[Congressional Record Volume 167, Number 88 (Thursday, May 20, 2021)]
[Senate]
[Pages S3279-S3283]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1859. Mr. CRUZ submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Schumer to the bill S. 1260, to 
establish a new Directorate for Technology and Innovation in the 
National Science Foundation, to establish a regional technology hub 
program, to require a strategy and report on economic security, 
science, research, innovation, manufacturing, and job creation, to 
establish a critical supply chain resiliency program, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

           TITLE IV--INDIVIDUAL TAX PROVISIONS MADE PERMANENT

     SEC. __01. FINDINGS.

       (a) Findings.--Congress makes the following findings:
       (1) Innovation in the United States has been and will 
     continue to be the main driver of technological progress and 
     economic growth.
       (2) Taxation, in the form of both personal income taxes and 
     corporate income taxes, matters for innovation along the 
     intensive and extensive margins and both at the micro and 
     macro levels.
       (3) From 1900 to 2000, States with the most innovations 
     also witnessed the fastest growth.
       (4) Globally, the evidence demonstrates that countries with 
     an overall lower tax burden will enjoy a higher level of 
     innovation, greater quality of innovation, and more robust 
     inventive activity.
       (5) Efficient tax policy can provide effective incentives 
     for many economic activities, including innovation.
       (6) Inefficient tax policy can create heavy, deadweight 
     burdens, hurt incentives, and slow down innovation.
       (7) High rates of corporate and personal income taxation 
     negatively affect the quantity, quality, and location of 
     innovation at the individual, organizational, and State 
     level.

     SEC. __02. PERMANENT MODIFICATION OF INDIVIDUAL RATE 
                   BRACKETS.

       (a) Married Individuals Filing Joint Returns and Surviving 
     Spouses.--The table contained in subsection (a) of section 1 
     of the Internal Revenue Code of 1986 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 $165,000........  $8,907, plus 22% of the
                                             excess over $77,400.
Over $165,000 but not over $315,000.......  $28,179, plus 24% of the
                                             excess over $165,000.
Over $315,000 but not over $400,000.......  $64,179, plus 32% of the
                                             excess over $315,000.
Over $400,000 but not over $600,000.......  $91,379, plus 35% of the
                                             excess over $400,000.
Over $600,000.............................  $161,379, plus 37% of the
                                             excess over $600,000.''.

       (b) Heads of Households.--The table contained in subsection 
     (b) of section 1 of the Internal Revenue Code of 1986 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 $82,500.........  $5,944, plus 22% of the
                                             excess over $51,800.
Over $82,500 but not over $157,500........  $12,698, plus 24% of the
                                             excess over $82,500.
Over $157,500 but not over $200,000.......  $30,698, plus 32% of the
                                             excess over $157,500.
Over $200,000 but not over $500,000.......  $44,298, plus 35% of the
                                             excess over $200,000.
Over $500,000.............................  $149,298, plus 37% of the
                                             excess over $500,000.''.

       (c) Unmarried Individuals Other Than Surviving Spouses and 
     Heads of Households.--The table contained in subsection (c) 
     of section 1 of the Internal Revenue Code of 1986 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 $82,500.........  $4,453.50, plus 22% of the
                                             excess over $38,700.
Over $82,500 but not over $157,500........  $14,089.50, plus 24% of the
                                             excess over $82,500.
Over $157,500 but not over $200,000.......  $32,089.50, plus 32% of the
                                             excess over $157,500.
Over $200,000 but not over $500,000.......  $45,689.50, plus 35% of the
                                             excess over $200,000.
Over $500,000.............................  $150,689.50, plus 37% of the
                                             excess over $500,000.''.

       (d) Married Individuals Filing Separate Returns.--The table 
     contained in subsection (d) of section 1 of the Internal 
     Revenue Code of 1986 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 $82,500.........  $4,453.50, plus 22% of the
                                             excess over $38,700.
Over $82,500 but not over $157,500........  $14,089.50, plus 24% of the
                                             excess over $82,500.
Over $157,500 but not over $200,000.......  $32,089.50, plus 32% of the
                                             excess over $157,500.
Over $200,000 but not over $300,000.......  $45,689.50, plus 35% of the
                                             excess over $200,000.
Over $300,000.............................  $80,689.50, plus 37% of the
                                             excess over $300,000.''.

       (e) Estates and Trusts.--The table contained in subsection 
     (e) of section 1 of the Internal Revenue Code of 1986 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 $12,500..........  $1,839, plus 35% of the
                                             excess over $9,150.
Over $12,500..............................  $3,011.50, plus 37% of the
                                             excess over $12,500.''.

