[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7589-S7590]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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.
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