States Code, the payments 
     under this section shall be treated in the same manner as a 
     refund due from sections referred to in such section 
     1324(b)(2).
       (f) Authority for Federal Contracting Officers to Take the 
     Outsourcing of Jobs From the United States Into Account in 
     Awarding Contracts.--
       (1) Department of defense and related agency contracts.--
       (A) Consideration of outsourcing.--
       (i) In general.--Chapter 137 of title 10, United States 
     Code, is amended by inserting after section 2327 the 
     following new section:

     ``Sec. 2327a. Contracts: consideration of outsourcing of jobs

       ``(a) Disclosure of Outsourcing of Jobs.--
       ``(1) In general.--The head of an agency shall require a 
     contractor that submits a bid or proposal in response to a 
     solicitation issued by the agency to disclose in that bid or 
     proposal if the contractor, or a subsidiary of the 
     contractor, owns a facility for which there is an outsourcing 
     event during the three-year period ending on the date of the 
     submittal of the bid or proposal.
       ``(2) Outsourcing event.--For purposes of paragraph (1), 
     the term `outsourcing event' means a plant closing or mass 
     layoff (as described in section 2(a) of the Worker Adjustment 
     and Retraining Notification Act) in which the employment loss 
     (excluding any part-time employees) for positions which will 
     be moved to a country outside of the United States, as 
     determined pursuant to the outsourcing statement (as 
     described in paragraph (1) of such section 3(e) of such Act) 
     served by the taxpayer during the taxable year, exceeds 50 
     employees.
       ``(b) Consideration Authorized.--(1) Agency contracting 
     officers considering bids or proposals in response to a 
     solicitation issued by the agency may take into account any 
     disclosure made pursuant to subsection (a) in such bids and 
     proposals.
       ``(2) The head of an agency may establish a negative 
     preference of up to 10 percent of the cost of a contract for 
     purposes of evaluating a bid or proposal of a contractor that 
     makes a disclosure pursuant to subsection (a).
       ``(c) Sense of Congress.--It is the sense of Congress that 
     agency contracting officers should, using section 2304(b)(3) 
     of this title, exclude contractors making a disclosure 
     pursuant to subsection (a) in response to solicitations 
     issued by the agency from the bidding process in connection 
     with such solicitations on the grounds that the actions 
     described in the disclosures are against the public interests 
     of the United States.
       ``(d) Annual Report.--The head of each agency shall submit 
     to Congress each year a report on the following:
       ``(1) The number of solicitations made by the agency during 
     the preceding year for which disclosures were made pursuant 
     to subsection (a) in responsive bids or proposals.
       ``(2) The number of contracts awarded by the agency during 
     the preceding year in which such disclosures were taken into 
     account in the contract award.''.
       (ii) Clerical amendment.--The table of sections at the 
     beginning of chapter 137 of such title is amended by 
     inserting after the item relating to section 2327 the 
     following new item:

``2327a. Contracts: consideration of outsourcing of jobs.''.

       (B) Exclusion of firms from sources.--Section 2304(b) of 
     such title is amended--
       (i) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively;
       (ii) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) The head of an agency may provide for the procurement 
     of property and services covered by this chapter using 
     competitive procedures but excluding a source making a 
     disclosure pursuant to section 2327a(a) of this title in the 
     bid or proposal in response to the solicitation issued by the 
     agency if the head of the agency determines that the actions 
     described by disclosure are against the public interests of 
     the United States and the source is to be excluded on those 
     grounds. Any such determination shall take into account the 
     sense of Congress set forth in section 2327a(c) of this 
     title.''; and
       (iii) in paragraph (3), as so redesignated, by striking 
     ``paragraphs (1) and (2)'' and inserting ``paragraphs (1), 
     (2), and (3)''.
       (2) Other federal contracts.--
       (A) Consideration of outsourcing.--Chapter 35 of title 41, 
     United States Code, is amended by inserting after section 
     3303 the following new section:

     ``Sec. 3303a. Bidders outsourcing jobs: disclosure of 
       outsourcing; consideration of outsourcing in award; 
       exclusion from sources

       ``(a) Disclosure of Outsourcing of Jobs.--

[[Page S7609]]

       ``(1) In general.--The head of an executive agency shall 
     require a contractor that submits a bid or proposal in 
     response to a solicitation issued by the executive agency to 
     disclose in that bid or proposal if the contractor, or a 
     subsidiary of the contractor, owns a facility for which there 
     is an outsourcing event during the three-year period ending 
     on the date of the submittal of the bid or proposal.
       ``(2) Outsourcing event.--For purposes of paragraph (1), 
     the term `outsourcing event' means a plant closing or mass 
     layoff (as described in section 2(a) of the Worker Adjustment 
     and Retraining Notification Act) in which the employment loss 
     (excluding any part-time employees) for positions which will 
     be moved to a country outside of the United States, as 
     determined pursuant to the outsourcing statement (as 
     described in paragraph (1) of such section 3(e) of such Act) 
     served by the taxpayer during the taxable year, exceeds 50 
     employees.
       ``(b) Consideration Authorized.--(1) Contracting officers 
     of an executive agency considering bids or proposals in 
     response to a solicitation issued by the executive agency may 
     take into account any disclosure made pursuant to subsection 
     (a) in such bids and proposals.
       ``(2) The head of an executive agency may establish a 
     negative preference of up to 10 percent of the cost of a 
     contract for purposes of evaluating a bid or proposal of a 
     contractor that makes a disclosure pursuant to subsection 
     (a).
       ``(c) Exclusion From Sources.--
       ``(1) In general.--The head of an executive agency may 
     provide for the procurement of property and services using 
     competitive procedures but excluding a source making a 
     disclosure under subsection (a) in the bid or proposal in 
     response to the solicitation issued by the executive agency 
     if the head of the executive agency determines that the 
     actions described by disclosure are against the public 
     interests of the United States and the source is to be 
     excluded on those grounds. Any such determination shall take 
     into account the sense of Congress set forth in paragraph 
     (2).
       ``(2) Sense of congress.--It is the sense of Congress that 
     contracting officers of executive agencies may use paragraph 
     (1) to exclude contractors making a disclosure pursuant to 
     subsection (a) in response to a solicitation issued by the 
     executive agency from the bidding process in connection with 
     the solicitation on the grounds that the actions described by 
     the disclosure are against the public interests of the United 
     States.
       ``(d) Annual Report.--The head of each executive agency 
     shall submit to Congress each year a report on the following:
       ``(1) The number of solicitations made by the executive 
     agency during the preceding year for which disclosures were 
     made pursuant to subsection (a) in responsive bids or 
     proposals.
       ``(2) The number of contracts awarded to contractors that 
     disclosed having outsourced more than 50 jobs during the 
     preceding three years.''.
       (B) Clerical amendment.--The table of sections at the 
     beginning of chapter 35 of such title is amended by inserting 
     after the item relating to section 3303 the following new 
     item:

``3303a. Bidders outsourcing jobs: disclosure of outsourcing; 
              consideration of outsourcing in award; exclusion from 
              sources.''.

       (C) Conforming amendment.--Section 3301(a) of such title is 
     amended by inserting ``3303a(c),'' after ``3303,''.
       (3) Regulations.--
       (A) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Federal Acquisition Regulatory 
     Council, in consultation with the heads of relevant agencies, 
     shall amend the Federal Acquisition Regulation and the 
     Defense Federal Acquisition Regulation Supplement to carry 
     out the requirements of section 3303a of title 41, United 
     States Code, and section 2327a of title 10, United States 
     Code, as added by this section.
       (B) Definition of outsourcing.--For purposes of defining 
     outsourcing pursuant to paragraph (1), the Federal 
     Acquisition Regulatory Council may utilize regulations 
     prescribed by the Secretary of Labor.
       (4) Rule of construction.--This subsection, and the 
     amendments made by this subsection, shall be applied in a 
     manner consistent with United States obligations under 
     international agreements.
                                 ______
                                 
  SA 1751. Mr. ISAKSON (for himself and Mr. Perdue) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       On page 401, after line 24, insert the following:
       ``(G) Transition rule for certain acquisition cash.--
       ``(i) In general.--In determining the aggregate foreign 
     cash position of a United States shareholder for any taxable 
     year for purposes of applying subparagraph (A)(ii), there 
     shall not be taken into account any amount described in 
     subparagraph (B) which was used by a specified foreign 
     corporation to purchase during the period beginning on 
     January 1, 2016, and ending November 9, 2017, stock or assets 
     constituting substantially all of the assets of a trade or 
     business from a person which was not a related person (as 
     defined in section 954(d)(3)) with respect to the 
     corporation.
       ``(ii) Exception for subsequent cash resale.--Clause (i) 
     shall not apply if, during the 5-year period beginning on 
     November 10, 2017, the specified foreign corporation sells 
     the acquired stock or substantially all of the acquired 
     assets for amounts described in subparagraph (B) to a person 
     which is not a related person (as defined in section 
     954(d)(3)) with respect to the corporation.
                                 ______
                                 
  SA 1752. Mr. ISAKSON (for himself and Mr. Perdue) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       On page 399, line 18, strike ``the specified foreign 
     corporation'' and insert ``a specified foreign corporation''.

                                 ______
                                 
  SA 1753. Mr. JOHNSON submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of part V of subtitle A of title I, insert the 
     following:

     SEC. 11052. ADJUSTMENT OF CORPORATE TAX RATE AND RATE OF 
                   DEDUCTION FOR PASS-THRU ENTITIES.

       (a) Adjustment of Corporate Tax Rate.--
       (1) Increase in rate.--Subsection (b) of section 11, as 
     amended by section 13001 of this Act, is amended by striking 
     ``20 percent'' and inserting ``22 percent''.
       (2) Advanced application of reduced corporate tax rate.--
       (A) Section 13001(c) of this Act is amended by striking 
     ``December 31, 2018'' each place it appears and inserting 
     ``December 31, 2017''.
       (B) Section 13002(f) of this Act is amended by striking 
     ``December 31, 2018'' each place it appears and inserting 
     ``December 31, 2017''.
       (b) Increase in Rate for Deduction for Qualified Business 
     Income of Pass-thru Entities.--
       (1) In general.--Section 199A of the Internal Revenue Code 
     of 1986, as added by section 11011 of this Act, is amended--
       (A) in paragraph (2) of subsection (a), by striking ``17.4 
     percent'' and inserting ``the applicable percentage (as 
     determined under subsection (g))'', and
       (B) in paragraphs (1)(B) and (2)(A) of subsection (b), by 
     striking ``17.4 percent'' each place it appears and inserting 
     ``the applicable percentage (as determined under subsection 
     (g))''.
       (2) Applicable percentage.--Section 199A of the Internal 
     Revenue Code of 1986, as added by section 11011 of this Act, 
     is amended--
       (A) by redesignating subsection (g) as subsection (h), and
       (B) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Applicable Percentage.--
       ``(1) In general.--For purposes of this section, the 
     applicable percentage shall be equal to the sum of 17.4 
     percent plus the additional percentage (as determined under 
     paragraph (2)).
       ``(2) Additional percentage.--The additional percentage 
     shall be the amount (expressed as a percentage) which is 
     determined by the Secretary to permit an increase in the 
     deduction allowed under this section in an amount equal to 
     the increase in revenue resulting from the amendments made by 
     subsection (a) of section 11052 of the Tax Cuts and Jobs 
     Act.''.
       (3) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1754. Mr. DAINES submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Strike section 11042 and insert the following:

     SEC. 11042. MODIFICATION OF DEDUCTION FOR STATE AND LOCAL, 
                   ETC. TAXES.

       (a) In General.--
       (1) Individuals and corporations.--Subsection (b) of 
     section 164 is amended by adding at the end the following new 
     paragraph:
       ``(6) Modification of deductions for certain taxable 
     years.--
       ``(A) Individuals.--In the case of an individual and a 
     taxable year beginning after December 31, 2017, and before 
     January 1, 2026--
       ``(i) paragraphs (1) and (2) of subsection (a) shall not 
     apply to any real property or personal property taxes, other 
     than taxes which

[[Page S7610]]

     are paid or accrued in carrying on a trade or business or an 
     activity described in section 212, and
       ``(ii) subsection (a)(3) shall not apply to any State or 
     local taxes.
       ``(B) Corporations.--In the case of a corporation and a 
     taxable year beginning after December 31, 2019--
       ``(i) subsection (a)(3) shall not apply to any State or 
     local taxes, and
       ``(ii) the second sentence of subsection (a) shall not 
     apply.''.
       (2) Trade or business expense.--Section 162, as amended by 
     sections 13307, 13308, and 13531 of this Act, is amended by 
     redesignating subsection (t) as subsection (u) and by 
     inserting after subsection (s) the following new subsection:
       ``(t) Elimination of Deduction for State and Local Taxes.--
     In the case of a corporation and a taxable year beginning 
     after December 31, 2019, no deduction otherwise allowable 
     under this section shall be allowed for any State or local 
     income, war profits, and excess profits taxes (as described 
     in section 164(a)(3)).''.
       (3) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
       (b) Increase in Rate for Deduction for Qualified Business 
     Income of Pass-thru Entities.--
       (1) In general.--Section 199A of the Internal Revenue Code 
     of 1986, as added by section 11011 of this Act, is amended--
       (A) in paragraph (2) of subsection (a), by striking ``17.4 
     percent'' and inserting ``22.4 percent'', and
       (B) in paragraphs (1)(B) and (2)(A) of subsection (b), by 
     striking ``17.4 percent'' each place it appears and inserting 
     ``22.4 percent''.
       (2) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
       (c) Taxpayer Refund Program.--
       (1) In general.--The Secretary of the Treasury shall 
     implement a program under which taxpayers who have paid a 
     penalty under section 5000A of the Internal Revenue Code of 
     1986 for any taxable year beginning after December 31, 2013, 
     and before January 1, 2016, receive 1 payment in refund of 
     all such penalties paid, without regard to whether or not an 
     amended return is filed. Such payment shall be made not later 
     than April 15, 2018.
       (2) Waiver of statute of limitations.--Solely for purposes 
     of claiming the refund under paragraph (1), the period 
     prescribed by section 6511(a) of the Internal Revenue Code of 
     1986 with respect to any payment of a penalty under section 
     5000A shall be extended until the date prescribed by law 
     (including extensions) for filing the return of tax for the 
     taxable year that includes December 31, 2017.
       (d) Child Tax Credit for Pregnant Women.--
       (1) In general.--Subsection (h) of section 24, as added by 
     section 11022 of this Act, is amended by striking paragraphs 
     (4) through (8) and inserting the following:
       ``(4) Partial credit allowed for certain other 
     dependents.--
       ``(A) In general.--The credit determined under subsection 
     (a) (after the application of paragraph (2)) shall be 
     increased by $500 for each dependent of the taxpayer (as 
     defined in section 152) other than a qualifying child 
     described in subsection (c).
       ``(B) Exception for certain noncitizens.--Subparagraph (A) 
     shall not apply with respect to any individual who would not 
     be a dependent if subparagraph (A) of section 152(b)(3) were 
     applied without regard to all that follows `resident of the 
     United States'.
       ``(5) Maximum amount of refundable credit.--
       ``(A) In general.--Subsection (d)(1)(A) shall be applied 
     without regard to paragraphs (2) and (5) of this subsection.
       ``(B) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2017, subsection (d)(1)(A) shall be 
     applied as if the $1,000 amount in subsection (a) were 
     increased (but not to exceed the amount under paragraph (2) 
     of this subsection) 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.
     Any increase determined under the preceding sentence shall be 
     rounded to the next highest multiple of $100.
       ``(6) Earned income threshold for refundable credit.--
     Subsection (d)(1)(B)(i) shall be applied by substituting 
     `$2,500' for `$3,000'.
       ``(7) Social security number required.--No credit shall be 
     allowed under subsection (d) to a taxpayer with respect to 
     any qualifying child unless the taxpayer includes the 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 to a citizen of the United States or is issued 
     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.
       ``(8) Credit allowed with respect to unborn children.--
       ``(A) In general.--The term `qualifying child' includes an 
     unborn child (as defined in section 1841(d) of title 18, 
     United States Code) for any such taxable year if such child 
     is born and issued a social security number (as defined in 
     subsection (h)(7)) before the due date for the return of tax 
     (without regard to extensions) for the taxable year.
       ``(B) Double credit in case of children unable to claim 
     credit.--In the case of any child born during a taxable year 
     described in paragraph (1) who is not taken into account 
     under subparagraph (A) for the taxable year immediately 
     preceding the taxable year in which the child is born, the 
     amount of the credit determined under this section with 
     respect to such child for the taxable year of the child's 
     birth shall be increased by 100 percent.''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the amendments made by 
     section 11022 of this Act.
                                 ______
                                 
  SA 1755. Mr. DAINES submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Strike section 11042 and insert the following:

     SEC. 11042. MODIFICATION OF DEDUCTION FOR STATE AND LOCAL, 
                   ETC. TAXES.

       (a) In General.--
       (1) Individuals and corporations.--Subsection (b) of 
     section 164 is amended by adding at the end the following new 
     paragraph:
       ``(6) Modification of deductions for certain taxable 
     years.--
       ``(A) Individuals.--In the case of an individual and a 
     taxable year beginning after December 31, 2017, and before 
     January 1, 2026--
       ``(i) paragraphs (1) and (2) of subsection (a) shall not 
     apply to any real property or personal property taxes, other 
     than taxes which are paid or accrued in carrying on a trade 
     or business or an activity described in section 212, and
       ``(ii) subsection (a)(3) shall not apply to any State or 
     local taxes.
       ``(B) Corporations.--In the case of a corporation and a 
     taxable year beginning after December 31, 2019--
       ``(i) subsection (a)(3) shall not apply to any State or 
     local taxes, and
       ``(ii) the second sentence of subsection (a) shall not 
     apply.''.
       (2) Trade or business expense.--Section 162, as amended by 
     sections 13307, 13308, and 13531 of this Act, is amended by 
     redesignating subsection (t) as subsection (u) and by 
     inserting after subsection (s) the following new subsection:
       ``(t) Elimination of Deduction for State and Local Taxes.--
     In the case of a corporation and a taxable year beginning 
     after December 31, 2019, no deduction otherwise allowable 
     under this section shall be allowed for any State or local 
     income, war profits, and excess profits taxes (as described 
     in section 164(a)(3)).''.
       (3) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
       (b) Increase in Rate for Deduction for Qualified Business 
     Income of Pass-thru Entities.--
       (1) In general.--Section 199A of the Internal Revenue Code 
     of 1986, as added by section 11011 of this Act, is amended--
       (A) in paragraph (2) of subsection (a), by striking ``17.4 
     percent'' and inserting ``22.4 percent'', and
       (B) in paragraphs (1)(B) and (2)(A) of subsection (b), by 
     striking ``17.4 percent'' each place it appears and inserting 
     ``22.4 percent''.
       (2) Effective date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
       (c) Extension of 100 Percent Expensing.--
       (1) In general.--Section 168(k), as amended by section 
     13201 of this Act, is amended--
       (A) in the heading, by striking ``January 1, 2023'' and 
     inserting ``January 1, 2024'',
       (B) in paragraph (2)--
       (i) in subparagraph (A)(iii), clauses (i)(III) and (ii) of 
     subparagraph (B), and subparagraph (E)(i), by striking 
     ``January 1, 2023'' each place it appears and inserting 
     ``January 1, 2024'', and
       (ii) in subparagraph (B)--

       (I) in clause (i)(II), by striking ``January 1, 2024'' and 
     inserting ``January 1, 2025'', and
       (II) in the heading of clause (ii), by striking ``pre-
     january 1, 2023'' and inserting ``pre-january 1, 2024'', and

       (C) in paragraph (5)(A), by striking ``January 1, 2023'' 
     and inserting ``January 1, 2024''.
       (2) Conforming amendment.--Clause (ii) of section 
     460(c)(6)(B) is amended by striking ``January 1, 2023 
     (January 1, 2024'' and inserting ``January 1, 2024 (January 
     1, 2024''.
       (3) Effective dates.--The amendments made by this 
     subsection shall take effect as if included in the amendments 
     made by section 13201 of this Act.
                                 ______
                                 
  SA 1756. Mr. CASSIDY (for himself, Mr. Cornyn, Mr. Roberts, and Mr. 
Heller) submitted an amendment intended to be proposed by him to the 
bill H.R. 1, to provide for reconciliation pursuant to titles II and V 
of the concurrent resolution on the budget for fiscal year 2018; which 
was ordered to lie on the table; as follows:

       At the end of subpart C of part I of subtitle D, insert the 
     following:

[[Page S7611]]

  


     SEC. 14305. ELECTION TO INCREASE PERCENTAGE OF DOMESTIC 
                   TAXABLE INCOME OFFSET BY OVERALL DOMESTIC LOSS 
                   TREATED AS FOREIGN SOURCE.

       (a) In General.--Section 904(g) is amended by adding at the 
     end the following new paragraph:
       ``(5) Election to increase percentage of taxable income 
     treated as foreign source.--
       ``(A) In general.--If any pre-2018 unused overall domestic 
     loss is taken into account under paragraph (1) for any 
     applicable taxable year, the taxpayer may elect to have such 
     paragraph applied to such loss by substituting a percentage 
     greater than 50 percent (but not greater than 100 percent) 
     for 50 percent in subparagraph (B) thereof.
       ``(B) Pre-2018 unused overall domestic loss.--For purposes 
     of this paragraph, the term `pre-2018 unused overall domestic 
     loss' means any overall domestic loss which--
       ``(i) arises in a qualified taxable year beginning before 
     January 1, 2018, and
       ``(ii) has not been used under paragraph (1) for any 
     taxable year beginning before such date.
       ``(C) Applicable taxable year.--For purposes of this 
     paragraph, the term `applicable taxable year' means any 
     taxable year of the taxpayer beginning after December 31, 
     2017, and before January 1, 2028.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1757. Mr. CASSIDY (for himself and Mr. Roberts) submitted an 
amendment intended to be proposed by him to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       On page 421, strike lines 15 through 21 and insert the 
     following:
       ``(o) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the provisions of this section or to 
     prevent the avoidance of the purposes of this section, 
     including through a reduction in earnings and profits through 
     changes in entity classification, changes in accounting 
     methods, or otherwise.
       ``(p) Inclusion of Deferred Foreign Income Under This 
     Section Not to Trigger Recapture of Overall Foreign Loss.--
     For purposes of sections 904(f)(1) and 907(c)(4), in the case 
     of a United States shareholder of a deferred foreign income 
     corporation, such United States shareholder's taxable income 
     from sources without the United States and combined foreign 
     oil and gas income shall be determined without regard to this 
     section.''.
                                 ______
                                 
  SA 1758. Mr. CASSIDY (for himself and Mr. Roberts) submitted an 
amendment intended to be proposed by him to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       Beginning on page 485, strike line 16 and all that follows 
     through page 486, line 4, and insert the following:
       ``(4) Exception for certain amounts with respect to certain 
     services.--Paragraph (1) shall not apply to any amount paid 
     or accrued by a taxpayer for services if--
       ``(A)(i) such services are services which meet the 
     requirements for eligibility for use of the services cost 
     method under section 482 (determined without regard to the 
     requirement that the services not contribute significantly to 
     fundamental risks of business success or failure), and
       ``(ii) such amount constitutes the total services cost with 
     no markup, or
       ``(B) such services consist of the transmission of 
     communications or data over network assets outside the United 
     States.
                                 ______
                                 
  SA 1759. Mr. CASSIDY submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page 425, strike lines 17 through 19 and insert the 
     following:

       ``(V) any combined foreign oil and gas income (as defined 
     in section 907(b)(1)) of such corporation, over

                                 ______
                                 
  SA 1760. Mr. CASSIDY submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page 223, strike lines 11 through 20, and insert the 
     following:
       (B) with respect to which the 24-month period selected by 
     the taxpayer under clause (i) of section 47(c)(1)(B) of the 
     Internal Revenue Code (as amended by subsection (b)), or the 
     60-month period applicable under clause (ii) of such section, 
     begins not later than 180 days after the date of the 
     enactment of this Act,

     the amendments made by this section shall apply to such 
     expenditures paid or incurred after the end of the taxable 
     year in which the 24-month period, or the 60-month period, 
     referred to in subparagraph (B) ends.
                                 ______
                                 
  SA 1761. Mr. CASSIDY submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place in title I, insert the following:

     SEC. __. EXTENSION OF TEMPORARY INCREASE IN LIMIT ON COVER 
                   OVER OF RUM EXCISE TAXES TO PUERTO RICO AND THE 
                   VIRGIN ISLANDS.

       (a) In General.--Section 7652(f)(1) is amended by striking 
     ``January 1, 2017'' and inserting ``January 1, 2023''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2016.
                                 ______
                                 
  SA 1762. Mr. CASSIDY submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       Strike section 14224.
                                 ______
                                 
  SA 1763. Mr. PAUL submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Beginning on page 398, strike line 5 and all that follows 
     through page 401, line 19 and insert the following:
       ``(2) Aggregate foreign cash position.--For purposes of 
     this subsection--
       ``(A) In general.--The term `aggregate foreign cash 
     position' means--
       ``(i) with respect to any United States shareholder, the 
     sum of each specified foreign corporation's net cash 
     position, determined as of the close of the last taxable year 
     of such specified foreign corporation which begins before 
     January 1, 2018, or
       ``(ii) one half of the sum of--

       ``(I) the aggregate described in clause (i) determined as 
     of the close of the last taxable year of each such specified 
     foreign corporation which ends before November 9, 2017, plus
       ``(II) the aggregate described in clause (i) determined as 
     of the close of the taxable year of each such specified 
     foreign corporation which precedes the taxable year referred 
     to in subclause (I).

       ``(B) Gross cash position.--For purposes of this paragraph, 
     the cash position of any specified foreign corporation is the 
     sum of--
       ``(i) cash and foreign currency held by such foreign 
     corporation,
       ``(ii) the gross accounts receivable of such foreign 
     corporation, plus
       ``(iii) the fair market value of the following assets held 
     by such corporation:

       ``(I) Personal property which is of a type that is actively 
     traded and for which there is an established financial market 
     (other than stock in the specified foreign corporation).
       ``(II) Commercial paper, certificates of deposit, the 
     securities of the Federal government and of any State or 
     foreign government.
       ``(III) Any obligation with a term of less than one year.
       ``(IV) Any asset which the Secretary identifies as being 
     economically equivalent to any asset described in this 
     subparagraph.

       ``(C) Net cash position.--For purposes of this paragraph, 
     the net cash position of a specified foreign corporation is 
     the sum of such corporation's gross cash position and its 
     gross short cash position.
       ``(D) Gross short cash position.--For purposes of this 
     paragraph, the gross short cash position of a specified 
     foreign corporation is the sum of--
       ``(i) the gross accounts payable of such corporation,
       ``(ii) the gross obligations owed by such corporation with 
     a term of less than 1 year, and
       ``(iii) gross liabilities of such corporation which consist 
     of actively traded personal property for which there is an 
     established securities market.
       ``(E) Prevention of double counting.--Cash positions of a 
     specified foreign corporation described in clause (ii) or 
     (iii)(III) of subparagraph (B) shall not be taken into 
     account by a United States shareholder under subparagraph (A) 
     to the extent that such United States shareholder 
     demonstrates to the satisfaction of the Secretary that such 
     amount is so taken into account by such United States 
     shareholder with respect to another specified foreign 
     corporation.
       ``(F) Cash positions of certain non-corporate entities 
     taken into account.--An entity shall be treated as a 
     specified foreign corporation of a United States shareholder 
     for purposes of determining such United States shareholder's 
     aggregate foreign cash position if--
       ``(i) such entity is a foreign entity which would be a 
     specified foreign corporation of such United States 
     shareholder if such entity were a corporation, or

[[Page S7612]]

       ``(ii) any interest in such entity is held by a specified 
     foreign corporation of such United States shareholder 
     (determined after application of clause (i)) and such entity 
     would be a specified foreign corporation of such United 
     States shareholder if such entity were a foreign corporation.
       ``(G) Anti-abuse.--If the Secretary deter-
                                 ______
                                 
  SA 1764. Mr. ISAKSON submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of section 13221, add the following:
       (e) Special Rules for Original Issue Discount.--
     Notwithstanding subsection (c), in the case of income from a 
     debt instrument having original issue discount--
       (1) the amendments made by this section shall apply to 
     taxable years beginning after December 31, 2018, and
       (2) the period for taking into account any adjustments 
     under section 481 by reason of a qualified change in method 
     of accounting (as defined in subsection (d)) shall be 6 
     years.
                                 ______
                                 
  SA 1765. Mr. ISAKSON (for himself and Mr. Perdue) submitted an 
amendment intended to be proposed by him to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       Beginning on page 309, strike line 18 and all that follows 
     through page 310, line 4 and insert the following:

     SEC. 13704. TAX-EXEMPT STATUS FOR PROFESSIONAL SPORTS 
                   LEAGUES.

       (a) In General.--Paragraph (6) of section 501(c) is amended 
     by striking ``professional football leagues (whether or not 
     administering a pension fund for football players)'' and 
     inserting ``professional sports leagues whose members all 
     have an independent contractor relationship with the league 
     (whether or not administering a pension fund for athletes)''.
                                 ______
                                 
  SA 1766. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page 449, strike lines 16 through 19 and insert the 
     following:
       (a) In General.--Section 958(b)(4) is amended by striking 
     ``Subparagraph'' and inserting ``With respect to industries 
     classified under North American Industry Classification 
     System codes US326 or US336 only, subparagraph''.
                                 ______
                                 
  SA 1767. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       On page 487, between lines 20 and 21, insert the following:
       ``(4) Exception.--The term `applicable taxpayer' does not 
     include any corporation classified under North American 
     Industry Classification System codes US326 or US336.''.
                                 ______
                                 
  SA 1768. Mr. NELSON (for himself and Mr. Menendez) submitted an 
amendment intended to be proposed by him to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. NONAPPLICATION TO PUERTO RICO.

       This Act, including any amendments made by this Act (except 
     for the amendments made in section 13823), shall be null and 
     void and have no effect with respect to income derived from 
     sources within Puerto Rico until all bona fide residents of 
     Puerto Rico (as defined for purposes of section 933 of the 
     Internal Revenue Code of 1986) are treated in the same manner 
     as residents of the 50 States for purposes of such Code.
                                 ______
                                 
  SA 1769. Mr. NELSON submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. THREE PERCENT RATE FOR PORTABLE, ELECTRONICALLY-
                   AERATED BAIT CONTAINERS.

       (a) In General.--Section 4161(a) is amended by 
     redesignating paragraph (4) as paragraph (5) and by inserting 
     after paragraph (3) the following new paragraph:
       ``(4) 3 percent rate for portable, electronically-aerated 
     bait containers.--In the case of portable, electronically-
     aerated bait containers, paragraph (1) shall be applied by 
     substituting `3 percent' for `10 percent'.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to articles sold by the manufacturer, producer, 
     or importer after December 31, 2017.
                                 ______
                                 
  SA 1770. Mr. NELSON submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of title I, add the following:

          Subtitle F--Identity Theft and Tax Fraud Prevention

     SEC. 16001. SHORT TITLE; DEFINITION.

       (a) Short Title.--This subtitle may be cited as the 
     ``Identity Theft and Tax Fraud Prevention Act of 2017''.
       (b) Secretary.--In this subtitle, the term ``Secretary'' 
     means the Secretary of the Treasury or the Secretary's 
     delegate.

         PART I--IDENTITY THEFT AND TAX REFUND FRAUD PREVENTION

                     Subpart A--General Provisions

     SEC. 16101. GUIDELINES FOR STOLEN IDENTITY REFUND FRAUD 
                   CASES.

       (a) In General.--Not later than 6 months after the date of 
     the enactment of this Act, the Secretary, in consultation 
     with the National Taxpayer Advocate, shall develop and 
     implement publicly available guidelines for management of 
     cases involving stolen identity refund fraud in a manner that 
     reduces the administrative burden on taxpayers who are 
     victims of such fraud.
       (b) Standards and Procedures To Be Considered.--The 
     guidelines described in subsection (a) may include--
       (1) standards for--
       (A) the average length of time in which a case involving 
     stolen identity refund fraud should be resolved,
       (B) the maximum length of time, on average, a taxpayer who 
     is a victim of stolen identity refund fraud and is entitled 
     to a tax refund which has been stolen should have to wait to 
     receive such refund, and
       (C) the maximum number of offices and employees within the 
     Internal Revenue Service with whom a taxpayer who is a victim 
     of stolen identity refund fraud should be required to 
     interact in order to resolve a case,
       (2) standards for opening, assigning, reassigning, or 
     closing a case involving stolen identity refund fraud, and
       (3) procedures for implementing and accomplishing the 
     standards described in paragraphs (1) and (2), and measures 
     for evaluating such procedures and determining whether such 
     standards have been successfully implemented.

     SEC. 16102. CRIMINAL PENALTY FOR MISAPPROPRIATING TAXPAYER 
                   IDENTITY IN CONNECTION WITH TAX FRAUD.

       (a) In General.--Section 7206 is amended--
       (1) by striking ``Any person'' and inserting the following:
       ``(a) In General.--Any person'', and
       (2) by adding at the end the following new subsection:
       ``(b) Misappropriation of Identity.--Any person who 
     willfully misappropriates another person's taxpayer identity 
     (as defined in section 6103(b)(6)) for the purpose of making 
     any list, return, account, statement, or other document 
     submitted to the Secretary under the provisions of this title 
     shall be guilty of a felony and, upon conviction thereof, 
     shall be fined not more than $250,000 ($500,000 in the case 
     of a corporation) or imprisoned not more than 5 years, or 
     both, together with the costs of prosecution.''.
       (b) Identity Protection Personal Identification Number.--
     Section 6109 is amended by inserting after subsection (d) the 
     following new subsection:
       ``(e) Identity Protection Personal Identification Number.--
       ``(1) In general.--For purposes of this section, the term 
     `identifying number' shall include an identity protection 
     personal identification number, as defined in paragraph (2).
       ``(2) Definition.--The term `identity protection personal 
     identification number' means a number assigned by the 
     Secretary to a taxpayer to help prevent the misuse of the 
     social security account number of the taxpayer on fraudulent 
     Federal income tax returns and to assist the Secretary in 
     verifying a taxpayer's identity.''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to offenses committed on or after the date of the 
     enactment of this Act.

     SEC. 16103. INCREASED PENALTY FOR IMPROPER DISCLOSURE OR USE 
                   OF INFORMATION BY PREPARERS OF RETURNS.

       (a) In General.--Section 6713 is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively, and
       (2) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Enhanced Penalty for Improper Use or Disclosure 
     Relating to Identity Theft.--
       ``(1) In general.--In the case of a disclosure or use 
     described in subsection (a) that is made in connection with a 
     crime relating to the misappropriation of another person's 
     taxpayer identity (as defined in section

[[Page S7613]]

     6103(b)(6)), whether or not such crime involves any tax 
     filing, subsection (a) shall be applied--
       ``(A) by substituting `$1,000' for `$250', and
       ``(B) by substituting `$50,000' for `$10,000'.
       ``(2) Separate application of total penalty limitation.--
     The limitation on the total amount of the penalty under 
     subsection (a) shall be applied separately with respect to 
     disclosures or uses to which this subsection applies and to 
     which it does not apply.''.
       (b) Criminal Penalty.--Section 7216(a) is amended by 
     striking ``$1,000'' and inserting ``$1,000 ($100,000 in the 
     case of a disclosure or use to which section 6713(b) 
     applies)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures or uses on or after the date of 
     the enactment of this Act.

     SEC. 16104. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

       (a) In General.--Chapter 77 is amended by adding at the end 
     the following new section:

     ``SEC. 7529. NOTIFICATION OF SUSPECTED IDENTITY THEFT.

       ``If the Secretary determines that there has been or may 
     have been an unauthorized use of the identity of any 
     individual, the Secretary shall, without jeopardizing an 
     investigation relating to tax administration--
       ``(1) as soon as practicable, notify the individual of such 
     determination and provide--
       ``(A) instructions on how to file a report with law 
     enforcement regarding the unauthorized use of the identity of 
     the individual,
       ``(B) the identification of any forms necessary for the 
     individual to complete and submit to law enforcement to 
     permit access to personal information of the individual 
     during the investigation,
       ``(C) information regarding actions the individual may take 
     in order to protect the individual from harm relating to such 
     unauthorized use, and
       ``(D) an offer of identity protection measures to be 
     provided to the individual by the Internal Revenue Service, 
     such as the use of an identity protection personal 
     identification number (as defined in section 6109(e)), and
       ``(2) at the time the information described in paragraph 
     (1) is provided (or, if not available at such time, as soon 
     as practicable thereafter), issue additional notifications to 
     such individual (or such individual's designee) regarding--
       ``(A) whether an investigation has been initiated in 
     regards to such unauthorized use,
       ``(B) whether the investigation substantiated an 
     unauthorized use of the identity of the individual, and
       ``(C) whether--
       ``(i) any action has been taken against a person relating 
     to such unauthorized use, or
       ``(ii) any referral has been made for criminal prosecution 
     of such person and, to the extent such information is 
     available, whether such person has been criminally charged by 
     indictment or information.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     77 is amended by adding at the end the following new item:

``Sec. 7529. Notification of suspected identity theft.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to determinations made after the date of the 
     enactment of this Act.

     SEC. 16105. LOCAL LAW ENFORCEMENT LIAISON.

       (a) Establishment.--The Commissioner of Internal Revenue 
     shall establish within the Criminal Investigation Division of 
     the Internal Revenue Service the position of Local Law 
     Enforcement Liaison.
       (b) Duties.--The Local Law Enforcement Liaison shall serve 
     as the primary source of contact for State and local law 
     enforcement authorities with respect to tax-related identity 
     theft and other tax fraud matters, having duties that shall 
     include--
       (1) receiving information from State and local law 
     enforcement authorities,
       (2) responding to inquiries from State and local law 
     enforcement authorities,
       (3) administering authorized information-sharing 
     initiatives with State or local law enforcement authorities 
     and reviewing the performance of such initiatives,
       (4) ensuring any information provided through authorized 
     information-sharing initiatives with State or local law 
     enforcement authorities is used only for the prosecution of 
     identity theft-related crimes and not re-disclosed to third 
     parties, and
       (5) any other duties as delegated by the Commissioner of 
     Internal Revenue.

 Subpart B--Administrative Authority To Prevent Identity Theft and Tax 
                              Refund Fraud

     SEC. 16111. AUTHORITY TO TRANSFER INTERNAL REVENUE SERVICE 
                   APPROPRIATIONS TO COMBAT TAX FRAUD.

       (a) In General.--For any fiscal year, in addition to any 
     other authority to transfer amounts appropriated to an 
     Internal Revenue Service account, the Commissioner of 
     Internal Revenue (referred to in this section as the 
     ``Commissioner'') may transfer not more than $10,000,000 to 
     any account of the Internal Revenue Service from amounts 
     appropriated to other Internal Revenue Service accounts. Any 
     amounts so transferred shall be used solely for the purposes 
     of preventing, detecting, and resolving potential cases of 
     tax fraud, which may include educating taxpayers about common 
     tax fraud scams and how to protect themselves from such 
     scams.
       (b) Limitation.--The Commissioner shall not transfer any 
     amounts described in subsection (a) unless the Commissioner 
     has determined that taxpayer services provided by the 
     Internal Revenue Service to the public (including telephone 
     operations, forms and publications, and similar types of 
     taxpayer assistance) will not be impaired by such transfer.

     SEC. 16112. STREAMLINED CRITICAL PAY AUTHORITY FOR 
                   INFORMATION TECHNOLOGY POSITIONS.

       (a) Authority.--Section 9503(a) of title 5, United States 
     Code, is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``the Secretary of the Treasury'' and all that follows 
     through ``establish'' and inserting ``the Secretary of the 
     Treasury may, during the period beginning on the date of the 
     enactment of the Identity Theft and Tax Fraud Prevention Act 
     of 2017 and ending on September 30, 2022, establish'', and
       (2) in paragraph (1)(B), by striking ``the Internal Revenue 
     Service's successful accomplishment of an important mission'' 
     and inserting ``the functionality of the information 
     technology operations of the Internal Revenue Service''.
       (b) Recruitment, Retention, Relocation Incentives, and 
     Relocation Expenses.--Section 9504 of title 5, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``Before September 30, 2013'' and inserting 
     ``During the period beginning on the date of the enactment of 
     the Identity Theft and Tax Fraud Prevention Act of 2017 and 
     ending on September 30, 2022'', and
       (B) by inserting ``for employees holding positions 
     described in section 9503(a)(1)'' after ``incentives'', and
       (2) in subsection (b)--
       (A) by striking ``Before September 30, 2013'' and inserting 
     ``During the period beginning on the date of the enactment of 
     the Identity Theft and Tax Fraud Prevention Act of 2017 and 
     ending on September 30, 2022'',
       (B) by striking ``employees transferred or reemployed'' and 
     inserting ``employees holding positions described in section 
     9503(a)(1) who are transferred or reemployed during such 
     period'', and
       (C) by striking ``section 9502 or 9503 after June 1, 1998'' 
     and inserting ``section 9503 during such period''.
       (c) Performance Awards for Senior Executives.--Section 
     9505(a) of title 5, United States Code, is amended--
       (1) by striking ``Before September 30, 2013'' and inserting 
     ``During the period beginning on the date of the enactment of 
     the Identity Theft and Tax Fraud Prevention Act of 2017 and 
     ending on September 30, 2022'', and
       (2) by striking ``significant functions'' and inserting 
     ``the information technology operations''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to payments made on or after the date of the 
     enactment of this Act.

     SEC. 16113. ACCESS TO THE NATIONAL DIRECTORY OF NEW HIRES FOR 
                   TAX ADMINISTRATION PURPOSES.

       (a) In General.--Paragraph (3) of section 453(i) of the 
     Social Security Act (42 U.S.C. 653(i)) is amended to read as 
     follows:
       ``(3) Administration of federal tax laws.--The Secretary of 
     the Treasury shall have access to the information in the 
     National Directory of New Hires solely for purposes of 
     administering the Internal Revenue Code of 1986.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 16114. USE OF INFORMATION IN DO NOT PAY INITIATIVE IN 
                   PREVENTION OF IDENTITY THEFT REFUND FRAUD.

       The Secretary shall use the information available under the 
     Do Not Pay Initiative established under section 5 of the 
     Improper Payments Elimination and Recovery Improvement Act of 
     2012 (31 U.S.C. 3321 note) to help prevent identity theft 
     refund fraud.

     SEC. 16115. MINIMUM STANDARDS FOR PROFESSIONAL TAX PREPARERS.

       (a) In General.--Subsection (a) of section 330 of title 31, 
     United States Code, is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) establish minimum standards regulating--
       ``(A) the practice of representatives of persons before the 
     Department of the Treasury; and
       ``(B) the practice of tax return preparers; and'', and
       (2) in paragraph (2)--
       (A) by inserting ``or tax return preparer'' after 
     ``representative'' each place it appears, and
       (B) by inserting ``or in preparing their tax returns, 
     claims for refund, or documents in connection with tax 
     returns or claims for refund'' after ``cases'' in 
     subparagraph (D).
       (b) Authority to Sanction Regulated Tax Return Preparers.--
     Subsection (b) of section 330 of title 31, United States 
     Code, is amended--
       (1) by striking ``before the Department'',
       (2) by inserting ``or tax return preparer'' after 
     ``representative'' each place it appears, and
       (3) in paragraph (4), by striking ``misleads or threatens'' 
     and all that follows and inserting ``misleads or threatens--
       ``(A) any person being represented or any prospective 
     person being represented; or
       ``(B) any person or prospective person whose tax return, 
     claim for refund, or document in connection with a tax return 
     or claim for refund, is being or may be prepared.''.
       (c) Tax Return Preparer Defined.--Section 330 of title 31, 
     United States Code, is

[[Page S7614]]

     amended by adding at the end the following new subsection:
       ``(e) Tax Return Preparer.--For purposes of this section--
       ``(1) In general.--The term `tax return preparer' has the 
     meaning given such term under section 7701(a)(36) of the 
     Internal Revenue Code of 1986.
       ``(2) Tax return.--The term `tax return' has the meaning 
     given to the term `return' under section 6696(e)(1) of the 
     Internal Revenue Code of 1986.
       ``(3) Claim for refund.--The term `claim for refund' has 
     the meaning given such term under section 6696(e)(2) of such 
     Code.''.