       (f) Adjustment for Inflation.--Subsection (f) of section 1 
     of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``1993'' in paragraph (1) and inserting 
     ``2018'',
       (2) by striking ``determined--'' and all that follows in 
     paragraph (2)(A) and inserting ``determined by substituting 
     `2017' for `2016' in paragraph (3)(A)(ii),'',
       (3) by striking ``a married individual filing a separate 
     return'' in paragraph (7)(B) and inserting ``any unmarried 
     individual other than a surviving spouse or head of 
     household'',
       (4) by striking ``married individuals filing separately'' 
     in the heading of subparagraph (B) of paragraph (7) and 
     inserting ``certain unmarried individuals'', and
       (5) by striking paragraph (8).
       (g) Capital Gains Brackets.--Subsection (h) of section 1 of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``which would (without regard to this 
     paragraph) be taxed at a rate below 25 percent'' in paragraph 
     (1)(B)(i) and inserting ``below the maximum zero rate 
     amount'',
       (2) by striking ``which would (without regard to this 
     paragraph) be taxed at a rate below 39.6 percent'' in 
     paragraph (1)(C)(ii)(I) and inserting ``below the maximum 15-
     percent rate amount'', and
       (3) by adding at the end the following new paragraph:
       ``(12) Maximum amounts defined.--For purposes of this 
     subsection--
       ``(A) Maximum zero rate amount.--The maximum zero rate 
     amount shall be--
       ``(i) in the case of a joint return or surviving spouse, 
     $77,200,
       ``(ii) in the case of an individual who is a head of 
     household (as defined in section 2(b)), $51,700,
       ``(iii) in the case of any other individual (other than an 
     estate or trust), an amount equal to \1/2\ of the amount in 
     effect for the taxable year under clause (i), and
       ``(iv) in the case of an estate or trust, $2,600.
       ``(B) Maximum 15-percent rate amount.--The maximum 15-
     percent rate amount shall be--
       ``(i) in the case of a joint return or surviving spouse, 
     $479,000 (\1/2\ such amount in the case of a married 
     individual filing a separate return),
       ``(ii) in the case of an individual who is the head of a 
     household (as defined in section 2(b)), $452,400,

[[Page S3280]]

       ``(iii) in the case of any other individual (other than an 
     estate or trust), $425,800, and
       ``(iv) in the case of an estate or trust, $12,700.
       ``(C) Inflation adjustment.--In the case of any taxable 
     year beginning after 2018, each of the dollar amounts in 
     subparagraphs (A) and (B) shall be increased by an amount 
     equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     subsection (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.

     If any increase under this subparagraph is not a multiple of 
     $50, such increase shall be rounded to the next lowest 
     multiple of $50.''.
       (h) Conforming Amendments.--
       (1) Section 1 of the Internal Revenue Code of 1986 is 
     amended by striking subsections (i) and (j).
       (2) Section 3402(q)(1) of such Code is amended by striking 
     ``third lowest'' and inserting ``fourth lowest''.
       (i) Section 15 Not To Apply.--Section 15 of the Internal 
     Revenue Code of 1986 shall not apply to any change in a rate 
     of tax by reason of this section.
       (j) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __03. PERMANENT EXTENSION OF DEDUCTION FOR QUALIFIED 
                   BUSINESS INCOME OF PASS-THRU ENTITIES.

       (a) In General.--Section 199A of the Internal Revenue Code 
     of 1986 is amended by striking subsection (i).
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __04. PERMANENT EXTENSION OF LIMITATION ON LOSSES FOR 
                   TAXPAYERS OTHER THAN CORPORATIONS.

       (a) In General.--Paragraph (1) of section 461(l) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) Limitation.--In the case of taxable year of a 
     taxpayer other than a corporation, any excess business loss 
     of the taxpayer for the taxable year shall not be allowed.''.
       (b) Conforming Amendment.--Section 461 of the Internal 
     Revenue Code of 1986 is amended by striking subsection (j) 
     (relating to limitation on excess farm losses of certain 
     taxpayers).
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __05. PERMANENT EXTENSION OF INCREASE IN STANDARD 
                   DEDUCTION.

       (a) In General.--Section 63(c)(2) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``$4,400'' in subparagraph (B) and 
     inserting ``$18,800'', and
       (2) by striking ``$3,000'' in subparagraph (C) and 
     inserting ``$12,000''.
       (b) Inflation Adjustment.--Paragraph (4) of section 63(c) 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(4) Adjustments for inflation.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 2018, the $18,000 and 
     $12,000 amounts in subparagraph (A) 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, by substituting `2017' for `2016' in 
     subparagraph (A)(ii) thereof.
       ``(B) Certain amounts.--In the case of any taxable year 
     beginning in a calendar year after 1988, each dollar amount 
     contained in paragraph (5) or subsection (f) 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, by substituting for `calendar year 2016' in 
     subparagraph (A)(ii) thereof--

       ``(I) `calendar year 1987' in the case of the dollar 
     amounts contained in paragraph (5)(A) or subsection (f), and
       ``(II) `calendar year 1997' in the case of the dollar 
     amount contained in paragraph (5)(B).''.

