[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7609-S7610]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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.
                                 ______