     SEC. 16116. SENSE OF THE SENATE ON STRENGTHENED PENALTIES AND 
                   ENFORCEMENT FOR IMPERSONATING AN IRS OFFICIAL 
                   OR AGENT.

       It is the sense of the Senate that the penalties under 
     section 912 of title 18, United States Code, for 
     impersonating an officer or employee acting under the 
     authority of the United States should be amended to increase 
     the penalties for impersonating an official or agent of the 
     Internal Revenue Service and enforced to the fullest extent 
     of the law.

                           Subpart C--Reports

     SEC. 16121. IRS REPORT ON STOLEN IDENTITY REFUND FRAUD.

       (a) In General.--Not later than September 30, 2018, and 
     every even-numbered calendar year thereafter through 
     September 30, 2026, the Secretary shall report to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate on the extent and 
     nature of stolen identity refund fraud under the Internal 
     Revenue Code of 1986, as based on the most recent data that 
     is available.
       (b) Contents.--The report described in subsection (a) shall 
     include--
       (1) a discussion of the detection, prevention, and 
     enforcement activities undertaken by the Internal Revenue 
     Service with respect to such fraud, including--
       (A) efforts to combat stolen identity refund fraud, 
     including an update on the victims' assistance unit (or any 
     equivalent unit),
       (B) an update on Internal Revenue Service efforts and 
     results associated with limiting multiple refunds to the same 
     financial account and physical address, with appropriate 
     exceptions, and
       (C) Internal Revenue Service efforts associated with other 
     avenues for addressing stolen identity refund fraud,
       (2) information regarding the average and maximum amounts 
     of time that elapsed before resolution of a victim's case,
       (3) an analysis of ways to accelerate information matching 
     in order to prevent stolen identity refund fraud,
       (4) an update on the implementation of the relevant 
     provisions of this Act and the amendments made by this Act, 
     and
       (5) identification of any further legislation to protect 
     taxpayer resources and information, including preventing tax 
     refund fraud related to the Internal Revenue Service's e-
     Services tools and electronic filing identification numbers.
       (c) Additional Information for the First Report.--The first 
     report required under this section shall include--
       (1) an assessment of the progress made by the Internal 
     Revenue Service on identity theft outreach and education to 
     individuals, businesses, State agencies, and other external 
     organizations, and
       (2) the results of a study on the costs and benefits 
     relating to enhancement of the taxpayer authentication 
     approach employed by the Internal Revenue Service in the 
     electronic tax return filing process.

     SEC. 16122. REPORT ON STATUS OF THE IDENTITY THEFT TAX REFUND 
                   FRAUD INFORMATION SHARING AND ANALYSIS CENTER.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary shall report to the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate on--
       (1) whether the Identity Theft Tax Refund Fraud Information 
     Sharing and Analysis Center (referred to in this section as 
     the ``Center'') is fully operational,
       (2) if the Center is not fully operational, what steps are 
     necessary for the Center to be fully operational and an 
     estimate of when the Center will be fully operational, and
       (3) any challenges that remain for effective sharing of 
     information between the public and private sectors and 
     efforts that are being undertaken to address such challenges.

     SEC. 16123. REPORT ON IRS IMPOSTER PHONE SCAM.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Inspector General for Tax 
     Administration, in consultation with the Federal 
     Communications Commission and the Federal Trade Commission, 
     shall submit a report to Congress regarding identity theft 
     phone scams under which individuals attempt to obtain 
     personal information over the phone from taxpayers by falsely 
     claiming to be calling from or on behalf the Internal Revenue 
     Service.
       (b) Contents of Report.--Such report shall include--
       (1) a description of the nature and form of such scams,
       (2) an estimate of the number of taxpayers contacted 
     pursuant to, and the number of taxpayers who have been 
     victims of, such scams,
       (3) an estimate of the amount of wrongful payments obtained 
     from such scams, and
       (4) details of potential solutions to combat and prevent 
     such scams, including best practices from the private sector 
     and technological solutions.

       PART II--IMPROVEMENTS TO ELECTRONIC FILING OF TAX RETURNS

     SEC. 16201. STUDY ON FEASIBILITY OF BLOCKING ELECTRONICALLY 
                   FILED TAX RETURNS.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary shall report to the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate on the feasibility of implementing a 
     program under which a person who has filed an identity theft 
     affidavit with the Secretary may elect to prevent the 
     processing of any Federal tax return submitted in an 
     electronic format by anyone purporting to be such person, 
     including a recommendation on whether to implement such a 
     program.

     SEC. 16202. ENHANCEMENTS TO IRS PIN PROGRAM.

       Not later than July 1, 2019, the Secretary shall establish 
     a program to issue, upon request, an identity protection 
     personal identification number (as described in section 
     6109(e)(2) of the Internal Revenue Code of 1986 (as added by 
     section 16102(b) of this Act)) to any individual after the 
     individual's identity has been verified to the satisfaction 
     of the Secretary.

     SEC. 16203. INCREASING ELECTRONIC FILING OF RETURNS.

       (a) In General.--Subparagraph (A) of section 6011(e)(2) is 
     amended by striking ``250'' and inserting ``the applicable 
     number of''.
       (b) Applicable Number.--Subsection (e) of section 6011 is 
     amended by adding at the end the following new paragraph:
       ``(5) Applicable number.--For purposes of paragraph (2)(A), 
     the applicable number is--
       ``(A) in the case of returns and statements relating to 
     calendar years before 2020, 250,
       ``(B) in the case of returns and statements relating to 
     calendar year 2020, 200,
       ``(C) in the case of returns and statements relating to 
     calendar year 2021, 150,
       ``(D) in the case of returns and statements relating to 
     calendar year 2022, 100,
       ``(E) in the case of returns and statements relating to 
     calendar year 2023, 50, and
       ``(F) in the case of returns and statements relating to 
     calendar years after 2023, 20.''.
       (c) Returns Filed by a Tax Return Preparer.--
       (1) In general.--Subparagraph (A) of section 6011(e)(3) is 
     amended to read as follows:
       ``(A) In general.--The Secretary shall require that any 
     individual income tax return which is prepared and filed by a 
     tax return preparer be filed on magnetic media. The Secretary 
     may waive the requirement of the preceding sentence if the 
     Secretary determines, on the basis of an application by the 
     tax return preparer, that the preparer cannot meet such 
     requirement based on technological constraints (including 
     lack of access to the Internet).''.
       (2) Conforming amendment.--Paragraph (3) of section 6011(e) 
     is amended by striking subparagraph (B) and by redesignating 
     subparagraph (C) as subparagraph (B).
       (d) Effective Date.--The amendments made by this section 
     shall apply to returns the due date for which (determined 
     without regard to extensions) is after December 31, 2018.

     SEC. 16204. INTERNET PLATFORM FOR FORM 1099 FILINGS.

       (a) In General.--Not later than January 1, 2022, the 
     Secretary shall make available an Internet website or other 
     electronic media, similar to the Business Services Online 
     Suite of Services provided by the Social Security 
     Administration, that will provide taxpayers access to 
     resources and guidance provided by the Internal Revenue 
     Service and will allow taxpayers to--
       (1) prepare and file Forms 1099,
       (2) prepare Forms 1099 for distribution to recipients other 
     than the Internal Revenue Service, and
       (3) create and maintain necessary taxpayer records.
       (b) Early Implementation for Forms 1099-MISC.--Not later 
     than January 1, 2020, the Internet website under subsection 
     (a) shall be available in a partial form that will allow 
     taxpayers to take the actions described in such subsection 
     with respect to Forms 1099-MISC required to be filed or 
     distributed by such taxpayers.

     SEC. 16205. REQUIREMENT THAT ELECTRONICALLY PREPARED PAPER 
                   RETURNS INCLUDE SCANNABLE CODE.

       (a) In General.--Subsection (e) of section 6011, as amended 
     by section 16203(b) of this Act, is amended by adding at the 
     end the following new paragraph:
       ``(6) Special rule for returns prepared electronically and 
     submitted on paper.--The Secretary shall require that any 
     return of tax which is prepared electronically, but is 
     printed and filed on paper, bear a code which can, when 
     scanned, convert such return to electronic format.''.
       (b) Conforming Amendment.--Paragraph (1) of section 6011(e) 
     is amended by striking ``paragraph (3)'' and inserting 
     ``paragraphs (3) and (6)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns of tax the due date for which 
     (determined without regard to extensions) is after December 
     31, 2018.

     SEC. 16206. AUTHENTICATION OF USERS OF ELECTRONIC SERVICES 
                   ACCOUNTS.

       Beginning 180 days after the date of the enactment of this 
     Act, the Secretary shall

[[Page S7615]]

     verify the identity of any individual opening an e-Services 
     account with the Internal Revenue Service before such 
     individual is able to use the e-Services tools.
                                 ______
                                 
  SA 1771. Mr. BENNET submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place in title I, insert the following:

               Subtitle F--Coal Community Empowerment Act

     SEC. 16001. SHORT TITLE.

       This subtitle may be cited as the ``Coal Community 
     Empowerment Act of 2017''.

               PART I--COAL COMMUNITY ZONE TAX INCENTIVES

     SEC. 16101. COAL COMMUNITY ZONES.

       (a) In General.--Subchapter Y of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

                    ``PART IV--COAL COMMUNITY ZONES

``Sec. 1400V-1. Definition of coal community zone.
``Sec. 1400V-2. Application of empowerment zone incentives to coal 
              community zones.
``Sec. 1400V-3. Commercial revitalization deduction.
``Sec. 1400V-4. Exclusion of capital gains.
``Sec. 1400V-5. Application of new markets tax credit to investments in 
              community development entities serving coal community 
              zones.

     ``SEC. 1400V-1. DEFINITION OF COAL COMMUNITY ZONE.

       ``(a) In General.--For purpose of this part, the term `coal 
     community zone' means any county in the United States in 
     which--
       ``(1)(A) there were not less than 50 fewer individuals 
     employed at coal mines in such county for calendar year 2015 
     as compared to calendar year 2011 (determined based on data 
     collected by the Federal Mine Safety and Health 
     Administration), and
       ``(B) the quarterly average of the total number of 
     employees employed in such county for the first calendar year 
     in the applicable period (as estimated by the Bureau of Labor 
     Statistics) was not more than 20,000, or
       ``(2) not less than an average of 5 percent of the total 
     employment within the county during the applicable period was 
     at coal mines.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Applicable period.--The term `applicable period' 
     means the period beginning after December 31, 2010, and 
     ending before January 1, 2016.
       ``(2) Coal mine.--The term `coal mine' has the meaning 
     given such term under section 3(h)(2) of the Federal Mine 
     Safety and Health Act of 1977.

     ``SEC. 1400V-2. APPLICATION OF EMPOWERMENT ZONE INCENTIVES TO 
                   COAL COMMUNITY ZONES.

       ``(a) In General.--For purposes of this title, except as 
     otherwise provided in this section, a coal community zone 
     shall be treated as an empowerment zone designated under 
     subchapter U.
       ``(b) Period of Designation.--A designation as an 
     empowerment zone under subsection (a) shall remain in effect 
     during the period beginning on January 1, 2018, and ending on 
     December 31, 2022.
       ``(c) Special Rules for Bonds.--
       ``(1) In general.--In the case of a coal community zone 
     bond--
       ``(A) such bond shall not be treated as a private activity 
     bond for purposes of section 146, and
       ``(B) section 1394(c) shall not apply.
       ``(2) Limitation on amount of bonds.--
       ``(A) In general.--There is a national coal community zone 
     bond limitation for all coal community zone bonds. Such 
     limitation is $1,000,000,000.
       ``(B) Allocation of limitation.--The Secretary shall 
     allocate the limitation under subparagraph (A) to States in 
     which there are located coal community zones. Such allocation 
     shall be in proportion to the population of residents in coal 
     community zones in such States relative to the total 
     population of residents in all coal community zones. The 
     limitation allocated to a State under the preceding sentence 
     shall be allocated to issuers of coal community zone bonds in 
     such State.
       ``(C) Designation subject to limitation amount.--The 
     maximum face amount of bonds issued which may be designated 
     under paragraph (3)(A) shall not exceed the limitation amount 
     allocated to such issuer under subparagraph (B).
       ``(3) Coal community bond.--For purposes of this 
     subsection, the term `coal community bond' means any bond 
     which would be described in section 1394(a) if--
       ``(A) such bond was designated for purposes of this 
     subsection by the bond issuer, and
       ``(B) only coal community zones were taken into account 
     under sections 1397C and 1397D.
       ``(d) Special Rules for Employment Credit.--In applying 
     section 1396 to a coal community zone, the term `qualified 
     zone employee' shall not include any individual who begins 
     work for the employer before January 1, 2018. Rules similar 
     to section 51(i)(2) shall apply for purposes of the preceding 
     sentence.
       ``(e) Special Rules for Increased Section 179 Expensing.--
       ``(1) In general.--In applying section 1397A to a coal 
     community zone--
       ``(A) `$500,000' shall be substituted for `$35,000' in 
     subsection (a)(1)(A), and
       ``(B) in lieu of applying subsection (a)(2), the dollar 
     amount in effect under section 179(b)(2) shall be increased 
     by the lesser of--
       ``(i) $500,000, or
       ``(ii) the cost of section 179 property which is qualified 
     zone property (as defined in section 179D) placed in service 
     during the taxable year.
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 2018, the $500,000 amounts 
     in subparagraphs (A) and (B)(i) of paragraph (1) 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, determined by substituting `calendar year 2017' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--Any increase determined under subparagraph 
     (A) shall be rounded to the nearest multiple of $10,000.
       ``(f) Special Rules for Nonrecognition of Gain on Rollover 
     of Empowerment Zone Investments.--In applying section 1397B 
     to a coal community zone--
       ``(1) `December 31, 2017' shall be substituted for `the 
     date of the enactment of this paragraph' in subsection 
     (b)(1)(A)(iii), and
       ``(2) `January 1, 2023' shall be substituted for `the day 
     after the date set forth in section 1391(d)(1)(A)(i)' in 
     subsection (b)(1)(A)(iv).

     ``SEC. 1400V-3. COMMERCIAL REVITALIZATION DEDUCTION.

       ``For purposes of section 1400I--
       ``(1) a coal community zone shall be treated as a renewal 
     community, and
       ``(2) in applying such section to a coal community zone--
       ``(A) subsection (d)(2)(A) shall be applied by substituting 
     `each calendar year after 2017 and before 2023 is $16,000,000 
     for each coal community zone (as defined in section 1400V-1) 
     in the State' for `each calendar year after 2001 and before 
     2010 is $12,000,000 for each renewal community in the State', 
     and
       ``(B) subsection (g) shall be applied by substituting 
     `December 31, 2022' for `December 31, 2009'.

     ``SEC. 1400V-4. EXCLUSION OF CAPITAL GAINS.

       ``(a) In General.--Gross income does not include any 
     qualified capital gain from the sale or exchange of a 
     qualified coal community zone asset held for more than 5 
     years.
       ``(b) Qualified Coal Community Zone Asset.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified coal community zone 
     asset' means--
       ``(A) any qualified coal community zone stock,
       ``(B) any qualified coal community zone partnership 
     interest, and
       ``(C) any qualified coal community zone business property.
       ``(2) Qualified coal community zone stock.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `qualified coal community zone stock' means any 
     stock in a domestic corporation if--
       ``(i) such stock is acquired by the taxpayer after December 
     31, 2017, and before January 1, 2023, at its original issue 
     (directly or through an underwriter) from the corporation 
     solely in exchange for cash,
       ``(ii) as of the time such stock was issued, such 
     corporation was a coal community zone business (or, in the 
     case of a new corporation, such corporation was being 
     organized for purposes of being a coal community zone 
     business), and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such stock, such corporation qualified as a coal 
     community zone business.
       ``(B) Redemptions.--A rule similar to the rule of section 
     1202(c)(3) shall apply for purposes of this paragraph.
       ``(3) Qualified coal community zone partnership interest.--
     The term `qualified coal community zone partnership interest' 
     means any capital or profits interest in a domestic 
     partnership if--
       ``(A) such interest is acquired by the taxpayer after 
     December 31, 2017, and before January 1, 2023, from the 
     partnership solely in exchange for cash,
       ``(B) as of the time such interest was acquired, such 
     partnership was a coal community zone business (or, in the 
     case of a new partnership, such partnership was being 
     organized for purposes of being a coal community zone 
     business), and
       ``(C) during substantially all of the taxpayer's holding 
     period for such interest, such partnership qualified as a 
     coal community zone business.
     A rule similar to the rule of paragraph (2)(B) shall apply 
     for purposes of this paragraph
       ``(4) Qualified coal community zone business property.--
       ``(A) In general.--The term `qualified coal community zone 
     business property' means tangible property if--
       ``(i) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after December 31, 
     2017, and before January 1, 2023,

[[Page S7616]]

       ``(ii) the original use of such property in the coal 
     community zone commences with the taxpayer, and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such property, substantially all of the use of 
     such property was in a coal community zone business of the 
     taxpayer.
       ``(B) Special rule for substantial improvements.--The 
     requirements of clauses (i) and (ii) of subparagraph (A) 
     shall be treated as satisfied with respect to--
       ``(i) property which is substantially improved by the 
     taxpayer before January 1, 2023, and
       ``(ii) any land on which such property is located.
     The determination of whether a property is substantially 
     improved shall be made under clause (ii) of section 
     1400B(b)(4)(B), except that `December 31, 2017' shall be 
     substituted for `December 31, 1997' in such clause.
       ``(5) Coal community zone business.--For purposes of this 
     section, the term `coal community zone business' means any 
     entity or proprietorship which would be a qualified business 
     entity or qualified proprietorship under section 1397C if 
     references to coal community zones were substituted for 
     references to empowerment zones.
       ``(c) Qualified Capital Gain.--For purposes of this 
     section--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `qualified capital gain' means any gain 
     recognized on the sale or exchange of--
       ``(A) a capital asset, or
       ``(B) property used in the trade or business (as defined in 
     section 1231(b)).
       ``(2) Gain before 2018 or after 2022 not qualified.--The 
     term `qualified capital gain' shall not include any gain 
     attributable to periods before January 1, 2018, or after 
     December 31, 2022.
       ``(3) Certain rules to apply.--Rules similar to the rules 
     of paragraphs (3), (4), and (5) of section 1400B(e) shall 
     apply for purposes of this subsection.
       ``(d) Certain Rules To Apply.--For purposes of this 
     section, rules similar to the rules of paragraphs (5), (6), 
     and (7) of subsection (b), and subsections (f) and (g), of 
     section 1400B shall apply; except that for such purposes 
     section 1400B(g)(2) shall be applied by substituting `January 
     1, 2018' for `January 1, 1998' and `December 31, 2022' for 
     `December 31, 2014'.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out the purposes 
     of this section, including regulations to prevent the abuse 
     of the purposes of this section.

     ``SEC. 1400V-5. APPLICATION OF NEW MARKETS TAX CREDIT TO 
                   INVESTMENTS IN COMMUNITY DEVELOPMENT ENTITIES 
                   SERVING COAL COMMUNITY ZONES.

       ``For purposes of section 45D--
       ``(1) a qualified community development entity shall be 
     eligible for an allocation under subsection (f)(2) thereof of 
     the increase in the new markets tax credit limitation 
     described in paragraph (2) only if a significant mission of 
     such entity is the recovery and redevelopment of population 
     census tracts within coal community zones,
       ``(2) the new markets tax credit limitation otherwise 
     determined under subsection (f)(1) thereof shall be increased 
     by an amount equal to $300,000,000 for each of calendar years 
     2017, 2018, 2019, and 2020, to be allocated among qualified 
     community development entities to make qualified low-income 
     community investments within coal community zones, and
       ``(3) subsection (f)(3) thereof shall be applied separately 
     with respect to the amount of the increase under paragraph 
     (2).''.
       (b) Conforming Amendments.--
       (1) Section 1394(f)(3)(B) of the Internal Revenue Code of 
     1986 is amended by inserting ``or any coal community zone'' 
     after ``District of Columbia Enterprise Zone''.
       (2) The table of parts for subchapter Y of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new item:

                   ``Part IV--Coal Community Zones''.

          PART II--EDUCATION AND TRAINING FOR COAL COMMUNITIES

     SEC. 16201. DEFINITIONS.

       In this title:
       (1) Coal community individual.--The term ``coal community 
     individual'' means an individual--
       (A) with a principal residence in a coal community zone; or
       (B) who works in a coal community zone.
       (2) Coal community student.--The term ``coal community 
     student'' means a coal community individual attending an 
     educational program.
       (3) Coal community zone.--The term ``coal community zone'' 
     has the meaning given the term in section 1400V-1 of the 
     Internal Revenue Code of 1986, as added by section 16101.
       (4) Coal-fired generator.--The term ``coal-fired 
     generator'' means an electric utility steam generating unit 
     that burns coal for 50 percent or more of the average annual 
     heat input.
       (5) Coal-related employee.--The term ``coal-related 
     employee'' means, with respect to any county, any individual 
     who--
       (A) is employed at a coal mine (as defined in section 
     3(h)(2) of the Federal Mine Safety and Health Act of 1977(30 
     U.S.C. 802)) in such county, or
       (B) is employed at a coal-fired generator located in such 
     county by the owner of such coal-fired generator.
       (6) Eligible entity.--The term ``eligible entity'' means a 
     partnership between--
       (A)(i) an institution of higher education (as defined in 
     section 102 of the Higher Education Act of 1965 (20 U.S.C. 
     1002));
       (ii) a nonprofit educational organization; or
       (iii) a provider identified under section 122 of the 
     Workforce Innovation and Opportunity Act (29 U.S.C. 3152); 
     and
       (B) not less than 1 business or industry that intends to 
     expand or hire additional or new workers who are coal 
     community individuals or who previously worked in the coal 
     community zone.
       (7) In-demand industry sector or occupations.--The term 
     ``in-demand industry sector or occupation'' has the meaning 
     given the term in section 3 of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3102).
       (8) Local administrator.--The term ``local administrator'' 
     means an entity that--
       (A) is--
       (i) a local governmental agency;
       (ii) a partnership consisting of a local governmental 
     agency and an institution of higher education or a nonprofit 
     organization;
       (iii) a local board (as defined in section 3 of the 
     Workforce Innovation and Opportunity Act (29 U.S.C. 3102));
       (iv) a State governmental agency; or
       (v) a nonprofit organization; and
       (B) has been selected by the local government of a coal 
     community zone to administer the individual support account 
     program under section 16202 and the business training fund 
     program under section 16205, to the extent the local 
     government elects to apply for grants under either such 
     section.
       (9) Qualifying individual.--The term ``qualifying 
     individual'' means an individual--
       (A) whose principal residence is within a coal community 
     zone; and
       (B) whom the local administrator of the coal community zone 
     determines is in need of additional education and training in 
     order to obtain long-term employment at a high wage.
       (10) Recognized postsecondary credential.--The term 
     ``recognized postsecondary credential'' has the meaning given 
     the term in section 3 of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3102).
       (11) Secretaries.--The term ``Secretaries'' means the 
     Secretary of Education and the Secretary of Labor.

     SEC. 16202. INDIVIDUAL SUPPORT ACCOUNTS.

       (a) Program Authorized.--
       (1) In general.--For each fiscal year for which funds are 
     available under subsection (f), the Secretaries, in 
     accordance with the interagency agreement described in 
     section 16206, shall carry out a program awarding grants to 
     local administrators of coal community zones, to enable the 
     local administrators to use such funds to manage individual 
     support accounts for qualifying individuals.
       (2) Duration.--
       (A) In general.--Grants awarded under paragraph (1) shall 
     be expended for approved education and training by the last 
     day of the 3-year period beginning on the award date.
       (B) Renewal.--The Secretaries may renew a grant under 
     paragraph (1) once for an additional 2-year period, if the 
     local administrator demonstrates that the program under the 
     grant has had a record of success and high-quality outcomes.
       (b) Application.--A local administrator of a coal community 
     zone desiring funds under this section shall submit an 
     application to the Secretaries at such time, in such manner, 
     and containing such information, as the Secretaries may 
     require. Such application shall include--
       (1) the number of qualifying individuals in the community;
       (2) a plan for allocating funds to qualifying individuals;
       (3) a description of the providers of education and 
     training in the community and their outcomes-based track 
     record of success, including, for such programs--
       (A) the student completion rates of the programs of 
     education and training;
       (B) the employment rates for students completing the 
     programs of education and training as of 1 year, 3 years, and 
     5 years after the completion of the program; and
       (C) the annual salary of students completing the programs 
     of education and training as of 1 year, 3 years, and 5 years 
     after completion of the program; and
       (4) if new eligible education and training providers are 
     expected to open or expand to the coal community zone or the 
     local administrator plans to recruit or encourage new such 
     providers--
       (A) a description of such providers; and
       (B) evidence to demonstrate such providers will be high-
     quality and result in the employment of a significant 
     percentage of individuals in high-wage, in demand industries.
       (c) Distribution of Funds.--The Secretaries shall award 
     funds under this section to local administrators that submit 
     an application under subsection (b) based on--
       (1) the number of people affected by the decline in 
     employment opportunities for coal-related employees during 
     the applicable period;
       (2) the quality of the providers of education and training 
     in the community; and
       (3) the likelihood that funding will result in employment 
     in a high-demand, high-wage industry for coal-related 
     employees or others in the community in need of additional 
     education and training.

[[Page S7617]]

       (d) Use of Funds.--
       (1) In general.--A local administrator receiving funds 
     under this section for a coal community zone shall use such 
     funds to establish individual support accounts described in 
     paragraph (2) for qualifying individuals.
       (2) Individual support accounts.--
       (A) In general.--Amounts made available through an 
     individual support account established for a qualifying 
     individual shall be used to pay for education and training 
     costs described in paragraph (3) that will prepare the 
     qualifying individual for long-term, high-wage employment.
       (B) Amount.--For any fiscal year, the amount provided under 
     this section for an individual support account of a 
     qualifying individual for a fiscal year shall not exceed the 
     maximum amount of a Federal Pell Grant for the most recent 
     award year.
       (C) Limited funds.--If, for any fiscal year, the amount of 
     funds provided under this section to a local administrator 
     for a coal community zone are not enough to fund individual 
     support accounts for all qualifying individuals in the coal 
     community zone requesting such accounts, the local 
     administrator shall give a priority to qualifying individuals 
     requesting to use the account funds for education and 
     training programs that--
       (i) prepare individuals for in-demand industry sectors or 
     occupations; and
       (ii) have strong outcomes based on the criteria described 
     in subsection (e)(1)(B).
       (3) Eligible education and training programs.--
       (A) In general.--Amounts provided in an individual support 
     account for a qualifying individual may be used for costs 
     related to a program of education and training approved by 
     the local administrator under subparagraph (B), which may 
     include--
       (i) a program offered by an institution of higher education 
     (as defined in section 102 of the Higher Education Act of 
     1965 (20 U.S.C. 1002));
       (ii) a program of training, including a program leading to 
     a recognized postsecondary credential, offered by an eligible 
     provider of training services identified under section 122 of 
     the Workforce Innovation and Opportunity Act (29 U.S.C. 
     3152); and
       (iii) costs (including associated education, curriculum, 
     and mentorship costs), related to an apprenticeship, 
     internship, or externship--

       (I) in an in-demand industry sector or occupation; or
       (II) for a position where there is a reasonable expectation 
     of long-term employment.

       (B) Additional education and training programs.--A local 
     administrator shall provide a process through which the 
     administrator may approve the use of funds in an individual 
     support account for education or training expenses. Through 
     such process, the administrator shall--
       (i) allow a qualified individual to request the approval of 
     a particular provider or program of education and training, 
     or a particular education and training expense, on an 
     individual basis;
       (ii) before approving a provider, program of education or 
     training, or other education and training expense, consider--

       (I) the local industry demands;
       (II) the likelihood that an individual will be employed 
     following the completion of the program of education or 
     training; and
       (III) the quality and effectiveness of the program of 
     education or training offered by the provider, based on the 
     outcomes-based record of success of the provider, including--

       (aa) the student completion rates of the programs of 
     education and training offered by the provider;
       (bb) the employment rates for students completing the 
     programs of education and training as of 1 year, 3 years, and 
     5 years after the completion of the program; and
       (cc) the annual salary of students completing the programs 
     of education and training as of 1 year, 3 years, and 5 years 
     after completion of the program; and
       (iii) make a determination that such provider is in the 
     best interest of the coal community zone and the qualifying 
     individuals.
       (e) Reports.--
       (1) Local administrator reports.--Each local administrator 
     receiving funds under this section for a fiscal year shall, 
     for each such year, prepare and submit a report to the 
     Secretaries that includes--
       (A) a description of the achievements of the program 
     supported under this section, including the program's levels 
     of performance achieved with respect to the primary 
     indicators of performance described in section 
     116(b)(2)(A)(i) of the Workforce Innovation and Opportunity 
     Act (29 U.S.C. 3141(b)(2)(A)(i));
       (B) a description of the outcomes-based results for the 
     programs of training and education for which funds were used 
     under this section, in the aggregate and individually, 
     including--
       (i) the student completion rates of the program of 
     education and training;
       (ii) the employment rates for students completing the 
     program of education and training as of 1 year, 3 years, and 
     5 years after the completion of the program; and
       (iii) the annual salary of students completing the program 
     of education and training as of 1 year, 3 years, and 5 years 
     after completion of the program;
       (C) the return on investment of funds provided to 
     individual support accounts under this section; and
       (D) any other information that the Secretaries may require.
       (2) Report to congress.--The Secretaries shall prepare and 
     submit an annual report to Congress regarding the program 
     supported under this section.
       (3) Institute of education sciences evaluation.--The 
     Director of the Institute of Education Sciences shall 
     evaluate the effectiveness, quality, and return in investment 
     of funds under this section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Labor to carry out 
     this section such sums as may be necessary for each of fiscal 
     years 2018 through 2023.

     SEC. 16203. PRIORITY FOR EMPLOYMENT AND TRAINING ACTIVITIES 
                   FOR QUALIFYING INDIVIDUALS.

       (a) Required Local Employment and Training Activities.--
     Section 134(c) of the Workforce Innovation and Opportunity 
     Act (29 U.S.C. 3174(c)) is amended by adding at the end the 
     following:
       ``(4) Priority individuals.--
       ``(A) In general.--With respect to funds allocated to a 
     local area for adult employment and training activities under 
     paragraph (2)(A) or (3) of section 133(b) or for dislocated 
     worker employment and training activities under section 
     133(b)(2)(B), priority shall be given to priority individuals 
     for receipt of career services described in paragraph (2) and 
     training services. The appropriate local board and the 
     Governor shall direct the one-stop operators in the local 
     area with regard to making determinations related to such 
     priority.
       ``(B) Definition.--In this paragraph, the term `priority 
     individual' means a qualifying individual, as defined in 
     section 16201 of the Coal Community Empowerment Act of 2017, 
     who is eligible to receive the service involved under this 
     subsection.''.
       (b) Allowable Local Employment and Training Activities.--
     Section 134(d) of the Workforce Innovation and Opportunity 
     Act (29 U.S.C. 3174(d)) is amended by adding at the end the 
     following:
       ``(6) Priority individuals.--
       ``(A) In general.--With respect to funds allocated to a 
     local area for adult employment and training activities under 
     paragraph (2)(A) or (3) of section 133(b) or for dislocated 
     worker employment and training activities under section 
     133(b)(2)(B), priority shall be given to priority individuals 
     for receipt of services described in paragraphs (1) through 
     (5) of this subsection. The appropriate local board and the 
     Governor shall direct the one-stop operators in the local 
     area with regard to making determinations related to such 
     priority.
       ``(B) Definition.--In this paragraph, the term `priority 
     individual' means a qualifying individual, as defined in 
     section 16201 of the Coal Community Empowerment Act of 2017, 
     who is eligible to receive the service involved under this 
     subsection.''.

     SEC. 16204. DEVELOPMENT GRANTS.

       (a) Program Authorized.--
       (1) In general.--From amounts made available to carry out 
     this section, the Secretaries, in accordance with the 
     interagency agreement described in section 16206, shall award 
     grants, on a competitive basis, to eligible entities, to 
     support the eligible entities in the development, revamping, 
     improvement, or expansion of programs of education and 
     training for coal community zones in in-demand industry 
     sectors or occupations or in industries in local demand.
       (2) Duration.--
       (A) In general.--A grant awarded under this section shall 
     be for a period of 3 years.
       (B) Renewal.--The Secretaries may renew a grant awarded 
     under section for a single 2-year period, if--
       (i) the eligible entity demonstrates that the program under 
     the grant has a record of success and high-quality outcomes; 
     and
       (ii) the local government or local administrator that 
     submitted the demonstration of application approval under the 
     initial application under subsection (b)(1)(E) approves of 
     the renewal.
       (b) Application.--
       (1) In general.--An eligible entity desiring a grant under 
     this section shall submit an application to the Secretaries 
     at such time, in such manner, and containing such information 
     as the Secretaries may require, including--
       (A) the number of coal community students in the coal 
     community zone to be served;
       (B) a plan for allocating funds to coal community students;
       (C) a description of the eligible entity's track record of 
     success with the programs of education and training to be 
     supported under the grant, including--
       (i) the student completion rates of the programs of 
     education and training;
       (ii) the employment rates for students completing the 
     programs of education and training as of 1 year, 3 years, and 
     5 years after the completion of the program;
       (D) a demonstration that the eligible entity is of high 
     quality and will be a benefit to the coal community students 
     and the coal community zone;
       (E) a demonstration of application approval from the local 
     government of the coal community zone or, in the case of a 
     coal community zone receiving a grant under section 16202, 
     the local administrator for such grant, including a statement 
     that the application and funds requested under the 
     application is in the best interest of the coal community 
     zone and coal community students; and

[[Page S7618]]

       (F) an assurance that if the program supported under the 
     grant does not enroll the required percentage of coal 
     community students under subsection (c)(1), the eligible 
     entity shall reimburse the Secretaries, in the amount and 
     manner described in subsection (d).
       (c) Use of Funds.--An eligible entity receiving a grant 
     under this program shall use such funds for the development, 
     revamping, improvement, or expansion of a high-quality 
     training and education program that--
       (1) predominantly serves coal community students by 
     ensuring that not less than 75 percent of the students 
     enrolled in the program are coal community students;
       (2) provides training in high-wage, high-demand industries 
     or in industries in local demand;
       (3) is free or offered at a very low cost to coal community 
     students; and
       (4) enters into an agreement with each coal community 
     student that enrolls in the program to ensure that the 
     eligible entity can obtain the information necessary for the 
     report under subsection (e)(1).
       (d) Reimbursement.--
       (1) In general.--An eligible entity that does not enroll 
     the required percentage described in subsection (c)(1) shall 
     reimburse the Secretaries in the amount equal to the product 
     of--
       (A) the average per-student cost of the program; and
       (B) the number of additional coal community students that 
     would have been needed in order for the program to meet the 
     75 percent coal community student enrollment requirement 
     under subsection (c)(1).
       (2) Use of reimbursed funds.--Any funds reimbursed to the 
     Secretaries under this subsection may be used by the 
     Secretaries to award additional grants under this section.
       (e) Reports.--
       (1) Eligible entity report.--Each eligible entity receiving 
     a grant under this section shall prepare and submit to the 
     Secretaries an annual report regarding the outcomes of the 
     grant, including--
       (A) the number of students, and the number of coal 
     community students, enrolled in the program supported under 
     the grant;
       (B) the number of students, and the number of coal 
     community students, completing such program;
       (C) the number of students, and the number of coal 
     community students, who have completed such program and who 
     are employed after completion of such program as of--
       (i) 6 months after the date of completion;
       (ii) 1 year after the date of completion;
       (iii) 3 years after the date of completion; and
       (iv) 5 years after the date of completion;
       (D) the average wage of students, and the average wage of 
     coal community students, who have completed such program as 
     of--
       (i) 6 months after the date of completion;
       (ii) 1 year after the date of completion; and
       (iii) 3 years after the date of completion; and
       (E) the satisfaction rate of all students, and the 
     satisfaction rate of coal community students, including 
     students who completed the program and students who did not 
     complete--
       (i) 6 months after the date of completion or leaving the 
     program;
       (ii) 1 year after the date of completion or leaving the 
     program; and
       (iii) 3 years after the date of completion or leaving the 
     program.
       (2) Report to congress.--The Secretaries shall prepare and 
     submit an annual report to Congress regarding the grants 
     awarded under this section.
       (3) Institute of education sciences evaluation.--The 
     Director of the Institute of Education Sciences shall 
     evaluate the effectiveness, quality, and return in investment 
     of grant funds provided under this section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Education to carry out 
     this section such sums as may be necessary for fiscal years 
     2018 through 2023.

     SEC. 16205. BUSINESS TRAINING FUNDS.

       (a) Program Authorized.--
       (1) In general.--From amounts made available under 
     subsection (e), the Secretaries, in accordance with the 
     interagency agreement under section 16206, shall award 
     grants, on a competitive basis, to local administrators to 
     enable the local administrators to award subgrants under 
     subsection (c) to businesses to provide in-house training, 
     and future employment, to coal community individuals.
       (2) Duration.--
       (A) In general.--A grant awarded under this section shall 
     be for a 3-year period.
       (B) Limitation.--A local administrator may not receive more 
     than 1 grant under this section.
       (b) Applications.--A local administrator desiring a grant 
     under this section shall submit to the Secretaries an 
     application at such time, in such manner, and containing such 
     information as the Secretaries may require, including--
       (1) the number of coal community individuals in the coal 
     community zone to be served;
       (2) the number of coal community individuals that will 
     benefit from the program;
       (3) a description of the eligible businesses described in 
     subsection (c)(2) that will participate in the program 
     proposed under the grant, including the in-demand industry 
     sectors or occupations represented by the businesses;
       (4) the target employment numbers of participating 
     individuals for the eligible businesses participating;
       (5) a plan for allocating grant funds to businesses; and
       (6) a description of the process through which the coal 
     community agency will evaluate any requests to waive the 
     employment requirement under subsection (c)(3)(B).
       (c) Subgrants.--
       (1) In general.--Each local administrator receiving a grant 
     under this section shall use grant funds to award subgrants, 
     to eligible businesses described in paragraph (2), to enable 
     the eligible businesses to provide in-house training to coal 
     community individuals in preparation for employment with or 
     advancement within the eligible businesses.
       (2) Eligibility.--In order to be eligible for a subgrant 
     under this subsection, a business shall--
       (A) be a business located in a coal community zone; and
       (B) provide an assurance that the business will hire, for a 
     minimum of one year, each coal community individual who 
     completes the in-house training provided under the subgrant 
     or will reimburse the local administrator in accordance with 
     paragraph (3).
       (3) Reimbursement of training for employees not hired.--
       (A) In general.--A business that does not hire or retain, 
     for a period of not less than 1 year, all coal community 
     individuals who complete the in-house training provided under 
     a subgrant under this subsection shall reimburse the local 
     administrator in the amount equal to the cost of the training 
     provided to such employee, subject to subparagraph (B).
       (B) Waiver.--Upon request by a business receiving a 
     subgrant under this subsection, the local administrator may 
     waive the reimbursement requirement of subparagraph (A) for a 
     business if the local administrator determines that--
       (i) the business made substantial effort to comply with the 
     employment requirement under subparagraph (A);
       (ii) hired a significant percentage of individuals relative 
     to the amount of funds provided under the grant; or
       (iii) the decision made by the business to not hire or 
     retain an individual was for cause.
       (C) Use of reimbursed funds.--By not later than 30 days 
     after receiving a reimbursement under paragraph (3)(A), a 
     local administrator--
       (i) shall report the receipt of such funds to the 
     Secretaries; and
       (ii) may apply to the Secretaries for permission to 
     reallocate the funds received under this paragraph during the 
     grant period.
       (d) Reports.--
       (1) Reports by businesses.--Each business receiving a 
     subgrant under subsection (c) shall prepare and submit an 
     annual report to the local administrator regarding the 
     subgrant, including--
       (A) the numbers of coal community individuals--
       (i) beginning the training provided under this section;
       (ii) completing such training;
       (iii) hired by the business within 3 months of completion; 
     and
       (iv) still employed by the business, as of 6 months, 1 
     year, 2 years, and 4 years after the completion of the 
     training; and
       (B) the average salary of the coal community individuals 
     hired after completing the training.
       (2) Reports by coal community agencies.--Each local 
     administrator receiving a grant under this section shall 
     prepare and submit an annual report to the Secretaries 
     regarding the grant under this section.
       (3) Report by secretaries.--The Secretaries shall prepare 
     and submit an annual report to Congress regarding the grant 
     program under this section that includes the information 
     provided by the coal community agencies under paragraph (2).
       (4) Institute of education sciences evaluation.--The 
     Director of the Institute of Education Sciences shall 
     evaluate the effectiveness, quality, and return in investment 
     of grant funds provided under this section.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Labor to carry out 
     this section such sums as may be necessary for each of fiscal 
     years 2018 through 2023.

     SEC. 16206. INTERAGENCY AGREEMENT.

       The Secretary of Education and the Secretary of Labor shall 
     jointly administer the programs under sections 16203, 16204, 
     and 16205 in accordance with such terms as the Secretaries 
     set forth in an interagency agreement. Such interagency 
     agreement shall include, at a minimum and for each such 
     program--
       (1) a description of the respective roles and 
     responsibilities of the Secretaries (both jointly and 
     separately); and
       (2) provisions establishing that, for each of the programs 
     under such sections, the Secretary to whom funds are 
     authorized to be appropriated under section 16202(f), 
     16204(f), or 16205(e) shall have fiscal authority over the 
     program carried out under such section and will be 
     responsible for the obligation and disbursement of such 
     funds.
                                 ______
                                 
  SA 1772. Mr. BENNET submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr.

[[Page S7619]]

McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the appropriate place in title I, insert the following:

     SEC. __. ESTABLISHMENT OF FULLY REFUNDABLE CHILD TAX CREDIT.

       (a) Elimination of Existing Child Tax Credit.--Subpart A of 
     part IV of subchapter A of chapter 1 of subtitle A of the 
     Internal Revenue Code of 1986 is amended by striking section 
     24.
       (b) Establishment of Fully Refundable Child Tax Credit.--
     Subpart C of part IV of subchapter A of chapter 1 of subtitle 
     A of such Code is amended by inserting after section 36B the 
     following new section:

     ``SEC. 36C. CHILD TAX CREDIT.

