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

  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.
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