[Congressional Record Volume 163, Number 196 (Friday, December 1, 2017)]
[Senate]
[Page S7724]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1825. Mr. HOEVEN (for himself, Mr. Gardner, Mr. Boozman, Mrs. 
Ernst, Mr. Blunt, Mr. Risch, Mr. Rounds, Mr. Moran, Mr. Cotton, and 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 13305 and insert the following:

     SEC. 13305. DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC 
                   PRODUCTION ACTIVITIES FOR FARMING BUSINESSES.

       (a) Limitation.--
       (1) In general.--Section 199 is amended--
       (A) in subsection (a), by striking ``There shall be'' and 
     inserting ``Subject to subsection (e), there shall be''; and
       (B) by adding at the end the following new subsection:
       ``(e) Limitation.--Effective with taxable years beginning 
     after December 31, 2018, the deduction for income 
     attributable to domestic production activities provided under 
     this section shall be allowed only with respect to domestic 
     production activities incurred in any farming trade or 
     business, including with respect to any agricultural and 
     horticultural cooperative described in subsection (d).''.
       (2) Administration.--Until the date on which any 
     regulations necessary to carry out the provisions of and 
     amendments made by this subsection are fully implemented, the 
     Secretary shall continue to carry out section 199 of the 
     Internal Revenue Code of 1986 in the same manner as on the 
     day before the date of enactment of this Act, including with 
     respect to agricultural and horticultural cooperatives, 
     except that deductions allowed under such section shall be 
     allowed consistent with subsection (e) of such section (as 
     added by paragraph (1)).
       (b) Tax on Certain Farmers' Cooperatives.--
       (1) In general.--Section 1381(b) is amended to read as 
     follows:
       ``(b) Tax on Certain Farmers' Cooperatives.--An 
     organization described in subsection (a)(1) shall be subject 
     to the tax imposed by section 11, except that in the case of 
     an organization eligible for a deduction under section 199 
     for the taxable year by reason of subsection (e) thereof, 
     section 11(b) shall be applied by substituting `35 percent' 
     for `20 percent'.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2018.
       (c) Repeal of Special Rule for Deduction for Qualified 
     Cooperative Dividends.--
       (1) In general.--Section 199A, as added by section 11011 of 
     this Act is amended --
       (A) by striking ``and qualified cooperative dividends'' in 
     subsection (b)(1)(B) thereof, and
       (B) by striking paragraph (4) of subsection (e) thereof.
       (2) Effective date.--The amendments made by this section 
     shall apply as if included in the amendments made by section 
     11011 of this Act.
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