       ``(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 
     who has attained 6 years of age before the close of such 
     taxable year and for which the taxpayer is allowed a 
     deduction under section 151, an amount equal to $3,000, and
       ``(2) with respect to each qualifying child of the taxpayer 
     who has not attained 6 years of age before the close of such 
     taxable year and for which the taxpayer is allowed a 
     deduction under section 151, an amount equal to 120 percent 
     of the dollar amount in paragraph (1).
       ``(b) Limitation.--
       ``(1) In general.--The amount of the credit allowable under 
     subsection (a) shall be reduced (but not below zero) by the 
     applicable amount for each $1,000 (or fraction thereof) by 
     which the taxpayer's modified adjusted gross income exceeds 
     the threshold amount. For purposes of the preceding sentence, 
     the term `modified adjusted gross income' means adjusted 
     gross income increased by any amount excluded from gross 
     income under section 911, 931, or 933.
       ``(2) Threshold amount.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `threshold amount' means--
       ``(i) $110,000 in the case of a joint return,
       ``(ii) $75,000 in the case of an individual who is not 
     married, and
       ``(iii) $55,000 in the case of a married individual filing 
     a separate return.
       ``(B) Marital status.--For purposes of this paragraph, 
     marital status shall be determined under section 7703.
       ``(3) Applicable amount.--For purposes of paragraph (1), 
     the term `applicable amount' means an amount equal to the 
     quotient of--
       ``(A) the amount of the credit allowable under subsection 
     (a), as determined without regard to this subsection, divided 
     by
       ``(B) an amount equal to the product of--
       ``(i) $20, multiplied by
       ``(ii) the total number of qualifying children of the 
     taxpayer.
       ``(c) Qualifying Child.--
       ``(1) In general.--In this section, the term `qualifying 
     child' means a qualifying child of the taxpayer (as defined 
     in section 152(c)) who has not attained 19 years of age.
       ``(2) Exception for certain non-citizens.--The term 
     `qualifying child' shall not include any individual who would 
     not be a dependent if subparagraph (A) of section 152(b)(3) 
     were applied without regard to all that follows `resident of 
     the United States'.
       ``(d) Inflation Adjustment.--
       ``(1) In general.--In the case of any taxable year 
     beginning after 2017, the $3,000 amount in subsection (a)(1) 
     shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost of living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins determined by substituting `calendar year 2016' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(2) Rounding.--If any increase determined under paragraph 
     (1) is not a multiple of $50, such increase shall be rounded 
     to the nearest multiple of $50.
       ``(e) Identification Requirements.--
       ``(1) Qualifying child identification 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 taxpayer identification number of such 
     qualifying child on the return of tax for the taxable year 
     and such taxpayer identification number was issued on or 
     before the due date for filing such return.
       ``(2) Taxpayer identification requirement.--No credit shall 
     be allowed under this section if the identifying number of 
     the taxpayer was issued after the due date for filing the 
     return for the taxable year.
       ``(f) Taxable Year Must Be Full Taxable Year.--Except in 
     the case of a taxable year closed by reason of the death of 
     the taxpayer, no credit shall be allowable under this section 
     in the case of a taxable year covering a period of less than 
     12 months.
       ``(g) Restrictions on Taxpayers Who Improperly Claimed 
     Credit in Prior Year.--
       ``(1) Taxpayers making prior fraudulent or reckless 
     claims.--
       ``(A) In general.--No credit shall be allowed under this 
     section for any taxable year in the disallowance period.
       ``(B) Disallowance period.--For purposes of subparagraph 
     (A), the disallowance period is--
       ``(i) the period of 10 taxable years after the most recent 
     taxable year for which there was a final determination that 
     the taxpayer's claim of credit under this section was due to 
     fraud, and
       ``(ii) the period of 2 taxable years after the most recent 
     taxable year for which there was a final determination that 
     the taxpayer's claim of credit under this section was due to 
     reckless or intentional disregard of rules and regulations 
     (but not due to fraud).
       ``(2) Taxpayers making improper prior claims.--In the case 
     of a taxpayer who is denied credit under this section for any 
     taxable year as a result of the deficiency procedures under 
     subchapter B of chapter 63, no credit shall be allowed under 
     this section for any subsequent taxable year unless the 
     taxpayer provides such information as the Secretary may 
     require to demonstrate eligibility for such credit.
       ``(h) Reconciliation of Credit and Advance Credit.--
       ``(1) In general.--The amount of the credit allowed under 
     this section for any taxable year shall be reduced (but not 
     below zero) by the aggregate amount of any advance payments 
     of such credit under section 7527A for such taxable year.
       ``(2) Excess advance payments.--If the aggregate amount of 
     advance payments under section 7527A for the taxable year 
     exceed the amount of the credit allowed under this section 
     for such taxable year (determined without regard to paragraph 
     (1)), the tax imposed by this chapter for such taxable year 
     shall be increased by the amount of such excess''.
       (c) Advance Payment of Credit.--Chapter 77 of the Internal 
     Revenue Code of 1986 is amended by inserting after section 
     7527 the following new section:

     ``SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT.

       ``(a) In General.--As soon as practicable and not later 
     than 1 year after the date of the enactment of this section, 
     the Secretary shall establish a program for making advance 
     payments of the credit allowed under section 36C on a monthly 
     basis (determined without regard to subsection (h)(1) of such 
     section), or as frequently as the Secretary determines to be 
     administratively feasible, to taxpayers allowed such credit.
       ``(b) Limitation.--
       ``(1) In general.--The Secretary may make payments under 
     subsection (a) only to the extent that the total amount of 
     such payments made to any taxpayer during the taxable year 
     does not exceed an amount equal to the excess, if any, of--
       ``(A) subject to paragraph (2), the amount determined under 
     subsection (a) of section 36C with respect to such taxpayer 
     (determined without regard to subsection (h) of such section) 
     for such taxable year, over
       ``(B) the estimated tax imposed by subtitle A, as reduced 
     by the credits allowable under subparts A and C (with the 
     exception of section 36C) of such part IV, with respect to 
     such taxpayer for such taxable year, as determined in such 
     manner as the Secretary deems appropriate.
       ``(2) Application of threshold amount limitation.--The 
     program described in subsection (a) shall make reasonable 
     efforts to apply the limitation of section 36C(b) with 
     respect to payments made under such program.''.
       (d) Conforming Amendments.--
       (1) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of subtitle A of the Internal 
     Revenue Code of 1986 is amended by striking the item relating 
     to section 24.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of subtitle A of such Code is 
     amended by inserting after the item relating to section 36B 
     the following:

``Sec. 36C. Child tax credit.''.

       (3) The table of sections for chapter 77 of such Code is 
     amended by inserting after the item relating to section 7527 
     the following new item:

``Sec. 7527A. Advance payment of child tax credit.''.

       (4) Subparagraph (B) of section 45R(f)(3) of such Code is 
     amended to read as follows:
       ``(B) Special rule.--Any amounts paid pursuant to an 
     agreement under section 3121(l) (relating to agreements 
     entered into by American employers with respect to foreign 
     affiliates) which are equivalent to the taxes referred to in 
     subparagraph (A) shall be treated as taxes referred to in 
     such subparagraph.''.
       (5) Section 152(f)(6)(B)(ii) of such Code is amended by 
     striking ``section 24'' and inserting ``section 36C''.
       (6) Paragraph (26) of section 501(c) of such Code is 
     amended in the flush matter at the end by striking ``section 
     24(c))'' and inserting ``section 36C(c)) who has not attained 
     17 years of age''.
       (7) Section 6211(b)(4)(A) of such Code is amended--
       (A) by striking ``24(d),'', and
       (B) by inserting ``36C,'' after ``36B,''.
       (8) Section 6213(g)(2) of such Code is amended--
       (A) in subparagraph (I), by striking ``section 24(e)'' and 
     inserting ``section 36C(e)'', and
       (B) in subparagraph (L), by striking ``24, or 32'' and 
     inserting ``32, or 36C''.
       (9) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``36C,'' after ``36B,''.

[[Page S7620]]

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2016.
                                 ______
                                 
  SA 1773. Mrs. MURRAY (for herself and Mr. Udall) submitted an 
amendment intended to be proposed by her to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       Beginning on page 120, strike line 7 and all that follows 
     through page 138, line 15 and insert the following:
       (c) Effective Date.--
       (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, 2020.
       (2) Withholding.--The amendments made by subsection (b)(3) 
     shall apply to distributions made after December 31, 2020.
       (3) Certain transfers.--The amendments made by subsection 
     (b)(6) shall apply to transfers made after December 31, 2020.
       (d) Normalization Requirements.--
       (1) In general.--A normalization method of accounting shall 
     not be treated as being used with respect to any public 
     utility property for purposes of section 167 or 168 of the 
     Internal Revenue Code of 1986 if the taxpayer, in computing 
     its cost of service for ratemaking purposes and reflecting 
     operating results in its regulated books of account, reduces 
     the excess tax reserve more rapidly or to a greater extent 
     than such reserve would be reduced under the average rate 
     assumption method.
       (2) Alternative method for certain taxpayers.--If, as of 
     the first day of the taxable year that includes the date of 
     enactment of this Act--
       (A) the taxpayer was required by a regulatory agency to 
     compute depreciation for public utility property on the basis 
     of an average life or composite rate method, and
       (B) the taxpayer's books and underlying records did not 
     contain the vintage account data necessary to apply the 
     average rate assumption method,
     the taxpayer will be treated as using a normalization method 
     of accounting if, with respect to such jurisdiction, the 
     taxpayer uses the alternative method for public utility 
     property that is subject to the regulatory authority of that 
     jurisdiction.
       (3) Definitions.--For purposes of this subsection--
       (A) Excess tax reserve.--The term ``excess tax reserve'' 
     means the excess of--
       (i) the reserve for deferred taxes (as described in section 
     168(i)(9)(A)(ii) of the Internal Revenue Code of 1986) as 
     determined under the Internal Revenue Code of 1986 as in 
     effect on the day before the date of the enactment of this 
     Act, over
       (ii) the amount which would be the balance in such reserve 
     if the amount of such reserve were determined by assuming 
     that the corporate rate reductions provided in this Act were 
     in effect for all prior periods.
       (B) Average rate assumption method.--The average rate 
     assumption method is the method under which the excess in the 
     reserve for deferred taxes is reduced over the remaining 
     lives of the property as used in its regulated books of 
     account which gave rise to the reserve for deferred taxes. 
     Under such method, if timing differences for the property 
     reverse, the amount of the adjustment to the reserve for the 
     deferred taxes is calculated by multiplying--
       (i) the ratio of the aggregate deferred taxes for the 
     property to the aggregate timing differences for the property 
     as of the beginning of the period in question, by
       (ii) the amount of the timing differences which reverse 
     during such period.
       (C) Alternative method.--The ``alternative method'' is the 
     method in which the taxpayer--
       (i) computes the excess tax reserve on all public utility 
     property included in the plant account on the basis of the 
     weighted average life or composite rate used to compute 
     depreciation for regulatory purposes, and
       (ii) reduces the excess tax reserve ratably over the 
     remaining regulatory life of the property.
       (4) Tax increased for normalization violation.--If, for any 
     taxable year ending after the date of the enactment of this 
     Act, the taxpayer does not use a normalization method of 
     accounting, the taxpayer's tax for the taxable year shall be 
     increased by the amount by which it reduces its excess tax 
     reserve more rapidly than permitted under a normalization 
     method of accounting.

     SEC. 13002. REDUCTION IN DIVIDEND RECEIVED DEDUCTIONS TO 
                   REFLECT LOWER CORPORATE INCOME TAX RATES.

       (a) Dividends Received by Corporations.--
       (1) In general.--Section 243(a)(1) is amended by striking 
     ``70 percent'' and inserting ``50 percent''.
       (2) Dividends from 20-percent owned corporations.--Section 
     243(c)(1) is amended--
       (A) by striking ``80 percent'' and inserting ``65 
     percent'', and
       (B) by striking ``70 percent'' and inserting ``50 
     percent''.
       (3) Conforming amendment.--The heading for section 243(c) 
     is amended by striking ``Retention of 80-percent Dividend 
     Received Deduction'' and inserting ``Increased Percentage''.
       (b) Dividends Received From FSC.--Section 245(c)(1)(B) is 
     amended--
       (1) by striking ``70 percent'' and inserting ``50 
     percent'', and
       (2) by striking ``80 percent'' and inserting ``65 
     percent''.
       (c) Limitation on Aggregate Amount of Deductions.--Section 
     246(b)(3) is amended--
       (1) by striking ``80 percent'' in subparagraph (A) and 
     inserting ``65 percent'', and
       (2) by striking ``70 percent'' in subparagraph (B) and 
     inserting ``50 percent''.
       (d) Reduction in Deduction Where Portfolio Stock Is Debt-
     financed.--Section 246A(a)(1) is amended--
       (1) by striking ``70 percent'' and inserting ``50 
     percent'', and
       (2) by striking ``80 percent'' and inserting ``65 
     percent''.
       (e) Income From Sources Within the United States.--Section 
     861(a)(2) is amended--
       (1) by striking ``100/70th'' and inserting ``100/50th'' in 
     subparagraph (B), and
       (2) in the flush sentence at the end--
       (A) by striking ``100/80th'' and inserting ``100/65th'', 
     and
       (B) by striking ``100/70th'' and inserting ``100/50th''.
       (f) Effective Date.--
       (1) In general.--The amendments made by this section (other 
     than subsection (c) thereof) shall apply to dividends 
     received by a corporation after December 31, 2020, in taxable 
     years ending after such date.
       (2) Limitation.--The amendments made by section 102(c) 
     shall apply to taxable years beginning after December 31, 
     2020.

     Subpart B--Dividends Paid Deduction for Domestic Corporations

     SEC. 13011. DIVIDENDS PAID DEDUCTION.

       (a) General Rule.--Part VIII of subchapter B of chapter 1 
     is amended by inserting after section 241 the following:

                 ``Subpart B--Dividends Paid Deduction

``Sec. 242. Dividends paid deduction.

     ``SEC. 242. DIVIDENDS PAID DEDUCTION.

       ``(a) Allowance of Deduction.--In the case of an eligible 
     corporation, there shall be allowed as a deduction an amount 
     equal to zero percent of the aggregate amount of applicable 
     dividends paid by the corporation during the taxable year.
       ``(b) Applicable Dividend.--For purposes of this section--
       ``(1) In general.--The term `applicable dividend' means, 
     with respect to an eligible corporation, any distribution by 
     the eligible corporation during a taxable year which is--
       ``(A) treated as a dividend for purposes of this chapter, 
     and
       ``(B) paid out of its applicable earnings and profits.
       ``(2) Ordering rule for dividend payments.--For purposes of 
     paragraph (1)(B), dividends shall be treated as paid--
       ``(A) first, out of exempt earnings and profits,
       ``(B) second, out of applicable earnings and profits, and
       ``(C) finally, out of earnings and profits not described in 
     subparagraph (A) or (B).
       ``(3) Coordination with other deductions.--Such term shall 
     not include--
       ``(A) any amount allowed as a deduction under section 591 
     (relating to deduction for dividends paid by mutual savings 
     banks, etc.), and
       ``(B) any dividend described in paragraph (2) of section 
     404(k) (relating to deduction for dividends paid on certain 
     employer securities).
       ``(4) Election to treat certain distributions paid after 
     close of year as paid during year.--For purposes of this 
     title, an eligible corporation may elect on its return of tax 
     for any taxable year to treat any distribution made on or 
     before the 15th day of the 4th month following the close of 
     the taxable year as having been made immediately before the 
     close of the taxable year. The preceding sentence shall not 
     apply for purposes of determining the time the distribution 
     was received by the shareholder to whom the distribution was 
     made.
       ``(5) Applicable earnings and profits.--
       ``(A) In general.--The term `applicable earnings and 
     profits' means, with respect to any corporation for any 
     taxable year, its earnings and profits for the taxable year 
     and its earnings and profits accumulated in prior taxable 
     years beginning after December 31, 2020. For purposes of the 
     preceding sentence, earnings and profits for the taxable year 
     shall be determined without regard to the deduction under 
     this section for the taxable year.
       ``(B) Exempt earnings and profits not treated as applicable 
     earnings and profits.--The applicable earnings and profits of 
     a corporation shall not include any exempt earnings and 
     profits (as defined in paragraph (6)).
       ``(C) Look-thru in the case of dividends received from 
     controlled foreign corporation or 10/50 corporation.--If a 
     corporation which is a United States shareholder in a 
     controlled foreign corporation, or is a shareholder in a 
     foreign corporation with respect to which the shareholder 
     meets the stock ownership requirements of section 902(a), 
     receives a dividend (other than a dividend to which 
     subparagraph (B) applies) from such controlled foreign 
     corporation or such foreign corporation, the earnings and 
     profits from such dividend shall not be treated as applicable 
     earnings and profits of the corporation receiving such 
     dividend to the extent of any portion of the dividend not 
     properly allocable (as determined under section 316, as 
     modified by section 959(c) in the case

[[Page S7621]]

     of such controlled foreign corporation) to applicable 
     earnings and profits of such controlled foreign corporation 
     or such foreign corporation.
       ``(6) Exempt earnings and profits.--
       ``(A) In general.--The term `exempt earnings and profits' 
     means, with respect to any corporation for any taxable year, 
     its earnings and profits for the taxable year and its 
     earnings and profits accumulated in prior taxable years 
     beginning after December 31, 2020, which are properly 
     allocable to exempt amounts received or accrued by the 
     corporation.
       ``(B) Exempt amounts.--The term `exempt amounts' means, 
     with respect to any corporation--
       ``(i) any dividend to the extent of the deduction allowable 
     to the corporation under section 243, 245, or 245A with 
     respect to the dividend,
       ``(ii) any foreign-derived intangible income (as defined in 
     section 250(b)) or global intangible low-taxed income (as 
     defined in section 951A(b)) to the extent of the deduction 
     allowable to the corporation under section 250 with respect 
     to any such income,
       ``(iii) any increase in subpart F income by reason of 
     section 965 to the extent of the deduction allowable to the 
     corporation under section 965(c)(1) with respect to any such 
     income, and
       ``(iv) any other amount to the extent such amount is exempt 
     from taxation under this title.
       ``(7) Proper allocation of dividends to earnings and 
     profits.--
       ``(A) In general.--The Secretary shall prescribe rules for 
     the proper allocation of dividends to earnings and profits 
     for purposes of applying this subsection.
       ``(B) Look through rules.--For purposes of paragraph 
     (4)(C), such rules shall include rules requiring in 
     appropriate cases the look through to earnings and profits of 
     members of any affiliated group including a controlled 
     foreign corporation or foreign corporation described in such 
     paragraph where the earnings and profits of such controlled 
     foreign corporation or such foreign corporation are 
     attributable to distributions received from other members of 
     the group.
       ``(c) Eligible Corporation.--For purposes of this section, 
     the term `eligible corporation' means any domestic 
     corporation other than--
       ``(1) a regulated investment company,
       ``(2) a real estate investment trust,
       ``(3) an S corporation,
       ``(4) a corporation which is exempt from tax under section 
     501 or 521,
       ``(5) an organization taxable under subchapter T of this 
     chapter (relating to cooperative organizations),
       ``(6) a cooperative governed by the rules applicable to 
     cooperatives as in effect before the enactment of subchapter 
     T, or
       ``(7) a DISC or former DISC.
       ``(d) Reporting Requirement.--
       ``(1) In general.--Each eligible corporation which makes 
     payments of dividends during the reporting period for any 
     taxable year shall make a return, according to the forms and 
     regulations prescribed by the Secretary, setting forth--
       ``(A) the aggregate amount of such dividends,
       ``(B) the aggregate amount of such dividends with respect 
     to which the corporation is claiming a deduction under this 
     section for the taxable year,
       ``(C) the aggregate amount of such dividends which the 
     corporation paid during the period beginning on the 1st day 
     of the reporting taxable year and ending on the 15th day of 
     the 4th month of such taxable year which the corporation 
     elected under subsection (b)(4) to treat as paid in the 
     preceding taxable year,
       ``(D) the aggregate amount of such dividends which the 
     corporation paid during the period beginning on the 1st day 
     of the taxable year following the reporting taxable year and 
     ending on the 15th day of the 4th month of such following 
     taxable year which the corporation elected under subsection 
     (b)(4) to treat as paid in the reporting taxable year, and
       ``(E) such other information with respect to such dividends 
     as the Secretary shall require for the administration of this 
     section.
       ``(2) Reporting period; due date.--For purposes of this 
     subsection--
       ``(A) Reporting period.--The term `reporting period' means 
     with, respect to any taxable year, the period beginning on 
     the 1st day of the taxable year and ending on the 15th day of 
     the 4th month following the close of the taxable year.
       ``(B) Due date.--Any return under paragraph (1) with 
     respect to any taxable year shall be included with the return 
     of income tax for such taxable year.''.
       (b) Penalty for Failure to Report.--Section 6652, as 
     amended by subtitle E of this Act, is amended by adding at 
     the end the following new subsection:
       ``(r) Failure to File Returns by Corporations Eligible for 
     Dividends Paid Deduction.--
       ``(1) Penalty for failure to file return.--In the case of a 
     failure to make a return required under section 242(d) 
     containing the information required by such section by the 
     due date for the return, the eligible corporation shall pay 
     (on notice and demand by the Secretary and in the same manner 
     as tax) a penalty of $1,000 per day for each day such failure 
     continues unless it is shown that such failure is due to 
     reasonable cause. The maximum amount of the penalty under 
     this paragraph with respect to any failure for a taxable year 
     shall not exceed $250,000.
       ``(2) Eligible corporation.--For purposes of this 
     subsection, the term `eligible corporation' has the meaning 
     given such term by section 242(c).''.
       (c) Dividends Paid Deduction Allowable Only in Taxable Year 
     of Dividend Payment.--
       (1) In general.--Subsection (d) of section 172, as amended 
     by section 11011, is amended by adding at the end the 
     following new paragraph:
       ``(9) Dividends paid deduction.--The deduction under 
     section 242 shall not be allowed.''.
       (2) Treatment of carrybacks and carryovers.--Subparagraph 
     (A) of section 172(b)(2), as amended by section 13302, is 
     amended by striking ``and (5)'' and inserting ``(5), and 
     (8)''.
       (d) Other Conforming Amendments.--Part VIII of subchapter B 
     of chapter 1 is amended--
       (1) by striking the table of sections and inserting the 
     following:

            ``PART VIII--SPECIAL DEDUCTIONS FOR CORPORATIONS

             ``subpart a. allowance of special deductions.

                 ``subpart b. dividends paid deduction.

              ``subpart c. dividends received deductions.

                     ``subpart d. other deductions.

              ``Subpart A--Allowance of Special Deductions

``Sec. 241. Allowance of special deductions.'',
       (2) by inserting the following before section 243:

               ``Subpart C--Dividends Received Deductions

``Sec. 243. Dividends received by corporations.
``Sec. 245. Dividends received from certain foreign corporations.
``Sec. 245A. Deduction for foreign-source portion of dividends received 
              by domestic corporations from specified 10-percent owned 
              foreign corporations.
``Sec. 246. Rules applying to deductions for dividends received.
``Sec. 246A. Dividends received deduction reduced where portfolio stock 
              is debt financed.'', and
       (3) by inserting the following before section 248:

                     ``Subpart D--Other Deductions

``Sec. 248. Organizational expenditures.
``Sec. 249. Limitation of deduction of bond premium on repurchase.
``Sec. 250. Foreign-derived intangible income and global intangible 
              low-taxed income.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to dividends paid in taxable years of the payor 
     beginning after December 31, 2020.

     SEC. 13012. TAX EQUIVALENT TO DIVIDENDS PAID DEDUCTION FOR 
                   CERTAIN FOREIGN CORPORATIONS.

       (a) Dividends Paid Deduction.--Paragraph (1) of section 
     882(c) is amended by adding at the end the following new 
     subparagraph:
       ``(C) Special rule for dividends paid deduction.--For 
     purposes of subparagraph (A)--
       ``(i) the deduction under section 242 shall not be allowed 
     for any taxable year, and
       ``(ii) there shall be allowed, in lieu of such deduction, a 
     deduction in an amount equal to zero percent of the dividend 
     equivalent amount (as defined in section 884(b)) of the 
     foreign corporation for the taxable year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. 13013. ALLOCATION OF DIVIDEND EXPENSE AMONG MEMBERS OF 
                   WORLDWIDE AFFILIATED GROUPS.

       (a) In General.--Paragraph (6) of section 864(e) is amended 
     to read as follows:
       ``(6) Allocation and apportionment of other expenses.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     expenses other than interest which are not directly allocable 
     or apportioned to any specific income producing activity 
     shall be allocated and apportioned as if all members of the 
     affiliated group were a single corporation.
       ``(B) Dividend expense.--The dividend expense of any 
     domestic corporation which is a member of an affiliated group 
     shall be allocated and apportioned to income from sources 
     without the United States in the same proportion which--
       ``(i) the aggregate amount of income treated as from 
     sources without the United States by all domestic 
     corporations which are members of such group (determined 
     without regard to such dividend expense), bears to
       ``(ii) the aggregate income of all such domestic 
     corporations from sources within and without the United 
     States (as so determined).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

      Subpart C--Restoration of Deduction for Personal Exemptions

     SEC. 13021. DEDUCTION FOR PERSONAL EXEMPTIONS.

       (a) In General.--Subsection (d) of section 151, as amended 
     by this Act, is further amended--
       (1) by striking ``Except as provided in paragraph (5), in 
     the case of'' in paragraph (4) and inserting ``In the case 
     of'', and
       (2) by striking paragraph (5).
       (b) Application to Estates and Trusts.--Section 
     642(b)(2)(C), as amended by this Act, is further amended by 
     striking clause (iii).

[[Page S7622]]

       (c) Exception for Wage Withholding Rules.--Section 3402(a), 
     as amended by this Act, is further amended by striking 
     paragraph (3).
       (d) Exception for Determining Property Exempt From Levy.--
     Section 6334(d), as amended by this Act, is further amended 
     by striking paragraph (4).
       (e) Persons Required to Make Returns of Income.--Section 
     6012, as amended by this Act, is further amended by striking 
     subsection (f).
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. 13022. OFFSETS.

       (a) Adjustment of Highest Rate Bracket.--
       (1) Joint returns.--The last row of the table contained in 
     section 1(j)(2)(A), as added by section 11001(a), is amended 
     to read as follows:

``Over $1,000,000.........................  $301,479, plus 39.6% of the
                                             excess over $1,000,000.''.

       (2) Heads of households.--The last row of the table 
     contained in section 1(j)(2)(B), as added by section 
     11001(a), is amended to read as follows:

``Over $500,000...........................  $149,348, plus 39.6% of the
                                             excess over $500,000.''.

       (3) Unmarried individuals.--The last row of the table 
     contained in section 1(j)(2)(C), as added by section 
     11001(a), is amended to read as follows:

``Over $500,000...........................  $150,739.50, plus 39.6% of
                                             the excess over
                                             $500,000.''.

       (4) Married individuals filing separate returns.--The last 
     row of the table contained in section 1(j)(2)(D), as added by 
     section 11001(a), is amended to read as follows:

``Over $500,000...........................  $150,739.50, plus 39.6% of
                                             the excess over
                                             $500,000.''.

       (5) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
       (b) Expanded Treatment of Deferred Foreign Income Upon 
     Transition to Participation Exemption System of Taxation.--
     Section 965, as amended by section 14103 of this Act, is 
     further amended to read as follows:

     ``SEC. 965. TREATMENT OF DEFERRED FOREIGN INCOME UPON 
                   TRANSITION TO PARTICIPATION SYSTEM OF TAXATION.

       ``(a) Treatment of Deferred Foreign Income as Subpart F 
     Income.--In the case of the last taxable year of a deferred 
     foreign income corporation which begins before January 1, 
     2020--
       ``(1) all property of such foreign corporation shall be 
     treated as sold on the last day of such taxable year for its 
     fair market value, and, notwithstanding any other provision 
     of this title, any gain or loss arising from such sale shall 
     be taken into account for such taxable year to the extent 
     otherwise provided by this title (except that section 1091 
     shall not apply to any such loss), and
       ``(2) the subpart F income of such foreign corporation (as 
     otherwise determined for such taxable year under section 952 
     without regard to this paragraph and after application of 
     paragraph (1)) shall be increased by the accumulated post-
     1986 deferred foreign income of such corporation determined 
     as of the close of such taxable year.
     Proper adjustments shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under paragraph (1).
       ``(b) Reduction in Tax Rate.--In the case of a United 
     States shareholder of a deferred foreign income corporation, 
     there shall be allowed as a deduction for the taxable year in 
     which an amount is included in the gross income of such 
     United States shareholder under section 951(a)(1) by reason 
     of subsection (a)(2) an amount equal to 43 percent of the 
     amount so included in income.
       ``(c) Accumulated Post-1986 Deferred Foreign Income.--For 
     purposes of this section--
       ``(1) In general.--The term `accumulated post-1986 deferred 
     foreign income' means the post-1986 earnings and profits 
     except to the extent such earnings--
       ``(A) are attributable to income of the deferred foreign 
     income corporation which is effectively connected with the 
     conduct of a trade or business within the United States and 
     subject to tax under this chapter,
       ``(B) if distributed, would be excluded from the gross 
     income of a United States shareholder under section 959, or
       ``(C) in the case of any deferred foreign income 
     corporation described in subsection (d)(1)(B) and which is a 
     passive foreign investment company (as defined in section 
     1297)--
       ``(i) if distributed, would have been treated as a 
     distribution which is not a dividend, or
       ``(ii) would have been properly attributable to an 
     unreversed inclusion of a United States person under section 
     1296.
     To the extent provided in regulations or other guidance 
     prescribed by the Secretary, in the case of any controlled 
     foreign corporation which has shareholders which are not 
     United States shareholders, accumulated post-1986 deferred 
     foreign income shall be appropriately reduced by amounts 
     which would be described in subparagraph (B) if such 
     shareholders were United States shareholders. Such 
     regulations or other guidance may provide a similar rule for 
     purposes of subparagraph (C).
       ``(2) Post-1986 earnings and profits.--The term `post-1986 
     earnings and profits' means the earnings and profits of the 
     foreign corporation (computed in accordance with sections 
     964(a) and 986) accumulated in taxable years beginning after 
     December 31, 1986, and determined--
       ``(A) as of the close the taxable year referred to in 
     subsection (a) and after application of subsection (a)(1), 
     and
       ``(B) without diminution by reason of dividends distributed 
     during such taxable year.
       ``(d) Deferred Foreign Income Corporation.--
       ``(1) In general.--For purposes of this section, the term 
     `deferred foreign income corporation' means--
       ``(A) any controlled foreign corporation, and
       ``(B) any section 902 corporation (as defined in section 
     909(d)(5) as in effect before the date of the enactment of 
     the Tax Cuts and Jobs Act).
       ``(2) Application to section 902 corporations.--
       ``(A) In general.--For purposes of section 951, a section 
     902 corporation (as so defined) shall be treated as a 
     controlled foreign corporation solely for purposes of taking 
     into account the subpart F income of such corporation under 
     subsection (a), making proper adjustments in the amount of 
     subsequent gains or losses to reflect such gains and losses 
     (including through application of section 961), and applying 
     subsection (f).
       ``(B) United states shareholder.--For purposes of this 
     section and the application of subparagraph (A), in the case 
     of a section 902 corporation (as so defined), a shareholder 
     which is a domestic corporation which owns 10 percent or more 
     of the voting stock of such section 902 corporation shall be 
     treated as a United States shareholder.
       ``(e) Disallowance of Foreign Tax Credit, etc.--
       ``(1) In general.--No credit shall be allowed under section 
     901 for the applicable percentage of the taxes paid or 
     accrued (or treated as paid or accrued) with respect to any 
     amount which is included in gross income under section 951(a) 
     by reason of subsection (a).
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is the amount (expressed as a 
     percentage) equal to 0.43 multiplied by the ratio of--
       ``(A) the amount included in gross income under section 
     951(a) by reason of subsection (a)(2), to
       ``(B) the amount included in gross income under section 
     951(a) by reason of subsection (a).
       ``(3) Denial of deduction.--No deduction shall be allowed 
     under this chapter for the portion of any tax for which 
     credit is not allowable under section 901 by reason of 
     paragraph (1) (determined by treating the taxpayer as having 
     elected the benefits of subpart A of part III of subchapter 
     N).
       ``(4) Coordination with section 78.--Section 78 shall not 
     apply to any tax for which credit is not allowable under 
     section 901 by reason of paragraph (1).
       ``(f) Election To Pay Liability in Installments.--
       ``(1) In general.--In the case of a United States 
     shareholder of a deferred foreign income corporation, such 
     United States shareholder may elect to pay the net tax 
     liability under this section in 8 installments of the 
     following amounts:
       ``(A) 8 percent of the net tax liability in the case of 
     each of the first 5 of such installments,
       ``(B) 15 percent of the net tax liability in the case of 
     the 6th such installment,
       ``(C) 20 percent of the net tax liability in the case of 
     the 7th such installment, and
       ``(D) 25 percent of the net tax liability in the case of 
     the 8th such installment.
       ``(2) Date for payment of installments.--If an election is 
     made under paragraph (1), the first installment shall be paid 
     on the due date (determined without regard to any extension 
     of time for filing the return) for the return of tax for the 
     taxable year described in subsection (a) and each succeeding 
     installment shall be paid on the due date (as so determined) 
     for the return of tax for the taxable year following the 
     taxable year with respect to which the preceding installment 
     was made.
       ``(3) Acceleration of payment.--If there is an addition to 
     tax for failure to pay timely assessed with respect to any 
     installment required under this subsection, a liquidation or 
     sale of substantially all the assets of the taxpayer 
     (including in a title 11 or similar case), a cessation of 
     business by the taxpayer, or any similar circumstance, then 
     the unpaid portion of all remaining installments shall be due 
     on the date of such event (or in the case of a title 11 or 
     similar case, the day before the petition is filed). The 
     preceding sentence shall not apply to the sale of 
     substantially all the assets of a taxpayer to a buyer if such 
     buyer enters into an agreement with the Secretary under which 
     such buyer is liable for the remaining installments due under 
     this subsection in the same manner as if such buyer were the 
     taxpayer.
       ``(4) Proration of deficiency to installments.--If an 
     election is made under paragraph (1) to pay the net tax 
     liability under this section in installments and a deficiency 
     has been assessed with respect to such net tax liability, the 
     deficiency shall be prorated to the installments payable 
     under paragraph (1). The part of the deficiency so prorated 
     to any installment the date for payment of which has not 
     arrived shall be collected at

[[Page S7623]]

     the same time as, and as a part of, such installment. The 
     part of the deficiency so prorated to any installment the 
     date for payment of which has arrived shall be paid upon 
     notice and demand from the Secretary. This subsection shall 
     not apply if the deficiency is due to negligence, to 
     intentional disregard of rules and regulations, or to fraud 
     with intent to evade tax.
       ``(5) Election.--Any election under paragraph (1) shall be 
     made not later than the due date for the return of tax for 
     the taxable year described in subsection (a) and shall be 
     made in such manner as the Secretary may provide.
       ``(6) Net tax liability under this section.--For purposes 
     of this subsection--
       ``(A) In general.--The net tax liability under this section 
     with respect to any United States shareholder is the excess 
     (if any) of--
       ``(i) such taxpayer's net income tax for the taxable year 
     described in subsection (a), over
       ``(ii) such taxpayer's net income tax for such taxable year 
     determined without regard to this section.
       ``(B) Net income tax.--The term `net income tax' means the 
     regular tax liability reduced by the credits allowed under 
     subparts A, B, and D of part IV of subchapter A.
       ``(g) Regulations.--The Secretary may prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the provisions of this section, 
     including rules to disregard any transfer of properties or 
     liabilities (including by contribution and distribution) a 
     substantial purpose of which is the avoidance of the purposes 
     of this section.''.
                                 ______
                                 
  SA 1774. Mr. UDALL submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. _____. POINT OF ORDER AGAINST LEGISLATION THAT WOULD 
                   REDUCE MINERAL PAYMENTS TO STATES.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, motion, amendment, 
     amendment between the Houses, or conference report that would 
     result in a reduction of mineral payments to States from 
     energy and solid mineral production under the Mineral Leasing 
     Act (30 U.S.C. 181 et seq.) and offshore mineral development 
     on the outer Continental Shelf under the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1331 et seq.).
       (b) Waiver and Appeal.--Subsection (a) may be waived or 
     suspended in the Senate only by an affirmative vote of three-
     fifths of the Members, duly chosen and sworn. An affirmative 
     vote of three-fifths of the Members of the Senate, duly 
     chosen and sworn, shall be required to sustain an appeal of 
     the ruling of the Chair on a point of order raised under 
     subsection (a).
                                 ______
                                 
  SA 1775. Mr. MENENDEZ (for himself and Mr. Nelson) submitted an 
amendment intended to be proposed by him to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ECONOMIC GROWTH AND FAIRNESS FOR PUERTO RICO.

       (a) Puerto Rico Residents Eligible for Earned Income Tax 
     Credit.--
       (1) In general.--Section 32 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(n) Residents of Puerto Rico.--
       ``(1) In general.--In the case of residents of Puerto 
     Rico--
       ``(A) the United States shall be treated as including 
     Puerto Rico for purposes of subsections (c)(1)(A)(ii)(I) and 
     (c)(3)(C),
       ``(B) subsection (c)(1)(D) shall not apply to nonresident 
     alien individuals who are residents of Puerto Rico, and
       ``(C) adjusted gross income and gross income shall be 
     computed without regard to section 933 for purposes of 
     subsections (a)(2)(B) and (c)(2)(A)(i).
       ``(2) Limitation.--The credit allowed under this section by 
     reason of this subsection for any taxable year shall not 
     exceed the amount, determined under regulations or other 
     guidance promulgated by the Secretary, that a similarly 
     situated taxpayer would receive if residing in a State.''.
       (2) Child tax credit not reduced.--Subclause (II) of 
     section 24(d)(1)(B)(ii) of such Code is amended by inserting 
     before the period ``(determined without regard to section 
     32(n) in the case of residents of Puerto Rico)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2016.
       (b) Equitable Treatment for Residents of Puerto Rico With 
     Respect to the Refundable Portion of the Child Tax Credit.--
       (1) In general.--Section 24(d)(1) of the Internal Revenue 
     Code of 1986 is amended by inserting ``or section 933'' after 
     ``section 112''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2016.
       (c) Permanent Section 199 Manufacturing Credit.--
       (1) Restoring manufacturing credit.--This Act is amended by 
     striking section 13305.
       (2) Making puerto rico treatment permanent.--Section 
     199(d)(8) of the Internal Revenue Code of 1986 is amended by 
     striking subparagraph (C).
       (d) Rum Cover Over.--
       (1) In general.--Section 7652(f)(1) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(1) $13.50, or''.
       (2) Transfer of revenue to puerto rico conservation 
     trust.--Section 7652(e) of the Internal Revenue Code of 1986 
     is amended--
       (A) in paragraph (1), by striking ``All taxes collected'' 
     and inserting ``Except as provided in paragraph (5), all 
     taxes collected''; and
       (B) by adding at the end the following:
       ``(5) Puerto rico conservation trust.--Out of any amounts 
     that would otherwise be covered into the treasury of Puerto 
     Rico under this subsection for taxes collected under section 
     5001(a)(1) on rum imported into the United States, an amount 
     equal to $0.46 for each proof gallon of such rum shall be 
     transferred to the Puerto Rico Conversation Trust.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2016.
                                 ______
                                 
  SA 1776. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. TREATMENT OF CERTAIN UNPOPULATED CENSUS TRACTS UNDER 
                   NEW MARKETS TAX CREDIT.

       (a) In General.--Section 45D(e)(4)(A) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``is within'' and inserting ``is--
       ``(i) within'';
       (2) by striking ``and'' at the end and inserting ``or''; 
     and
       (3) by adding at the end the following new clause:
       ``(ii) a census tract with a population of zero, and''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to investments made after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 1777. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       Strike section 13532 and insert the following:

     SEC. 13532. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY 
                   FACILITIES.

       (a) Bonds for Water and Sewage Facilities Exempt From 
     Volume Cap on Private Activity Bonds.--Paragraph (3) of 
     section 146(g) of the Internal Revenue Code of 1986 is 
     amended by inserting ``(4), (5),'' after ``(2),''.
       (b) Conforming Change.--Paragraphs (2) and (3)(B) of 
     section 146(k) of the Internal Revenue Code of 1986 are both 
     amended by striking ``(4), (5), (6),'' and inserting ``(6)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 1778. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. JOB TRAINING TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 45S. JOB TRAINING CREDIT.

       ``(a) In General.--For the purposes of section 38, the job 
     training credit determined under this section for the taxable 
     year is an amount equal to 100 percent of the qualified 
     training expenses paid by the qualifying taxpayer during the 
     taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     with respect to any eligible trainee of the qualifying 
     taxpayer shall not exceed the excess (if any) of $4,000 over 
     the aggregate credit allowed to such taxpayer under this 
     section with respect to such eligible trainee for all prior 
     taxable years.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified training expenses.--
       ``(A) In general.--The term `qualified training expenses' 
     means, with respect to

[[Page S7624]]

     any eligible trainee of the qualifying taxpayer, expenses 
     paid or incurred by such taxpayer for qualified tuition costs 
     of such eligible trainee.
       ``(B) Qualified tuition costs.--The term `qualified tuition 
     costs' means costs for books and enrollment in a training 
     program at a qualified educational organization, the outcome 
     of which, if completed, will provide the eligible trainee a 
     certificate or credential recognized by a State accrediting 
     body, Federal Apprenticeship Agency, or any other national 
     accrediting body recognized by the Department of Education as 
     an independent, third-party accrediting body. Such training 
     program--
       ``(i) may include a single course, multiple courses, or a 
     combination of work training and study, and
       ``(ii) must be reasonably necessary for employment with the 
     qualifying taxpayer.
       ``(C) Qualified educational organization.--The term 
     `qualified educational organization' means any educational 
     organization described in section 101 of the Higher Education 
     Act of 1965.
       ``(2) Qualifying taxpayer.--The term `qualifying taxpayer' 
     means any taxpayer who--
       ``(A) with respect to any eligible trainee, is training and 
     hiring individuals for positions based in the United States, 
     and
       ``(B) provides, with respect to any eligible trainee, such 
     documentation as required by the Secretary regarding 
     qualified training expenses and proof of unemployment status 
     as described in paragraph (3)(A).
       ``(3) Eligible trainee.--The term `eligible trainee' means 
     any individual who--
       ``(A) has been unemployed for at least 90 days before the 
     date of enrollment in a training program described in 
     paragraph (1)(B), and
       ``(B) had not been employed by the qualifying taxpayer at 
     any time during the 2-year period preceding the date on which 
     such trainee was hired.
       ``(d) Special Rules.--
       ``(1) Denial of double benefit.--No credit shall be allowed 
     under subsection (a) for any qualified training expense for 
     which a deduction or other credit is allowed to the taxpayer 
     under any other provision of this chapter.
       ``(2) Aggregation.--For purposes of this section, all 
     persons treated as a single employer under subsection (a) or 
     (b) or section 52, or subsection (m) or (o) of section 414, 
     shall be treated as one person.
       ``(e) Election To Have Credit Not Apply.--A taxpayer may 
     elect (at such time and in such manner as the Secretary may 
     by regulations prescribe) to have this section not apply for 
     any taxable year.
       ``(f) Termination.--This section shall not apply to 
     expenses paid after December 31, 2028.''.
       (b) Credit To Be Part of General Business Credit.--
     Subsection (b) of section 38 of the Internal Revenue Code of 
     1986 is amended by striking ``plus'' at the end of paragraph 
     (35), by striking the period at the end of paragraph (36) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(37) the job training credit determined under section 
     45S(a).''.
       (c) Credit Allowed Against Alternative Minimum Tax.--
     Section 38(c)(4)(B) of the Internal Revenue Code of 1986 is 
     amended by redesignating clauses (ix), (x), and (xi) as 
     clauses (x), (xi), and (xii), respectively, and by inserting 
     after clause (viii) the following new clause:
       ``(ix) the credit determined under section 45S,''.
       (d) Technical Amendment.--Section 6501(m) of the Internal 
     Revenue Code of 1986 is amended by inserting ``45S(e),'' 
     after ``45H(g),''.
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of such Code is 
     amended by adding at the end the following new item:

``Sec. 45S. Job training credit.''.