       (c) Conforming Amendment.--Section 63(c) of the Internal 
     Revenue Code of 1986 is amended by striking paragraph (7).
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __06. PERMANENT INCREASE AND MODIFICATION OF CHILD TAX 
                   CREDIT.

       (a) Increase in Credit Amount.--Section 24(a) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``$1,000'' and inserting ``$2,000''.
       (b) Limitation.--Paragraph (2) of section 24(b) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(2) Threshold amount.--For purposes of paragraph (1), the 
     term `threshold amount' means--
       ``(A) $400,000 in the case of a joint return, and
       ``(B) $200,000 in any other case.''.
       (c) Partial Credit Allowed for Certain Other Dependents.--
     Subsection (h) of section 24 of the Internal Revenue Code of 
     1986 is amended to read as follows:
       ``(h) Partial Credit Allowed for Certain Other 
     Dependents.--
       ``(1) In general.--The credit determined under subsection 
     (a) shall be increased by $500 for each dependent of the 
     taxpayer (as defined in section 7706) other than a qualifying 
     child described in subsection (c).
       ``(2) Exception for certain noncitizens.--Paragraph (1) 
     shall not apply with respect to any individual who would not 
     be a dependent if subparagraph (A) of section 7706(b)(3) were 
     applied without regard to all that follows `resident of the 
     United States'.
       ``(3) Certain qualifying children.--In the case of any 
     qualifying child with respect to whom a credit is not allowed 
     under this section by reason of subsection (e)(1), such child 
     shall be treated as a dependent to whom subparagraph (A) 
     applies.''.
       (d) Maximum Amount of Refundable Credit.--Subsection (d) of 
     section 24 of the Internal Revenue Code of 1986 is amended by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) Limitation.--
       ``(A) In general.--The amount determined under paragraph 
     (1)(A) with respect to any qualifying child shall not exceed 
     $1,400, and such paragraph shall be applied without regard to 
     subsection (h).
       ``(B) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2018, the $1,400 amount in subparagraph 
     (A) 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 `2017' for `2016' in 
     subparagraph (A)(ii) thereof.

     If any increase under this clause is not a multiple of $100, 
     such increase shall be rounded to the next lowest multiple of 
     $100.''.
       (e) Earned Income Threshold for Refundable Credit.--Section 
     24(d)(1)(B) of the Internal Revenue Code of 1986 is amended 
     by striking ``$3,000'' and inserting ``$2,500''.
       (f) Social Security Number Required.--Paragraph (1) of 
     section 24(e) of the Internal Revenue Code of 1986 is amended 
     to read as follows:
       ``(1) Qualifying child social security number 
     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 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--
       ``(A) to a citizen of the United States or 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, and
       ``(B) before the due date for such return.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2021.

     SEC. __07. PERMANENT EXTENSION OF INCREASED LIMITATION FOR 
                   CERTAIN CHARITABLE CONTRIBUTIONS.

       (a) In General.--Section 170(b)(1)(G) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``for any taxable year beginning after 
     December 31, 2017, and before January 1, 2026,'' in clause 
     (i),
       (2) by striking ``for any taxable year described in such 
     clause'' in clause (ii), and
       (3) by striking ``For each taxable year described in clause 
     (i), and each taxable year to which any contribution under 
     this subparagraph is carried over under clause (ii), 
     subparagraph (A)'' in clause (iii) and inserting 
     ``Subparagraph (A)''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to contributions in taxable years beginning after 
     December 31, 2025.

     SEC. __08. PERMANENT EXTENSION OF INCREASED CONTRIBUTIONS TO 
                   ABLE ACCOUNTS.

       (a) In General.--Section 529A(b)(2)(B)(ii) of the Internal 
     Revenue Code of 1986 is amended by striking ``before January 
     1, 2026''.
       (b) Allowance of Savers Credit.--Section 25B(d)(1)(D) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``before January 1, 2026,''.
       (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. __09. PERMANENT EXTENSION OF ROLLOVERS TO ABLE PROGRAMS 
                   FROM 529 PROGRAMS.

       (a) In General.--Section 529(c)(3)(C)(i)(III) is amended by 
     striking ``before January 1, 2026,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions made after the date of the 
     enactment of this Act.

     SEC. __10. PERMANENT EXTENSION OF TREATMENT OF CERTAIN 
                   INDIVIDUALS PERFORMING SERVICES IN THE SINAI 
                   PENINSULA OF EGYPT.