       (f) Report.--Not later than January 1, 2027, the Secretary 
     of the Treasury (or the Secretary's delegate) shall report to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate on 
     the economic impact of the job training credit under section 
     45S of the Internal Revenue Code of 1986 (as added under 
     subsection (a)).
       (g) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to expenses paid or incurred after the date of the 
     enactment of this Act, in taxable years ending after such 
     date.
       (2) Minimum tax.--The amendments made by subsection (c) 
     shall apply to credits determined under section 45S of the 
     Internal Revenue Code of 1986 in taxable years ending after 
     the date of the enactment of this Act, and to carrybacks of 
     such credits.

     SEC. __. QUALIFIED JOB TRAINING PARTNERSHIP CREDIT.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 48D the following new section:

     ``SEC. 48E. QUALIFIED JOB TRAINING PARTNERSHIP CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     Qualified Job Training Partnership credit for any taxable 
     year is an amount equal to the percentage determined by the 
     Secretary (not to exceed 100 percent) of the qualified 
     investment for such taxable year with respect to any 
     Qualified Job Training Partnership.
       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment for any taxable year is the aggregate 
     amount of the costs paid or incurred in such taxable year for 
     expenses necessary for and directly related to the conduct of 
     a Qualified Job Training Partnership in the form of 
     contributions of cash, cash equivalent, equipment, or any 
     combination of the three where 100 percent of the investment 
     is used for the planning, implementation, or operation of a 
     Qualified Job Training Partnership and the training financed 
     through the investment must result in a type of certificate 
     or credential recognized by a State accrediting body, Federal 
     Apprenticeship Agency, or any other national accrediting body 
     recognized by the Department of Education as an independent, 
     third-party accrediting body.
       ``(2) Limitation.--The amount which is treated as qualified 
     investment for all taxable years with respect to any 
     Qualified Job Training Partnership shall not exceed the 
     amount certified by the Secretary as eligible for the credit 
     under this section.
       ``(3) Exclusions.--The qualified investment for any taxable 
     year with respect to any Qualified Job Training Partnership 
     shall not take into account any cost for student tuition or 
     for any other expense as determined by the Secretary as 
     appropriate to carry out the purposes of this section.
       ``(4) Certain progress expenditure rules made applicable.--
     In the case of costs described in paragraph (1) that are paid 
     for property of a character subject to an allowance for 
     depreciation, rules similar to the rules of subsections 
     (c)(4) and (d) of section 46 (as in effect on the day before 
     the date of the enactment of the Revenue Reconciliation Act 
     of 1990) shall apply for purposes of this section.
       ``(c) Qualified Job Training Partnership.--
       ``(1) In general.--The term `Qualified Job Training 
     Partnership' means a formal or informal partnership between 
     at least 1 eligible private business employer and--
       ``(A) 1 qualified educational institution, or
       ``(B) 1 labor organization (as defined in section 2(5) of 
     the National Labor Relations Act),

     where the stated goal of the partnership is to train students 
     in job-ready skills.
       ``(2) Eligible private business employer.--The term 
     `eligible private business employer' means--
       ``(A) a business entity at least 50 percent of the gross 
     income of which is derived from qualified production 
     activities (within the meaning of section 199(c)), or
       ``(B) any type of domestic business entity the average 
     number of employees of which for any taxable year is not more 
     than 500 employees.
       ``(3) Qualified educational organization.--The term 
     `qualified educational organization' means any educational 
     organization described in section 101 of the Higher Education 
     Act of 1965 which provides a 2-year program that culminates 
     in an associate degree.
       ``(d) Qualified Job Training Partnership Program.--
       ``(1) Establishment.--
       ``(A) In general.--Not later than 60 days after the date of 
     the enactment of this section, the Secretary, in consultation 
     with the Secretary of Labor, shall establish a Qualified Job 
     Training Partnership program to consider and award 
     certifications for qualified investments eligible for credits 
     under this section to Qualified Job Training Partnerships.
       ``(B) Limitation.--The total amount of credits that may be 
     allocated under the program shall not exceed $1,000,000,000.
       ``(2) Certification.--
       ``(A) Application period.--Each applicant for certification 
     under this paragraph shall submit an application containing 
     such information as the Secretary may require during the 
     period beginning on the date the Secretary establishes the 
     program under paragraph (1).
       ``(B) Time for review of applications.--The Secretary shall 
     take action to approve or deny any application under 
     subparagraph (A) within 30 days of the submission of such 
     application.
       ``(C) Multi-year applications.--An application for 
     certification under subparagraph (A) may include a request 
     for an allocation of credits for more than 1 year.
       ``(3) Selection criteria.--In determining the Qualified Job 
     Training Partnerships with respect to which qualified 
     investments may be certified under this section, the 
     Secretary--
       ``(A) shall give priority to those applications which 
     demonstrate--
       ``(i) the greatest probability that those who complete the 
     program will secure employment,
       ``(ii) the greatest potential for providing workers who 
     complete the program with skills that can provide long-term 
     job and income security,
       ``(iii) the strongest market demand for the type of 
     training offered,
       ``(iv) the greatest probability that the program would 
     create a net increase in job training opportunities,
       ``(v) a strong need in the community for skills training,
       ``(vi) the ability to allow nontraditional learners to 
     complete the training, and
       ``(vii) the ability and capacity to implement the program 
     in a reasonable period of time, and

[[Page S7625]]

       ``(B) shall take into additional consideration which 
     applications show--
       ``(i) the ability to leverage additional sources of 
     capital, and
       ``(ii) the greatest ability to offer training programs that 
     result in a certificate or credential (within the meaning of 
     subsection (b)(1)) that is stackable or portable or both.
       ``(4) Review and additional allocation.--
       ``(A) Review.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall review the 
     credits allocated under this section as of such date.
       ``(B) Additional allocation.--If the Secretary determines 
     at the time of the review that credits under this section are 
     available for allocation pursuant to the requirements set 
     forth in paragraph (2), the Secretary is authorized to 
     allocate such available credits through the conduct of an 
     additional program or programs for applications for 
     certification.
       ``(5) Disclosure of allocations.--The Secretary shall, upon 
     making a certification under this subsection, publicly 
     disclose the identity of the applicant and the amount of the 
     credit with respect to such applicant.
       ``(e) Special Rules.--
       ``(1) Basis adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section for an expenditure 
     related to property of a character subject to an allowance 
     for depreciation, the basis of such property shall be reduced 
     by the amount of such credit.
       ``(2) Denial of double benefit.--
       ``(A) Bonus depreciation.--A credit shall not be allowed 
     under this section for any investment for which bonus 
     depreciation is allowed under section 168(k), 1400L(b)(1), or 
     1400N(d)(1).
       ``(B) Deductions.--No deduction under this subtitle shall 
     be allowed for the portion of the expenses otherwise 
     allowable as a deduction taken into account in determining 
     the credit under this section for the taxable year which is 
     equal to the amount of the credit determined for such taxable 
     year under subsection (a) attributable to such portion. This 
     subparagraph shall not apply to expenses related to property 
     of a character subject to an allowance for depreciation the 
     basis of which is reduced under paragraph (1), or which are 
     described in section 280C(g).''.
       (b) Inclusion as Part of Investment Credit.--Section 46 of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of paragraph (5);
       (2) by striking the period at the end of paragraph (6) and 
     inserting ``, and''; and
       (3) by adding at the end the following new paragraph:
       ``(7) the Qualified Job Training Partnership credit.''.
       (c) Conforming Amendments.--
       (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
     1986 is amended--
       (A) by striking ``and'' at the end of clause (v);
       (B) by striking the period at the end of clause (vi) and 
     inserting ``, and''; and
       (C) by adding at the end the following new clause:
       ``(vii) the basis of any property to which paragraph (1) of 
     section 48E(e) applies which is part of a Qualified Job 
     Training Partnership under such section 48E.''.
       (2) Section 280C of such Code is amended by adding at the 
     end the following new subsection:
       ``(j) Qualified Job Training Partnership Credit.--
       ``(1) In general.--No deduction shall be allowed for that 
     portion of the qualified investment (as defined in section 
     48E(b)) otherwise allowable as a deduction for the taxable 
     year which is equal to the amount of the credit determined 
     for such taxable year under section 48E(a), reduced by--
       ``(A) the amount disallowed as a deduction by reason of 
     section 48E(e)(2)(B), and
       ``(B) the amount of any basis reduction under section 
     48E(e)(1).
       ``(2) Similar rule where taxpayer capitalizes rather than 
     deducts expenses.--In the case of expenses described in 
     paragraph (1)(A) taken into account in determining the credit 
     under section 48E for the taxable year, if--
       ``(A) the amount of the portion of the credit determined 
     under such section with respect to such expenses, exceeds
       ``(B) the amount allowable as a deduction for such taxable 
     year for such expenses (determined without regard to 
     paragraph (1)),

     the amount chargeable to capital account for the taxable year 
     for such expenses shall be reduced by the amount of such 
     excess.
       ``(3) Controlled groups.--Paragraph (3) of subsection (b) 
     shall apply for purposes of this subsection.''.
       (d) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 48D the following new item:

``Sec. 48E. Qualified Job Training Partnership credit.''.
       (e) Grants for Qualified Investments in Qualified Job 
     Training Partnerships in Lieu of Tax Credits.--
       (1) In general.--Upon application, the Secretary of the 
     Treasury shall, subject to the requirements of this 
     subsection, provide a grant to each person who makes a 
     qualified investment in a Qualified Job Training Partnership 
     in an amount not to exceed 100 percent of such investment.
       (2) Application.--
       (A) In general.--At the stated election of the applicant, 
     an application for certification under section 48E(d)(2) of 
     the Internal Revenue Code of 1986 for a credit under such 
     section for any taxable year shall be considered to be an 
     application for a grant under paragraph (1) for such taxable 
     year.
       (B) Submission date.--An application for a grant under 
     paragraph (1) for any taxable year shall be submitted--
       (i) not earlier than the day after the last day of such 
     taxable year; and
       (ii) not later than the due date (including extensions) for 
     filing the return of tax for such taxable year.
       (C) Information to be submitted.--An application for a 
     grant under paragraph (1) shall include such information and 
     be in such form as the Secretary of the Treasury may require 
     to state the amount of the credit allowable (but for the 
     receipt of a grant under this subsection) under section 48E 
     for the taxable year for the qualified investment with 
     respect to which such application is made.
       (3) Time for payment of grant.--
       (A) In general.--The Secretary of the Treasury shall make 
     payment of the amount of any grant under paragraph (1) during 
     the 30-day period beginning on the later of--
       (i) the date of the application for such grant; or
       (ii) the date the qualified investment for which the grant 
     is being made is made.
       (B) Regulations.--In the case of investments of an ongoing 
     nature, the Secretary of the Treasury shall issue regulations 
     to determine the date on which a qualified investment shall 
     be deemed to have been made for purposes of this paragraph.
       (4) Qualified investment.--For purposes of this subsection, 
     the term ``qualified investment'' means a qualified 
     investment that is certified under section 48E(d) of the 
     Internal Revenue Code of 1986 for purposes of the credit 
     under such section 48E.
       (5) Application of certain rules.--
       (A) In general.--In making grants under this subsection, 
     the Secretary of the Treasury shall apply rules similar to 
     the rules of section 50 of the Internal Revenue Code of 1986. 
     In applying such rules, any increase in tax under chapter 1 
     of such Code by reason of an investment ceasing to be a 
     qualified investment shall be imposed on the person to whom 
     the grant was made.
       (B) Special rules.--
       (i) Recapture of excessive grant amounts.--If the amount of 
     a grant made under this subsection exceeds the amount 
     allowable as a grant under this subsection, such excess shall 
     be recaptured under subparagraph (A) as if the investment to 
     which such excess portion of the grant relates had ceased to 
     be a qualified investment immediately after such grant was 
     made.
       (ii) Grant information not treated as return information.--
     In no event shall the amount of a grant made under paragraph 
     (1), the identity of the person to whom such grant was made, 
     or a description of the investment with respect to which such 
     grant was made be treated as return information for purposes 
     of section 6103 of the Internal Revenue Code of 1986.
       (6) Secretary.--Any reference in this subsection to the 
     Secretary of the Treasury shall be treated as including the 
     Secretary's delegate.
       (7) Other terms.--Any term used in this subsection which is 
     also used in section 48E of the Internal Revenue Code of 1986 
     shall have the same meaning for purposes of this subsection 
     as when used in such section.
       (8) Denial of double benefit.--No credit shall be allowed 
     under section 46(7) of the Internal Revenue Code of 1986 by 
     reason of section 48E of such Code for any investment for 
     which a grant is awarded under this subsection.
       (9) Appropriations.--There is hereby appropriated to the 
     Secretary of the Treasury such sums as may be necessary to 
     carry out this subsection.
       (f) Effective Date.--The amendments made by subsections (a) 
     through (d) of this section shall apply to amounts paid or 
     incurred after the date of the enactment of this Act, in 
     taxable years beginning after such date.
                                 ______
                                 
  SA 1779. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MODIFICATION OF TREATMENT OF STUDENT LOAN 
                   FORGIVENESS.

       (a) In General.--Section 108(f) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) 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--
       ``(A) any loan provided expressly for postsecondary 
     educational expenses, regardless of whether provided through 
     the educational institution or directly to the borrower, if 
     such loan was made by--
       ``(i) the United States, or an instrumentality or agency 
     thereof,

[[Page S7626]]

       ``(ii) a State, territory, or possession of the United 
     States, or the District of Columbia, or any political 
     subdivision thereof, or
       ``(iii) any institution of higher education,
       ``(B) any private education loan (as defined in section 
     140(a) of the Truth in Lending Act),
       ``(C) any loan made by any educational organization 
     described in section 170(b)(1)(A)(ii) if such loan is made--
       ``(i) pursuant to an agreement with any entity described in 
     subparagraph (A) or any private education lender (as defined 
     in section 140(a) of the Truth in Lending Act) under which 
     the funds from which the loan was made were provided to such 
     educational organization, or
       ``(ii) pursuant to a program of such educational 
     organization which is designed to encourage its students to 
     serve in occupations with unmet needs or in areas with unmet 
     needs and under which the services provided by the students 
     (or former students) are for or under the direction of a 
     governmental unit or an organization described in section 
     501(c)(3) and exempt from tax under section 501(a), or
       ``(D) any loan made by an educational organization 
     described in section 170(b)(1)(A)(ii) or by an organization 
     exempt from tax under section 501(a) to refinance a loan to 
     an individual to assist the individual in attending any such 
     educational organization but only if the refinancing loan is 
     pursuant to a program of the refinancing organization which 
     is designed as described in subparagraph (C)(ii).'',
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively, and
       (3) in paragraph (2), as so redesignated, by--
       (A) striking ``made by an organization described in 
     paragraph (2)(D)'' and inserting ``made by an organization 
     described in paragraph (1)(C) or made by a private education 
     lender (as defined in section 140(a) of the Truth in Lending 
     Act)'', and
       (B) inserting ``or for such private education lender'' 
     after ``either such organization''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to discharges of loans after December 31, 2017.
                                 ______
                                 
  SA 1780. Mr. MENENDEZ (for himself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SUNSET.

       If for any year beginning after December 31, 2017, the 
     Director of the Congressional Budget Office determines that 
     State and local spending on education or law enforcement has 
     decreased from the amount of such spending for the prior 
     year, this Act and the amendments made by this Act are 
     repealed and shall not apply for that year and any succeeding 
     year, and any provision of law amended by this Act shall be 
     applied as if such amendments had not been enacted.
                                 ______
                                 
  SA 1781. Mr. MENENDEZ (for himself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of section 11042 add the following:
       (c) Termination of Suspension.--If for any taxable year 
     beginning after December 31, 2017, and before January 1, 
     2026, the Director of the Congressional Budget Office 
     determines that State and local spending on first responders 
     has decreased from the amount of such spending for the prior 
     taxable year, subsection (b) of section 164 of the Internal 
     Revenue Code of 1986 shall be amended to read as if the 
     amendment made by subsection (a) had not been enacted.
                                 ______
                                 
  SA 1782. Mr. MENENDEZ (for himself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of section 11042 add the following:
       (c) Termination of Suspension.--If for any taxable year 
     beginning after December 31, 2017, and before January 1, 
     2026, the Director of the Congressional Budget Office 
     determines that State and local spending on law enforcement 
     has decreased from the amount of such spending for the prior 
     taxable year, subsection (b) of section 164 of the Internal 
     Revenue Code of 1986 shall be amended to read as if the 
     amendment made by subsection (a) had not been enacted.
                                 ______
                                 
  SA 1783. Mr. MENENDEZ (for himself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of section 11042 add the following:
       (c) Termination of Suspension.--If for any taxable year 
     beginning after December 31, 2017, and before January 1, 
     2026, the Director of the Congressional Budget Office 
     determines that State and local spending on education has 
     decreased from the amount of such spending for the prior 
     taxable year, subsection (b) of section 164 of the Internal 
     Revenue Code of 1986 shall be amended to read as if the 
     amendment made by subsection (a) had not been enacted.
                                 ______
                                 
  SA 1784. Mr. MENENDEZ (for himself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of section 11042 add the following:
       (c) Termination of Suspension.--If for any taxable year 
     beginning after December 31, 2017, and before January 1, 
     2026, the Director of the Congressional Budget Office 
     determines that State and local spending on education or law 
     enforcement has decreased from the amount of such spending 
     for the prior taxable year, subsection (b) of section 164 of 
     the Internal Revenue Code of 1986 shall be amended to read as 
     if the amendment made by subsection (a) had not been enacted.
                                 ______
                                 
  SA 1785. Mr. MENENDEZ (for himself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of section 11042 add the following:
       (c) Termination of Suspension.--If for any taxable year 
     beginning after December 31, 2017, and before January 1, 
     2026, the Director of the Congressional Budget Office 
     determines with respect to any State that in the prior 
     taxable year received less in Federal benefits than the 
     residents of the State paid in Federal taxes, that the 
     difference between such benefits and Federal taxes increased, 
     subsection (b) of section 164 of the Internal Revenue Code of 
     1986 shall be amended to read as if the amendment made by 
     subsection (a) had not been enacted.
                                 ______
                                 
  SA 1786. Mr. MENENDEZ (for himself and Mr. Booker) submitted an 
amendment intended to be proposed to amendment SA 1618 proposed by Mr. 
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       Strike section 11042.
                                 ______
                                 
  SA 1787. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of section 13001 add the following:
       (e) Repeal of Corporate Rate Reduction.--If the Director of 
     the Congressional Budget Office determines that average wages 
     in the United States do not increase by at least 5 percent in 
     the first year that begins after the enactment of this Act, 
     the provisions of the Internal Revenue Code of 1986 which are 
     amended by subsections (a) and (b) shall each be amended to 
     read as if the amendments made by such subsections had not 
     been enacted and subsections (c) and (d) shall be null and 
     void.
                                 ______
                                 
  SA 1788. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant

[[Page S7627]]

to titles II and V of the concurrent resolution on the budget for 
fiscal year 2018; which was ordered to lie on the table; as follows:

       At the end of section 13001 add the following:
       (e) Repeal of Corporate Rate Reduction.--If the Director of 
     the Congressional Budget Office determines that average wages 
     in the United States do not increase by at least 3 percent in 
     the first year that begins after the enactment of this Act, 
     the provisions of the Internal Revenue Code of 1986 which are 
     amended by subsections (a) and (b) shall each be amended to 
     read as if the amendments made by such subsections had not 
     been enacted and subsections (c) and (d) shall be null and 
     void.
                                 ______
                                 
  SA 1789. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of section 13001 add the following:
       (e) Repeal of Corporate Rate Reduction.--If the Director of 
     the Congressional Budget Office determines that average wages 
     in the United States decrease in the first year that begins 
     after the enactment of this Act, the provisions of the 
     Internal Revenue Code of 1986 which are amended by 
     subsections (a) and (b) shall each be amended to read as if 
     the amendments made by such subsections had not been enacted 
     and subsections (c) and (d) shall be null and void.
                                 ______
                                 
  SA 1790. Mr. MENENDEZ (for himself and Ms. Stabenow) submitted an 
amendment intended to be proposed by him to the bill H.R. 1, to provide 
for reconciliation pursuant to titles II and V of the concurrent 
resolution on the budget for fiscal year 2018; which was ordered to lie 
on the table; as follows:

       At the appropriate place, insert the following:

               DIVISION--CLOSE BIG OIL TAX LOOPHOLES ACT

     SEC. _00. SHORT TITLE.

       This division may be cited as the ``Close Big Oil Tax 
     Loopholes Act''.

                  TITLE I--CLOSE BIG OIL TAX LOOPHOLES

     SEC. _01. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (within the 
     meaning of section 167(h)(5)) to a foreign country or 
     possession of the United States for any period shall not be 
     considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. _02. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO 
                   OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

       (a) Denial of Deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (within the meaning of section 167(h)(5)) for the taxable 
     year, the term `domestic production gross receipts' shall not 
     include gross receipts from the production, refining, 
     processing, transportation, or distribution of oil, gas, or 
     any primary product (within the meaning of subsection (d)(9)) 
     thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. _03. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
                   DEVELOPMENT COSTS; AMORTIZATION OF DISALLOWED 
                   AMOUNTS.

       (a) In General.--Section 263(c) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(c) Intangible Drilling and Development Costs in the Case 
     of Oil and Gas Wells and Geothermal Wells.--
       ``(1) In general.--Notwithstanding subsection (a), and 
     except as provided in subsection (i), regulations shall be 
     prescribed by the Secretary under this subtitle corresponding 
     to the regulations which granted the option to deduct as 
     expenses intangible drilling and development costs in the 
     case of oil and gas wells and which were recognized and 
     approved by the Congress in House Concurrent Resolution 50, 
     Seventy-ninth Congress. Such regulations shall also grant the 
     option to deduct as expenses intangible drilling and 
     development costs in the case of wells drilled for any 
     geothermal deposit (as defined in section 613(e)(2)) to the 
     same extent and in the same manner as such expenses are 
     deductible in the case of oil and gas wells. This subsection 
     shall not apply with respect to any costs to which any 
     deduction is allowed under section 59(e) or 291.
       ``(2) Exclusion.--
       ``(A) In general.--This subsection shall not apply to 
     amounts paid or incurred by a taxpayer in any taxable year in 
     which such taxpayer is a major integrated oil company (within 
     the meaning of section 167(h)(5)).
       ``(B) Amortization of amounts not allowable as deductions 
     under subparagraph (a).--The amount not allowable as a 
     deduction for any taxable year by reason of subparagraph (A) 
     shall be allowable as a deduction ratably over the 60-month 
     period beginning with the month in which the costs are paid 
     or incurred. For purposes of section 1254, any deduction 
     under this subparagraph shall be treated as a deduction under 
     this subsection.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2017.

     SEC. _04. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR 
                   OIL AND GAS WELLS.

       (a) In General.--Section 613A of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Application With Respect to Major Integrated Oil 
     Companies.--In the case of any taxable year in which the 
     taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)), the allowance for percentage 
     depletion shall be zero.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

     SEC. _05. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

       (a) In General.--Section 193 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) Application With Respect to Major Integrated Oil 
     Companies.--
       ``(1) In general.--This section shall not apply to amounts 
     paid or incurred by a taxpayer in any taxable year in which 
     such taxpayer is a major integrated oil company (within the 
     meaning of section 167(h)(5)).
       ``(2) Amortization of amounts not allowable as deductions 
     under paragraph (1).--The amount not allowable as a deduction 
     for any taxable year by reason of paragraph (1) shall be 
     allowable as a deduction ratably over the 60-month period 
     beginning with the month in which the costs are paid or 
     incurred.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2017.

     SEC. _06. MODIFICATION OF DEFINITION OF MAJOR INTEGRATED OIL 
                   COMPANY.

       (a) In General.--Paragraph (5) of section 167(h) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(C) Certain successors in interest.--For purposes of this 
     paragraph, the term `major integrated oil company' includes 
     any successor in interest of a company that was described in 
     subparagraph (B) in any taxable year, if such successor 
     controls more than 50 percent of the crude oil production or 
     natural gas production of such company.''.
       (b) Conforming Amendments.--
       (1) In general.--Subparagraph (B) of section 167(h)(5) of 
     the Internal Revenue Code of

[[Page S7628]]

     1986 is amended by inserting ``except as provided in 
     subparagraph (C),'' after ``For purposes of this 
     paragraph,''.
       (2) Taxable years tested.--Clause (iii) of section 
     167(h)(5)(B) of such Code is amended--
       (A) by striking ``does not apply by reason of paragraph (4) 
     of section 613A(d)'' and inserting ``did not apply by reason 
     of paragraph (4) of section 613A(d) for any taxable year 
     after 2004'', and
       (B) by striking ``does not apply'' in subclause (II) and 
     inserting ``did not apply for the taxable year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.

         TITLE II--OUTER CONTINENTAL SHELF OIL AND NATURAL GAS

     SEC. _01. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND 
                   DEEP GAS ROYALTY RELIEF.

       (a) In General.--Sections 344 and 345 of the Energy Policy 
     Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
       (b) Administration.--The Secretary of the Interior shall 
     not be required to provide for royalty relief in the lease 
     sale terms beginning with the first lease sale held on or 
     after the date of enactment of this Act for which a final 
     notice of sale has not been published.

                        TITLE III--MISCELLANEOUS

     SEC. _01. DEFICIT REDUCTION.

       The net amount of any savings realized as a result of the 
     enactment of this division and the amendments made by this 
     division (after any expenditures authorized by this division 
     and the amendments made by this division) shall be deposited 
     in the Treasury and used for Federal budget deficit reduction 
     or, if there is no Federal budget deficit, for reducing the 
     Federal debt in such manner as the Secretary of the Treasury 
     considers appropriate.

     SEC. _02. BUDGETARY EFFECTS.

       The budgetary effects of this division, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this division, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 1791. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

              DIVISION _--NATIONAL DISASTER TAX RELIEF ACT

     SEC. _00. SHORT TITLE.

       This division may be cited as the ``National Disaster Tax 
     Relief Act of 2015''.

TITLE I--TAX RELIEF RELATING TO DISASTERS IN 2012, 2013, 2014, AND 2015

     SEC. _01. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       (a) In General.--Part VI of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     after section 198 the following:

     ``SEC. 198A. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       ``(a) In General.--A taxpayer may elect to treat any 
     qualified disaster expenses which are paid or incurred by the 
     taxpayer as an expense which is not chargeable to capital 
     account. Any expense which is so treated shall be allowed as 
     a deduction for the taxable year in which it is paid or 
     incurred.
       ``(b) Qualified Disaster Expense.--For purposes of this 
     section, the term `qualified disaster expense' means any 
     expenditure--
       ``(1) which is paid or incurred in connection with a trade 
     or business or with business-related property,
       ``(2) which is--
       ``(A) for the abatement or control of hazardous substances 
     that were released on account of a federally declared 
     disaster occurring during the period beginning--
       ``(i) after December 31, 2007, and before January 1, 2010, 
     or
       ``(ii) after December 31, 2011, and before January 1, 2016,
       ``(B) for the removal of debris from, or the demolition of 
     structures on, real property which is business-related 
     property damaged or destroyed as a result of a federally 
     declared disaster occurring during any such period, or
       ``(C) for the repair of business-related property damaged 
     as a result of a federally declared disaster occurring during 
     any such period, and
       ``(3) which is otherwise chargeable to capital account.
       ``(c) Other Definitions.--For purposes of this section--
       ``(1) Business-related property.--The term `business-
     related property' means property--
       ``(A) held by the taxpayer for use in a trade or business 
     or for the production of income, or
       ``(B) described in section 1221(a)(1) in the hands of the 
     taxpayer.
       ``(2) Federally declared disaster.--The term `federally 
     declared disaster' has the meaning given such term by section 
     165(i)(5)(A).
       ``(d) Deduction Recaptured as Ordinary Income on Sale, 
     etc.--Solely for purposes of section 1245, in the case of 
     property to which a qualified disaster expense would have 
     been capitalized but for this section--
       ``(1) the deduction allowed by this section for such 
     expense shall be treated as a deduction for depreciation, and
       ``(2) such property (if not otherwise section 1245 
     property) shall be treated as section 1245 property solely 
     for purposes of applying section 1245 to such deduction.
       ``(e) Coordination With Other Provisions.--Sections 198, 
     280B, and 468 shall not apply to amounts which are treated as 
     expenses under this section.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Clerical Amendment.--The table of sections for part VI 
     of subchapter B of chapter 1 of the Internal Revenue Code of 
     1986 is amended by inserting after the item relating to 
     section 198 the following item:

``Sec. 198A. Expensing of qualified disaster expenses.''.
       (c) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2011, in connection with disasters declared after such date.

     SEC. _02. INCREASED LIMITATION ON CHARITABLE CONTRIBUTIONS 
                   FOR DISASTER RELIEF.

       (a) Individuals.--Paragraph (1) of section 170(b) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subparagraphs (F) and (G) as subparagraphs (G) and (H), 
     respectively, and by inserting after subparagraph (E) the 
     following new subparagraph:
       ``(F) Qualified disaster contributions.--
       ``(i) In general.--Any qualified disaster contribution 
     shall be allowed to the extent that the aggregate of such 
     contributions does not exceed the excess of 80 percent of the 
     taxpayer's contribution base over the amount of all other 
     charitable contributions allowable under this paragraph.
       ``(ii) Carryover.--If the aggregate amount of contributions 
     described in clause (i) exceeds the 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 other subparagraphs.--For 
     purposes of applying this subsection and subsection (d)(1), 
     contributions described in clause (i) shall not be treated as 
     described in subparagraph (A) and such subparagraph shall be 
     applied without regard to such contributions.
       ``(iv) Qualified disaster contributions.--For purposes of 
     this subparagraph, the term `qualified disaster contribution' 
     means any charitable contribution if--

       ``(I) such contribution is for relief efforts related to a 
     federally declared disaster (as defined in section 
     165(h)(3)(C)(i)),
       ``(II) such contribution is made during the period 
     beginning on the applicable disaster date with respect to the 
     disaster described in subclause (I) and ending on December 
     31, 2015, and
       ``(III) such contribution is made in cash to an 
     organization described in subparagraph (A) (other than an 
     organization described in section 509(a)(3)).

     Such term shall not include a contribution if the 
     contribution is for establishment of a new, or maintenance in 
     an existing, donor advised fund (as defined in section 
     4966(d)(2)).
       ``(v) Applicable disaster date.--For purposes of clause 
     (iv)(II), the term `applicable disaster date' means, with 
     respect to any federally declared disaster described in 
     clause (iv)(I), the date on which the disaster giving rise to 
     the Presidential declaration described in section 
     165(i)(5)(A) occurred.
       ``(vi) Substantiation requirement.--This paragraph shall 
     not apply to any qualified disaster contribution unless the 
     taxpayer obtains from such organization to which the 
     contribution was made a contemporaneous written 
     acknowledgment (within the meaning of subsection (f)(8)) that 
     such contribution was used (or is to be used) for a purpose 
     described in clause (iv)(III).''.
       (b) Corporations.--
       (1) In general.--Paragraph (2) of section 170(b) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subparagraph (C) as subparagraph (D) and by inserting after 
     subparagraph (B) the following new subparagraph:
       ``(C) Qualified disaster contributions.--
       ``(i) In general.--Any qualified disaster contribution 
     shall be allowed to the extent that the aggregate of such 
     contributions does not exceed the excess of 20 percent of the 
     taxpayer's taxable income over the amount of charitable 
     contributions allowed under subparagraph (A).
       ``(ii) Carryover.--If the aggregate amount of contributions 
     described in clause (i) exceeds the 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) Qualified disaster contribution.--The term 
     `qualified disaster contribution' has the meaning given such 
     term under paragraph (2)(F)(iv).
       ``(iv) Substantiation requirement.--This paragraph shall 
     not apply to any qualified disaster contribution unless the 
     taxpayer obtains from such organization to which the 
     contribution was made a contemporaneous

[[Page S7629]]

     written acknowledgment (within the meaning of subsection 
     (f)(8)) that such contribution was used (or is to be used) 
     for a purpose described in paragraph (1)(F)(iv)(III).''.
       (2) Conforming amendments.--
       (A) Subparagraph (A) of section 170(b)(2) of such Code is 
     amended by striking ``subparagraph (B) applies'' and 
     inserting ``subparagraphs (B) and (C) apply''.
       (B) Subparagraph (B) of section 170(b)(2) of such Code is 
     amended by striking ``subparagraph (A)'' and inserting 
     ``subparagraphs (A) and (C)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disasters arising in taxable years ending 
     after December 31, 2011.

     SEC. _03. LOSSES ATTRIBUTABLE TO DISASTERS IN 2012, 2013, 
                   2014, AND 2015.

       (a) In General.--Section 165(h) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraphs (3) and 
     (4) as paragraphs (4) and (5), respectively, and by inserting 
     after paragraph (2) the following:
       ``(3) Special rule for losses in federally declared 
     disasters.--
       ``(A) In general.--If an individual has a net disaster loss 
     for any taxable year, the amount determined under paragraph 
     (2)(A)(ii) shall be the sum of--
       ``(i) such net disaster loss, and
       ``(ii) so much of the excess referred to in the matter 
     preceding clause (i) of paragraph (2)(A) (reduced by the 
     amount in clause (i) of this subparagraph) as exceeds 10 
     percent of the adjusted gross income of the individual.
       ``(B) Net disaster loss.--For purposes of subparagraph (A), 
     the term `net disaster loss' means the excess of--
       ``(i) the personal casualty losses--

       ``(I) attributable to a federally declared disaster 
     occurring during the period beginning after December 31, 
     2007, and before January 1, 2010, or during the period 
     beginning after December 31, 2011, and before January 1, 
     2016, and
       ``(II) occurring in a disaster area, over

       ``(ii) personal casualty gains.
       ``(C) Federally declared disaster.--For purposes of this 
     paragraph--
       ``(i) Federally declared disaster.--The term `federally 
     declared disaster' has the meaning given such term by 
     subsection (i)(5)(A).
       ``(ii) Disaster area.--The term `disaster area' has the 
     meaning given such term by subsection (i)(5)(B).''.
       (b) Conforming Amendment.--Paragraph (4) of section 165(h) 
     of such Code, as so redesignated, is amended by striking 
     ``paragraph (2)'' and inserting ``paragraphs (2) and (3)''.
       (c) Loss Allowed Whether or Not Individual Itemized 
     Deductions.--Section 62(a) of the Internal Revenue Code of 
     1986 is amended by inserting after paragraph (21) the 
     following new paragraph:
       ``(22) Disaster casualty losses.--Any net disaster loss (as 
     defined in section 165(h)(3)(B)).''.
       (d) Technical Amendment.--Subparagraph (A) of section 
     165(i)(5) of the Internal Revenue Code of 1986 is amended by 
     inserting ``major'' after ``means any''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to disasters declared in taxable years beginning 
     after December 31, 2011.
       (f) Use of Amended Income Tax Returns To Take Into Account 
     Receipt of Certain Casualty Loss Grants by Disallowing 
     Previously Taken Casualty Loss Deductions.--
       (1) In general.--Notwithstanding any other provision of the 
     Internal Revenue Code of 1986, if a taxpayer--
       (A) claims a deduction for any taxable year with respect to 
     a casualty loss to a principal residence (within the meaning 
     of section 121 of such Code) resulting from any federally 
     declared disaster (as defined in section 165(h)(3)(C) of such 
     Code) occurring during the period beginning after December 
     31, 2011, and before January 1, 2016, and
       (B) in a subsequent taxable year receives a grant under any 
     Federal or State program as reimbursement for such loss,
     such taxpayer may elect to file an amended income tax return 
     for the taxable year in which such deduction was allowed (and 
     for any taxable year to which such deduction is carried) and 
     reduce (but not below zero) the amount of such deduction by 
     the amount of such reimbursement.
       (2) Time of filing amended return.--Paragraph (1) shall 
     apply with respect to any grant only if any amended income 
     tax returns with respect to such grant are filed not later 
     than the later of--
       (A) the due date for filing the tax return for the taxable 
     year in which the taxpayer receives such grant, or
       (B) the date which is 1 year after the date of the 
     enactment of this Act.
       (3) Waiver of penalties and interest.--Any underpayment of 
     tax resulting from the reduction under paragraph (1) of the 
     amount otherwise allowable as a deduction shall not be 
     subject to any penalty or interest under such Code if such 
     tax is paid not later than 1 year after the filing of the 
     amended return to which such reduction relates.

     SEC. _04. NET OPERATING LOSSES ATTRIBUTABLE TO DISASTERS IN 
                   2012, 2013, 2014, AND 2015.

       (a) In General.--Section 172(b)(1) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following:
       ``(G) Certain losses attributable federally declared 
     disasters.--In the case of a taxpayer who has a qualified 
     disaster loss (as defined in subsection (i)), such loss shall 
     be a net operating loss carryback to each of the 5 taxable 
     years preceding the taxable year of such loss.''.
       (b) Rules Relating to Qualified Disaster Losses.--Section 
     172 of the Internal Revenue Code of 1986 is amended by 
     redesignating subsection (i) a subsection (j) and by 
     inserting after subsection (h) the following:
       ``(i) Rules Relating to Qualified Disaster Losses.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified disaster loss' means 
     the lesser of--
       ``(A) the sum of--
       ``(i) the losses allowable under section 165 for the 
     taxable year--

       ``(I) attributable to a federally declared disaster (as 
     defined in section 165(i)(5)(A)) occurring during the period 
     beginning after December 31, 2007, and before January 1, 
     2010, or during the period beginning after December 31, 2011, 
     and before January 1, 2016, and
       ``(II) occurring in a disaster area (as defined in section 
     165(i)(5)(B)), and

       ``(ii) the deduction for the taxable year for qualified 
     disaster expenses which is allowable under section 198A(a) or 
     which would be so allowable if not otherwise treated as an 
     expense, or
       ``(B) the net operating loss for such taxable year.
       ``(2) Coordination with subsection (b)(2).--For purposes of 
     applying subsection (b)(2), a qualified disaster loss for any 
     taxable year shall be treated in a manner similar to the 
     manner in which a specified liability loss is treated.
       ``(3) Election.--Any taxpayer entitled to a 5-year 
     carryback under subsection (b)(1)(G) from any loss year may 
     elect to have the carryback period with respect to such loss 
     year determined without regard to subsection (b)(1)(G). Such 
     election shall be made in such manner as may be prescribed by 
     the Secretary and shall be made by the due date (including 
     extensions of time) for filing the taxpayer's return for the 
     taxable year of the net operating loss. Such election, once 
     made for any taxable year, shall be irrevocable for such 
     taxable year.
       ``(4) Exclusion.--The term `qualified disaster loss' shall 
     not include any loss with respect to any property described 
     in section 1400N(p)(3).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to losses arising in taxable years beginning 
     after December 31, 2011, in connection with disasters 
     declared after such date.

     SEC. _05. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
                   REQUIREMENTS FOLLOWING 2012, 2013, 2014, AND 
                   2015 DISASTERS.

       (a) In General.--Paragraph (13) of section 143(k) of the 
     Internal Revenue Code of 1986 is amended by striking ``before 
     January 1, 2010'' in subparagraphs (A)(i) and (B)(i) of such 
     paragraph and inserting ``during the period beginning after 
     December 31, 2007, and before January 1, 2010, or during the 
     period beginning after December 31, 2011, and before January 
     1, 2016''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to disasters occurring after December 31, 2011.

     SEC. _06. INCREASED EXPENSING AND BONUS DEPRECIATION FOR 
                   QUALIFIED DISASTER ASSISTANCE PROPERTY 
                   FOLLOWING 2012, 2013, 2014, AND 2015 DISASTERS.

       (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``before January 1, 2010'' and inserting ``during the period 
     beginning after December 31, 2007, and before January 1, 
     2010, or during the period beginning after December 31, 2011, 
     and before January 1, 2016''.
       (b) Removal of Exclusion.--Section 168(n)(2)(B)(i) of such 
     Code is amended by inserting ``and'' at the end of subclause 
     (I), by striking ``, and'' at the end of subclause (II) and 
     inserting a period, and by striking subclause (III).
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2011, with respect to disasters declared after such date.

     SEC. _07. INCREASE IN NEW MARKETS TAX CREDIT FOR INVESTMENTS 
                   IN COMMUNITY DEVELOPMENT ENTITIES SERVING 2012, 
                   2013, 2014, AND 2015 DISASTER AREAS.

       (a) In General.--Subsection (f) of section 45D of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(4) Increased special allocation for community 
     development entities serving disaster areas with respect to 
     disasters occurring in any of calendar years 2012 through 
     2015.--
       ``(A) In general.--In the case of each calendar year which 
     begins after 2012 and before 2017, the new markets tax credit 
     limitation shall be increased by an amount equal to 
     $500,000,000, to be allocated among qualified community 
     development entities to make qualified low-income community 
     investments within any covered federally declared disaster 
     area.
       ``(B) Allocation of increase.--The amount of the increase 
     in limitation under subparagraph (A) shall be allocated by 
     the Secretary under paragraph (2) to qualified community 
     development entities and shall give priority to such entities 
     with a record of having successfully provided capital or 
     technical assistance to businesses or communities within any 
     covered federally declared disaster area or areas for which 
     the allocation is requested.

[[Page S7630]]

       ``(C) Application of carryforward.--Paragraph (3) shall be 
     applied separately with respect to the amount of any increase 
     under subparagraph (A).
       ``(D) Covered federally declared disaster area.--For 
     purposes of this paragraph, the term `covered federally 
     declared disaster area' means any disaster area resulting 
     from any federally declared disaster occurring after December 
     31, 2011, and before January 1, 2016. For purposes of the 
     preceding sentence, the terms `federally declared disaster' 
     and `disaster area' have the meanings given such terms in 
     section 165(i)(5).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after 2012.

     SEC. _08. SPECIAL RULES FOR USE OF RETIREMENT FUNDS IN 
                   CONNECTION WITH FEDERALLY DECLARED DISASTERS IN 
                   2012, 2013, 2014, AND 2015.

       (a) Tax-Favored Withdrawals From Retirement Plans.--
       (1) In general.--Paragraph (2) of section 72(t) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(H) Distributions from retirement plans in connection 
     with federally declared disasters during in any calendar 
     years after 2011.--Any qualified disaster recovery 
     distribution.''.
       (2) Qualified disaster recovery distribution.--Section 
     72(t) of such Code is amended by adding at the end the 
     following new paragraph:
       ``(11) Qualified disaster recovery distribution.--For 
     purposes of paragraph (2)(H)--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `qualified disaster recovery distribution' means, 
     with respect to any federally declared disaster occurring in 
     any calendar year beginning after 2011 and before January 1, 
     2016, any distribution from an eligible retirement plan made 
     on or after the applicable disaster date and before the date 
     that is 1 year after the applicable disaster date, to an 
     individual whose principal place of abode on the applicable 
     disaster date, is located in the disaster area and who has 
     sustained an economic loss by reason of such federally 
     declared disaster.
       ``(B) Dollar limitation.--
       ``(i) In general.--For purposes of this subsection, the 
     aggregate amount of distributions received by an individual 
     with respect to any federally declared disaster occurring 
     during in any calendar year beginning after 2011 shall not 
     exceed $100,000.
       ``(ii) Treatment of plan distributions.--If a distribution 
     to an individual would (without regard to clause (i)) be a 
     qualified disaster recovery distribution, a plan shall not be 
     treated as violating any requirement of this title merely 
     because the plan treats such distribution as a qualified 
     disaster recovery distribution, unless the aggregate amount 
     of such distributions from all plans maintained by the 
     employer (and any member of any controlled group which 
     includes the employer) to such individual with respect to any 
     federally declared disaster occurring in any calendar year 
     beginning after 2011 exceeds $100,000.
       ``(iii) Controlled group.--For purposes of clause (ii), the 
     term `controlled group' means any group treated as a single 
     employer under subsection (b), (c), (m), or (o) of section 
     414.
       ``(C) Amount distributed may be repaid.--
       ``(i) In general.--Any individual who receives a qualified 
     disaster recovery distribution may, at any time during the 3-
     year period beginning on the day after the date on which such 
     distribution was received, make one or more contributions in 
     an aggregate amount not to exceed the amount of such 
     distribution to an eligible retirement plan of which such 
     individual is a beneficiary and to which a rollover 
     contribution of such distribution could be made under section 
     402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as 
     the case may be.
       ``(ii) Treatment of repayments of distributions from 
     eligible retirement plans other than iras.--For purposes of 
     this title, if a contribution is made pursuant to clause (i) 
     with respect to a qualified disaster recovery distribution 
     from an eligible retirement plan other than an individual 
     retirement plan, then the taxpayer shall, to the extent of 
     the amount of the contribution, be treated as having received 
     the qualified disaster recovery distribution in an eligible 
     rollover distribution (as defined in section 402(c)(4)) and 
     as having transferred the amount to the eligible retirement 
     plan in a direct trustee to trustee transfer within 60 days 
     of the distribution.
       ``(iii) Treatment of repayments for distributions from 
     iras.--For purposes of this title, if a contribution is made 
     pursuant to clause (i) with respect to a qualified disaster 
     recovery distribution from an individual retirement plan (as 
     defined by section 7701(a)(37)), then, to the extent of the 
     amount of the contribution, the qualified disaster recovery 
     distribution shall be treated as a distribution described in 
     section 408(d)(3) and as having been transferred to the 
     eligible retirement plan in a direct trustee to trustee 
     transfer within 60 days of the distribution.
       ``(D) Income inclusion spread over 3-year period.--
       ``(i) In general.--In the case of any qualified disaster 
     recovery distribution, unless the taxpayer elects not to have 
     this paragraph apply for any taxable year, any amount 
     required to be included in gross income for such taxable year 
     shall be so included ratably over the 3-taxable-year period 
     beginning with such taxable year.
       ``(ii) Special rule.--For purposes of clause (i), rules 
     similar to the rules of subparagraph (E) of section 
     408A(d)(3) shall apply.
       ``(E) Other definitions.--
       ``(i) Federally declared disaster; disaster area.--The 
     terms `federally declared disaster' and `disaster area' have 
     the meanings given such terms under section 165(i)(5).
       ``(ii) Applicable disaster date.--The term `applicable 
     disaster date' means, with respect to any federally declared 
     disaster, the date on which such federally declared disaster 
     occurs.
       ``(iii) Eligible retirement plan.--The term `eligible 
     retirement plan' shall have the meaning given such term by 
     section 402(c)(8)(B).
       ``(F) Special rules.--
       ``(i) Exemption of distributions from trustee to trustee 
     transfer and withholding rules.--For purposes of sections 
     401(a)(31), 402(f), and 3405, qualified disaster recovery 
     distributions shall not be treated as eligible rollover 
     distributions.
       ``(ii) Qualified disaster recovery distributions treated as 
     meeting plan distribution requirements.--For purposes of this 
     title, a qualified disaster recovery distribution shall be 
     treated as meeting the requirements of sections 
     401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
     457(d)(1)(A).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to distributions with respect to disaster 
     declared after December 31, 2011.
       (b) Loans From Qualified Plans.--
       (1) In general.--Subsection (p) of section 72 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(6) Increase in limit on loans not treated as 
     distributions with respect to disasters in any calendar year 
     after 2011.--
       ``(A) In general.--In the case of any loan from a qualified 
     employer plan to a qualified individual made during the 
     applicable period--
       ``(i) clause (i) of paragraph (2)(A) shall be applied by 
     substituting `$100,000' for `$50,000', and
       ``(ii) clause (ii) of such paragraph shall be applied by 
     substituting `the present value of the nonforfeitable accrued 
     benefit of the employee under the plan' for `one-half of the 
     present value of the nonforfeitable accrued benefit of the 
     employee under the plan'.
       ``(B) Delay of repayment.--In the case of a qualified 
     individual with an outstanding loan on or after the 
     applicable disaster date from a qualified employer plan--
       ``(i) if the due date pursuant to subparagraph (B) or (C) 
     of paragraph (2) for any repayment with respect to such loan 
     occurs during the 1-year period beginning on the applicable 
     disaster date, such due date shall be delayed for 1 year,
       ``(ii) any subsequent repayments with respect to any such 
     loan shall be appropriately adjusted to reflect the delay in 
     the due date under clause (i) and any interest accruing 
     during such delay, and
       ``(iii) in determining the 5-year period and the term of a 
     loan under subparagraph (B) or (C) of paragraph (2), the 
     period described in clause (i) shall be disregarded.
       ``(C) Definitions.--For purposes of this paragraph--
       ``(i) Qualified individual.--The term `qualified 
     individual' means, with respect to any federally declared 
     disaster occurring during in any calendar year beginning 
     after 2011, an individual whose principal place of abode on 
     the applicable disaster date is located in the disaster area 
     and who has sustained an economic loss by reason of such 
     federally declared disaster.
       ``(ii) Applicable period.--The applicable period is the 
     period beginning on the applicable disaster date and ending 
     on December 31, 2016.
       ``(iii) Federally declared disaster; disaster area.--The 
     terms `federally declared disaster' and `disaster area' have 
     the meanings given such terms under section 165(i)(5).
       ``(iv) Applicable disaster date.--The term `applicable 
     disaster date' means, with respect to any federally declared 
     disaster, the date on which such federally declared disaster 
     occurs.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to loans made with respect to disaster declared 
     after December 31, 2011.
       (c) Provisions Relating to Plan Amendments.--
       (1) In general.--If this subsection applies to any 
     amendment to any plan or annuity contract, such plan or 
     contract shall be treated as being operated in accordance 
     with the terms of the plan during the period described in 
     paragraph (2)(B)(i).
       (2) Amendments to which subsection applies.--
       (A) In general.--This subsection shall apply to any 
     amendment to any plan or annuity contract which is made--
       (i) pursuant to any provision of, or amendment made by, 
     this section, or pursuant to any regulation issued by the 
     Secretary or the Secretary of Labor under any provision of, 
     or amendment made by, this section, and
       (ii) on or before the last day of the first plan year 
     beginning on or after January 1, 2016, or such later date as 
     the Secretary may prescribe.
     In the case of a governmental plan (as defined in section 
     414(d)), clause (ii) shall be applied by substituting the 
     date which is 2 years after the date otherwise applied under 
     clause (ii).

[[Page S7631]]

       (B) Conditions.--This subsection shall not apply to any 
     amendment unless--
       (i) during the period--

       (I) beginning on the date that the provisions of, and 
     amendments made by, this section or the regulation described 
     in subparagraph (A)(i) takes effect (or in the case of a plan 
     or contract amendment not required by the provisions of, or 
     amendments made by, this section or such regulation, the 
     effective date specified by the plan), and
       (II) ending on the date described in subparagraph (A)(ii) 
     (or, if earlier, the date the plan or contract amendment is 
     adopted),

     the plan or contract is operated as if such plan or contract 
     amendment were in effect; and
       (ii) such plan or contract amendment applies retroactively 
     for such period.

     SEC. _09. ADDITIONAL EXEMPTION FOR HOUSING QUALIFIED DISASTER 
                   DISPLACED INDIVIDUALS.

       (a) In General.--Section 151 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Additional Exemption for Certain Disaster-Displaced 
     Individuals.--
       ``(1) In general.--In the case of any taxable year 
     beginning in any calendar year beginning after 2011, there 
     shall be allowed an exemption of $500 for each qualified 
     disaster-displaced individual with respect to the taxpayer 
     for the taxable year.
       ``(2) Limitations.--
       ``(A) Dollar limitation.--The exemption under paragraph (1) 
     shall not exceed $2,000, reduced by the amount of the 
     exemption under this subsection for all prior taxable years.
       ``(B) Individuals taken into account only once.--An 
     individual shall not be taken into account under paragraph 
     (1) if such individual was taken into account under this 
     subsection by the taxpayer for any prior taxable year.
       ``(C) Identifying information required.--An individual 
     shall not be taken into account under paragraph (1) for a 
     taxable year unless the taxpayer identification number of 
     such individual is included on the return of the taxpayer for 
     such taxable year.
       ``(3) Qualified disaster-displaced individual.--
       ``(A) In general.--For purposes of this subsection, the 
     term `qualified disaster-displaced individual' means, with 
     respect to any taxpayer for any taxable year, any qualified 
     individual if such individual is provided housing free of 
     charge by the taxpayer in the principal residence of the 
     taxpayer for a period of 60 consecutive days which ends in 
     such taxable year. Such term shall not include the spouse or 
     any dependent of the taxpayer.
       ``(B) Qualified individual.--The term `qualified 
     individual' means any individual who--
       ``(i) on the date of a federally declared disaster 
     occurring in calendar years beginning after 2011 and before 
     2016 maintained such individual's principal place of abode in 
     the disaster area declared with respect to such disaster, and
       ``(ii) was displaced from such principal place of abode by 
     reason of the federally declared disaster.
     For purposes of the preceding sentence, the terms `federally 
     declared disaster' and `disaster area' have the meanings 
     given such terms in section 165(i)(5).
       ``(4) Compensation for housing.--No deduction shall be 
     allowed under this subsection if the taxpayer receives any 
     rent or other amount (from any source) in connection with the 
     providing of such housing.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. _10. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS 
                   BY REASON OF 2012, 2013, 2014, AND 2015 
                   DISASTERS.

       (a) In General.--Section 108 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(j) Discharge of Indebtedness for Individuals Affected by 
     Disasters in Any Calendar Year After 2011.--
       ``(1) In general.--Except as provided in paragraph (2), 
     gross income shall not include any amount which (but for this 
     subsection) would be includible in gross income by reason of 
     any discharge (in whole or in part) of indebtedness of a 
     natural person described in paragraph (3) by an applicable 
     entity (as defined in section 6050P(c)(1)) during the 
     applicable period.
       ``(2) Exceptions for business indebtedness.--Paragraph (1) 
     shall not apply to any indebtedness incurred in connection 
     with a trade or business.
       ``(3) Persons described.--A natural person is described in 
     this paragraph if the principal place of abode of such person 
     on the applicable disaster date was located in the disaster 
     area with respect to any federally declared disaster 
     occurring during any calendar year beginning after 2011 and 
     before 2016.
       ``(4) Applicable period.--For purposes of this subsection, 
     the term `applicable period' means the period beginning on 
     the applicable disaster date and ending on the date which is 
     14 months after such date.
       ``(5) Other definitions.--For purposes of this subsection--
       ``(A) Federally declared disaster; disaster area.--The 
     terms `federally declared disaster' and `disaster area' have 
     the meanings given such terms under section 165(i)(5).
       ``(B) Applicable disaster date.--The term `applicable 
     disaster date' means, with respect to any federally declared 
     disaster, the date on which such federally declared disaster 
     occurs.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to discharges made on or after December 31, 2011.

     SEC. _11. SPECIAL RULE FOR DETERMINING EARNED INCOME OF 
                   INDIVIDUALS AFFECTED BY FEDERALLY DECLARED 
                   DISASTERS.

       (a) In General.--Section 32 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(n) Special Rule for Determining Earned Income of 
     Taxpayers Affected by Federally Declared Disasters.--
       ``(1) In general.--In the case of a qualified individual 
     with respect to any federally declared disaster occurring 
     during any calendar year beginning after 2011, if the earned 
     income of the taxpayer for the taxable year which includes 
     the applicable disaster date is less than the earned income 
     of the taxpayer for the preceding taxable year, the credit 
     allowed under this section and section 24(d) may, at the 
     election of the taxpayer, be determined by substituting--
       ``(A) such earned income for the preceding taxable year, 
     for
       ``(B) such earned income for the taxable year which 
     includes the applicable date.
       ``(2) Qualified individual.--For purposes of this 
     subsection, the term `qualified individual' means, with 
     respect to any federally declared disaster occurring during 
     in any calendar year beginning after 2011 and before 2016, 
     any individual whose principal place of abode on the 
     applicable disaster date, was located--
       ``(A) in any portion of a disaster area determined by the 
     President to warrant individual or individual and public 
     assistance under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act by reason of the federally declared 
     disaster, or
       ``(B) in any portion of the disaster area not described in 
     subparagraph (A) and such individual was displaced from such 
     principal place of abode by reason of the federally declared 
     disaster.
       ``(3) Other definitions.--For purposes of this paragraph--
       ``(A) Federally declared disaster; disaster area.--The 
     terms `federally declared disaster' and `disaster area' have 
     the meanings given such terms under section 165(i)(5).
       ``(B) Applicable disaster date.--The term `applicable 
     disaster date' means, with respect to any federally declared 
     disaster, the date on which such federally declared disaster 
     occurs.
       ``(4) Special rules.--
       ``(A) Application to joint returns.--For purposes of 
     paragraph (1), in the case of a joint return for a taxable 
     year which includes the disaster date--
       ``(i) such paragraph shall apply if either spouse is a 
     qualified individual, and
       ``(ii) the earned income of the taxpayer for the preceding 
     taxable year shall be the sum of the earned income of each 
     spouse for such preceding taxable year.
       ``(B) Uniform application of election.--Any election made 
     under paragraph (1) shall apply with respect to both section 
     24(d) and this section.
       ``(C) Errors treated as mathematical error.--For purposes 
     of section 6213, an incorrect use on a return of earned 
     income pursuant to paragraph (1) shall be treated as a 
     mathematical or clerical error.
       ``(D) No effect on determination of gross income, etc.--
     Except as otherwise provided in this subsection, this title 
     shall be applied without regard to any substitution under 
     paragraph (1).''.
       (b) Child Tax Credit.--Section 24(d) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(5) Special rule for determining earned income of 
     taxpayers affected by federally declared disasters.--For 
     election by qualified individuals with respect to certain 
     federally declared disasters to substitute earned income from 
     the preceding taxable year, see section 32(n).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. _12. INCREASE IN REHABILITATION CREDIT FOR BUILDINGS IN 
                   2012, 2013, 2014, AND 2015 DISASTER AREAS.

       (a) In General.--Section 47 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(e) Special Rule for Expenditures Made in Connection With 
     Certain Disasters.--
       ``(1) In general.--In the case of qualified rehabilitation 
     expenditures paid or incurred during the applicable period 
     with respect to any qualified rehabilitated building or 
     certified historic structure located in a disaster area with 
     respect to any federally declared disaster occurring in, 
     subsection (a) shall be applied--
       ``(A) by substituting `13 percent' for `10 percent' in 
     paragraph (1) thereof, and
       ``(B) by substituting `26 percent' for `20 percent' in 
     paragraph (2) thereof.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) Federally declared disaster; disaster area.--The 
     terms `federally declared disaster' and `disaster area' have 
     the meanings given such terms under section 165(i)(5).
       ``(B) Applicable period.--The term `applicable period' 
     means the period beginning on the applicable disaster date 
     and ending on December 31, 2015.

[[Page S7632]]

       ``(C) Applicable disaster date.--The term `applicable 
     disaster date' means, with respect to any federally declared 
     disaster, the date on which such federally declared disaster 
     occurs.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2011.

     SEC. _13. ADVANCED REFUNDINGS OF CERTAIN TAX-EXEMPT BONDS.

       (a) In General.--Section 149(d) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraph (7) as 
     paragraph (8) and by inserting after paragraph (6) the 
     following new paragraph:
       ``(7) Special rule with respect to certain natural 
     disasters.--
       ``(A) In general.--With respect to a bond described in 
     subparagraph (C), one additional advance refunding after the 
     date of the enactment of this paragraph and before January 1, 
     2018, shall be allowed under the rules of this subsection 
     if--
       ``(i) the Governor of the State designates the advance 
     refunding bond for purposes of this subsection, and
       ``(ii) the requirements of subparagraph (E) are met.
       ``(B) Certain private activity bonds.--With respect to a 
     bond described in subparagraph (C) which is an exempt 
     facility bond described in paragraph (1) or (2) of section 
     142(a), one advance refunding after the date of the enactment 
     of this paragraph and before January 1, 2018, shall be 
     allowed under the applicable rules of this subsection 
     (notwithstanding paragraph (2) thereof) if the requirements 
     of clauses (i) and (ii) of subparagraph (A) are met.
       ``(C) Bonds described.--A bond is described in this 
     paragraph if, with respect to any federally declared 
     disaster, such bond--
       ``(i) was outstanding on the applicable disaster date, and
       ``(ii) is issued by an applicable State or a political 
     subdivision thereof.
       ``(D) Aggregate limit.--The maximum aggregate face amount 
     of bonds which may be designated under this subsection by the 
     Governor of a State shall not exceed $4,500,000,000.
       ``(E) Additional requirements.--The requirements of this 
     subparagraph are met with respect to any advance refunding of 
     a bond described in subparagraph (C) if--
       ``(i) no advance refundings of such bond would be allowed 
     under this title on or after the applicable disaster date,
       ``(ii) the advance refunding bond is the only other 
     outstanding bond with respect to the refunded bond, and
       ``(iii) the requirements of section 148 are met with 
     respect to all bonds issued under this paragraph.
       ``(F) Definitions.--For purposes of this subsection--
       ``(i) Federally declared disaster; disaster area.--The 
     terms `federally declared disaster' and `disaster area' have 
     the meanings given such terms under section 165(i)(5).
       ``(ii) Applicable disaster date.--The term `applicable 
     disaster date' means, with respect to any federally declared 
     disaster, the date on which such federally declared disaster 
     occurs.
       ``(iii) Applicable state.--The term `applicable State' 
     means, with respect to any federally declared disaster, any 
     State in which a portion of the disaster area is located.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. _14. QUALIFIED DISASTER AREA RECOVERY BONDS.

       (a) In General.--Subpart A of part IV of subchapter B of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 146 the following new section:

     ``SEC. 146A. QUALIFIED DISASTER AREA RECOVERY BONDS.

       ``(a) In General.--For purposes of this title, any 
     qualified disaster area recovery bond shall--
       ``(1) be treated as an exempt facility bond, and
       ``(2) not be subject to section 146.
       ``(b) Qualified Disaster Area Recovery Bond.--For purposes 
     of this section, the term `qualified disaster area recovery 
     bond' means any bond issued as part of an issue if--
       ``(1) 95 percent or more of the net proceeds of such issue 
     are to be used for qualified project costs,
       ``(2) such bond is issued by a State or any political 
     subdivision thereof any part of which is in a qualified 
     disaster area,
       ``(3) the Governor of the issuing State designates such 
     bond for purposes of this section, and
       ``(4) such bond is issued after the date of the enactment 
     of this section and before January 1, 2017.
       ``(c) Limitation on Amount of Bonds.--
       ``(1) In general.--The maximum aggregate face amount of 
     bonds which may be designated under this section by any State 
     shall not exceed $10,000,000,000.
       ``(2) Movable property.--No bonds shall be issued which are 
     to be used for movable fixtures and equipment.
       ``(3) Treatment of current refunding bonds.--Paragraph (1) 
     shall not apply to any bond (or series of bonds) issued to 
     refund a qualified disaster area recovery bond, if--
       ``(A) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       ``(B) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       ``(C) the net proceeds of the refunding bond are used to 
     redeem the refunded bond not later than 90 days after the 
     date of the issuance of the refunding bond.
     For purposes of subparagraph (A), average maturity shall be 
     determined in accordance with section 147(b)(2)(A).
       ``(d) Qualified Project Costs.--For purposes of this 
     section, the term `qualified project costs' means the cost of 
     acquisition, construction, reconstruction, and renovation 
     of--
       ``(1) residential rental property (as defined in section 
     142(d)),
       ``(2) nonresidential real property (including fixed 
     improvements associated with such property),
       ``(3) a facility described in paragraph (2) or (3) of 
     section 142(a), or
       ``(4) public utility property (as defined in section 
     168(i)(10)),
     which is located in a qualified disaster area and was damaged 
     or destroyed by reason of a federally declared disaster.
       ``(e) Special Rules.--In applying this title to any 
     qualified disaster area recovery bond, the following 
     modifications shall apply:
       ``(1) Section 147(d) (relating to acquisition of existing 
     property not permitted) shall be applied by substituting `50 
     percent' for `15 percent' each place it appears.
       ``(2) Section 148(f)(4)(C) (relating to exception from 
     rebate for certain proceeds to be used to finance 
     construction expenditures) shall apply to the available 
     construction proceeds of bonds issued under this section. For 
     purposes of the preceding sentence, the following spending 
     requirements shall apply in lieu of the requirements in 
     clause (ii) of such section:
       ``(A) 40 percent of such available construction proceeds 
     are spent for the governmental purposes of the issue within 
     the 2-year period beginning on the date the bonds are issued,
       ``(B) 60 percent of such proceeds are spent for such 
     purposes within the 3-year period beginning on such date,
       ``(C) 80 percent of such proceeds are spent for such 
     purposes within the 4-year period beginning on such date, and
       ``(D) 100 percent of such proceeds are spent for such 
     purposes within the 5-year period beginning on such date.
       ``(3) Repayments of principal on financing provided by the 
     issue--
       ``(A) may not be used to provide financing, and
       ``(B) must be used not later than the close of the first 
     semiannual period beginning after the date of the repayment 
     to redeem bonds which are part of such issue.
     The requirement of subparagraph (B) shall be treated as met 
     with respect to amounts received within 5 years after the 
     date of issuance of the issue (or, in the case of a refunding 
     bond, the date of issuance of the original bond) if such 
     amounts are used by the close of such 5 years to redeem bonds 
     which are part of such issue.
       ``(4) Section 57(a)(5) shall not apply.
       ``(f) Separate Issue Treatment of Portions of an Issue.--
     This section shall not apply to the portion of an issue which 
     (if issued as a separate issue) would be treated as a 
     qualified bond or as a bond that is not a private activity 
     bond (determined without regard to paragraph (1)), if the 
     issuer elects to so treat such portion.
       ``(g) Qualified Disaster Area; Federally Declared 
     Disaster.--
       ``(1) Qualified disaster area.--The term `qualified 
     disaster area' means any area determined to warrant 
     individual or individual and public assistance from the 
     Federal Government under the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act by reason of a federally 
     declared disaster occurring during the period beginning after 
     December 31, 2011, and before January 1, 2016.
       ``(2) Federally declared disaster.--The term `federally 
     declared disaster' has the meaning given to such term under 
     section 165(i)(5).''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter B of chapter 1 of such Code is 
     amended by inserting after the item relating to section 146 
     the following new item:

``Sec. 146A. Qualified disaster area recovery bonds.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2015.

     SEC. _15. ADDITIONAL LOW-INCOME HOUSING CREDIT ALLOCATIONS.

       (a) In General.--Paragraph (3) of section 42(h) of the 
     Internal Revenue Code of 1986 (relating to limitation on 
     aggregate credit allowable with respect to projects located 
     in a State) is amended by adding at the end the following new 
     subparagraph:
       ``(J) Increase in state housing credit for states damaged 
     by natural disasters.--
       ``(i) In general.--In the case of calendar year 2016, the 
     State housing credit ceiling of each State any portion of 
     which includes any portion of a qualifying disaster area 
     shall be increased by so much of the aggregate housing credit 
     dollar amount as does not exceed the applicable limitation 
     allocated by the State housing credit agency of such State 
     for such calendar year to buildings located in qualifying 
     disaster areas.
       ``(ii) Applicable limitation.--For purposes of clause (i), 
     the applicable limitation is the greater of--

       ``(I) $8 multiplied by the population of the qualifying 
     disaster areas in such State, or

[[Page S7633]]

       ``(II) 50 percent of the State housing credit ceiling 
     (determined without regard to this subparagraph) for 2015.

       ``(iii) Applicable percentage.--For purposes of this 
     section, the applicable percentage with respect to any 
     building to which amounts allocated under clause (i) shall be 
     determined under subsection (b)(2), except that subparagraph 
     (A) thereof shall be applied by substituting `January 1, 
     2016' for `January 1, 2015'.
       ``(iv) Allocations treated as made first from additional 
     allocation amount for purposes of determining carryover.--For 
     purposes of determining the unused State housing credit 
     ceiling under subparagraph (C) for any calendar year, any 
     increase in the State housing credit ceiling under clause (i) 
     shall be treated as an amount described in clause (ii) of 
     such subparagraph.
       ``(v) Qualifying disaster area.--For purposes of this 
     subparagraph, the term `qualifying federally declared 
     disaster area' means--

       ``(I) each county which is determined to warrant individual 
     or individual and public assistance from the Federal 
     Government under a qualifying natural disaster declaration 
     described in clause (vi)(I), and
       ``(II) each county not described in subclause (I) which is 
     included in the geographical area covered by a qualifying 
     natural disaster declaration described in subclause (II) or 
     (III) of clause (vi).

       ``(vi) Qualifying natural disaster declaration.--For 
     purposes of clause (v), the term `qualifying natural disaster 
     declaration' means--

       ``(I) a federally declared disaster (as defined in section 
     165(i)(5)) occurring during the period beginning after 
     December 31, 2011, and before January 1, 2016,
       ``(II) a natural disaster declared by the Secretary of 
     Agriculture in 2011 due to damaging weather and other 
     conditions relating to Hurricane Irene or Tropical Storm Lee 
     under section 321(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961(a)), or
       ``(III) a major disaster or emergency designated by the 
     President in 2011 due to damaging weather and other 
     conditions relating to Hurricane Irene or Tropical Storm Lee 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).''.

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

     SEC. _16. FACILITATION OF TRANSFER OF WATER LEASING AND WATER 
                   BY MUTUAL DITCH OR IRRIGATION COMPANIES IN 
                   DISASTER AREAS.

       (a) In General.--Paragraph (12) of section 501(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(I) Treatment of mutual ditch or irrigation companies in 
     certain disaster areas.--
       ``(i) In general.--In the case of a qualified mutual ditch 
     or irrigation company or like organization, subparagraph (A) 
     shall be applied without taking into account any income 
     received or accrued during the applicable period--

       ``(I) from the sale, lease, or exchange of fee or other 
     interests in real property, including interests in water,
       ``(II) from the sale or exchange of stock in a mutual ditch 
     or irrigation company or like organization or contract rights 
     for the delivery or use of water,
       ``(III) from the investment of proceeds from sales, leases, 
     or exchanges under subclauses (I) and (II), or
       ``(IV) from the United States, or a State or local 
     government, resulting from the federally declared disaster.

     except that any income received under subclause (I), (II), 
     (III), or (IV) which is distributed or expended for expenses 
     (other than for operations, maintenance, and capital 
     improvements) of the qualified mutual ditch or irrigation 
     company or like organization shall be treated as nonmember 
     income in the year in which it is distributed or expended.
       ``(ii) Qualified mutual ditch or irrigation company or like 
     organization.--For purposes of this paragraph--

       ``(I) In general.--The term `qualified mutual ditch or 
     irrigation company or like organization' means any mutual 
     ditch or irrigation company or like organization that 
     diverted, delivered, transported, stored, or used its water 
     for agricultural irrigation purposes on its own or through 
     its shareholders in a qualified disaster area during any of 
     calendar years 2012 through 2015.
       ``(II) Qualified asset.--The term `qualified asset' means 
     any real property or tangible personal property used in the 
     mutual ditch or irrigation company's (or like organization's) 
     system.
       ``(III) Multiple areas.--Under regulations, if the 
     qualified assets of any mutual ditch or irrigation company or 
     like organization are located in more than 1 qualified 
     disaster area, all such areas shall be treated as 1 area and 
     if more than 1 federally declared disaster is involved, the 
     date on which the last of such disasters occurred shall be 
     the date used for purposes of this paragraph.

       ``(iii) Applicable period.--For purposes of this paragraph, 
     the term `applicable period' means the taxable year in which 
     the federally declared disaster occurred and the 5 following 
     taxable years.
       ``(iv) Other definitions.--

       ``(I) Qualified disaster area.--The term `qualified 
     disaster area' means any area determined to warrant 
     individual or individual and public assistance from the 
     Federal Government under the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act by reason of a federally 
     declared disaster occurring during the period beginning on 
     January 1, 2012, and ending on December 31, 2015.
       ``(II) Federally declared disaster.--The term `federally 
     declared disaster' has the meaning given to such term under 
     section 165(i)(5).''.

       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years ending after December 31, 2011.

             TITLE II--OTHER DISASTER TAX RELIEF PROVISIONS

     SEC. _01. EXCLUSION FOR DISASTER MITIGATION PAYMENTS RECEIVED 
                   FROM STATE AND LOCAL GOVERNMENTS.

       (a) In General.--Paragraph (2) of section 139(g) of the 
     Internal Revenue Code of 1986 is amended by inserting ``, or 
     any other amount which is paid by a State or local government 
     or agency or instrumentality thereof,'' after ``(as in effect 
     on such date)''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received after the date of the 
     enactment of this Act.

     SEC. _02. NATURAL DISASTER FUNDS.

       (a) Natural Disaster Fund.--Subpart C of part II of 
     subchapter E of chapter 1 of the Internal Revenue Code of 
     1986 is amended by inserting after section 468B the following 
     new section:

     ``SEC. 468C. SPECIAL RULES FOR NATURAL DISASTER FUNDS.

       ``(a) In General.--If a qualified taxpayer elects the 
     application of this section, there shall be allowed as a 
     deduction for any taxable year the amount of payments made by 
     the taxpayer to a natural disaster fund during such taxable 
     year.
       ``(b) Natural Disaster Fund.--The term `natural disaster 
     fund' means a fund meeting the following requirements:
       ``(1) Designation.--The taxpayer designates--
       ``(A) the fund as a natural disaster fund in the manner 
     prescribed by the Secretary, and
       ``(B) the line or lines of business to which the fund 
     applies.
       ``(2) Segregation.--The assets of the fund are segregated 
     from other assets of the taxpayer.
       ``(3) Investments.--
       ``(A) The assets of the fund are maintained in one or more 
     qualified accounts and are invested only in--
       ``(i) deposits with banks whose deposits are insured 
     subject to applicable limits by the Federal Deposit Insurance 
     Corporation, or
       ``(ii) in stock or other securities in which the fund would 
     be permitted to invest if it were a capital construction fund 
     subject to the investment limitations of paragraphs (2) and 
     (3) of section 7518(b)(2).
       ``(B) All investment earnings (including gains and losses) 
     from investments of the fund become part of the fund.
       ``(4) Contributions to the fund.--The fund does not accept 
     any deposits (or other amounts) other than cash payments with 
     respect to which a deduction is allowable under subsection 
     (a) and earnings (including gains and losses) from fund 
     investments.
       ``(5) Purpose.--The fund is established and maintained for 
     the purposes of covering costs, expenses, and losses 
     (including business interruption losses) resulting from a 
     Federally declared natural disaster to the extent such costs 
     are not covered by insurance.
       ``(6) Maximum balance.--The balance of the fund does not 
     exceed the lesser of--
       ``(A) the sum of--
       ``(i) 150 percent of the maximum deductible, and
       ``(ii) 100 percent of the maximum co-insurance (to the 
     extent not taken into account in clause (i)),
     that, in the case of a Federally declared natural disaster 
     resulting in losses, the taxpayer could be expected to pay 
     with respect to property and business interruption insurance 
     maintained by the taxpayer for the line of business to which 
     the fund applies and that would cover losses resulting from a 
     Federally declared natural disaster, and
       ``(B) the maximum loss under any insurance coverage that 
     the taxpayer could reasonably expect to occur for the line of 
     business in the case of a severe natural disaster.
       ``(7) Financial statements.--The fund or the balance of the 
     fund is recorded in the taxpayer's financial statements in 
     accordance with generally accepted accounting principles and 
     not as a current asset and the footnotes to the taxpayer's 
     financial statements include a short description of the fund 
     and its purposes.
       ``(8) Insurance.--The taxpayer property insurance 
     maintained by the qualified taxpayer applies to 75 percent or 
     more of the property used--
       ``(A) in the qualified taxpayer's line of business to which 
     the fund relates, and
       ``(B) in the United States.
       ``(c) Qualified Taxpayer.--For purposes of this section, 
     the term `qualified taxpayer' means any taxpayer that--
       ``(1) actively conducts a trade or business, and
       ``(2) maintains property insurance with respect to such 
     trade or business that insures against losses in natural 
     disasters.
       ``(d) Failure To Meet Requirements.--If a fund that was a 
     natural disaster fund ceases to meet any of the requirements 
     of subsection (b) or a taxpayer who has a natural disaster 
     fund ceases to meet the requirement

[[Page S7634]]

     of subsection (c), the entire balance of the fund shall be 
     deemed distributed in a nonqualified distribution at the time 
     the fund ceases to meet such requirements.
       ``(e) Taxation of Fund.--
       ``(1) In general.--The earnings (including gains and 
     losses) from the investment and reinvestment of amounts held 
     in the fund shall not be taken into account in determining 
     the gross income of the taxpayer that owns the fund.
       ``(2) Not a separate taxpayer.--A natural disaster fund 
     shall not be considered a separate taxpayer for purposes of 
     this subtitle.
       ``(f) Taxation of Distributions From the Fund.--
       ``(1) Qualified distributions.--For purposes of this 
     chapter, qualified distributions shall be treated in the same 
     manner as proceeds from property or business interruption 
     insurance.
       ``(2) Nonqualified distributions.--
       ``(A) In general.--In the case of any taxable year for 
     which there is a nonqualified distribution--
       ``(i) such nonqualified distributions shall be excluded 
     from the gross income of the taxpayer, and
       ``(ii) the tax imposed by this chapter (determined without 
     regard to this subsection) shall be increased by the product 
     of the amount of such nonqualified distribution and the 
     highest rate of tax specified in section 1 (section 11 in the 
     case of a corporation).
       ``(B) Tax benefit rule; coordination with deduction for net 
     operating losses.--Rules similar to the rules of 
     subparagraphs (B) and (C) of section 7518(g)(6) shall apply 
     for purposes of this paragraph.
       ``(3) Additional tax.--The tax imposed by this chapter for 
     any taxable year on any taxpayer that a owns natural disaster 
     fund shall be increased by the greater of--
       ``(A) 20 percent of the amount of any non-qualified 
     distributions from the fund in the taxable year, and
       ``(B) an amount equal to interest, at the underpayment rate 
     established under section 6621, on the nonqualified 
     distribution from the time the amount is added to the fund to 
     the time the amount is distributed.
       ``(4) Interest calculation.--For purposes of calculating 
     interest under paragraph (3)(B)--
       ``(A) all investment earnings (including gains or losses) 
     in taxable year shall be treated as added to the fund on the 
     last day of the taxable year, and
       ``(B) amounts distributed from the fund shall be treated as 
     distributed on a first-in, first-out basis.
       ``(g) Definitions.--For purposes of this section--
       ``(1) Federally declared natural disaster.--The term 
     `Federally declared natural disaster' means a natural 
     disaster that is determined by Presidential declaration under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act to warrant individual or individual and public 
     assistance under such Act.
       ``(2) Nonqualified distribution.--The term `nonqualified 
     distribution' means a distribution from a natural disaster 
     fund other than a qualified distribution.
       ``(3) Qualified account.--The term `qualified account' 
     means an account with a bank (as defined in section 581) or a 
     brokerage account but only if the investments of such 
     accounts are limited to those permitted by subsection (b)(3) 
     and no investments are made in a related person (as defined 
     in section 465(b)(3)(C)) to the taxpayer.
       ``(4) Qualified distribution.--
       ``(A) In general.--The term `qualified distribution' means 
     with respect to natural disaster fund an amount equal to the 
     excess of--
       ``(i) costs, expenses, and losses (including losses of a 
     type reimbursable by proceeds of business interruption 
     insurance) incurred by the taxpayer as a result of the 
     Federally declared natural disaster with respect to the line 
     or lines of business for which the fund was designated, over
       ``(ii) the proceeds of property and business interruption 
     insurance paid for the benefit of the taxpayer with respect 
     to costs, expenses, and losses described in clause (i).
       ``(B) Limitation.--A distribution from a natural disaster 
     fund shall not be treated as a qualified distribution if such 
     distribution is allocated to a Federally declared natural 
     disaster occurring more than 3 years before the date of such 
     distribution.
       ``(h) Special Rules.--For purposes of this section--
       ``(1) No double counting.--Any portion of any deductible or 
     coinsurance taken into account under subsection (b)(6) in 
     determining the maximum balance for a natural disaster fund 
     shall not be taken into account in determining the maximum 
     balance for another natural disaster fund.
       ``(2) Excess balance.--
       ``(A) In general.--If the balance of a natural disaster 
     fund exceeds the maximum balance permitted by subsection 
     (b)(6) by reason of investment earnings or a reduction in the 
     maximum balance, the account shall not cease to be a natural 
     disaster fund as the result of exceeding such limit if the 
     excess is distributed within 120 days of the date that such 
     excess first occurred.
       ``(B) Treatment of distributions of excess balance.--In the 
     case of any distribution of the excess balance of a natural 
     disaster fund within 120 days of the date that such excess 
     first occurred--
       ``(i) paragraphs (2) and (3) of subsection (f) shall not 
     apply to the distribution of such excess if distributed 
     within such period, and
       ``(ii) the amount of such distribution shall be included in 
     the gross income of the taxpayer in the year such 
     distribution was made.
       ``(C) Anti-abuse rule.--Subparagraph (B) shall not apply in 
     the case of any reduction in the maximum balance resulting 
     from any action of the taxpayer the primary purpose of which 
     was to reduce the maximum balance to enable a distribution 
     that would not be subject to the maximum tax rate calculation 
     or the additional tax.
       ``(3) Certain asset acquisitions.--The transfer of a 
     natural disaster fund (or the portion of a natural disaster 
     fund) from one person to another person shall not constitute 
     a nonqualified distribution if--
       ``(A) such transfer is part of a transaction--
       ``(i) to which section 381 applies,
       ``(ii) the transferee acquires substantially all of the 
     assets of the transferor used in the line or lines of 
     business for which the fund was designated,
       ``(iii) the transferee acquires substantially all of the 
     assets of the transferor used in one, but not all, of the 
     lines of business for which the fund was designated, or
       ``(iv) the transferee acquires substantially all of the 
     transferor's assets located in a geographical area and used 
     in a line of business for which the fund was designated, and
       ``(B) the transferee elects to treat the acquired natural 
     disaster fund (or portion thereof) as a natural disaster fund 
     for the line of business for which the transferor had 
     previously designated the fund and as a continuation of the 
     fund (or pro rata portion thereof) for purposes of 
     determining the additional tax imposed by subsection (f)(4).
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the provisions of this section.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     C of part II of subchapter E of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 468B the following new item:

``Sec. 468C. Special rules for natural disaster funds.''.
       (c) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2014.

          TITLE III--PERMANENT DISASTER TAX RELIEF PROVISIONS

     SEC. _01. INCREASE PROPERTY REPLACEMENT PERIOD TO 5 YEARS.

       (a) In General.--Section 1033(a)(2) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following:
       ``(F) Federally declared disaster.--
       ``(i) In general.--In the case of converted property that 
     is located in the disaster area of a federally declared 
     disaster occurring during a calendar year beginning after 
     2011 and that is damaged or destroyed by the federally 
     declared disaster, subparagraph (B)(i) shall be applied by 
     substituting `5 years' for `2 years'.
       ``(ii) Federally declared disaster and disaster area.--For 
     purposes of clause (i), the terms `federally declared 
     disaster' and `disaster area' have the meanings given such 
     terms under section 165(i)(5).''.
       (b) Conforming Amendment.--Section 1033(h)(1)(B) of the 
     Internal Revenue Code of 1986 is amended by striking ``4 
     years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disasters declared after December 31, 2015.

     SEC. _02. WAGE CREDIT FOR SPECIFIED DISASTER-DAMAGED 
                   BUSINESSES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 45S. WAGE CREDIT FOR SPECIFIED DISASTER-DAMAGED 
                   BUSINESSES.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an eligible employer, the specified disaster-damaged 
     business wage credit for any taxable year is an amount equal 
     to 40 percent of the qualified wages for such year.
       ``(b) Qualified Wages Defined.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified wages' means, with 
     respect to any covered employee, wages paid or incurred by 
     the eligible employer to the employee who is not able to work 
     at the disaster-damaged business of the employer during an 
     inoperability period because of a federally declared 
     disaster. Such term shall not include amounts paid or 
     incurred for overtime compensation.
       ``(2) Limitations.--
       ``(A) Limitation on wages taken into account.--The amount 
     of the qualified wages with respect to any individual which 
     may be taken into account with respect to a federally 
     declared disaster shall not exceed $6,000.
       ``(B) Inoperability period.--The inoperability period with 
     respect to a federally declared disaster is the period 
     beginning with the first day the trade or business is 
     rendered inoperable due to damage from the federally declared 
     disaster and ending on the earlier of--
       ``(i) the last day on which the trade or business is 
     inoperable, or
       ``(ii) 16 weeks after the first day of such disaster.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Eligible employer.--
       ``(A) In general.--The term `eligible employer' means, with 
     respect to any taxable year, any employer which--

[[Page S7635]]

       ``(i) employed an average of less than 200 employees on 
     business days during such taxable year, and
       ``(ii) has a disaster-damaged business.
       ``(B) Disaster-damaged business.--The term `disaster-
     damaged business' means a place of business within a disaster 
     area which is rendered inoperable due to damage from the 
     federally declared disaster.
       ``(C) Controlled groups.--For purposes of this section, all 
     persons treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 shall be treated as a single 
     employer.
       ``(2) Covered employee.--The term `covered employee' means, 
     with respect to an eligible employer, an individual--
       ``(A) whose principal place of employment is in a disaster 
     area with respect to a federally declared disaster, and
       ``(B) who has been employed by the employer for more than 
     30 days before the first day of the federally declared 
     disaster.
       ``(3) Federally declared disaster and disaster area.--For 
     purposes of clause (i), the terms `federally declared 
     disaster' and `disaster area' have the meanings given such 
     terms under section 165(i)(5).''.
       (b) Allowance as General Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``plus'' at the end of paragraph (35), by striking the period 
     at the end of paragraph (36) and inserting ``, plus'', and by 
     adding at the end the following:
       ``(37) the specified disaster-damaged business wage credit 
     determined under section 45S(a).''.
       (c) Denial of Double Benefit.--Subsection (a) of section 
     280C of the Internal Revenue Code of 1986 is amended by 
     inserting ``45S(a),'' after ``45P(a)''.
       (d) Clerical Amendment.--The table of contents for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 45S. Wage credit for specified disaster-damaged businesses.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. _03. DISASTER-RELATED MEDICAL EXPENSES.