       (a) In General.--Subsection (c) of section 11026 of Public 
     Law 115-97 is amended--
       (1) by striking ``beginning before January 1, 2026'' in 
     paragraph (1)(B), and
       (2) by striking ``beginning before January 1, 2026'' in 
     paragraph (2)(B).
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. __11. PERMANENT EXTENSION OF TREATMENT OF STUDENT LOANS 
                   DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY.

       (a) In General.--Subparagraph (A) of section 108(f)(5) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and before January 1, 2026,''.

[[Page S3281]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to discharges of indebtedness after December 31, 
     2020.

     SEC. __12. REPEAL OF DEDUCTION FOR PERSONAL EXEMPTIONS.

       (a) In General.--Part V of subchapter B of chapter 1 of the 
     Internal Revenue Code of 1986 is hereby repealed.
       (b) Definition of Dependent Retained.--Section 152 of the 
     Internal Revenue Code of 1986, prior to repeal by subsection 
     (a), is hereby redesignated as section 7706 of such Code and 
     moved to the end of chapter 79 of such Code.
       (c) Application to Estates and Trusts.--Subparagraph (C) of 
     section 642(b)(2) of the Internal Revenue Code of 1986 is 
     amended--
       (1) by striking ``the exemption amount under section 
     151(d)'' in clause (i) and inserting ``$4,150'', and
       (2) by striking clause (iii) and inserting the following:
       ``(iii) Inflation adjustment.--In the case of any taxable 
     year beginning in a calendar year after 2018, the $4,150 
     amount in clause (i) 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 
     begins, determined by substituting `2017' for `2016' in 
     subparagraph (A)(ii) thereof.