       (a) In General.--Section 213 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(g) Disaster-Related Medical Expenses.--
       ``(1) In general.--In the case of expenses directly related 
     to an injury caused by a federally declared disaster 
     occurring during the taxable year or the preceding taxable 
     year, there shall be allowed a separate deduction under this 
     section, which shall be determined under this section 
     (without regard to this subsection), except that--
       ``(A) subsection (a) shall be applied by substituting `zero 
     percent' for `10 percent', and
       ``(B) subsection (f) shall be applied by substituting `zero 
     percent' for `7.5 percent'.
       ``(2) Coordination.--Any expense taken into account under 
     paragraph (1) shall not be treated as an expense taken into 
     account under this section (without regard to this section).
       ``(3) Federally declared disaster.--For purposes of this 
     subsection, the term `federally declared disaster' shall have 
     the meaning given such term under section 165(i)(5).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to disasters occurring after the 
     date of the enactment of this Act.

     SEC. _04. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       (a) In General.--Section 198A(b)(2)(A)(ii) of the Internal 
     Revenue Code of 1986, as added by section _01 of this 
     division, is amended by striking ``and before January 1, 
     2016,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2015.

     SEC. _05. LOSSES ATTRIBUTABLE TO DISASTERS.

       (a) In General.--Section 165(h)(3)(B)(i)(I) of the Internal 
     Revenue Code of 1986, as amended by section _03 of this 
     division, is amended by striking ``the period beginning after 
     December 31, 2011, and before January 1, 2016,'' and 
     inserting ``any period beginning after December 31, 2011,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to disasters declared in taxable years beginning 
     after December 31, 2015.

     SEC. _06. NET OPERATING LOSSES ATTRIBUTABLE TO DISASTERS.

       (a) In General.--Section 172(i)(1)(A)(i)(I) of the Internal 
     Revenue Code of 1986 is amended by striking ``and before 
     January 1, 2016,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to disasters declared in taxable years beginning 
     after December 31, 2015.

     SEC. _07. SPECIAL RULES FOR USE OF RETIREMENT FUNDS IN 
                   CONNECTION WITH FEDERALLY DECLARED DISASTERS.

       (a) Withdrawals.--Section 72(t)(11)(A) of the Internal 
     Revenue Code of 1986, as amended by section _08 of this 
     division, is amended by striking ``2011 and before January 1, 
     2016,'' and inserting ``2011,''.
       (b) Loans.--Section 72(p)(6)(C)(ii) of such Code is amended 
     by striking ``and ending on December 31, 2016''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions with respect to disaster 
     declared after December 31, 2015.

     SEC. _08. ADDITIONAL EXEMPTION FOR HOUSING QUALIFIED DISASTER 
                   DISPLACED INDIVIDUALS.

       (a) In General.--Section 151(f)(3)(B)(i) of the Internal 
     Revenue Code of 1986, as amended by section _09 of this 
     division, is amended by striking ``and before 2016''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. _09. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS 
                   BY REASON OF DISASTERS.

       (a) In General.--Section 108(j)(3) of the Internal Revenue 
     Code of 1986, as amended by section _10 of this division, is 
     amended by striking ``and before 2016''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to discharges made on or after December 31, 2015.

     SEC. _10. SPECIAL RULE FOR DETERMINING EARNED INCOME OF 
                   INDIVIDUALS AFFECTED BY FEDERALLY DECLARED 
                   DISASTERS.

       (a) In General.--Section 32(n)(2) of the Internal Revenue 
     Code of 1986, as amended by section _11 of this division, is 
     amended by striking ``and before 2016''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2015.

     SEC. _11. QUALIFIED DISASTER AREA RECOVERY BONDS.

       (a) In General.--Section 146A(b)(4) of the Internal Revenue 
     Code of 1986, as amended by section _14 of this division, is 
     further amended by striking ``and before January 1, 2017''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to obligations issued after December 31, 2015.

     SEC. _12. ADDITIONAL LOW-INCOME HOUSING CREDIT ALLOCATIONS.

       (a) In General.--Section 42(h)(3)(J) of the Internal 
     Revenue Code of 1986, as amended by section _15 of this 
     division, is amended--
       (1) in clause (i) by striking ``In the case of calendar 
     year 2016,'' and inserting ``In the case of a calendar year 
     beginning after 2015,'',
       (2) in clause (ii)(II) by striking ``2015'' and inserting 
     ``the preceding calendar year'', and
       (3) in clause (iii) by striking ``substituting `January 1 
     of the calendar year in which the taxable year ends' for 
     `January 1, 2015' ''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 1792. Mr. LANKFORD submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. NO TAX EXEMPT BONDS FOR PROFESSIONAL STADIUMS.

       (a) In General.--Section 103(b), as amended by this Act, is 
     further amended by adding at the end the following new 
     paragraph:
       ``(4) Professional stadium bond.--Any professional stadium 
     bond.''.
       (b) Professional Stadium Bond Defined.--Subsection (c) of 
     section 103 is amended by adding at the end the following new 
     paragraph:
       ``(3) Professional stadium bond.--The term `professional 
     stadium bond' means any bond issued as part of an issue any 
     proceeds of which are used to finance or refinance capital 
     expenditures allocable to a facility (or appurtenant real 
     property) which, during at least 5 days during any calendar 
     year, is used as a stadium or arena for professional sports 
     exhibitions, games, or training.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after November 2, 2017.
                                 ______
                                 
  SA 1793. Mrs. FISCHER submitted an amendment intended to be proposed 
by her to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       Strike section 13404 and insert the following:

     SEC. 13404. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL 
                   LEAVE.

       (a) In General.--
       (1) Allowance of credit.--Subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new section:

     ``SEC. 45S. EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL 
                   LEAVE.

       ``(a) Establishment of Credit.--
       ``(1) In general.--For purposes of section 38, in the case 
     of an eligible employer, the paid family and medical leave 
     credit is an amount equal to the applicable percentage of the 
     amount of wages paid to qualifying employees during any 
     period in which such employees are on family and medical 
     leave.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means 12.5 percent 
     increased (but not above 25 percent) by 0.25 percentage 
     points for each percentage point by which the rate of payment 
     (as described under subsection (c)(1)(B)) exceeds 50 percent.
       ``(b) Limitation.--
       ``(1) In general.--The credit allowed under subsection (a) 
     with respect to any employee for any taxable year shall not 
     exceed an amount equal to the product of the normal hourly 
     wage rate of such employee for each

[[Page S7636]]

     hour (or fraction thereof) of actual services performed for 
     the employer and the number of hours (or fraction thereof) 
     for which family and medical leave is taken.
       ``(2) Non-hourly wage rate.--For purposes of paragraph (1), 
     in the case of any employee who is not paid on an hourly wage 
     rate, the wages of such employee shall be prorated to an 
     hourly wage rate under regulations established by the 
     Secretary.
       ``(3) Maximum amount of leave subject to credit.--The 
     amount of family and medical leave that may be taken into 
     account with respect to any employee under subsection (a) for 
     any taxable year shall not exceed 12 weeks.
       ``(c) Eligible Employer.--For purposes of this section--
       ``(1) In general.--The term `eligible employer' means any 
     employer who has in place a policy that meets the following 
     requirements:
       ``(A) The policy provides--
       ``(i) in the case of a qualifying employee who is not a 
     part-time employee (as defined in section 4980E(d)(4)(B)), 
     not less than 2 weeks of annual paid family and medical 
     leave, and
       ``(ii) in the case of a qualifying employee who is a part-
     time employee, an amount of annual paid family and medical 
     leave that is not less than an amount which bears the same 
     ratio to the amount of annual paid family and medical leave 
     that is provided to a qualifying employee described in clause 
     (i) as--

       ``(I) the number of hours the employee is expected to work 
     during any week, bears to
       ``(II) the number of hours an equivalent qualifying 
     employee described in clause (i) is expected to work during 
     the week.

       ``(B) The policy requires that the rate of payment under 
     the program is not less than 50 percent of the wages normally 
     paid to such employee for services performed for the 
     employer.
       ``(2) Special rule for certain employers.--
       ``(A) In general.--An added employer shall not be treated 
     as an eligible employer unless such employer provides paid 
     family and medical leave in compliance with a policy which 
     ensures that the employer--
       ``(i) will not interfere with, restrain, or deny the 
     exercise of or the attempt to exercise, any right provided 
     under the policy, and
       ``(ii) will not discharge or in any other manner 
     discriminate against any individual for opposing any practice 
     prohibited by the policy.
       ``(B) Added employer; added employee.--For purposes of this 
     paragraph--
       ``(i) Added employee.--The term `added employee' means a 
     qualifying employee who is not covered by title I of the 
     Family and Medical Leave Act of 1993, as amended.
       ``(ii) Added employer.--The term `added employer' means an 
     eligible employer (determined without regard to this 
     paragraph), whether or not covered by that title I, who 
     offers paid family and medical leave to added employees.
       ``(3) Aggregation rule.--All persons which are treated as a 
     single employer under subsections (a) and (b) of section 52 
     shall be treated as a single taxpayer.
       ``(4) Treatment of benefits mandated or paid for by state 
     or local governments.--For purposes of this section, any 
     leave which is paid by a State or local government or 
     required by State or local law shall not be taken into 
     account in determining the amount of paid family and medical 
     leave provided by the employer.
       ``(5) No inference.--Nothing in this subsection shall be 
     construed as subjecting an employer to any penalty, 
     liability, or other consequence (other than ineligibility for 
     the credit allowed by reason of subsection (a) or recapturing 
     the benefit of such credit) for failure to comply with the 
     requirements of this subsection.
       ``(d) Qualifying Employees.--For purposes of this section, 
     the term `qualifying employee' means any employee (as defined 
     in section 3(e) of the Fair Labor Standards Act of 1938, as 
     amended) who--
       ``(1) has been employed by the employer for 1 year or more, 
     and
       ``(2) for the preceding year, had compensation not in 
     excess of an amount equal to 60 percent of the amount 
     applicable for such year under clause (i) of section 
     414(q)(1)(B).
       ``(e) Family and Medical Leave.--
       ``(1) In general.--Except as provided in paragraph (2), for 
     purposes of this section, the term `family and medical leave' 
     means leave for any 1 or more of the purposes described under 
     subparagraph (A), (B), (C), (D), or (E) of paragraph (1), or 
     paragraph (3), of section 102(a) of the Family and Medical 
     Leave Act of 1993, as amended, whether the leave is provided 
     under that Act or by a policy of the employer.
       ``(2) Exclusion.--If an employer provides paid leave as 
     vacation leave, personal leave, or medical or sick leave 
     (other than leave specifically for 1 or more of the purposes 
     referred to in paragraph (1)), that paid leave shall not be 
     considered to be family and medical leave under paragraph 
     (1).
       ``(3) Definitions.--In this subsection, the terms `vacation 
     leave', `personal leave', and `medical or sick leave' mean 
     those 3 types of leave, within the meaning of section 
     102(d)(2) of that Act.
       ``(f) Determinations Made by Secretary of Treasury.--For 
     purposes of this section, any determination as to whether an 
     employer or an employee satisfies the applicable requirements 
     for an eligible employer (as described in subsection (c)) or 
     qualifying employee (as described in subsection (d)), 
     respectively, shall be made by the Secretary based on such 
     information, to be provided by the employer, as the Secretary 
     determines to be necessary or appropriate.
       ``(g) Wages.--For purposes of this section, the term 
     `wages' has the meaning given such term by subsection (b) of 
     section 3306 (determined without regard to any dollar 
     limitation contained in such section). Such term shall not 
     include any amount taken into account for purposes of 
     determining any other credit allowed under this subpart.
       ``(h) Election to Have Credit Not Apply.--
       ``(1) In general.--A taxpayer may elect to have this 
     section not apply for any taxable year.
       ``(2) Other rules.--Rules similar to the rules of 
     paragraphs (2) and (3) of section 51(j) shall apply for 
     purposes of this subsection.
       ``(i) Termination.--This section shall not apply to wages 
     paid in taxable years beginning after December 31, 2019.''.
       (b) Credit Part of General Business Credit.--Section 38(b) 
     is amended by striking ``plus'' at the end of paragraph (35), 
     by striking the period at the end of paragraph (36) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(37) in the case of an eligible employer (as defined in 
     section 45S(c)), the paid family and medical leave credit 
     determined under section 45S(a).''.
       (c) Credit Allowed Against AMT.--Subparagraph (B) of 
     section 38(c)(4) is amended by redesignating clauses (ix) 
     through (xi) as clauses (x) through (xii), respectively, and 
     by inserting after clause (viii) the following new clause:
       ``(ix) the credit determined under section 45S,''.
       (d) Conforming Amendments.--
       (1) Denial of double benefit.--Section 280C(a) is amended 
     by inserting ``45S(a),'' after ``45P(a),''.
       (2) Election to have credit not apply.--Section 6501(m) is 
     amended by inserting ``45S(h),'' after ``45H(g),''.
       (3) Clerical amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45S. Employer credit for paid family and medical leave.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to wages paid in taxable years beginning after 
     December 31, 2017.
                                 ______
                                 
  SA 1794. Mr. CASSIDY submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       Beginning on page 55, strike line 6 and all that follows 
     through page 66, line 16, and insert the following:

     SEC. 11029. RELIEF FOR 2016 DISASTER AREAS.

       (a) In General.--For purposes of this section, the term 
     ``2016 disaster area'' means any area with respect to which a 
     major disaster has been declared by the President under 
     section 401 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act during calendar year 2016.
       (b) Special Rules for Use of Retirement Funds With Respect 
     to Areas Damaged by 2016 Disasters.--
       (1) Tax-favored withdrawals from retirement plans.--
       (A) In general.--Section 72(t) of the Internal Revenue Code 
     of 1986 shall not apply to any qualified 2016 disaster 
     distribution.
       (B) Aggregate dollar limitation.--
       (i) In general.--For purposes of this subsection, the 
     aggregate amount of distributions received by an individual 
     which may be treated as qualified 2016 disaster distributions 
     for any taxable year shall not exceed the excess (if any) 
     of--

       (I) $100,000, over
       (II) the aggregate amounts treated as qualified 2016 
     disaster distributions received by such individual for all 
     prior taxable years.

       (ii) Treatment of plan distributions.--If a distribution to 
     an individual would (without regard to clause (i)) be a 
     qualified 2016 disaster distribution, a plan shall not be 
     treated as violating any requirement of this title merely 
     because the plan treats such distribution as a qualified 2016 
     disaster distribution, unless the aggregate amount of such 
     distributions from all plans maintained by the employer (and 
     any member of any controlled group which includes the 
     employer) to such individual exceeds $100,000.
       (iii) Controlled group.--For purposes of clause (ii), the 
     term ``controlled group'' means any group treated as a single 
     employer under subsection (b), (c), (m), or (o) of section 
     414 of the Internal Revenue Code of 1986.
       (C) Amount distributed may be repaid.--
       (i) In general.--Any individual who receives a qualified 
     2016 disaster distribution may, at any time during the 3-year 
     period beginning on the day after the date on which such 
     distribution was received, make one or more contributions in 
     an aggregate amount not to exceed the amount of such 
     distribution to an eligible retirement plan of which such 
     individual is a beneficiary and to which a rollover 
     contribution of such distribution could be made under section 
     402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of the 
     Internal Revenue Code of 1986, as the case may be.

[[Page S7637]]

       (ii) Treatment of repayments of distributions from eligible 
     retirement plans other than iras.--For purposes of this 
     title, if a contribution is made pursuant to clause (i) with 
     respect to a qualified 2016 disaster distribution from an 
     eligible retirement plan other than an individual retirement 
     plan, then the taxpayer shall, to the extent of the amount of 
     the contribution, be treated as having received the qualified 
     2016 disaster distribution in an eligible rollover 
     distribution (as defined in section 402(c)(4) of the Internal 
     Revenue Code of 1986) and as having transferred the amount to 
     the eligible retirement plan in a direct trustee to trustee 
     transfer within 60 days of the distribution.
       (iii) Treatment of repayments for distributions from 
     iras.--For purposes of the Internal Revenue Code of 1986, if 
     a contribution is made pursuant to clause (i) with respect to 
     a qualified 2016 disaster distribution from an individual 
     retirement plan (as defined by section 7701(a)(37) of the 
     Internal Revenue Code of 1986), then, to the extent of the 
     amount of the contribution, the qualified 2016 disaster 
     distribution shall be treated as a distribution described in 
     section 408(d)(3) of such Code and as having been transferred 
     to the eligible retirement plan in a direct trustee to 
     trustee transfer within 60 days of the distribution.
       (D) Definitions.--For purposes of this paragraph--
       (i) Qualified 2016 disaster distribution.--Except as 
     provided in subparagraph (B), the term ``qualified 2016 
     disaster distribution'' means any distribution from an 
     eligible retirement plan made on or after January 1, 2016, 
     and before January 1, 2018, to an individual whose principal 
     place of abode at any time during calendar year 2016 was 
     located in a disaster area described in subsection (a) and 
     who has sustained an economic loss by reason of the events 
     giving rise to the Presidential declaration described in 
     subsection (a) which was applicable to such area.
       (ii) Eligible retirement plan.--The term ``eligible 
     retirement plan'' shall have the meaning given such term by 
     section 402(c)(8)(B) of the Internal Revenue Code of 1986.
       (E) Income inclusion spread over 3-year period.--
       (i) In general.--In the case of any qualified 2016 disaster 
     distribution, unless the taxpayer elects not to have this 
     subparagraph apply for any taxable year, any amount required 
     to be included in gross income for such taxable year shall be 
     so included ratably over the 3-taxable-year period beginning 
     with such taxable year.
       (ii) Special rule.--For purposes of clause (i), rules 
     similar to the rules of subparagraph (E) of section 
     408A(d)(3) of the Internal Revenue Code of 1986 shall apply.
       (F) Special rules.--
       (i) Exemption of distributions from trustee to trustee 
     transfer and withholding rules.--For purposes of sections 
     401(a)(31), 402(f), and 3405 of the Internal Revenue Code of 
     1986, qualified 2016 disaster distribution shall not be 
     treated as eligible rollover distributions.
       (ii) Qualified 2016 disaster distributions treated as 
     meeting plan distribution requirements.--For purposes of the 
     Internal Revenue Code of 1986, a qualified 2016 disaster 
     distribution shall be treated as meeting the requirements of 
     sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
     457(d)(1)(A) of the Internal Revenue Code of 1986.
       (2) Provisions relating to plan amendments.--
       (A) In general.--If this paragraph applies to any amendment 
     to any plan or annuity contract, such plan or contract shall 
     be treated as being operated in accordance with the terms of 
     the plan during the period described in subparagraph 
     (B)(ii)(I).
       (B) Amendments to which subsection applies.--
       (i) In general.--This paragraph shall apply to any 
     amendment to any plan or annuity contract which is made--

       (I) pursuant to any provision of this section, or pursuant 
     to any regulation under any provision of this section; and
       (II) on or before the last day of the first plan year 
     beginning on or after January 1, 2018, or such later date as 
     the Secretary prescribes.

     In the case of a governmental plan (as defined in section 
     414(d) of the Internal Revenue Code of 1986), subclause (II) 
     shall be applied by substituting the date which is 2 years 
     after the date otherwise applied under subclause (II).
       (ii) Conditions.--This paragraph shall not apply to any 
     amendment unless--

       (I) during the period--

       (aa) beginning on the date that this section or the 
     regulation described in clause (i)(I) takes effect (or in the 
     case of a plan or contract amendment not required by this 
     section or such regulation, the effective date specified by 
     the plan); and
       (bb) ending on the date described in clause (i)(II) (or, if 
     earlier, the date the plan or contract amendment is adopted),

     the plan or contract is operated as if such plan or contract 
     amendment were in effect; and
       (II) such plan or contract amendment applies retroactively 
     for such period.

       (c) Special Rules for Personal Casualty Losses Related to 
     2016 Major Disaster.--
       (1) In general.--If an individual has a net disaster loss 
     for any taxable year beginning after December 31, 2017, and 
     before January 1, 2026--
       (A) the amount determined under section 165(h)(2)(A)(ii) of 
     the Internal Revenue Code of 1986 shall be equal to the sum 
     of--
       (i) such net disaster loss, and
       (ii) so much of the excess referred to in the matter 
     preceding clause (i) of section 165(h)(2)(A) of such Code 
     (reduced by the amount in clause (i) of this subparagraph) as 
     exceeds 10 percent of the adjusted gross income of the 
     individual,
       (B) section 165(h)(1) of such Code shall be applied by 
     substituting ``$500'' for ``$500 ($100 for taxable years 
     beginning after December 31, 2009)'',
       (C) the standard deduction determined under section 63(c) 
     of such Code shall be increased by the net disaster loss, and
       (D) section 56(b)(1)(E) of such Code shall not apply to so 
     much of the standard deduction as is attributable to the 
     increase under subparagraph (C) of this paragraph.
       (2) Net disaster loss.--For purposes of this subsection, 
     the term ``net disaster loss'' means the excess of qualified 
     disaster-related personal casualty losses over personal 
     casualty gains (as defined in section 165(h)(3)(A) of the 
     Internal Revenue Code of 1986).
       (3) Qualified disaster-related personal casualty losses.--
     For purposes of this paragraph, the term ``qualified 
     disaster-related personal casualty losses'' means losses 
     described in section 165(c)(3) of the Internal Revenue Code 
     of 1986 which arise in a disaster area described in 
     subsection (a) on or after January 1, 2016, and which are 
     attributable to the events giving rise to the Presidential 
     declaration described in subsection (a) which was applicable 
     to such area.
                                 ______
                                 
  SA 1795. Mr. FRANKEN submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       In section 20001(b), add at the end the following:
       (6) Certain requirements for leases.--The Secretary shall 
     ensure that any lease issued under this section shall 
     include--
       (A) a requirement that the lessee comply with the Buy 
     American requirements in Executive Order 13788 (82 Fed. Reg. 
     18837 (April 18, 2017)); and
       (B) a requirement that any pipeline constructed under the 
     lease use materials and equipment produced in the United 
     States, to the maximum extent practicable, in accordance with 
     the Presidential Memorandum for the Secretary of Commerce 
     entitled ``Construction of American Pipelines'' (82 Fed. Reg. 
     8659 (January 24, 2017)).
                                 ______
                                 
  SA 1796. Mr. FRANKEN submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       In section 20001(b), add at the end the following:
       (6) Prohibition on exports.--A lease issued under this 
     section shall include provisions prohibiting the exportation 
     of oil or gas produced under the lease.
                                 ______
                                 
  SA 1797. Ms. WARREN submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       Strike part VI of subtitle A of title I and insert the 
     following:

                      PART VI--NIH AND FDA FUNDING

     SEC. 11061. NIH AND FDA FUNDING.

       (a) Appropriation.--There is authorized to be appropriated, 
     and there is appropriated, out of amounts in the Treasury not 
     otherwise obligated, to the Secretary of Health and Human 
     Services (referred to in this section as the ``Secretary''), 
     $80,000,000,000 for fiscal year 2018, for the purpose of 
     providing additional funding to the National Institutes of 
     Health and the Food and Drug Administration. Amounts 
     appropriated under this subsection shall remain available 
     until expended.
       (b) Allocation.--The Secretary shall allocate the amount 
     appropriated under subsection (a) to each of the Institutes 
     of Health and the Food and Drug Administration by 
     distributing to each such agency a portion of the amount so 
     appropriated that bears the same relation to the total amount 
     appropriated under subsection (a) as the amount of 
     discretionary funds appropriated to such agency for fiscal 
     year 2017 bears to the total amount of discretionary funding 
     appropriated to both agencies for fiscal year 2017.
                                 ______
                                 
  SA 1798. Ms. WARREN submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr.

[[Page S7638]]

McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill 
H.R. 1, to provide for reconciliation pursuant to titles II and V of 
the concurrent resolution on the budget for fiscal year 2018; which was 
ordered to lie on the table; as follows:

       At the end of title I, add the following:

                Subtitle _____--Student Loan Forgiveness

     SEC. ___01. SHORT TITLE.

       This subtitle may be cited as the ``Student Loan 
     Forgiveness Act of 2017''.

     SEC. ___02. REPEAL OF INCREASED ESTATE AND GIFT TAX EXEMPTION 
                   AND REDUCTION IN CORPORATE TAX RATE.

       Notwithstanding any other provision of law, sections 11061, 
     13001, and 13002 of this Act shall be repealed, and the 
     Internal Revenue Code of 1986 shall be applied as if such 
     sections, and the amendments made thereby, had never been 
     enacted.

     SEC. ___02. FEDERAL STUDENT LOAN FORGIVENESS.

       (a) Definition of Federal Student Loan.--In this section, 
     the term ``Federal student loan'' means a loan that--
       (1) originated before the date of enactment of this Act; 
     and
       (2) was made, insured, or guaranteed under title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 
     including any loan made under part B, D, or E of such title.
       (b) Cancellation of All Outstanding Federal Direct Student 
     Loans.--Notwithstanding title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070 et seq.) or any other provision of 
     law, the Secretary of Education shall, as appropriate for 
     each Federal student loan--
       (1) cancel the balance of interest, principal, and fees due 
     on such loan as of the date of such cancellation; or
       (2) assume, through the holder of such loan, the obligation 
     to repay the balance of interest, principal, and fees due on 
     such loan, as of the date of such assumption.
                                 ______
                                 
  SA 1799. Ms. WARREN submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the end of title I, insert the following:

                 Subtitle __--Student Loan Refinancing

     SEC. __01. SHORT TITLE.

       This subtitle may be cited as the ``Bank on Students Loan 
     Refinancing Act of 2017''.

     SEC. __02. REPEAL OF INCREASED ESTATE AND GIFT TAX EXEMPTION.

       Section 11061 of this Act is repealed and the Internal 
     Revenue Code of 1986 shall be applied as if such section, and 
     the amendments made thereby, had never taken effect.

     SEC. __03. REFINANCING PROGRAMS.

       (a) Program Authority.--Section 451(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087a(a)) is amended--
       (1) by striking ``and (2)'' and inserting ``(2)''; and
       (2) by inserting ``; and (3) to make loans under section 
     460A and section 460B'' after ``section 459A''.
       (b) Refinancing Program.--Part D of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by 
     adding at the end the following:

     ``SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT LOANS.

       ``(a) In General.--Beginning not later than 180 days after 
     the date of enactment of the Bank on Students Loan 
     Refinancing Act of 2017, the Secretary shall establish a 
     program under which the Secretary, upon the receipt of an 
     application from a qualified borrower, makes a loan under 
     this part, in accordance with the provisions of this section, 
     in order to permit the borrower to obtain the interest rate 
     provided under subsection (c).
       ``(b) Refinancing Direct Loans.--
       ``(1) Federal direct loans.--Upon application of a 
     qualified borrower, the Secretary shall repay a Federal 
     Direct Stafford Loan, a Federal Direct Unsubsidized Stafford 
     Loan, a Federal Direct PLUS Loan, or a Federal Direct 
     Consolidation Loan of the qualified borrower, for which the 
     first disbursement was made, or the application for the 
     consolidation loan was received, before July 1, 2017, with 
     the proceeds of a refinanced Federal Direct Stafford Loan, a 
     Federal Direct Unsubsidized Stafford Loan, a Federal Direct 
     PLUS Loan, or a Federal Direct Consolidation Loan, 
     respectively, issued to the borrower in an amount equal to 
     the sum of the unpaid principal, accrued unpaid interest, and 
     late charges of the original loan.
       ``(2) Refinancing ffel program loans as refinanced federal 
     direct loans.--Upon application of a qualified borrower for 
     any loan that was made, insured, or guaranteed under part B 
     and for which the first disbursement was made, or the 
     application for the consolidation loan was received, before 
     July 1, 2010, the Secretary shall make a loan under this 
     part, in an amount equal to the sum of the unpaid principal, 
     accrued unpaid interest, and late charges of the original 
     loan to the borrower in accordance with the following:
       ``(A) The Secretary shall pay the proceeds of such loan to 
     the eligible lender of the loan made, insured, or guaranteed 
     under part B, in order to discharge the borrower from any 
     remaining obligation to the lender with respect to the 
     original loan.
       ``(B) A loan made under this section that was--
       ``(i) a loan originally made, insured, or guaranteed under 
     section 428 shall be a Federal Direct Stafford Loan;
       ``(ii) a loan originally made, insured, or guaranteed under 
     section 428B shall be a Federal Direct PLUS Loan;
       ``(iii) a loan originally made, insured, or guaranteed 
     under section 428H shall be a Federal Direct Unsubsidized 
     Stafford Loan; and
       ``(iv) a loan originally made, insured, or guaranteed under 
     section 428C shall be a Federal Direct Consolidation Loan.
       ``(C) The interest rate for each loan made by the Secretary 
     under this paragraph shall be the rate provided under 
     subsection (c).
       ``(c) Interest Rates.--
       ``(1) In general.--The interest rate for the refinanced 
     Federal Direct Stafford Loans, Federal Direct Unsubsidized 
     Stafford Loans, Federal Direct PLUS Loans, and Federal Direct 
     Consolidation Loans, shall be a rate equal to--
       ``(A) in any case where the original loan was a loan under 
     section 428 or 428H, a Federal Direct Stafford loan or a 
     Federal Direct Unsubsidized Stafford Loan, that was issued to 
     an undergraduate student, a rate equal to the rate for 
     Federal Direct Stafford Loans and Federal Direct Unsubsidized 
     Stafford Loans issued to undergraduate students for the 12-
     month period beginning on July 1, 2016, and ending on June 
     30, 2017;
       ``(B) in any case where the original loan was a loan under 
     section 428 or 428H, a Federal Direct Stafford Loan or a 
     Federal Direct Unsubsidized Stafford Loan, that was issued to 
     a graduate or professional student, a rate equal to the rate 
     for Federal Direct Unsubsidized Stafford Loans issued to 
     graduate or professional students for the 12-month period 
     beginning on July 1, 2016, and ending on June 30, 2017;
       ``(C) in any case where the original loan was a loan under 
     section 428B or a Federal Direct PLUS Loan, a rate equal to 
     the rate for Federal Direct PLUS Loans for the 12-month 
     period beginning on July 1, 2016, and ending on June 30, 
     2017; and
       ``(D) in any case where the original loan was a loan under 
     section 428C or a Federal Direct Consolidation Loan, a rate 
     calculated in accordance with paragraph (2).
       ``(2) Interest rates for consolidation loans.--
       ``(A) Method of calculation.--In order to determine the 
     interest rate for any refinanced Federal Direct Consolidation 
     Loan under paragraph (1)(D), the Secretary shall--
       ``(i) determine each of the component loans that were 
     originally consolidated in the loan under section 428C or the 
     Federal Direct Consolidation Loan, and calculate the 
     proportion of the unpaid principal balance of the loan under 
     section 428C or the Federal Direct Consolidation Loan that 
     each component loan represents;
       ``(ii) use the proportions determined in accordance with 
     clause (i) and the interest rate applicable for each 
     component loan, as determined under subparagraph (B), to 
     calculate the weighted average of the interest rates on the 
     loans consolidated into the loan under section 428C or the 
     Federal Direct Consolidation Loan; and
       ``(iii) apply the weighted average calculated under clause 
     (ii) as the interest rate for the refinanced Federal Direct 
     Consolidation Loan.
       ``(B) Interest rates for component loans.--The interest 
     rates for the component loans of a loan made under section 
     428C or a Federal Direct Consolidation Loan shall be the 
     following:
       ``(i) The interest rate for any loan under section 428 or 
     428H, Federal Direct Stafford Loan or Federal Direct 
     Unsubsidized Stafford Loan issued to an undergraduate student 
     shall be a rate equal to the lesser of--

       ``(I) the rate for Federal Direct Stafford Loans and 
     Federal Direct Unsubsidized Stafford Loans issued to 
     undergraduate students for the 12-month period beginning on 
     July 1, 2016, and ending on June 30, 2017; or
       ``(II) the original interest rate of the component loan.

       ``(ii) The interest rate for any loan under section 428 or 
     428H, Federal Direct Stafford Loan or Federal Direct 
     Unsubsidized Stafford Loan issued to a graduate or 
     professional student shall be a rate equal to the lesser of--

       ``(I) the rate for Federal Direct Unsubsidized Stafford 
     Loans issued to graduate or professional students for the 12-
     month period beginning on July 1, 2016, and ending on June 
     30, 2017; or
       ``(II) the original interest rate of the component loan.

       ``(iii) The interest rate for any loan under section 428B 
     or Federal Direct PLUS Loan shall be a rate equal to the 
     lesser of--

       ``(I) the rate for Federal Direct PLUS Loans for the 12-
     month period beginning on July 1, 2016, and ending on June 
     30, 2017; or
       ``(II) the original interest rate of the component loan.

       ``(iv) The interest rate for any component loan that is a 
     loan under section 428C or a Federal Direct Consolidation 
     Loan shall be the weighted average of the interest rates that 
     would apply under this subparagraph for each loan comprising 
     the component consolidation loan.
       ``(v) The interest rate for any eligible loan that is a 
     component of a loan made under section 428C or a Federal 
     Direct Consolidation Loan and is not described in clauses (i)

[[Page S7639]]

     through (iv) shall be the interest rate on the original 
     component loan.
       ``(3) Fixed rate.--The applicable rate of interest 
     determined under paragraph (1) for a refinanced loan under 
     this section shall be fixed for the period of the loan.
       ``(d) Terms and Conditions of Loans.--
       ``(1) In general.--A loan that is refinanced under this 
     section shall have the same terms and conditions as the 
     original loan, except as otherwise provided in this section.
       ``(2) No automatic extension of repayment period.--
     Refinancing a loan under this section shall not result in the 
     extension of the duration of the repayment period of the 
     loan, and the borrower shall retain the same repayment term 
     that was in effect on the original loan. Nothing in this 
     paragraph shall be construed to prevent a borrower from 
     electing a different repayment plan at any time in accordance 
     with section 455(d)(3).
       ``(e) Definition of Qualified Borrower.--
       ``(1) In general.--For purposes of this section, the term 
     `qualified borrower' means a borrower--
       ``(A) of a loan under this part or part B for which the 
     first disbursement was made, or the application for a 
     consolidation loan was received, before July 1, 2017; and
       ``(B) who meets the eligibility requirements based on 
     income or debt-to-income ratio established by the Secretary.
       ``(2) Income requirements.--Not later than 180 days after 
     the date of enactment of the Bank on Students Loan 
     Refinancing Act of 2017, the Secretary shall establish 
     eligibility requirements based on income or debt-to-income 
     ratio that take into consideration providing access to 
     refinancing under this section for borrowers with the 
     greatest financial need.
       ``(f) Notification to Borrowers.--The Secretary, in 
     coordination with the Director of the Bureau of Consumer 
     Financial Protection, shall undertake a campaign to alert 
     borrowers of loans that are eligible for refinancing under 
     this section that the borrowers are eligible to apply for 
     such refinancing. The campaign shall include the following 
     activities:
       ``(1) Developing consumer information materials about the 
     availability of Federal student loan refinancing.
       ``(2) Requiring servicers of loans under this part or part 
     B to provide such consumer information to borrowers in a 
     manner determined appropriate by the Secretary, in 
     consultation with the Director of the Bureau of Consumer 
     Financial Protection.

     ``SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible private education loan.--The term `eligible 
     private education loan' means a private education loan, as 
     defined in section 140(a) of the Truth in Lending Act (15 
     U.S.C. 1650(a)), that--
       ``(A) was disbursed to the borrower before July 1, 2017; 
     and
       ``(B) was for the borrower's own postsecondary educational 
     expenses for an eligible program at an institution of higher 
     education participating in the loan program under this part, 
     as of the date that the loan was disbursed.
       ``(2) Federal direct refinanced private loan.--The term 
     `Federal Direct Refinanced Private Loan' means a loan issued 
     under subsection (b)(1).
       ``(3) Private educational lender.--The term `private 
     educational lender' has the meaning given the term in section 
     140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
       ``(4) Qualified borrower.--The term `qualified borrower' 
     means an individual who--
       ``(A) has an eligible private education loan;
       ``(B) has been current on payments on the eligible private 
     education loan for the 6 months prior to the date of the 
     qualified borrower's application for refinancing under this 
     section, and is in good standing on the loan at the time of 
     such application;
       ``(C) is not in default on the eligible private education 
     loan or on any loan made, insured, or guaranteed under this 
     part or part B or E; and
       ``(D) meets the eligibility requirements described in 
     subsection (b)(2).
       ``(b) Program Authorized.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Treasury, shall carry out a program under 
     which the Secretary, upon application by a qualified borrower 
     who has an eligible private education loan, shall issue such 
     borrower a loan under this part in accordance with the 
     following:
       ``(A) The loan issued under this program shall be in an 
     amount equal to the sum of the unpaid principal, accrued 
     unpaid interest, and late charges of the private education 
     loan.
       ``(B) The Secretary shall pay the proceeds of the loan 
     issued under this program to the private educational lender 
     of the private education loan, in order to discharge the 
     qualified borrower from any remaining obligation to the 
     lender with respect to the original loan.
       ``(C) The Secretary shall require that the qualified 
     borrower undergo loan counseling that provides all of the 
     information and counseling required under clauses (i) through 
     (viii) of section 485(b)(1)(A) before the loan is refinanced 
     in accordance with this section, and before the proceeds of 
     such loan are paid to the private educational lender.
       ``(D) The Secretary shall issue the loan as a Federal 
     Direct Refinanced Private Loan, which shall have the same 
     terms, conditions, and benefits as a Federal Direct 
     Unsubsidized Stafford Loan, except as otherwise provided in 
     this section.
       ``(2) Borrower eligibility.--Not later than 180 days after 
     the date of enactment of the Bank on Students Loan 
     Refinancing Act of 2017, the Secretary, in consultation with 
     the Secretary of the Treasury and the Director of the Bureau 
     of Consumer Financial Protection, shall establish eligibility 
     requirements--
       ``(A) based on income or debt-to-income ratio that take 
     into consideration providing access to refinancing under this 
     section for borrowers with the greatest financial need;
       ``(B) to ensure eligibility only for borrowers in good 
     standing;
       ``(C) to minimize inequities between Federal Direct 
     Refinanced Private Loans and other Federal student loans;
       ``(D) to preclude windfall profits for private educational 
     lenders; and
       ``(E) to ensure full access to the program authorized in 
     this subsection for borrowers with private loans who 
     otherwise meet the criteria established in accordance with 
     subparagraphs (A) and (B).
       ``(c) Interest Rate.--
       ``(1) In general.--The interest rate for a Federal Direct 
     Refinanced Private Loan is--
       ``(A) in the case of a Federal Direct Refinanced Private 
     Loan for a private education loan originally issued for 
     undergraduate postsecondary educational expenses, a rate 
     equal to the rate for Federal Direct Stafford Loans and 
     Federal Direct Unsubsidized Stafford Loans issued to 
     undergraduate students for the 12-month period beginning on 
     July 1, 2016, and ending on June 30, 2017; and
       ``(B) in the case of a Federal Direct Refinanced Private 
     Loan for a private education loan originally issued for 
     graduate or professional degree postsecondary educational 
     expenses, a rate equal to the rate for Federal Direct 
     Unsubsidized Stafford Loans issued to graduate or 
     professional students for the 12-month period beginning on 
     July 1, 2016, and ending on June 30, 2017.
       ``(2) Combined undergraduate and graduate study loans.--If 
     a Federal Direct Refinanced Private Loan is for a private 
     education loan originally issued for both undergraduate and 
     graduate or professional postsecondary educational expenses, 
     the interest rate shall be a rate equal to the rate for 
     Federal Direct PLUS Loans for the 12-month period beginning 
     on July 1, 2016, and ending on June 30, 2017.
       ``(3) Fixed rate.--The applicable rate of interest 
     determined under this subsection for a Federal Direct 
     Refinanced Private Loan shall be fixed for the period of the 
     loan.
       ``(d) No Inclusion in Aggregate Limits.--The amount of a 
     Federal Direct Refinanced Private Loan or a Federal Direct 
     Consolidated Loan to the extent such loan was used to repay a 
     Federal Direct Refinanced Private Loan, shall not be included 
     in calculating a borrower's annual or aggregate loan limits 
     under section 428 or 428H.
       ``(e) No Eligibility for Service-related Repayment.--
     Notwithstanding sections 428K(a)(2)(A), 428L(b)(2), 
     455(m)(3)(A), and 460(b), a Federal Direct Refinanced Private 
     Loan, or any Federal Direct Consolidation Loan to the extent 
     such loan was used to repay a Federal Direct Refinanced 
     Private Loan, shall not be eligible for any loan repayment or 
     loan forgiveness program under section 428K, 428L, or 460 or 
     for the repayment plan for public service employees under 
     section 455(m).
       ``(f) Private Educational Lender Reporting Requirement.--
       ``(1) Reporting required.--Not later than 180 days after 
     the date of enactment of the Bank on Students Loan 
     Refinancing Act of 2017, the Secretary, in consultation with 
     the Secretary of the Treasury and the Director of the Bureau 
     of Consumer Financial Protection, shall establish a 
     requirement that private educational lenders report the data 
     described in paragraph (2) to the Secretary, to Congress, to 
     the Secretary of the Treasury, and to the Director of the 
     Bureau of Consumer Financial Protection, in order to allow 
     for an assessment of the private education loan market.
       ``(2) Contents of reporting.--The data that private 
     educational lenders shall report in accordance with paragraph 
     (1) shall include each of the following about private 
     education loans (as defined in section 140(a) of the Truth in 
     Lending Act (15 U.S.C. 1650(a))):
       ``(A) The total amount of private education loan debt the 
     lender holds.
       ``(B) The total number of private education loan borrowers 
     the lender serves.
       ``(C) The average interest rate on the outstanding private 
     education loan debt held by the lender.
       ``(D) The proportion of private education loan borrowers 
     who are in default on a loan held by the lender.
       ``(E) The proportion of the outstanding private education 
     loan volume held by the lender that is in default.
       ``(F) The proportions of outstanding private education loan 
     borrowers who are 30, 60, and 90 days delinquent.
       ``(G) The proportions of outstanding private education loan 
     volume that is 30, 60, and 90 days delinquent.
       ``(g) Notification to Borrowers.--The Secretary, in 
     coordination with the Secretary of the Treasury and the 
     Director of the Bureau of Consumer Financial Protection, 
     shall undertake a campaign to alert borrowers about the 
     availability of private student loan refinancing under this 
     section.''.

[[Page S7640]]

       (c) Amendments to Public Service Repayment Plan 
     Provisions.--Section 455(m) of the Higher Education Act of 
     1965 (20 U.S.C. 1087e(m)) is amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively;
       (2) by inserting after paragraph (2) the following:
       ``(3) Special rules for section 460a loans.--
       ``(A) Refinanced federal direct loans.--Notwithstanding 
     paragraph (1), in determining the number of monthly payments 
     that meet the requirements of such paragraph for an eligible 
     Federal Direct Loan refinanced under section 460A that was 
     originally a loan under this part, the Secretary shall 
     include all monthly payments made on the original loan that 
     meet the requirements of such paragraph.
       ``(B) Refinanced ffel loans.--In the case of an eligible 
     Federal Direct Loan refinanced under section 460A that was 
     originally a loan under part B, only monthly payments made 
     after the date on which the loan was refinanced may be 
     included for purposes of paragraph (1).''; and
       (3) in paragraph (4)(A) (as redesignated by paragraph (1)), 
     by inserting ``(including any Federal Direct Stafford Loan, 
     Federal Direct PLUS Loan, Federal Direct Unsubsidized 
     Stafford Loan, or Federal Direct Consolidation Loan 
     refinanced under section 460A)'' before the period at the 
     end.
       (d) Income-based Repayment.--Section 493C of the Higher 
     Education Act of 1965 (20 U.S.C. 1098e) is amended by adding 
     at the end the following:
       ``(f) Special Rule for Refinanced Loans.--
       ``(1) Refinanced federal direct and ffel loans.--In 
     calculating the period of time during which a borrower of a 
     loan that is refinanced under section 460A has made monthly 
     payments for purposes of subsection (b)(7), the Secretary 
     shall deem the period to include all monthly payments made 
     for the original loan, and all monthly payments made for the 
     refinanced loan, that otherwise meet the requirements of this 
     section.
       ``(2) Federal direct refinanced private loans.--In 
     calculating the period of time during which a borrower of a 
     Federal Direct Refinanced Private Loan under section 460B has 
     made monthly payments for purposes of subsection (b)(7), the 
     Secretary shall include only payments--
       ``(A) that are made after the date of the issuance of the 
     Federal Direct Refinanced Private Loan; and
       ``(B) that otherwise meet the requirements of this 
     section.''.
                                 ______
                                 
  SA 1800. Ms. WARREN submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the end of title I, add the following:

                    Subtitle F--Rebuild America Now

     SEC. 16001. SHORT TITLE.

       This subtitle may be cited as the ``Rebuild America Act of 
     2017''.

     SEC. 16002. REPEAL OF INCREASED ESTATE AND GIFT TAX EXEMPTION 
                   AND REDUCTION IN CORPORATE TAX RATE.

       The amendments made by sections 11061, 13001, and 13002 of 
     this Act are repealed and shall be applied as if they had 
     never taken effect.

     SEC. 16003. NON-FEDERAL COST SHARE OF AFFECTED PROGRAMS.

       Notwithstanding any other provision of law (including 
     regulations), the non-Federal share of the cost of any 
     activity carried out using funds provided by this subtitle or 
     an amendment made by this subtitle shall be an amount equal 
     to the product obtained by multiplying--
       (1) the non-Federal cost share of the activity, as in 
     effect on the day before the date of enactment of this Act; 
     and
       (2) 0.5.

                    PART I--INFRASTRUCTURE PROGRAMS

     SEC. 16011. TRANSPORTATION INFRASTRUCTURE.

       (a) Highway Trust Fund.--Out of funds of the Treasury not 
     otherwise appropriated, in addition to any other funds made 
     available for the Highway Trust Fund, there is appropriated 
     $75,000,000,000 for each of fiscal years 2018 through 2025 to 
     the Highway Trust Fund to improve roads, bridges, and other 
     transportation infrastructure in the United States.
       (b) Intercity Passenger and High-speed Rail Service.--Out 
     of funds of the Treasury not otherwise appropriated, there is 
     appropriated $15,000,000,000 for each of fiscal years 2018 
     through 2022 to the Secretary of Transportation--
       (1) to make quarterly grants to the National Railroad 
     Passenger Corporation for the operation of intercity 
     passenger rail, as authorized by section 101 of the Passenger 
     Rail Investment and Improvement Act of 2008 (division B of 
     Public Law 110-432; 122 Stat. 4908);
       (2) to make discretionary grants to States to pay the cost 
     of projects described in subparagraphs (A) and (B) of section 
     24401(2) of title 49, United States Code, subject to the 
     condition that the Secretary of Transportation shall give 
     priority to projects that support the development of 
     intercity high-speed rail service; and
       (3) to carry out section 5309 of title 49, United States 
     Code.
       (c) Transportation Infrastructure Finance and Innovation.--
     Out of funds of the Treasury not otherwise appropriated, 
     there is appropriated $2,000,000,000 for each of fiscal years 
     2018 through 2022 to provide credit assistance for surface 
     transportation projects of national and regional significance 
     in accordance with chapter 6 of title 23, United States Code.
       (d) Airport Improvement.--Out of funds of the Treasury not 
     otherwise appropriated, there is appropriated $2,500,000,000 
     for each of fiscal years 2018 through 2022 to implement 
     airport improvement and noise compatibility projects at 
     public-use airports in accordance with subchapter I of 
     chapter 471 of title 49, United States Code.
       (e) Next Generation Air Transportation System.--Out of 
     funds of the Treasury not otherwise appropriated, there is 
     appropriated $3,500,000,000 for each of fiscal years 2018 
     through 2022 to the Next Generation Air Transportation System 
     Joint Planning and Development Office of the Federal Aviation 
     Administration to accelerate deployment of satellite 
     technology to improve airport safety and capacity.
       (f) National Infrastructure Investments.--Out of funds of 
     the Treasury not otherwise appropriated, there is 
     appropriated $5,000,000,000 for each of fiscal years 2018 
     through 2022 for the discretionary grant program under title 
     I of division K of the Consolidated and Further Continuing 
     Appropriations Act, 2015 (Public Law 113-235) (commonly 
     referred to as the ``TIGER Discretionary Grant Program''), 
     subject to the condition that, for projects carried out under 
     that program that are located in rural areas, the Secretary 
     of Transportation may increase the Federal share of the costs 
     of the project to 100 percent.

     SEC. 16012. WATER INFRASTRUCTURE.

       (a) State Water Pollution Control Revolving Funds.--Out of 
     funds of the Treasury not otherwise appropriated, there is 
     appropriated $6,000,000,000 for each of fiscal years 2018 
     through 2022 to the Administrator of the Environmental 
     Protection Agency to make capitalization grants to States for 
     the purpose of establishing water pollution control revolving 
     funds under title VI of the Federal Water Pollution Control 
     Act (33 U.S.C. 1381 et seq.).
       (b) State Drinking Water Treatment Revolving Loan Funds.--
     Out of funds of the Treasury not otherwise appropriated, 
     there is appropriated $6,000,000,000 for each of fiscal years 
     2018 through 2022 to the Administrator of the Environmental 
     Protection Agency to make capitalization grants to States for 
     the purpose of establishing drinking water treatment 
     revolving loan funds under section 1452(a) of the Safe 
     Drinking Water Act (42 U.S.C. 300j-12(a)).
       (c) Water Infrastructure Finance and Innovation.--Out of 
     funds of the Treasury not otherwise appropriated, in addition 
     to the amounts made available under section 5033(a) of the 
     Water Infrastructure Finance and Innovation Act of 2014 (33 
     U.S.C. 3912(a)), there is appropriated $2,000,000,000 for 
     each of fiscal years 2018 through 2022 the Administrator of 
     the Environmental Protection Agency to provide long-term, 
     low-interest loans for large water infrastructure projects 
     that are not eligible for funding from a State revolving loan 
     fund, in accordance with the Water Infrastructure Finance and 
     Innovation Act of 2014 (33 U.S.C. 3901 et seq.).
       (d) Non-Federal Dams and Levees.--Out of funds of the 
     Treasury not otherwise appropriated, there is appropriated 
     $2,000,000,000 to the Director of the Federal Emergency 
     Management Agency to carry out the predisaster hazard 
     mitigation program under section 203 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5133) for each of fiscal years 2018 through 2022 for--
       (1) minor localized flood reduction projects; and
       (2) major flood risk reduction projects.
       (e) Inland Waterways.--Out of funds of the Treasury not 
     otherwise appropriated, there is appropriated $1,500,000,000 
     for each of fiscal years 2018 through 2022 to the 
     Construction Account of the Corps of Engineers for the 
     construction, replacement, rehabilitation, and expansion of 
     inland waterways projects to improve the movement and 
     transport of goods, subject to the condition that, 
     notwithstanding any other provision of law, none of the 
     amounts provided by this subsection may be cost-shared with 
     any amounts from the Inland Waterways Trust Fund established 
     by section 9506(a) of the Internal Revenue Code of 1986.
       (f) Harbor Maintenance.--Out of funds of the Treasury not 
     otherwise appropriated, there is appropriated $1,500,000,000 
     for each of fiscal years 2018 through 2022 to the Operation 
     and Maintenance Account of the Corps of Engineers for the 
     eligible operations and maintenance costs of all coastal 
     harbors and channels and for inland harbors to improve the 
     movement of goods through marine ports in the United States.
       (g) Dams and Levees.--
       (1) In general.--Subject to paragraph (2), out of funds of 
     the Treasury not otherwise appropriated, there is 
     appropriated $10,000,000,000 for each of fiscal years 2018 
     through 2022 to the Construction Account of the Corps of 
     Engineers for the following activities:
       (A) Activities falling within Dam Safety and Levee Safety 
     Action Classifications 1, 2, and 3.

[[Page S7641]]

       (B) Activities authorized by subtitle B of title III of the 
     Water Resources Reform and Development Act of 2014 (Public 
     Law 113-121; 128 Stat. 1284) (including the amendments made 
     by that subtitle).
       (C) Assistance for flood damage reduction activities 
     authorized by the Water Infrastructure Finance and Innovation 
     Act of 2014 (33 U.S.C. 3901 et seq.).
       (2) Requirements.--The Secretary of the Army, acting 
     through the Chief of Engineers--
       (A) may use the funds appropriated pursuant to this 
     subsection to carry out authorized flood damage reduction and 
     coastal storm damage reduction activities, including the 
     activities authorized by--
       (i) section 1001 of the Water Resources Development Act of 
     2007 (Public Law 110-114; 121 Stat. 1049); and
       (ii) section 7002 of the Water Resources Reform and 
     Development Act of 2014 (Public Law 113-121; 128 Stat. 1364); 
     and
       (B) shall have unlimited reprogramming authority with 
     respect to those funds.

     SEC. 16013. NATIONAL PARK SERVICE.

       Out of funds of the Treasury not otherwise appropriated, 
     there is appropriated $3,000,000,000 for each of fiscal years 
     2018 through 2022 for--
       (1) expenses necessary for the management, operation, and 
     maintenance of areas and facilities administered by the 
     National Park Service; and
       (2) the general administration of the National Park 
     Service.

     SEC. 16014. MISCELLANEOUS INFRASTRUCTURE.

       (a) Broadband Initiatives Program.--Out of funds of the 
     Treasury not otherwise appropriated, there is appropriated 
     $2,500,000,000 for each of fiscal years 2018 through 2022 for 
     the broadband initiatives program established under title VI 
     of the Rural Electrification Act of 1936 (7 U.S.C. 950bb et 
     seq.) to expand the access and quality of broadband service 
     across the rural United States.
       (b) Broadband Technology Opportunities Program.--Out of 
     funds of the Treasury not otherwise appropriated, there is 
     appropriated $2,500,000,000 for each of fiscal years 2018 
     through 2022 to the Assistant Secretary of Commerce for 
     Communications and Information to make grants for purposes of 
     the Broadband Technology Opportunities Program established 
     under section 6001(a) of the American Recovery and 
     Reinvestment Act of 2009 (47 U.S.C. 1305(a)), including 
     providing access and improving broadband service to 
     underserved areas of the United States.
       (c) Electric Grid.--Out of funds of the Treasury not 
     otherwise appropriated, there is appropriated $10,000,000,000 
     for each of fiscal years 2018 through 2022 to the Secretary 
     of Energy for expenses necessary for--
       (1) electricity delivery and energy reliability activities 
     to modernize the electric grid, including activities relating 
     to--
       (A) demand responsive equipment;
       (B) enhanced security and reliability of the energy 
     infrastructure;
       (C) energy storage research, development, demonstration, 
     and deployment; and
       (D) facilitating recovery from disruptions to the energy 
     supply; and
       (2) implementation of the programs authorized under title 
     XIII of the Energy Independence and Security Act of 2007 (42 
     U.S.C. 17381 et seq.).

     SEC. 16015. MAINTENANCE OF FUNDING; ADMINISTRATIVE EXPENSES.

       (a) Maintenance of Funding.--The funding provided to any 
     program or account under this part shall supplement (and not 
     supplant) any funding provided for that program or account 
     under any other provision of law.
       (b) Administrative Expenses.--Notwithstanding any other 
     provision of law (including regulations), a Federal 
     department or agency that receives funds pursuant to this 
     subtitle may use not more than 5 percent of the funds for 
     administrative expenses.

                 PART II--NATIONAL INFRASTRUCTURE BANK

     SEC. 16021. DEFINITIONS.

       For purposes of this part, the following definitions shall 
     apply, unless the context requires otherwise:
       (1) Bank.--The term ``Bank'' means the National 
     Infrastructure Development Bank established under section 
     16022(a).
       (2) Board.--The term ``Board'' means the National 
     Infrastructure Development Bank Board.
       (3) Chief asset and liability management officer.--The term 
     ``chief asset and liability management officer'' means the 
     chief individual responsible for coordinating the management 
     of assets and liabilities of the Bank.
       (4) Chief compliance officer; cco.--The term ``chief 
     compliance officer'' or ``CCO'' means the chief individual 
     responsible for overseeing and managing the compliance and 
     regulatory affairs issues of the Bank.
       (5) Chief financial officer; cfo.--The term ``chief 
     financial officer'' or ``CFO'' means the chief individual 
     responsible for managing the financial risks, planning, and 
     reporting of the Bank.
       (6) Chief loan origination officer.--The term ``chief loan 
     origination officer'' means the chief individual responsible 
     for the processing of new loans provided by the Bank.
       (7) Chief operations officer; coo.--The term ``chief 
     operations officer'' or ``COO'' means the chief individual 
     responsible for information technology and the day-to-day 
     operations of the Bank.
       (8) Chief risk officer; cro.--The term ``chief risk 
     officer'' or ``CRO'' means the chief individual responsible 
     for managing operational and compliance-related risks of the 
     Bank.
       (9) Chief treasury officer.--The term ``chief treasury 
     officer'' means the chief individual responsible for managing 
     the Bank's treasury operations.
       (10) Develop; development.--The terms ``develop'' and 
     ``development'' mean, with respect to an infrastructure 
     project, any--
       (A) preconstruction planning, feasibility review, 
     permitting, design work, and other preconstruction 
     activities; and
       (B) construction, reconstruction, rehabilitation, 
     replacement, or expansion.
       (11) Disadvantaged community.--The term ``disadvantaged 
     community'' means a community with a median household income 
     of less than 80 percent of the statewide median household 
     income for the State in which the community is located.
       (12) Energy infrastructure project.--The term ``energy 
     infrastructure project'' means any project for energy 
     transmission, energy efficiency enhancement for buildings, 
     public housing and federally assisted multifamily housing, 
     and schools, renewable energy, and energy storage.
       (13) Entity.--The term ``entity'' means an individual, 
     corporation, partnership (including a public-private 
     partnership), joint venture, trust, and a State or other 
     governmental entity, including a political subdivision or any 
     other instrumentality of a State or a revolving fund.
       (14) Environmental infrastructure project.--The term 
     ``environmental infrastructure project'' means any project 
     for the establishment, maintenance, or enhancement of any 
     drinking water and wastewater treatment facility, storm water 
     management system, dam, levee, open space management system, 
     solid waste disposal facility, hazardous waste facility, 
     industrial site cleanup, or redevelopment of a brownfield 
     site (as defined in section 101 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601)).
       (15) Executive director.--The term ``executive director'' 
     means the individual serving as the chief executive officer 
     of the Bank.
       (16) General counsel.--The term ``general counsel'' means 
     the individual who serves as the chief lawyer for the Bank.
       (17) Infrastructure project.--The term ``infrastructure 
     project'' means any energy, environmental, 
     telecommunications, data, or transportation infrastructure 
     project.
       (18) Public benefit bond.--The term ``public benefit bond'' 
     means a bond issued with respect to an infrastructure project 
     in accordance with this part if--
       (A) the net spendable proceeds from the sale of the issue 
     may be used for expenditures incurred after the date of 
     issuance with respect to the project, subject to the rules of 
     the Bank;
       (B) the bond issued by the Bank is in registered form and 
     meets the requirements of this part and otherwise applicable 
     law;
       (C) the term of each bond which is part of the issue is 
     greater than 30 years; and
       (D) the payment of principal with respect to the bond is 
     the obligation of the Bank.
       (19) Public-private partnership.--The term ``public-private 
     partnership'' means any entity--
       (A)(i) which is undertaking the development of all or part 
     of an infrastructure project, which will have a public 
     benefit, pursuant to requirements established in one or more 
     contracts between the entity and a State or an 
     instrumentality of a State; or
       (ii) the activities of which, with respect to such an 
     infrastructure project, are subject to regulation by a State 
     or any instrumentality of a State; and
       (B) which owns, leases, or operates, or will own, lease, or 
     operate, the project in whole or in part, and at least one of 
     the participants in the entity is a nongovernmental entity.
       (20) Revolving fund.--The term ``revolving fund'' means a 
     fund or program established by a State or a political 
     subdivision or other instrumentality of a State, the 
     principal activity of which is to make loans, commitments, or 
     other financial accommodation available for the development 
     of one or more categories of infrastructure projects.
       (21) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury (or a designee).
       (22) Smart grid.--The term ``smart grid'' means a system 
     that provides for any of the smart grid functions set forth 
     in section 1306(d) of the Energy Independence and Security 
     Act of 2007 (42 U.S.C. 17386(d)).
       (23) Smart growth.--The term ``smart growth'' means 
     development that avoids sprawl, including any activity--
       (A) relating to policy analysis (such as reviewing State 
     and local codes, school siting guidelines, and transportation 
     policies) or a public participatory process (such as 
     visioning, design workshops, alternative analysis, and build-
     out analysis); and
       (B) activities similar to those carried out pursuant to the 
     Department of Housing and Urban Development-Department of 
     Transportation-Environmental Protection Agency Partnership 
     for Sustainable Communities.
       (24) State.--The term ``State'' includes the District of 
     Columbia, Puerto Rico, Guam, American Samoa, the Virgin 
     Islands, the Commonwealth of the Northern Mariana Islands, 
     and any other territory of the United States.
       (25) Telecommunications infrastructure project.--
       (A) In general.--The term ``telecommunications 
     infrastructure project'' means any

[[Page S7642]]

     project involving infrastructure required to provide 
     information by wire or radio.
       (B) Inclusions.--The term ``telecommunications 
     infrastructure project'' includes--
       (i) a project carried out by a State, county, or municipal 
     agency;
       (ii) a community-owned project; and
       (iii) any other project administered by a public provider.
       (26) Transportation infrastructure project.--The term 
     ``transportation infrastructure project'' means any project 
     for the construction, maintenance, or enhancement of 
     highways, roads, bridges, transit and intermodal systems, 
     inland waterways, commercial ports, airports, intercity bus, 
     high-speed rail, and freight rail systems.

     SEC. 16022. ESTABLISHMENT OF NATIONAL INFRASTRUCTURE 
                   DEVELOPMENT BANK.

       (a) Establishment of National Infrastructure Development 
     Bank.--The National Infrastructure Development Bank is 
     established as a wholly owned Government corporation subject 
     to chapter 91 of title 31, United States Code (commonly known 
     as the ``Government Corporation Control Act''), except as 
     otherwise provided in this part.
       (b) Responsibility of the Secretary.--The Secretary shall 
     take such action as may be necessary to assist in 
     implementing the establishment of the Bank in accordance with 
     this part.
       (c) Conforming Amendment.--Section 9101(3) of title 31, 
     United States Code, is amended by inserting after 
     subparagraph (N) the following:
       ``(O) the National Infrastructure Development Bank.''.

     SEC. 16023. BOARD OF DIRECTORS.

       (a) In General.--The Bank shall have a Board of Directors 
     consisting of 5 members appointed by the President, by and 
     with the advice and consent of the Senate.
       (b) Qualifications.--The directors of the Board shall 
     include individuals representing different regions of the 
     United States and--
       (1) 2 of the directors shall have public sector experience; 
     and
       (2) 3 of the directors shall have private sector 
     experience.
       (c) Chairperson and Vice Chairperson.--As designated at the 
     time of appointment, one of the directors of the Board shall 
     be designated chairperson of the Board by the President and 
     one shall be designated as vice chairperson of the Board by 
     the President.
       (d) Terms.--
       (1) In general.--Except as provided in paragraph (2) and 
     subsection (f), each director shall be appointed for a term 
     of 6 years.
       (2) Initial staggered terms.--Of the initial members of the 
     Board--
       (A) the chairperson and vice chairperson shall be appointed 
     for terms of 6 years;
       (B) 1 shall be appointed for a term of 5 years;
       (C) 1 shall be appointed for a term of 4 years; and
       (D) 1 shall be appointed for a term of 3 years.
       (e) Date of Initial Nominations.--The initial nominations 
     by the President for appointment of directors to the Board 
     shall be made not later than 60 days after the date of 
     enactment of this Act.
       (f) Vacancies.--
       (1) In general.--A vacancy on the Board shall be filled in 
     the manner in which the original appointment was made.
       (2) Appointment to replace during term.--Any director 
     appointed to fill a vacancy occurring before the expiration 
     of the term for which the director's predecessor was 
     appointed shall be appointed only for the remainder of the 
     term.
       (3) Duration.--A director may serve after the expiration of 
     that director's term until a successor has taken office.
       (g) Quorum.--Three directors shall constitute a quorum.
       (h) Reappointment.--A director of the Board appointed by 
     the President may be reappointed by the President in 
     accordance with this section.
       (i) Per Diem Reimbursement.--Directors of the Board shall 
     serve on a part-time basis and shall receive a per diem when 
     engaged in the actual performance of Bank business, plus 
     reasonable reimbursement for travel, subsistence, and other 
     necessary expenses incurred in the performance of their 
     duties.
       (j) Limitations.--A director of the Board may not 
     participate in any review or decision affecting a project 
     under consideration for assistance under this part if the 
     director has or is affiliated with a person who has an 
     interest in such project.
       (k) Powers and Limitations of the Board.--
       (1) Powers.--In order to carry out the purposes of the Bank 
     as set forth in this part, the Board shall be responsible for 
     monitoring and overseeing infrastructure projects and have 
     the following powers:
       (A) To make senior and subordinated loans and purchase 
     senior and subordinated debt securities and enter into a 
     binding commitment to make any such loan or purchase any such 
     security, on such terms as the Board may determine, in the 
     Board's discretion, to be appropriate, the proceeds of which 
     are to be used to finance or refinance the development of one 
     or more infrastructure projects.
       (B) To issue and sell debt securities of the Bank on such 
     terms as the Board shall determine from time to time.
       (C) To issue public benefit bonds and to provide direct 
     subsidies to infrastructure projects from amounts made 
     available from the issuance of such bonds.
       (D) To make loan guarantees.
       (E) To make agreements and contracts with any entity in 
     furtherance of the business of the Bank.
       (F) To borrow on the global capital market and lend to 
     regional, State, and local entities, and commercial banks for 
     the purpose of funding infrastructure projects.
       (G) To purchase, pool, and sell infrastructure-related 
     loans and securities on the global capital market.
       (H) To purchase in the open market any of the Bank's 
     outstanding obligations at any time and at any price.
       (I) To monitor and oversee infrastructure projects 
     financed, in whole or in part, by the Bank.
       (J) To acquire, lease, pledge, exchange, and dispose of 
     real and personal property and otherwise exercise all the 
     usual incidents of ownership of property to the extent the 
     exercise of such powers are appropriate to and consistent 
     with the purposes of the Bank.
       (K) To sue and be sued in the Bank's corporate capacity in 
     any court of competent jurisdiction, except that no 
     attachment, injunction, or similar process, may be issued 
     against the property of the Bank or against the Bank with 
     respect to such property.
       (L) To indemnify the directors and officers of the Bank for 
     liabilities arising out of the actions of the directors and 
     officers in such capacity, in accordance with, and subject to 
     the limitations contained in this part.
       (M) To serve as the primary liaison between the Bank, 
     Congress, the executive branch, and State and local 
     governments and to represent the Bank's interests.
       (N) To exercise all other lawful powers which are necessary 
     or appropriate to carry out, and are consistent with, the 
     purposes of the Bank.
       (2) Limitations.--
       (A) Issuance of debt security.--The Board may not issue any 
     debt security without the prior consent of the Secretary.
       (B) Issuance of voting security.--The Board may not issue 
     any voting security in the Bank to any entity other than the 
     Secretary.
       (C) Employee protections.--Prior to providing any financial 
     assistance for an infrastructure project involving 
     reconstruction, rehabilitation, replacement, or expansion 
     that may affect current employees on the project site, the 
     interests of those affected employees shall be protected in 
     accordance with such arrangements as the Secretary of Labor 
     determines to be fair and equitable.
       (3) Actions consistent with self-supporting entity 
     status.--The Board shall conduct its business in a manner 
     consistent with the requirements of this section.
       (4) Coordination with state and local regulatory 
     authority.--The provision of financial assistance by the 
     Board pursuant to this part shall not be construed as--
       (A) limiting the right of any State or political 
     subdivision or other instrumentality of a State to approve or 
     regulate rates of return on private equity invested in a 
     project; or
       (B) otherwise superseding any State law or regulation 
     applicable to a project.
       (5) Federal personnel requests.--The Board shall have the 
     power to request the detail, on a reimbursable basis, of 
     personnel from other Federal agencies with specific expertise 
     not available from within the Bank or elsewhere. The head of 
     any Federal agency may detail, on a reimbursable basis, any 
     personnel of such agency requested by the Board and shall not 
     withhold unreasonably the detail of any personnel requested 
     by the Board.
       (l) Meetings.--
       (1) Open to the public; notice.--All meetings of the Board 
     held to conduct the business of the Bank shall be open to the 
     public and shall be preceded by reasonable notice.
       (2) Initial meeting.--The Board shall meet not later than 
     90 days after the date on which all directors of the Board 
     are first appointed and otherwise at the call of the 
     Chairperson.
       (3) Exception for closed meetings.--Pursuant to such rules 
     as the Board may establish through their bylaws, the 
     directors may close a meeting of the Board if, at the 
     meeting, there is likely to be disclosed information which 
     could adversely affect or lead to speculation relating to an 
     infrastructure project under consideration for assistance 
     under this part or in financial or securities or commodities 
     markets or institutions, utilities, or real estate. The 
     determination to close any meeting of the Board shall be made 
     in a meeting of the Board, open to the public, and preceded 
     by reasonable notice. The Board shall prepare minutes of any 
     meeting which is closed to the public and make such minutes 
     available as soon as the considerations necessitating closing 
     such meeting no longer apply.

     SEC. 16024. EXECUTIVE COMMITTEE.

       (a) In General.--The Board shall have an executive 
     committee consisting of 9 members, headed by the executive 
     director of the Bank.
       (b) Executive Director.--A majority of the Board shall have 
     the authority to appoint and reappoint the executive 
     director.
       (c) CEO.--The executive director shall be the chief 
     executive officer of the Bank, with such executive functions, 
     powers, and duties as may be prescribed by this part, the 
     bylaws of the Bank, or the Board.
       (d) Other Executive Officers.--The Board shall appoint, 
     remove, fix the compensation, and define duties of 8 other 
     executive officers to serve on the executive committee as 
     the--
       (1) chief compliance officer;
       (2) chief financial officer;

[[Page S7643]]

       (3) chief asset and liability management officer;
       (4) chief loan origination officer;
       (5) chief operations officer;
       (6) chief risk officer;
       (7) chief treasury officer; and
       (8) general counsel.
       (e) Qualifications.--The executive director and other 
     executive officers shall have demonstrated experience and 
     expertise in one or more of the following:
       (1) Transportation infrastructure.
       (2) Environmental infrastructure.
       (3) Energy infrastructure.
       (4) Telecommunications infrastructure.
       (5) Economic development.
       (6) Workforce development.
       (7) Public health.
       (8) Private or public finance.
       (f) Duties.--In order to carry out the purposes of the Bank 
     as set forth in this part, the executive committee shall--
       (1) establish disclosure and application procedures for 
     entities nominating projects for assistance under this part;
       (2) accept, for consideration, project proposals relating 
     to the development of infrastructure projects, which meet the 
     basic criteria established by the Board, and which are 
     submitted by an entity;
       (3) provide recommendations to the Board and place project 
     proposals accepted by the executive committee on a list for 
     consideration for financial assistance from the Board; and
       (4) provide technical assistance to entities receiving 
     financing from the Bank and otherwise implement decisions of 
     the Board.
       (g) Vacancy.--A vacancy in the position of executive 
     director shall be filled in the manner in which the original 
     appointment was made.
       (h) Compensation.--The compensation of the executive 
     director and other executive officers of the executive 
     committee shall be determined by the Board.
       (i) Removal.--The executive director and other executive 
     officers may be removed at the discretion of a majority of 
     the Board.
       (j) Term.--The executive director and other executive 
     officers shall serve a 6-year term and may be reappointed in 
     accordance with this section.
       (k) Limitations.--The executive director and other 
     executive officers shall not--
       (1) hold any other public office;
       (2) have any interest in an infrastructure project 
     considered by the Board;
       (3) have any interest in an investment institution, 
     commercial bank, or other entity seeking financial assistance 
     for any infrastructure project from the Bank; and
       (4) have any such interest during the 2-year period 
     beginning on the date such officer ceases to serve in such 
     capacity.

     SEC. 16025. RISK MANAGEMENT COMMITTEE.

       (a) Establishment of Risk Management Committee.--The Bank 
     shall establish a risk management committee consisting of 5 
     members, headed by the chief risk officer.
       (b) Appointments.--A majority of the Board shall have the 
     authority to appoint and reappoint the CRO of the Bank.
       (c) Functions; Duties.--
       (1) In general.--The CRO shall have such functions, powers, 
     and duties as may be prescribed by one or more of the 
     following: this part, the bylaws of the Bank, and the Board. 
     The CRO shall report directly to the Board.
       (2) Risk management duties.--In order to carry out the 
     purposes of this part, the risk management committee shall--
       (A) create financial, credit, and operational risk 
     management guidelines and policies to be adhered to by the 
     Bank;
       (B) set guidelines to ensure diversification of lending 
     activities by both region and infrastructure project type;
       (C) create conforming standards for infrastructure finance 
     securities;
       (D) monitor financial, credit and operational exposure of 
     the Bank; and
       (E) provide financial recommendations to the Board.
       (d) Other Risk Management Officers.--The Board shall 
     appoint, remove, fix the compensation, and define the duties 
     of 4 other risk management officers to serve on the risk 
     management committee.
       (e) Qualifications.--The CRO and other risk management 
     officers shall have demonstrated experience and expertise in 
     one or more of the following:
       (1) Treasury and asset and liability management.
       (2) Investment regulations.
       (3) Insurance.
       (4) Credit risk management and credit evaluations.
       (5) Related disciplines.
       (f) Vacancy.--A vacancy in the position of CRO or any other 
     risk management officer shall be filled in the manner in 
     which the original appointment was made.
       (g) Compensation.--The compensation of the CRO and other 
     risk management officers shall be determined by the Board.
       (h) Removal.--The CRO and any other risk management 
     officers may be removed at the discretion of a majority of 
     the Board.
       (i) Term.--The CRO and other risk management officers shall 
     serve a 6-year term and may be reappointed in accordance with 
     this section.
       (j) Limitations.--The CRO and other risk management 
     officers shall not--
       (1) hold any other public office;
       (2) have any interest in an infrastructure project 
     considered by the Board;
       (3) have any interest in an investment institution, 
     commercial bank, or other entity seeking financial assistance 
     for any infrastructure project from the Bank; and
       (4) have any such interest during the 2-year period 
     beginning on the date such officer ceases to serve in such 
     capacity.

     SEC. 16026. AUDIT COMMITTEE.

       (a) In General.--The Bank shall have an audit committee 
     consisting of 5 members, headed by the chief compliance 
     officer of the Bank.
       (b) Appointments.--A majority of the Board shall have the 
     authority to appoint and reappoint the CCO of the Bank.
       (c) Functions; Duties.--The CCO shall have such functions, 
     powers, and duties as may be prescribed by one or more of the 
     following: this part, the bylaws of the Bank, and the Board. 
     The CCO shall report directly to the Board.
       (d) Audit Duties.--In order to carry out the purposes of 
     the Bank under this part, the audit committee shall--
       (1) provide internal controls and internal auditing 
     activities for the Bank;
       (2) maintain responsibility for the accounting activities 
     of the Bank;
       (3) issue financial reports of the Bank; and
       (4) complete reports with outside auditors and public 
     accountants appointed by the Board.
       (e) Other Audit Officers.--The Board shall appoint, remove, 
     fix the compensation, and define the duties of 4 other audit 
     officers to serve on the audit committee.
       (f) Qualifications.--The CCO and other audit officers shall 
     have demonstrated experience and expertise in one or more of 
     the following:
       (1) Internal auditing.
       (2) Internal investigations.
       (3) Accounting practices.
       (4) Financing practices.
       (g) Vacancy.--A vacancy in the position of CCO or any other 
     audit officer shall be filled in the manner in which the 
     original appointment was made.
       (h) Compensation.--The compensation of the CCO and other 
     audit officers shall be determined by the Board.
       (i) Removal.--The CCO and other audit officers may be 
     removed at the discretion of a majority of the Board.
       (j) Term.--The CCO and other audit officers shall serve a 
     6-year term and may be reappointed in accordance with this 
     section.
       (k) Limitations.--The CCO and other audit officers shall 
     not--
       (1) hold any other public office;
       (2) have any interest in an infrastructure project 
     considered by the Board;
       (3) have any interest in an investment institution, 
     commercial bank, or other entity seeking financial assistance 
     for any infrastructure project from the Bank; and
       (4) have any such interest during the 2-year period 
     beginning on the date such officer ceases to serve in such 
     capacity.

     SEC. 16027. PERSONNEL.

       The chairperson of the Board, executive director, chief 
     risk officer, and chief compliance officer shall appoint, 
     remove, fix the compensation of, and define the duties of 
     such qualified personnel to serve under the Board, executive 
     committee, risk management committee, or audit committee, as 
     the case may be, as necessary and prescribed by one or more 
     of the following: this part, the bylaws of the Bank, and the 
     Board.

     SEC. 16028. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM BANK.

       (a) In General.--No financial assistance shall be available 
     under this part from the Bank unless the applicant for such 
     assistance has demonstrated to the satisfaction of the Board 
     that the project for which such assistance is being sought 
     meets--
       (1) the requirements of this part; and
       (2) any criteria established in accordance with this part 
     by the Board.
       (b) Establishment of Project Criteria.--
       (1) In general.--Consistent with the requirements of 
     subsections (c) and (d), the Board shall establish--
       (A) criteria for determining eligibility for financial 
     assistance under this part;
       (B) disclosure and application procedures to be followed by 
     entities to nominate projects for assistance under this part; 
     and
       (C) such other criteria as the Board may consider to be 
     appropriate for purposes of carrying out this part.
       (2) Factors to be taken into account.--
       (A) In general.--The Bank shall conduct an analysis that 
     takes into account the economic, environmental, social 
     benefits, and costs of each project under consideration for 
     financial assistance under this part, prioritizing projects 
     that contribute to economic growth, lead to job creation, and 
     are of regional or national significance.
       (B) Criteria.--The criteria established pursuant to 
     paragraph (1)(A) shall provide for the consideration of the 
     following factors in considering eligibility for financial 
     assistance under this part:
       (i) The means by which development of the infrastructure 
     project under consideration is being financed, including--

       (I) the terms and conditions and financial structure of the 
     proposed financing; and
       (II) the financial assumptions and projections on which the 
     project is based.

       (ii) The likelihood that the provision of assistance by the 
     Bank will cause such development to proceed more promptly and 
     with lower costs for financing than would be the case without 
     such assistance.
       (iii) The extent to which the provision of assistance by 
     the Bank maximizes the level of private investment in the 
     infrastructure project while providing a public benefit.

[[Page S7644]]

       (c) Factors for Specific Types of Projects.--
       (1) Transportation infrastructure projects.--For any 
     transportation infrastructure project, the Board shall 
     consider the following:
       (A) Job creation, including workforce development for women 
     and minorities, responsible employment practices, and quality 
     job training opportunities.
       (B) Reduction in carbon emissions.
       (C) Reduction in surface and air traffic congestion.
       (D) Smart growth.
       (E) Poverty and inequality reduction through targeted 
     training and employment opportunities for low-income workers.
       (F) Public health benefits.
       (2) Environmental infrastructure project.--For any 
     environmental infrastructure project, the Board shall 
     consider the following:
       (A) Public health benefits.
       (B) Pollution reductions.
       (C) Job creation, including workforce development for women 
     and minorities, responsible employment practices, and quality 
     job training opportunities.
       (D) Poverty and inequality reduction through targeted 
     training and employment opportunities for low-income workers.
       (3) Energy infrastructure project.--For any energy 
     infrastructure project, the Board shall consider the 
     following:
       (A) Job creation, including workforce development for women 
     and minorities, responsible employment practices, and quality 
     job training opportunities.
       (B) Poverty and inequality reduction through targeted 
     training and employment opportunities for low-income workers.
       (C) Reduction in carbon emissions.
       (D) Smart growth in urban areas.
       (E) Expanded use of renewable energy, including 
     hydroelectric, solar, and wind.
       (F) Development of a smart grid.
       (G) Energy efficient building, housing, and school 
     modernization.
       (H) In any case in which the project is also a public 
     housing project--
       (i) improvement of the physical shape and layout;
       (ii) environmental improvement; and
       (iii) mobility improvements for residents.
       (I) Public health benefits.
       (4) Telecommunications.--For any telecommunications 
     project, the Board shall consider the following:
       (A) The extent to which assistance expands or improves 
     broadband and wireless services in rural and disadvantaged 
     communities.
       (B) Poverty and inequality reduction through targeted 
     training and employment opportunities for low-income workers.
       (C) Job creation, including work force development for 
     women and minorities, responsible employment practices, and 
     quality job training opportunities.
       (d) Consideration of Project Proposals.--
       (1) Participation by other agency personnel.--Consideration 
     of projects by the executive committee and the Board shall be 
     conducted with personnel on detail to the Bank from relevant 
     Federal agencies from among individuals who are familiar with 
     and experienced in the selection criteria for competitive 
     projects.
       (2) Fees.--A fee may be charged for the review of any 
     project proposal in such amount as maybe considered 
     appropriate by the executive committee to cover the cost of 
     such review.
       (e) Discretion of Board.--Consistent with other provisions 
     of this part, any determination of the Board to provide 
     assistance to any project, and the manner in which such 
     assistance is provided, including the terms, conditions, 
     fees, and charges shall be at the sole discretion of the 
     Board.
       (f) State and Local Permits Required.--The provision of 
     assistance by the Board in accordance with this part shall 
     not be deemed to relieve any recipient of assistance or the 
     related project of any obligation to obtain required State 
     and local permits and approvals.
       (g) Annual Report.--An entity receiving assistance from the 
     Board shall make annual reports to the Board on the use of 
     any such assistance, compliance with the criteria set forth 
     in this section, and a disclosure of all entities with a 
     development, ownership, or operational interest in a project 
     assisted or proposed to be assisted under this part.

     SEC. 16029. EXEMPTION FROM LOCAL TAXATION.

       All notes, debentures, bonds or other such obligations 
     issued by the Bank, and the interest on or credits with 
     respect to such bonds or other obligations, shall not be 
     subject to taxation by any State, county, municipality, or 
     local taxing authority.

     SEC. 16030. STATUS AND APPLICABILITY OF CERTAIN FEDERAL LAWS; 
                   FULL FAITH AND CREDIT.

       (a) Budgeting and Auditors Practices.--The Bank shall 
     comply with all Federal laws regulating the budgetary and 
     auditing practices of a government corporation, except as 
     otherwise provided in this part.
       (b) Full Faith and Credit.--Any bond or other obligation 
     issued by the Bank under this part shall be an obligation 
     supported by the full faith and credit of the United States.
       (c) Effect of and Exemptions From Other Laws.--
       (1) Exempt securities.--All debt securities and other 
     obligations issued by the Bank pursuant to this part shall be 
     deemed to be exempt securities within the meaning of laws 
     administered by the Securities and Exchange Commission to the 
     same extent as securities which are direct obligations of, or 
     obligations fully guaranteed as to principal or interest by, 
     the United States.
       (2) Open market operations and state tax exempt status.--
     The obligations of the Bank shall be deemed to be obligations 
     of the United States for the purposes of the provision 
     designated as (b)(2) of the 2nd undesignated paragraph of 
     section 14 of the Federal Reserve Act (12 U.S.C. 355) and 
     section 3124 of title 31, United States Code.
       (3) No priority as a federal claim.--The priority 
     established in favor of the United States by section 3713 of 
     title 31, United States Code, shall not apply with respect to 
     any indebtedness of the Bank.
       (d) Federal Reserve Banks as Depositories, Custodians, and 
     Fiscal Agents.--The Federal reserve banks may act as 
     depositories for, or custodians or fiscal agents of, the 
     Bank.
       (e) Access to Book-entry System.--The Secretary may 
     authorize the Bank to use the book-entry system of the 
     Federal reserve system.

     SEC. 16031. COMPLIANCE WITH DAVIS-BACON ACT AND CERTAIN GRANT 
                   REQUIREMENTS.

       (a) Davis-Bacon Act.--All laborers and mechanics employed 
     by contractors and subcontractors on projects funded directly 
     by or assisted in whole or in part by and through the Bank 
     pursuant to this part shall be paid wages at rates not less 
     than those prevailing on projects of a character similar in 
     the locality as determined by the Secretary of Labor in 
     accordance with subchapter IV of chapter 31 of part A of 
     title 40, United States Code. With respect to the labor 
     standards specified in this section, the Secretary of Labor 
     shall have the authority and functions set forth in 
     Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 
     U.S.C. App.) and section 3145 of title 40, United States 
     Code.
       (b) Grant Requirements.--A recipient of financial 
     assistance provided pursuant to this subtitle that funds any 
     public transportation capital project (as defined in section 
     5302 of title 49, United States Code) shall comply with the 
     grant requirements applicable to grants made under section 
     5309 of that title.

     SEC. 16032. USE OF IRON, STEEL, AND MANUFACTURED GOODS IN 
                   INFRASTRUCTURE PROJECTS.

       (a) Buy America.--Except as provided in subsection (b), 
     none of the financing provided by the Bank may be used for a 
     public infrastructure project unless all of the iron, steel, 
     and manufactured goods used for the construction, alteration, 
     maintenance, or repair of the project are produced in the 
     United States.
       (b) Exception.--Subsection (a) shall not apply in any case 
     or category of cases in which the Secretary determines that--
       (1) applying subsection (a) would be inconsistent with the 
     public interest;
       (2) iron, steel, or a relevant manufactured good is not 
     produced in the United States in sufficient and reasonably 
     available quantities and of a satisfactory quality; or
       (3) the inclusion of iron, steel, or a manufactured good 
     produced in the United States will increase the cost of the 
     overall infrastructure project by more than 25 percent.
       (c) Publication of Waivers.--If the Secretary provides a 
     waiver of the requirements of subsection (a) based on a 
     determination under subsection (b), the Secretary shall 
     publish in the Federal Register a detailed written 
     justification of the reasons for the waiver.
       (d) Applicability.--This section shall be applied in a 
     manner consistent with the obligations of the United States 
     under international agreements.
       (e) Consultation.--The Secretary shall consult with the 
     Board and may consult with the Secretary of Transportation 
     and the head of any other Federal department or agency in 
     applying this section.

     SEC. 16033. COMPLIANCE WITH CERTAIN DOMESTIC CONTENT LAWS.

       The financing provided for an infrastructure project shall 
     be provided in accordance with the following provisions of 
     law subject to the jurisdiction of the Secretary of 
     Transportation:
       (1) Section 313 of title 23, United States Code.
       (2) Section 5323(j) of title 49, United States Code.
       (3) Section 24305 of title 49, United States Code.
       (4) Section 24405 of title 49, United States Code.
       (5) Sections 50101 and 50105 of title 49, United States 
     Code.