     If any increase determined under the preceding sentence is 
     not a multiple of $100, such increase shall be rounded to the 
     next lowest multiple of $100.''.
       (d) Application to Nonresident Aliens.--Section 873(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     paragraph (3).
       (e) Modification of Return Requirement.--
       (1) In general.--Section 6012 of the Internal Revenue Code 
     of 1986 is amended--
       (A) by striking paragraph (1) of subsection (a) and 
     inserting the following:
       ``(1) Every individual who has gross income for the taxable 
     year, except that a return shall not be required of--
       ``(A) an individual who is not married (determined by 
     applying section 7703) and who has gross income for the 
     taxable year which does not exceed the standard deduction 
     applicable to such individual for such taxable year under 
     section 63, or
       ``(B) an individual entitled to make a joint return if--
       ``(i) the gross income of such individual, when combined 
     with the gross income of such individual's spouse, for the 
     taxable year does not exceed the standard deduction which 
     would be applicable to the taxpayer for such taxable year 
     under section 63 if such individual and such individual's 
     spouse made a joint return,
       ``(ii) such individual and such individual's spouse have 
     the same household as their home at the close of the taxable 
     year,
       ``(iii) such individual's spouse does not make a separate 
     return, and
       ``(iv) neither such individual nor such individual's spouse 
     is an individual described in section 63(c)(2) who has income 
     (other than earned income) in excess of the amount in effect 
     under section 63(c)(2)(A).'', and
       (B) by striking subsection (f).
       (2) Bankruptcy estates.--Paragraph (8) of section 6012(a) 
     of such Code is amended by striking ``the sum of the 
     exemption amount plus the basic standard deduction under 
     section 63(c)(2)(D)'' and inserting ``the standard deduction 
     in effect under section 63(c)(1)(B)''.
       (f) Conforming Amendments.--
       (1) Section 2(a)(1)(B) of the Internal Revenue Code of 1986 
     is amended by striking ``a dependent'' and all that follows 
     through ``section 151'' and inserting ``a dependent who 
     (within the meaning of section 7706, determined without 
     regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) 
     is a son, stepson, daughter, or stepdaughter of the 
     taxpayer''.
       (2) Section 36B(b)(2)(A) of such Code is amended by 
     striking ``section 152'' and inserting ``section 7706''.
       (3) Section 36B(b)(3)(B) of such Code is amended by 
     striking ``unless a deduction is allowed under section 151 
     for the taxable year with respect to a dependent'' in the 
     flush matter at the end and inserting ``unless the taxpayer 
     has a dependent for the taxable year''.
       (4) Section 36B(c)(1)(D) of such Code is amended by 
     striking ``with respect to whom a deduction under section 151 
     is allowable to another taxpayer'' and inserting ``who is a 
     dependent of another taxpayer''.
       (5) Section 36B(d)(1) of such Code is amended by striking 
     ``equal to the number of individuals for whom the taxpayer is 
     allowed a deduction under section 151 (relating to allowance 
     of deduction for personal exemptions) for the taxable year'' 
     and inserting ``the sum of 1 (2 in the case of a joint 
     return) plus the number of the taxpayer's dependents for the 
     taxable year''.
       (6) Section 36B(e)(1) of such Code is amended by striking 
     ``1 or more individuals for whom a taxpayer is allowed a 
     deduction under section 151 (relating to allowance of 
     deduction for personal exemptions) for the taxable year 
     (including the taxpayer or his spouse)'' and inserting ``1 or 
     more of the taxpayer, the taxpayer's spouse, or any dependent 
     of the taxpayer''.
       (7) Section 42(i)(3)(D)(ii)(I) of such Code is amended--
       (A) by striking ``section 152'' and inserting ``section 
     7706'', and
       (B) by striking the period at the end and inserting a 
     comma.
       (8) Section 63(b) of such Code is amended by striking 
     ``minus--'' and all that follows and inserting ``minus the 
     standard deduction.''.
       (9) Section 63(d) of such Code is amended by striking 
     ``other than--'' and all that follows and inserting ``other 
     than the deductions allowable in arriving at adjusted gross 
     income.''.
       (10) Section 72(t)(2)(D)(i)(III) of such Code is amended by 
     striking ``section 152'' and inserting ``section 7706''.
       (11) Section 72(t)(7)(A)(iii) of such Code is amended by 
     striking ``section 152(f)(1)'' and inserting ``section 
     7706(f)(1)''.
       (12) Section 105(b) of such Code is amended--
       (A) by striking ``as defined in section 152'' and inserting 
     ``as defined in section 7706'',
       (B) by striking ``section 152(f)(1)'' and inserting 
     ``section 7706(f)(1)'', and
       (C) by striking ``section 152(e)'' and inserting ``section 
     7706(e)''.
       (13) Section 105(c)(1) of such Code is amended by striking 
     ``section 152'' and inserting ``section 7706''.
       (14) Section 125(e)(1)(D) of such Code is amended by 
     striking ``section 152'' and inserting ``section 7706''.
       (15) Section 129(c) of such Code is amended--
       (A) by striking ``with respect to whom, for such taxable 
     year, a deduction is allowable under section 151(c) (relating 
     to personal exemptions for dependents) to'' in paragraph (1) 
     and inserting ``who is a dependent of'', and
       (B) by striking ``section 152(f)(1)'' in paragraph (2) and 
     inserting ``section 7706(f)(1)''.
       (16) Section 132(h)(2)(B) of such Code is amended--
       (A) by striking ``section 152(f)(1)'' and inserting 
     ``section 7706(f)(1)'', and
       (B) by striking ``section 152(e)'' and inserting ``section 
     7706(e)''.
       (17) Section 139D(c)(5) of such Code is amended by striking 
     ``section 152'' and inserting ``section 7706''.
       (18) Section 162(l)(1)(D) of such Code is amended by 
     striking ``section 152(f)(1)'' and inserting ``section 
     7706(f)(1)''.
       (19) Section 170(g)(1) of such Code is amended by striking 
     ``section 152'' and inserting ``section 7706''.
       (20) Section 170(g)(3) of such Code is amended by striking 
     ``section 152(d)(2)'' and inserting ``section 7706(d)(2)''.
       (21) Section 172(d) of such Code is amended by striking 
     paragraph (3).
       (22) Section 220(b)(6) of such Code is amended by striking 
     ``with respect to whom a deduction under section 151 is 
     allowable to'' and inserting ``who is a dependent of''.
       (23) Section 220(d)(2)(A) of such Code is amended by 
     striking ``section 152'' and inserting ``section 7706''.
       (24) Section 223(b)(6) of such Code is amended by striking 
     ``with respect to whom a deduction under section 151 is 
     allowable to'' and inserting ``who is a dependent of''.
       (25) Section 223(d)(2)(A) of such Code is amended by 
     striking ``section 152'' and inserting ``section 7706''.
       (26) Section 401(h) of such Code is amended by striking 
     ``section 152(f)(1)'' in the last sentence and inserting 
     ``section 7706(f)(1)''.
       (27) Section 402(l)(4)(D) of such Code is amended by 
     striking ``section 152'' and inserting ``section 7706''.
       (28) Section 409A(a)(2)(B)(ii)(I) of such Code is amended 
     by striking ``section 152(a)'' and inserting ``section 
     7706(a)''.
       (29) Section 501(c)(9) of such Code is amended by striking 
     ``section 152(f)(1)'' and inserting ``section 7706(f)(1)''.
       (30) Section 529(e)(2)(B) of such Code is amended by 
     striking ``section 152(d)(2)'' and inserting ``section 
     7706(d)(2)''.
       (31) Section 703(a)(2) of such Code is amended by striking 
     subparagraph (A) and by redesignating subparagraphs (B) 
     through (F) as subparagraphs (A) through (E), respectively.
       (32) Section 874 of such Code is amended by striking 
     subsection (b) and by redesignating subsection (c) as 
     subsection (b).
       (33) Section 891 of such Code is amended by striking 
     ``under section 151 and''.
       (34) Section 904(b) of such Code is amended by striking 
     paragraph (1).
       (35) Section 931(b)(1) of such Code is amended by striking 
     ``(other than the deduction under section 151, relating to 
     personal exemptions)''.
       (36) Section 933 of such Code is amended--
       (A) by striking ``(other than the deduction under section 
     151, relating to personal exemptions)'' in paragraph (1), and
       (B) by striking ``(other than the deduction for personal 
     exemptions under section 151)'' in paragraph (2).
       (37) Section 1212(b)(2)(B)(ii) of such Code is amended to 
     read as follows:
       ``(ii) in the case of an estate or trust, the deduction 
     allowed for such year under section 642(b).''.
       (38) Section 1361(c)(1)(C) of such Code is amended by 
     striking ``section 152(f)(1)(C)'' and inserting ``section 
     7706(f)(1)(C)''.
       (39) Section 1402(a) of such Code is amended by striking 
     paragraph (7).
       (40) Section 2032A(c)(7)(D) of such Code is amended by 
     striking ``section 152(f)(2)'' and inserting ``section 
     7706(f)(2)''.
       (41) Section 3402(m)(1) of such Code is amended by striking 
     ``other than the deductions referred to in section 151 and''.
       (42) Section 3402(r)(2) of such Code is amended by striking 
     ``the sum of--'' and all that follows and inserting ``the 
     standard deduction in effect under section 63(c)(1)(B).''.

[[Page S3282]]

       (43) Section 5000A(b)(3)(A) of such Code is amended by 
     striking ``section 152'' and inserting ``section 7706''.
       (44) Section 5000A(c)(4)(A) of such Code is amended by 
     striking ``the number of individuals for whom the taxpayer is 
     allowed a deduction under section 151 (relating to allowance 
     of deduction for personal exemptions) for the taxable year'' 
     and inserting ``the sum of 1 (2 in the case of a joint 
     return) plus the number of the taxpayer's dependents for the 
     taxable year''.
       (45) Section 6013(b)(3)(A) of such Code is amended--
       (A) by striking ``had less than the exemption amount of 
     gross income'' in clause (ii) and inserting ``had no gross 
     income'',
       (B) by striking ``had gross income of the exemption amount 
     or more'' in clause (iii) and inserting ``had any gross 
     income'', and
       (C) by striking the flush language following clause (iii).
       (46) Section 6103(l)(21)(A)(iii) of such Code is amended to 
     read as follows:
       ``(iii) the number of the taxpayer's dependents,''.
       (47) Section 6213(g)(2) of such Code is amended by striking 
     subparagraph (H).
       (48) Section 6334(d)(2) of such Code is amended to read as 
     follows:
       ``(2) Exempt amount.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `exempt amount' means an amount equal to--
       ``(i) the sum of the amount determined under subparagraph 
     (B) and the standard deduction, divided by
       ``(ii) 52.
       ``(B) Amount determined.--For purposes of subparagraph (A), 
     the amount determined under this subparagraph is $4,150 
     multiplied by the number of the taxpayer's dependents for the 
     taxable year in which the levy occurs.
       ``(C) Inflation adjustment.--In the case of any taxable 
     year beginning after 2018, the $4,150 amount in subparagraph 
     (B) 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, by substituting `calendar year 2017' for 
     `calendar year 2016' in subparagraph (A) thereof.

     If any increase determined under the preceding sentence is 
     not a multiple of $100, such increase shall be rounded to the 
     next lowest multiple of $100.
       ``(D) Verified statement.--Unless the taxpayer submits to 
     the Secretary a written and properly verified statement 
     specifying the facts necessary to determine the proper amount 
     under subparagraph (A), subparagraph (A) shall be applied as 
     if the taxpayer were a married individual filing a separate 
     return with no dependents.''.
       (49) Section 7702B(f)(2)(C)(iii) of such Code is amended by 
     striking ``section 152(d)(2)'' and inserting ``section 
     7706(d)(2)''.
       (50) Section 7703(a) of such Code is amended by striking 
     ``part V of subchapter B of chapter 1 and''.
       (51) Section 7703(b)(1) of such Code is amended by striking 
     ``section 152(f)(1)'' and all that follows and inserting 
     ``section 7706(f)(1),''.
       (52) Section 7706(a) of such Code, as redesignated by this 
     section, is amended by striking ``this subtitle'' and 
     inserting ``subtitle A''.
       (53)(A) Section 7706(d)(1)(B) of such Code, as redesignated 
     by this section, is amended by striking ``the exemption 
     amount (as defined in section 151(d))'' and inserting 
     ``$4,150''.
       (B) Section 7706(d) of such Code, as redesignated by this 
     section, is amended by adding at the end the following new 
     paragraph:
       ``(6) Inflation adjustment.--In the case of any calendar 
     year beginning after 2018, the $4,150 amount in paragraph 
     (1)(B) 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 such calendar year, determined by 
     substituting `calendar year 2017' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     If any increase determined under the preceding sentence is 
     not a multiple of $100, such increase shall be rounded to the 
     next lowest multiple of $100.''.
       (54) The table of sections for chapter 79 of such Code is 
     amended by adding at the end the following new item:

``Sec. 7706. Dependent defined.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __13. PERMANENT EXTENSION OF LIMITATION ON DEDUCTION FOR 
                   STATE AND LOCAL, ETC., TAXES.

       (a) In General.--Paragraph (6) of section 164(b) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``, and before January 1, 2026'', and
       (2) by striking ``2018 through 2025'' in the heading and 
     inserting ``after 2017''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __14. PERMANENT EXTENSION OF LIMITATION ON DEDUCTION FOR 
                   QUALIFIED RESIDENCE INTEREST.

       (a) Repeal of Home Equity Indebtedness.--
       (1) In general.--Section 163(h)(3)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``during the 
     taxable year on'' and all that follows through ``For purposes 
     of'' and inserting ``during the taxable year on acquisition 
     indebtedness with respect to any qualified principal 
     residence of the taxpayer. For purposes of''.
       (2) Conforming amendment.--Section 163(h)(3) of such Code 
     is amended by striking subparagraph (C).
       (b) Limitation on Acquisition Indebtedness.--
       (1) In general.--Section 163(h)(3)(B)(ii) of the Internal 
     Revenue Code of 1986 is amended by striking ``$1,000,000 
     ($500,000'' and inserting ``$750,000 ($375,000''.
       (2) Treatment of indebtedness incurred on or before 
     december 31, 2017; refinancings.--Section 163(h)(3) of the 
     Internal Revenue Code of 1986, as amended by subsection 
     (a)(2), is amended by inserting after subparagraph (B) the 
     following new subparagraph:
       ``(C) Treatment of indebtedness incurred on or before 
     december 15, 2017; refinancings.--
       ``(i) In general.--In the case of any indebtedness incurred 
     on or before December 15, 2017, subparagraph (B)(ii) shall 
     apply as in effect immediately before the enactment of the 
     Public Law 115-97, and, in applying such subparagraph to any 
     indebtedness incurred after such date, the limitation under 
     such subparagraph shall be reduced (but not below zero) by 
     the amount of any indebtedness incurred on or before December 
     15, 2017, which is treated as acquisition indebtedness for 
     purposes of this subsection for the taxable year.
       ``(ii) Binding contract exception.--In the case of a 
     taxpayer who enters into a written binding contract before 
     December 15, 2017, to close on the purchase of a principal 
     residence before January 1, 2018, and who purchases such 
     residence before April 1, 2018, subclause (III) shall be 
     applied by substituting `April 1, 2018' for `December 15, 
     2017'.
       ``(iii) Treatment of refinancings of indebtedness.--

       ``(I) In general.--In the case of any indebtedness which is 
     incurred to refinance indebtedness, such refinanced 
     indebtedness shall be treated for purposes of clause (i) as 
     incurred on the date that the original indebtedness was 
     incurred to the extent the amount of the indebtedness 
     resulting from such refinancing does not exceed the amount of 
     the refinanced indebtedness.
       ``(II) Limitation on period of refinancing.--Subclause (I) 
     shall not apply to any indebtedness after the expiration of 
     the term of the original indebtedness or, if the principal of 
     such original indebtedness is not amortized over its term, 
     the expiration of the term of the 1st refinancing of such 
     indebtedness (or if earlier, the date which is 30 years after 
     the date of such 1st refinancing).''.

       (c) Coordination With Exclusion of Income From Discharge of 
     Indebtedness.--Section 108(h)(2) of the Internal Revenue Code 
     of 1986 is amended by striking ``, applied by substituting'' 
     and all that follows through ``section 163(h)(3)(F)(i)(II)''.
       (d) Conforming Amendments.--Section 163(h)(3) of the 
     Internal Revenue Code of 1986 is amended--
       (1) in the heading of subparagraph (D)(ii), by striking 
     ``$1,000,000'', and
       (2) by striking subparagraph (F).
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __15. PERMANENT EXTENSION OF MODIFICATIONS TO DEDUCTION 
                   FOR PERSONAL CASUALTY LOSSES.