     SEC. 16034. APPLICABILITY OF CERTAIN STATE LAWS.

       The receipt by any entity of any assistance under this 
     part, directly or indirectly, and any financial assistance 
     provided by any governmental entity in connection with such 
     assistance under this part shall be valid and lawful 
     notwithstanding any State or local restrictions regarding 
     extensions of credit or other benefits to private persons or 
     entities, or other similar restrictions.

     SEC. 16035. AUDITS; REPORTS TO PRESIDENT AND CONGRESS.

       (a) Accounting.--The books of account of the Bank shall be 
     maintained in accordance with generally accepted accounting 
     principles and shall be subject to an annual audit by 
     independent public accountants appointed by the Board and of 
     nationally recognized standing.
       (b) Reports.--
       (1) Board.--The Board shall submit to the President and 
     Congress, within 90 days after

[[Page S7645]]

     the last day of each fiscal year, a complete and detailed 
     report with respect to the preceding fiscal year, setting 
     forth--
       (A) a summary of the Bank's operations, for such preceding 
     fiscal year;
       (B) a schedule of the Bank's obligations and capital 
     securities outstanding at the end of such preceding fiscal 
     year, with a statement of the amounts issued and redeemed or 
     paid during such preceding fiscal year; and
       (C) the status of projects receiving funding or other 
     assistance pursuant to this part, including disclosure of all 
     entities with a development, ownership, or operational 
     interest in such projects.
       (2) GAO.--Not later than 5 years after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report evaluating 
     activities of the Bank for the fiscal years covered by the 
     report that includes an assessment of the impact and benefits 
     of each funded project, including a review of how effectively 
     each project accomplished the goals prioritized by the Bank's 
     project criteria.
       (c) Books and Records.--
       (1) In general.--The Bank shall maintain adequate books and 
     records to support the financial transactions of the Bank 
     with a description of financial transactions and 
     infrastructure projects receiving funding, and the amount of 
     funding for each project maintained on a publically 
     accessible database.
       (2) Audits by the secretary and gao.--The books and records 
     of the Bank shall be maintained in accordance with 
     recommended accounting practices and shall be open to 
     inspection by the Secretary and the Comptroller General of 
     the United States.

     SEC. 16036. CAPITALIZATION OF BANK.

       (a) Authorization of Appropriations.--Subject to subsection 
     (b), there is authorized to be appropriated to the Secretary 
     for purchase of the shares of the Bank $5,000,000,000 for 
     each of fiscal years 2018 through 2022, with the aggregate 
     representing 10 percent of the total subscribed capital of 
     the Bank.
       (b) Reservation for Rural Areas.--For each fiscal year, not 
     less than 20 percent of any amounts appropriated to carry out 
     this part shall be used to finance projects in rural areas.
       (c) Callable Capital.--Of the total subscribed capital of 
     the Bank, 90 percent shall be callable capital subject to 
     call from the Secretary only as and when required by the Bank 
     to meet its obligations on borrowing of funds for inclusion 
     in its ordinary capital resources or guarantees chargeable to 
     such resources.
                                 ______
                                 
  SA 1801. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROHIBITION ON AGREEMENTS RESTRICTING GOVERNMENT TAX 
                   PREPARATION AND FILING SERVICES.

       The Secretary of the Treasury, or the Secretary's delegate, 
     may not enter into any agreement after the date of the 
     enactment of this Act which restricts the Secretary's legal 
     right to provide tax return preparation services or software 
     or to provide tax return filing services.

     SEC. __. GOVERNMENT-ASSISTED TAX PREPARATION AND FILING 
                   SERVICES.

       (a) In General.--Chapter 77 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     section:

     ``SEC. 7529. GOVERNMENT-ASSISTED TAX-RETURN PREPARATION 
                   PROGRAMS.

       ``(a) Establishment of Programs.--The Secretary shall 
     establish and operate the following programs:
       ``(1) Online tax preparation and filing software.--Not 
     later than January 31, 2019, software for the preparation and 
     filing of individual income tax returns for taxable years 
     beginning after 2017.
       ``(2) Taxpayer data access.--Not later than March 1, 2019, 
     a program under which taxpayers may download third-party 
     provided return information relating to individual income tax 
     returns for taxable years beginning after 2017.
       ``(3) Tax return preparation.--Not later than March 1, 
     2019, a program under which eligible individuals (as defined 
     under subsection (c)(1)) may elect to have income tax returns 
     for taxable years beginning after 2017 prepared by the 
     Secretary.
       ``(b) Requirements for Taxpayer Data Access Program.--
       ``(1) In general.--Return information under the program 
     established under subsection (a)(2) shall be made available--
       ``(A) not later than 15 days after the Secretary receives 
     such information, and
       ``(B) through a secure function that allows a taxpayer to 
     download such information from the Secretary's website in 
     both a printable document file and in a computer-readable 
     form suitable for use by automated tax preparation software.
       ``(2) Third-party provided return information defined.--For 
     purposes of this section, the term `third-party provided 
     return information' means--
       ``(A) information reported to the Secretary through an 
     information return (as defined in section 6724(d)(1)),
       ``(B) information reported to the Secretary pursuant to 
     section 232 of the Social Security Act, and
       ``(C) such other information reported to the Secretary as 
     is determined appropriate by the Secretary for purposes of 
     the program established under subsection (a)(2).
       ``(c) Tax Return Preparation.--
       ``(1) Eligible individual.--For purposes of the program 
     established under subsection (a)(3)--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), the term `eligible individual' means, with respect 
     to any taxable year, any individual who--
       ``(i) elects to participate in the program established 
     under subsection (a)(3),
       ``(ii) is an unmarried individual (other than a surviving 
     spouse (as defined in section 2(a)) or the head of a 
     household (as defined in section 2(b))),
       ``(iii) does not claim any deduction allowed under section 
     62 for purposes of determining adjusted gross income,
       ``(iv) claims the standard deduction under section 63,
       ``(v) claims no deduction under section 151 for any 
     individual who is a dependent (as defined in section 152),
       ``(vi) does not file schedule C, and
       ``(vii) has no income other than income from--

       ``(I) wages (as defined in section 3401),
       ``(II) interest, or
       ``(III) dividends.

       ``(B) Limitation on eligibility for tax year 2018.--With 
     respect to any taxable year beginning in 2018, the term 
     `eligible individual' shall only include such populations of 
     individuals described in subparagraph (A) as is determined by 
     the Secretary.
       ``(C) Expansion of eligibility after tax year 2018.--
       ``(i) In general.--At the discretion of the Secretary, with 
     respect to any taxable year beginning after December 31, 
     2018, the term `eligible individual' may include populations 
     of individuals who would not otherwise satisfy the 
     requirements established under subparagraph (A), such as 
     married individuals, heads of households, taxpayers who are 
     eligible to claim the earned income tax credit under section 
     32 and have dependents, taxpayers who are eligible to claim 
     the child tax credit under section 24, taxpayers who claim 
     deductions allowed under section 62 for purposes of 
     determining adjusted gross income, and taxpayers with income 
     from non-employee compensation.
       ``(ii) Report.--Not later than August 31, 2020, the 
     Secretary shall submit a report to Congress that contains 
     recommendations for such legislative or administrative 
     actions as the Secretary determines necessary with respect to 
     expanding the populations of individuals that may qualify as 
     eligible individuals for purposes of the program established 
     under subsection (a)(3).
       ``(2) Return must be filed by individual.--No return 
     prepared under the program established under subsection 
     (a)(3) shall be treated as filed before the date such return 
     is submitted by the taxpayer as provided under the rules of 
     section 6011.
       ``(d) Verification of Identity.--An individual shall not 
     participate in any program described in subsection (a) or 
     access any information under such a program unless such 
     individual has verified their identity to the satisfaction of 
     the Secretary.
       ``(e) Taxpayer Responsibility.--Nothing in this section 
     shall be construed to absolve the taxpayer from full 
     responsibility for the accuracy or completeness of his return 
     of tax.
       ``(f) Prohibition on Fees.--No fee may be imposed on any 
     taxpayer who participates in any program established under 
     subsection (a).
       ``(g) Information Provided for Wage and Self-Employment 
     Income.--For purposes of subsection (a)(2), in the case of 
     information relating to wages paid for any calendar year 
     after 2017 required to be provided to the Commissioner of 
     Social Security under section 205(c)(2)(A) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(A)), the Commissioner shall 
     make such information available to the Secretary not later 
     than the February 15 of the calendar year following the 
     calendar year to which such wages and self-employment income 
     relate.''.
       (b) Filing Deadline for Information Returns.--Section 
     6071(b) of such Code is amended to read as follows:
       ``(b) Information Returns.--Returns made under part III of 
     this chapter shall be filed on or before January 31 of the 
     year following the calendar year to which such returns 
     relate. Section 6081 shall not apply to returns under such 
     part III.''.
       (c) Conforming Amendment to Social Security Act.--Section 
     205(c)(2)(A) of the Social Security Act (42 U.S.C. 
     405(c)(2)(A)) is amended by adding at the end the following 
     new sentence: ``For purposes of the preceding sentence, the 
     Commissioner shall require that information relating to wages 
     paid be provided to the Secretary of the Treasury not later 
     than February 15 of the year following the calendar year to 
     which such wages and self-employment income relate.''.
       (d) Clerical Amendment.--The table of sections for chapter 
     77 of such Code is amended by adding at the end the following 
     new item:

``Sec. 7529. Government-assisted tax-return preparation programs.''.

       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the amendments made by this 
     section such sums as may be necessary for each of fiscal 
     years 2018 through 2022.

[[Page S7646]]

       (f) Effective Date.--The amendments made by this section 
     shall apply to returns for taxable years beginning after 
     December 31, 2017.
                                 ______
                                 
  SA 1802. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 11030. CERTAIN CAREER TRAINING EXPENSES TREATED AS 
                   QUALIFIED HIGHER EDUCATION EXPENSES.

       (a) In General.--Paragraph (3) of section 529(e) is amended 
     by adding at the end the following new subparagraph:
       ``(C) Certain career training expenses.--
       ``(i) In general.--In the case of an individual who is 
     enrolled in or attending a program to obtain a recognized 
     postsecondary credential or occupational license, the term 
     `qualified higher education expenses' includes expenses 
     similar to the expenses described in subparagraph (A) which 
     are required for such program.
       ``(ii) Program to obtain a recognized postsecondary 
     credential.--For purposes of this subparagraph--

       ``(I) the term `recognized postsecondary credential' has 
     the meaning given the term in section 3(52) of the Workforce 
     Innovation and Opportunity Act (29 U.S.C. 3102(52)), and
       ``(II) when used with respect to obtaining such a 
     credential, the term `program' means only a program which is 
     included, and is offered by a provider which is included, on 
     the list described in section 122(d) of the Workforce 
     Innovation and Opportunity Act (29 U.S.C. 3152(d)).''.

       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to expenses paid or incurred in taxable years 
     beginning after the date of the enactment of this Act.
       (c) Offset.--
       (1) Inclusion of foreign base company oil related income.--
     Subsection (a) of section 954, as amended by section 14211, 
     is amended--
       (A) by striking ``and'' at the end of paragraph (2),
       (B) by striking the period at the end of paragraph (3) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(4) the foreign base company oil related income for the 
     taxable year (determined under subsection (g) and reduced as 
     provided in subsection (b)(5)).''.
       (2) Conforming amendments.--
       (A) Section 952(c)(1)(B)(iii), as amended by section 14211, 
     is amended--
       (i) by redesignating subclauses (I) through (IV) as 
     subclauses (II) through (V), respectively, and
       (ii) by inserting before subclause (II), as so 
     redesignated, the following new subclause:

       ``(I) foreign base company oil related income,''.

       (B) Section 954(b), as amended by section 14211, is 
     amended--
       (i) by adding at the end of paragraph (4) the following: 
     ``The preceding sentence shall not apply to foreign base 
     company oil-related income described in subsection (a)(4).'',
       (ii) by striking ``and the foreign base company services 
     income'' in paragraph (5) and inserting ``the foreign base 
     company services income, and the foreign base company oil 
     related income'', and
       (iii) by adding at the end the following new paragraph:
       ``(6) Foreign base company oil related income not treated 
     as another kind of base company income.--Income of a 
     corporation which is foreign base company oil related income 
     shall not be considered foreign base company income of such 
     corporation under paragraph (2) or (3) of subsection (a).''.
       (C) Section 954, as amended by section 14211, is amended by 
     inserting before subsection (h) the following:
       ``(g) Foreign Base Company Oil Related Income.--For 
     purposes of this section--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `foreign base company oil related 
     income' means foreign oil related income (within the meaning 
     of paragraphs (2) and (3) of section 907(c)) other than 
     income derived from a source within a foreign country in 
     connection with--
       ``(A) oil or gas which was extracted from an oil or gas 
     well located in such foreign country, or
       ``(B) oil, gas, or a primary product of oil or gas which is 
     sold by the foreign corporation or a related person for use 
     or consumption within such country or is loaded in such 
     country on a vessel or aircraft as fuel for such vessel or 
     aircraft.
     Such term shall not include any foreign personal holding 
     company income (as defined in subsection (c)).
       ``(2) Paragraph (1) applies only where corporation has 
     produced 1,000 barrels per day or more.--
       ``(A) In general.--The term `foreign base company oil 
     related income' shall not include any income of a foreign 
     corporation if such corporation is not a large oil producer 
     for the taxable year.
       ``(B) Large oil producer.--For purposes of subparagraph 
     (A), the term `large oil producer' means any corporation if, 
     for the taxable year or for the preceding taxable year, the 
     average daily production of foreign crude oil and natural gas 
     of the related group which includes such corporation equaled 
     or exceeded 1,000 barrels.
       ``(C) Related group.--The term `related group' means a 
     group consisting of the foreign corporation and any other 
     person who is a related person with respect to such 
     corporation.
       ``(D) Average daily production of foreign crude oil and 
     natural gas.--For purposes of this paragraph, the average 
     daily production of foreign crude oil or natural gas of any 
     related group for any taxable year (and the conversion of 
     cubic feet of natural gas into barrels) shall be determined 
     under rules similar to the rules of section 613A except that 
     only crude oil or natural gas from a well located outside the 
     United States shall be taken into account.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2017, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.
                                 ______
                                 
  SA 1803. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 11030. DECREASE IN REQUIRED DISTANCE AWAY FROM HOME FOR 
                   ABOVE-THE-LINE DEDUCTION FOR TRAVEL EXPENSES OF 
                   MEMBERS OF A RESERVE COMPONENT OF THE ARMED 
                   FORCES.

       (a) In General.--Section 62(a)(2)(E) is amended by striking 
     ``100 miles'' and inserting ``50 miles''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2016.
       (c) Offset.--
       (1) Inclusion of foreign base company oil related income.--
     Subsection (a) of section 954, as amended by section 14211, 
     is amended--
       (A) by striking ``and'' at the end of paragraph (2),
       (B) by striking the period at the end of paragraph (3) and 
     inserting ``, and'', and
       (C) by adding at the end the following new paragraph:
       ``(4) the foreign base company oil related income for the 
     taxable year (determined under subsection (g) and reduced as 
     provided in subsection (b)(5)).''.
       (2) Conforming amendments.--
       (A) Section 952(c)(1)(B)(iii), as amended by section 14211, 
     is amended--
       (i) by redesignating subclauses (I) through (IV) as 
     subclauses (II) through (V), respectively, and
       (ii) by inserting before subclause (II), as so 
     redesignated, the following new subclause:

       ``(I) foreign base company oil related income,''.

       (B) Section 954(b), as amended by section 14211, is 
     amended--
       (i) by adding at the end of paragraph (4) the following: 
     ``The preceding sentence shall not apply to foreign base 
     company oil-related income described in subsection (a)(4).'',
       (ii) by striking ``and the foreign base company services 
     income'' in paragraph (5) and inserting ``the foreign base 
     company services income, and the foreign base company oil 
     related income'', and
       (iii) by adding at the end the following new paragraph:
       ``(6) Foreign base company oil related income not treated 
     as another kind of base company income.--Income of a 
     corporation which is foreign base company oil related income 
     shall not be considered foreign base company income of such 
     corporation under paragraph (2) or (3) of subsection (a).''.
       (C) Section 954, as amended by section 14211, is amended by 
     inserting before subsection (h) the following:
       ``(g) Foreign Base Company Oil Related Income.--For 
     purposes of this section--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `foreign base company oil related 
     income' means foreign oil related income (within the meaning 
     of paragraphs (2) and (3) of section 907(c)) other than 
     income derived from a source within a foreign country in 
     connection with--
       ``(A) oil or gas which was extracted from an oil or gas 
     well located in such foreign country, or
       ``(B) oil, gas, or a primary product of oil or gas which is 
     sold by the foreign corporation or a related person for use 
     or consumption within such country or is loaded in such 
     country on a vessel or aircraft as fuel for such vessel or 
     aircraft.
     Such term shall not include any foreign personal holding 
     company income (as defined in subsection (c)).
       ``(2) Paragraph (1) applies only where corporation has 
     produced 1,000 barrels per day or more.--
       ``(A) In general.--The term `foreign base company oil 
     related income' shall not include any income of a foreign 
     corporation if

[[Page S7647]]

     such corporation is not a large oil producer for the taxable 
     year.
       ``(B) Large oil producer.--For purposes of subparagraph 
     (A), the term `large oil producer' means any corporation if, 
     for the taxable year or for the preceding taxable year, the 
     average daily production of foreign crude oil and natural gas 
     of the related group which includes such corporation equaled 
     or exceeded 1,000 barrels.
       ``(C) Related group.--The term `related group' means a 
     group consisting of the foreign corporation and any other 
     person who is a related person with respect to such 
     corporation.
       ``(D) Average daily production of foreign crude oil and 
     natural gas.--For purposes of this paragraph, the average 
     daily production of foreign crude oil or natural gas of any 
     related group for any taxable year (and the conversion of 
     cubic feet of natural gas into barrels) shall be determined 
     under rules similar to the rules of section 613A except that 
     only crude oil or natural gas from a well located outside the 
     United States shall be taken into account.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2017, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.
                                 ______
                                 
  SA 1804. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the end of part III of subtitle A of title I, insert the 
     following:

     SEC. 11030. CREDIT FOR ELDERCARE EXPENSES.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 is amended by inserting after section 25D the 
     following new section:

     ``SEC. 25E. EXPENSES FOR ELDERCARE.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual for which 
     there are 1 or more qualifying individuals with respect to 
     such individual, there shall be allowed as a credit against 
     the tax imposed by this chapter for the taxable year an 
     amount equal to the applicable percentage of the eldercare 
     expenses paid by such individual during the taxable year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means 20 percent, 
     reduced (but not below zero) by 1 percentage point for each 
     $4,000 (or fraction thereof) by which the taxpayer's adjusted 
     gross income for the taxable year exceeds--
       ``(A) $110,000 in the case of a joint return,
       ``(B) $75,000 in the case of an individual who is not 
     married, and
       ``(C) $55,000 in the case of a married individual filing a 
     separate return.
     For purposes of this paragraph, marital status shall be 
     determined under section 7703.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualifying individual.--The term `qualifying 
     individual' means an individual--
       ``(A) who has attained age 65,
       ``(B) who requires assistance with activities of daily 
     living, and
       ``(C) who is, with respect to the taxpayer or the 
     taxpayer's spouse--
       ``(i) the father or mother or an ancestor of such father or 
     mother,
       ``(ii) the father-in-law or mother-in-law or an ancestor of 
     such father-in-law or mother-in-law,
       ``(iii) the stepfather or stepmother or an ancestor of such 
     stepfather or stepmother, or
       ``(iv) any other person who, for the taxable year, has the 
     same principal place of abode as the taxpayer and is a member 
     of the household of the taxpayer.
       ``(2) Eldercare expenses.--
       ``(A) In general.--The term `eldercare expenses' means the 
     following amounts paid for expenses relating to the care of a 
     qualifying individual:
       ``(i) Medical care (as defined in section 213(d)(1), 
     without regard to subparagraph D thereof).
       ``(ii) Lodging away from home in accordance with section 
     213(d)(2).
       ``(iii) Adult day care.
       ``(iv) Custodial care.
       ``(v) Respite care.
       ``(vi) Assistive technologies and devices (including remote 
     health monitoring).
       ``(vii) Environmental modifications (including home 
     modifications).
       ``(viii) Counseling or training for a caregiver.
       ``(B) Definitions.--For purposes of subparagraph (A)--
       ``(i) Adult day care.--The term `adult day care' means care 
     provided for adults with functional or cognitive impairments 
     through a structured, community-based group program which 
     provides health, social, and other related support services 
     on a less than 24-hour basis.
       ``(ii) Custodial care.--The term `custodial care' means 
     reasonable personal care services provided to assist with 
     daily living which do not require the skills of qualified 
     technical or professional personnel.
       ``(iii) Respite care.--The term `respite care' means 
     planned or emergency care intended to provide temporary 
     relief to a caregiver.
       ``(C) Care centers.--
       ``(i) In general.--Eldercare expenses described in 
     subparagraph (A) which are incurred for services provided 
     outside the taxpayer's household by a care center shall be 
     taken into account only if such center complies with all 
     applicable laws and regulations of a State or unit of local 
     government.
       ``(ii) Care center.--For purposes of this subparagraph, the 
     term `care center' means any facility which--

       ``(I) provides care for more than 6 individuals, and
       ``(II) receives a fee, payment, or grant for providing 
     services for any of the individuals (regardless of whether 
     such facility is operated for profit).

       ``(c) Dollar Limitation.--
       ``(1) In general.--The amount of the eldercare expenses 
     incurred during any taxable year which may be taken into 
     account under subsection (a) shall not exceed $6,000.
       ``(2) Coordination with dependent care assistance 
     exclusion.--The dollar amount in paragraph (1) shall be 
     reduced by the aggregate amount excluded from gross income 
     under section 129 for the taxable year, if any.
       ``(d) Special Rules.--For purposes of this section--
       ``(1) Payments to related individuals.--No credit shall be 
     allowed under subsection (a) for any amount paid to an 
     individual with respect to whom, for the taxable year, a 
     deduction under section 151(c) is allowable either to the 
     taxpayer or the taxpayer's spouse. For purposes of this 
     paragraph, the term `taxable year' means the taxable year of 
     the taxpayer in which the service is performed.
       ``(2) Identifying information required with respect to 
     service provider.--No credit shall be allowed under 
     subsection (a) for any amount paid to any person unless--
       ``(A) the name, address, and taxpayer identification number 
     of such person are included on the return claiming the 
     credit, or
       ``(B) if such person is an organization described in 
     section 501(c)(3) and exempt from tax under section 501(a), 
     the name and address of such person are included on the 
     return claiming the credit.
     In the case of a failure to provide the information required 
     under the preceding sentence, the preceding sentence shall 
     not apply if it is shown that the taxpayer exercised due 
     diligence in attempting to provide the information so 
     required.
       ``(3) Identifying information required with respect to 
     qualifying individuals.--No credit shall be allowed under 
     subsection (a) with respect to any qualifying individual 
     unless the taxpayer identification number of such individual 
     is included on the return claiming the credit.
       ``(e) Denial of Double Benefit.--No credit shall be allowed 
     under subsection (a) for any amount with respect to which a 
     credit is allowed under section 21.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this section.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 25D the 
     following new item:

``Sec. 25E. Expenses for eldercare.''.

       (c) Conforming Amendments.--
       (1) Section 213(e) is amended--
       (A) by inserting ``or section 25E'' after ``section 21'', 
     and
       (B) by inserting ``and Elders'' after ``Certain 
     Dependents'' in the heading.
       (2) Section 6213(g)(2) is amended--
       (A) by inserting ``, section 25E (relating to expenses for 
     care of elders),'' after ``(relating to expenses for 
     household and dependent care services necessary for gainful 
     employment)'' in subparagraph (H), and
       (B) by inserting ``, 25E'' after ``24'' in subparagraph 
     (L).
       (d) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply to taxable years beginning 
     after the date of the enactment of this Act.
       (e) Offset.--
       (f) Fair Share Tax on High-income Taxpayers.--
       (1) In general.--Subchapter A of chapter 1, as amended by 
     section 14401, is amended by adding at the end the following 
     new part:

          ``PART VIII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59AA. Fair share tax.

     ``SEC. 59AA. FAIR SHARE TAX.

       ``(a) General Rule.--
       ``(1) Phase-in of tax.--In the case of any high-income 
     taxpayer, there is hereby imposed for a taxable year (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the product of--
       ``(A) the amount determined under paragraph (2), and
       ``(B) a fraction (not to exceed 1)--
       ``(i) the numerator of which is the excess of--

       ``(I) the taxpayer's adjusted gross income, over
       ``(II) the dollar amount in effect under subsection (c)(1), 
     and

       ``(ii) the denominator of which is the dollar amount in 
     effect under subsection (c)(1).
       ``(2) Amount of tax.--The amount of tax determined under 
     this paragraph is an amount equal to the excess (if any) of--
       ``(A) the tentative fair share tax for the taxable year, 
     over

[[Page S7648]]

       ``(B) the excess of--
       ``(i) the sum of--

       ``(I) the regular tax liability (as defined in section 
     26(b)) for the taxable year, determined without regard to any 
     tax liability determined under this section,
       ``(II) the tax imposed by section 55 for the taxable year, 
     plus
       ``(III) the payroll tax for the taxable year, over

       ``(ii) the credits allowable under part IV of subchapter A 
     (other than sections 27(a), 31, and 34).
       ``(b) Tentative Fair Share Tax.--For purposes of this 
     section--
       ``(1) In general.--The tentative fair share tax for the 
     taxable year is 30 percent of the excess of--
       ``(A) the adjusted gross income of the taxpayer, over
       ``(B) the modified charitable contribution deduction for 
     the taxable year.
       ``(2) Modified charitable contribution deduction.--For 
     purposes of paragraph (1)--
       ``(A) In general.--The modified charitable contribution 
     deduction for any taxable year is an amount equal to the 
     amount which bears the same ratio to the deduction allowable 
     under section 170 (section 642(c) in the case of a trust or 
     estate) for such taxable year as--
       ``(i) the amount of itemized deductions allowable under the 
     regular tax (as defined in section 55) for such taxable year, 
     determined after the application of section 68, bears to
       ``(ii) such amount, determined before the application of 
     section 68.
       ``(B) Taxpayer must itemize.--In the case of any individual 
     who does not elect to itemize deductions for the taxable 
     year, the modified charitable contribution deduction shall be 
     zero.
       ``(c) High-Income Taxpayer.--For purposes of this section--
       ``(1) In general.--The term `high-income taxpayer' means, 
     with respect to any taxable year, any taxpayer (other than a 
     corporation) with an adjusted gross income for such taxable 
     year in excess of $1,000,000 (50 percent of such amount in 
     the case of a married individual who files a separate 
     return).
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2018, the $1,000,000 amount under paragraph (1) 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 `calendar year 2017' 
     for `calendar year 2016' in subparagraph (A)(ii) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $10,000, such amount 
     shall be rounded to the next lowest multiple of $10,000.
       ``(d) Payroll Tax.--For purposes of this section, the 
     payroll tax for any taxable year is an amount equal to the 
     excess of--
       ``(1) the taxes imposed on the taxpayer under sections 
     1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax 
     is attributable to the rate of tax in effect under section 
     3101) with respect to such taxable year or wages or 
     compensation received during such taxable year, over
       ``(2) the deduction allowable under section 164(f) for such 
     taxable year.
       ``(e) Special Rule for Estates and Trusts.--For purposes of 
     this section, in the case of an estate or trust, adjusted 
     gross income shall be computed in the manner described in 
     section 67(e).
       ``(f) Not Treated as Tax Imposed by This Chapter for 
     Certain Purposes.--The tax imposed under this section shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter 
     (other than the credit allowed under section 27(a)) or for 
     purposes of section 55.''.
       (2) Clerical amendment.--The table of parts for subchapter 
     A of chapter 1 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new item:

        ``Part VIII--Fair Share Tax on High-Income Taxpayers''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2017.
                                 ______
                                 
  SA 1805. Ms. HARRIS submitted an amendment intended to be proposed by 
her to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. POINT OF ORDER AGAINST LEGISLATION THAT PROVIDES 
                   FUNDING TO THE PRESIDENTIAL ADVISORY COMMISSION 
                   ON ELECTION INTEGRITY.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, motion, amendment, 
     amendment between the Houses, or conference report that 
     provides funding to the Presidential Advisory Commission on 
     Election Integrity.
       (b) Waiver and Appeal.--Subsection (a) may be waived or 
     suspended in the Senate only by an affirmative vote of three-
     fifths of the Members, duly chosen and sworn. An affirmative 
     vote of three-fifths of the Members of the Senate, duly 
     chosen and sworn, shall be required to sustain an appeal of 
     the ruling of the Chair on a point of order raised under 
     subsection (a).
                                 ______
                                 
  SA 1806. Ms. HARRIS submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place in title I, add the following:

     SEC. __. POINT OF ORDER AGAINST ELIMINATING THE REQUIREMENT 
                   FOR CBO SCORES BEFORE VOTES.

       (a) Revival of Point of Order.--
       (1) In general.--Section 4111 of H. Con. Res. 71 (115th 
     Congress), the concurrent resolution on the budget for fiscal 
     year 2018, is amended--
       (A) by striking ``Sections 3205 and 3206'' and inserting 
     ``Section 3206''; and
       (B) by striking ``are repealed'' and inserting ``is 
     repealed''.
       (2) Applicability.--In the Senate, section 3205 of S. Con. 
     Res. 11 (114th Congress), the concurrent resolution on the 
     budget for fiscal year 2016, shall be applied and 
     administered as if the repeal of such section 3205 under 
     section 4111 of H. Con. Res. 71 (115th Congress), the 
     concurrent resolution on the budget for fiscal year 2018, had 
     never been enacted.
       (b) Definition.--In this section, the term ``score before 
     voting requirement'' means the requirement under section 3205 
     of S. Con. Res 11 (114th), the concurrent resolution on the 
     budget for fiscal year 2016, or any successor thereto, 
     prohibiting voting on passage of a matter that requires an 
     estimate under section 402 of the Congressional Budget Act of 
     1974 (2 U.S.C. 653), unless such estimate was made publicly 
     available on the website of the Congressional Budget Office 
     not later than 28 hours before the time the vote commences.
       (c) Point of Order Against Eliminating of Point of Order.--
     When the Senate is considering a bill, resolution, motion, 
     amendment, amendment between the Houses, or conference 
     report, if a point of order is made by a Senator against a 
     provision that would repeal or otherwise eliminate the score 
     before voting requirement, and the point of order is 
     sustained by the Chair, that provision shall be stricken from 
     the measure and may not be offered as an amendment from the 
     floor.
       (d) Form of the Point of Order.--A point of order under 
     subsection (c) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974 (2 
     U.S.C. 644(e)).
       (e) Conference Reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill or joint resolution, upon a point of 
     order being made by any Senator pursuant to subsection (c), 
     and such point of order being sustained, such material 
     contained in such conference report or House amendment shall 
     be stricken, and the Senate shall proceed to consider the 
     question of whether the Senate shall recede from its 
     amendment and concur with a further amendment, or concur in 
     the House amendment with a further amendment, as the case may 
     be, which further amendment shall consist of only that 
     portion of the conference report or House amendment, as the 
     case may be, not so stricken. Any such motion in the Senate 
     shall be debatable. In any case in which such point of order 
     is sustained against a conference report (or Senate amendment 
     derived from such conference report by operation of this 
     subsection), no further amendment shall be in order.
       (f) Supermajority Waiver and Appeal.--In the Senate, this 
     section may be waived or suspended only by an affirmative 
     vote of three-fifths of the Members, duly chose and sworn. An 
     affirmative vote of three-fifths of Members of the Senate, 
     duly chosen and sworn shall be required to sustain an appeal 
     of the ruling of the Chair on a point of order raised under 
     this section.
                                 ______
                                 
  SA 1807. Mr. GRAHAM submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page __, line ___, strike ``(h) Regulations.--'' and 
     insert:
       ``(h) Special Rules to Prevent the Double Taxation of Base 
     Erosion Payments.--
       ``(1) Coordination with tax on certain insurance 
     policies.--
       ``(A) In general.--If applicable taxes are imposed on 1 or 
     more base erosion payments made by the taxpayer for any 
     taxable year, the base erosion minimum tax amount for such 
     taxable year shall be reduced by the applicable percentage of 
     the aggregate amount of such taxes imposed on such payments.
       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the term `applicable percentage' means, with 
     respect to any taxable year, the percentage determined by 
     dividing--
       ``(i) the base erosion payments for such taxable year on 
     which applicable taxes were imposed, by
       ``(ii) the aggregate amount of base erosion payments of the 
     taxpayer for the taxable year.

[[Page S7649]]

       ``(C) Applicable taxes.--For purposes of this paragraph, 
     the term `applicable tax' means any tax imposed by--
       ``(i) section 4371(2), or
       ``(ii) section 4173(3), but only to the extent applicable 
     to reinsurance covering contracts taxable under section 
     4371(2).
       ``(2) Reduction for amounts paid to the taxpayer.--The 
     amount of any base erosion payment described in subsection 
     (d)(1) paid or accrued during the taxable year by the 
     taxpayer to a foreign person which is a related party to the 
     taxpayer shall be reduced by any amount which was--
       ``(A) paid or accrued during such taxable year by such 
     foreign person to the taxpayer, and
       ``(B) related to such base erosion payment.
       ``(3) Payments subject to united states tax.--No amount 
     paid or accrued during the taxable year by the taxpayer to a 
     foreign person which is a related party to the taxpayer shall 
     be treated as a base erosion payment under subsection (d) to 
     the extent--
       ``(A) such amount is taken into account by such foreign 
     person in determining the tax of such foreign person under 
     this subtitle, and
       ``(B) such foreign person has certified it is exempt from 
     withholding tax under section 1441 or 1442 or such person has 
     elected to be taxed under this subtitle as a United States 
     person.
       ``(i) Regulations.--
                                 ______
                                 
  SA 1808. Mr. SCOTT (for himself, Mr. Cruz, Mr. Inhofe, Mr. Cassidy, 
and Mr. Blunt) submitted an amendment intended to be proposed by him to 
the bill H.R. 1, to provide for reconciliation pursuant to titles II 
and V of the concurrent resolution on the budget for fiscal year 2018; 
which was ordered to lie on the table; as follows:

       Beginning on page 175, strike line 11 and all that follows 
     through page 177, line 15 and insert the following:
       (A) except as provided in subparagraph (B) or (C), include 
     such advance payment in gross income for such taxable year,
       (B) if the taxpayer elects the application of this 
     subparagraph with respect to the category of advance payments 
     for goods to which such advance payment belongs, the taxpayer 
     shall include such advance payment in the taxable year in 
     which the payment is included in gross income for purposes of 
     the taxpayer's applicable financial statements, or
       (C) if the taxpayer elects the application of this 
     subparagraph with respect to the category of advance payments 
     for goods described in paragraph (2)(C), or for services, to 
     which such advance payment belongs, the taxpayer shall--
       (i) to the extent that any portion of such advance payment 
     is required under subsection (b) to be included in gross 
     income in the taxable year in which such payment is received, 
     so include such portion, and
       (ii) include the remaining portion of such advance payment 
     in gross income in the taxable year following the taxable 
     year in which such payment is received.
       (2) Election.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, the election under paragraph (1)(B) shall be made 
     at such time, in such form and manner, and with respect to 
     such categories of advance payments, as the Secretary may 
     provide.
       (B) Period to which election applies.--An election under 
     paragraph (1)(B) or (1)(C) shall be effective for the taxable 
     year with respect to which it is first made and for all 
     subsequent taxable years, unless the taxpayer secures the 
     consent of the Secretary to revoke such election. For 
     purposes of this title, the computation of taxable income 
     under an election made under paragraph (1)(B) or (1)(C) shall 
     be treated as a method of accounting.
       (C) Property includable in inventory not eligible for 
     election.--A taxpayer may not make an election under 
     paragraph (1)(B) for advance payments for the sale of goods 
     properly includible in inventory for which the taxpayer has 
     received substantial advanced payments and the taxpayer has 
     on hand goods of substantially similar kind and in sufficient 
     quantity to satisfy the agreement in the year the advance 
     payment is received.
       (3) Taxpayers ceasing to exist.--Except as otherwise 
     provided by the Secretary, the election under paragraph 
     (1)(B) shall not apply with respect to advance payments 
     received by the taxpayer during a taxable year if such 
     taxpayer ceases to exist during (or with the close of) such 
     taxable year.
       (4) Advance payment.--For purposes of this subsection--
       (A) In general.--The term ``advance payment'' means any 
     payment--
       (i) the full inclusion of which in the gross income of the 
     taxpayer for the taxable year of receipt is a permissible 
     method of accounting under this section (determined without 
     regard to this subsection), and
       (ii) which is for goods, services, or
                                 ______
                                 
  SA 1809. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page 30, line 3, insert ``or the trade or business of 
     performing services as an employee'' after ``business''.
                                 ______
                                 
  SA 1810. Mr. FLAKE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. 13201. TEMPORARY 100-PERCENT EXPENSING FOR CERTAIN 
                   BUSINESS ASSETS.

       (a) Increased Expensing.--
       (1) In general.--Section 168(k) is amended--
       (A) in paragraph (1)(A), by striking ``50 percent'' and 
     inserting ``the applicable percentage'', and
       (B) in paragraph (5)(A)(i), by striking ``50 percent'' and 
     inserting ``the applicable percentage''.
       (2) Applicable percentage.--Paragraph (6) of section 168(k) 
     is amended to read as follows:
       ``(6) Applicable percentage.--For purposes of this 
     subsection--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the term `applicable percentage' means--
       ``(i) in the case of property placed in service after 
     September 27, 2017, and before January 1, 2023, 100 percent,
       ``(ii) in the case of property placed in service after 
     December 31, 2022, and before January 1, 2024, 80 percent,
       ``(iii) in the case of property placed in service after 
     December 31, 2023, and before January 1, 2025, 60 percent,
       ``(iv) in the case of property placed in service after 
     December 31, 2024, and before January 1, 2026, 40 percent, 
     and
       ``(v) in the case of property placed in service after 
     December 31, 2025, and before January 1, 2027, 20 percent.
       ``(B) Rule for property with longer production periods.--In 
     the case of property described in paragraph (2)(B) or (C), 
     the term `applicable percentage' means--
       ``(i) in the case of property placed in service after 
     September 27, 2017, and before January 1, 2024, 100 percent,
       ``(ii) in the case of property placed in service after 
     December 31, 2023, and before January 1, 2025, 80 percent,
       ``(iii) in the case of property placed in service after 
     December 31, 2024, and before January 1, 2026, 60 percent,
       ``(iv) in the case of property placed in service after 
     December 31, 2025, and before January 1, 2027, 40 percent, 
     and
       ``(v) in the case of property placed in service after 
     December 31, 2026, and before January 1, 2028, 20 percent.
       ``(C) Rule for plants bearing fruits and nuts.--In the case 
     of a specified plant described in paragraph (5), the term 
     `applicable percentage' means--
       ``(i) in the case of a plant which is planted or grafted 
     after September 27, 2017, and before January 1, 2023, 100 
     percent,
       ``(ii) in the case of a plant which is planted or grafted 
     after December 31, 2022, and before January 1, 2024, 80 
     percent,
       ``(iii) in the case of a plant which is planted or grafted 
     after December 31, 2023, and before January 1, 2025, 60 
     percent,
       ``(iv) in the case of a plant which is planted or grafted 
     after December 31, 2024, and before January 1, 2026, 40 
     percent, and
       ``(v) in the case of a plant which is planted or grafted 
     after December 31, 2025, and before January 1, 2027, 20 
     percent.''.
       (3) Conforming amendment.--Paragraph (5) of section 168(k) 
     is amended by striking subparagraph (F).
       (b) Extension.--
       (1) In general.--Section 168(k) is amended--
       (A) in paragraph (2)--
       (i) in subparagraph (A)(iii), clauses (i)(III) and (ii) of 
     subparagraph (B), and subparagraph (E)(i), by striking 
     ``January 1, 2020'' each place it appears and inserting 
     ``January 1, 2026'', and
       (ii) in subparagraph (B)--

       (I) in clause (i)(II), by striking ``January 1, 2021'' and 
     inserting ``January 1, 2027'', and
       (II) in the heading of clause (ii), by striking ``pre-
     january 1, 2020'' and inserting ``pre-january 1, 2026'', and

       (B) in paragraph (5)(A), by striking ``January 1, 2020'' 
     and inserting ``January 1, 2026''.
       (2) Conforming amendments.--
       (A) Clause (ii) of section 460(c)(6)(B) is amended by 
     striking ``January 1, 2020 (January 1, 2021'' and inserting 
     ``January 1, 2026 (January 1, 2027''.
       (B) The heading of section 168(k) is amended by striking 
     ``Acquired After December 31, 2007, and Before January 1, 
     2020''.
       (c) Exception for Public Utilities.--Section 168(k) is 
     amended by adding at the end the following new paragraph:
       ``(8) Exception for certain public utility property.--The 
     term `qualified property' shall not include any property 
     which is primarily used in a trade or business described in 
     clause (iv) of section 163(j)(7)(A).''.
       (d) Special Rule.--Section 168(k), as amended by subsection 
     (c), is amended by adding at the end the following new 
     paragraph:
       ``(9) Special rule for property placed in service during 
     certain periods.--
       ``(A) In general.--In the case of qualified property placed 
     in service by the taxpayer

[[Page S7650]]

     during the first taxable year ending after September 27, 
     2017, if the taxpayer elects to have this paragraph apply for 
     such taxable year, paragraphs (1)(A) and (5)(A)(i) shall be 
     applied by substituting `50 percent' for `the applicable 
     percentage'.
       ``(B) Form of election.--Any election under this paragraph 
     shall be made at such time and in such form and manner as the 
     Secretary may prescribe.''.
       (e) Coordination With Section 280F.--Section 168(k)(2)(F) 
     is amended by striking clause (iii).
       (f) Qualified Film and Television and Live Theatrical 
     Productions.--
       (1) In general.--Clause (i) of section 168(k)(2)(A), as 
     amended by section 13204, is amended--
       (A) in subclause (II), by striking ``or'',
       (B) in subclause (III), by adding ``or'' after the comma, 
     and
       (C) by adding at the end the following:
       ``(IV) which is a qualified film or television production 
     (as defined in subsection (d) of section 181) for which a 
     deduction would have been allowable under section 181 without 
     regard to subsections (a)(2) and (g) of such section or this 
     subsection, or
       ``(V) which is a qualified live theatrical production (as 
     defined in subsection (e) of section 181) for which a 
     deduction would have been allowable under section 181 without 
     regard to subsections (a)(2) and (g) of such section or this 
     subsection,''.
       (2) Production placed in service.--Paragraph (2) of section 
     168(k) is amended by adding at the end the following:
       ``(H) Production placed in service.--For purposes of 
     subparagraph (A)--
       ``(i) a qualified film or television production shall be 
     considered to be placed in service at the time of initial 
     release or broadcast, and
       ``(ii) a qualified live theatrical production shall be 
     considered to be placed in service at the time of the initial 
     live staged performance.''.
       (g) Effective Dates.--The amendments made by this section 
     shall apply to property placed in service, and specified 
     plants planted after, after September 27, 2017, in taxable 
     years ending after such date.

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