       (a) In General.--Paragraph (5) of section 165(h) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``, and before January 1, 2026'' in 
     subparagraph (A), and
       (2) by striking ``2018 through 2025'' in the heading and 
     inserting ``after 2017''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to losses incurred in taxable years beginning 
     after December 31, 2020.

     SEC. __16. REPEAL OF MISCELLANEOUS ITEMIZED DEDUCTIONS.

       (a) In General.--Section 67 of the Internal Revenue Code of 
     1986 is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) General Rule.--No miscellaneous itemized deduction 
     shall be allowed for any taxable year beginning after 
     December 31, 2017.'',
       (2) by striking subsection (g), and
       (3) by striking ``2-percent floor on'' in the heading and 
     inserting ``treatment of''.
       (b) Conforming Amendment.--The table of sections for part I 
     of subchapter B of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking ``2-percent floor on'' in the 
     item relating to section 67 and inserting ``Treatment of''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __17. REPEAL OF OVERALL LIMITATION ON ITEMIZED 
                   DEDUCTIONS.

       (a) In General.--Part 1 of subchapter B of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by striking section 
     68 (and the item relating to such section in the table of 
     sections for such part).
       (b) Conforming Amendments.--
       (1) Section 1(f)(7) of the Internal Revenue Code of 1986 is 
     amended by striking ``section 68(b)(2),''.
       (2) Section 56(b)(1) of such Code is amended by striking 
     subparagraph (F).
       (3) Section 164(b)(5)(H)(ii)(III) of such Code is amended 
     by inserting ``(as in effect before

[[Page S3283]]

     the date of the enactment of the Tax Cuts and Jobs Act)'' 
     after ``68(b)''.
       (4) Section 642(b)(2)(C)(i)(I) of such Code is amended by 
     striking ``as an individual described in section 
     68(b)(1)(C)'' and inserting ``as an individual who is not 
     married and who is not a surviving spouse or head of 
     household''.
       (5) Section 773(a)(3)(B) of such Code is amended by 
     striking clause (i) and redesignating clauses (ii) through 
     (iv) as clauses (i) through (iii), respectively.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __18. REPEAL OF EXCLUSION FOR QUALIFIED BICYCLE 
                   COMMUTING REIMBURSEMENT.

       (a) In General.--Section 132(f)(1) of the Internal Revenue 
     Code of 1986 is amended by striking subparagraph (D).
       (b) Conforming Amendments.--
       (1) Section 132(f)(2) of the Internal Revenue Code of 1986 
     is amended by inserting ``and'' at the end of subparagraph 
     (A), by striking ``, and'' at the end of subparagraph (B) and 
     inserting a period, and by striking subparagraph (C).
       (2) Section 132(f)(4) of such Code is amended by striking 
     ``(other than a qualified bicycle commuting reimbursement)''.
       (3) Section 132(f)(5) of such Code is amended by striking 
     subparagraph (F).
       (4) Section 132(f) of such Code is amended by striking 
     paragraph (8).
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __19. PERMANENT EXTENSION OF MODIFICATION OF EXCLUSION 
                   FOR QUALIFIED MOVING EXPENSE REIMBURSEMENT.

       (a) In General.--Section 132(g) of the Internal Revenue 
     Code of 1986 is amended--
       (1) in paragraph (1), by striking ``individual'' and 
     inserting ``qualified military member'', and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Qualified military member.--For purposes of paragraph 
     (1), the term `qualified military member' means a member of 
     the Armed Forces of the United States on active duty who 
     moves pursuant to a military order and incident to a 
     permanent change of station.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __20. REPEAL OF DEDUCTION FOR MOVING EXPENSES.

       (a) In General.--Subsection (a) of section 217 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(a) Deduction Allowed.--There shall be allowed as a 
     deduction moving expenses paid or incurred during the taxable 
     year in connection with the commencement of work by a member 
     of the Armed Forces of the United States on active duty who 
     moves pursuant to a military order and incident to a 
     permanent change of station.''.
       (b) Conforming Amendments.--
       (1) Section 217 of the Internal Revenue Code of 1986 is 
     amended--
       (A) by striking subsections (c), (d), (f), and (i),
       (B) by redesignating subsections (g), (h), and (j) as 
     subsections (c), (d), and (e), respectively, and
       (C) in subsection (c), as so redesignated--
       (i) by striking paragraph (1) and redesignating paragraphs 
     (2) and (3) as paragraphs (1) and (2), respectively, and
       (ii) in paragraph (2) (as so redesignated), by striking 
     ``moving expenses of his spouse and dependents'' and all that 
     follows and inserting ``moving expenses of his spouse and 
     dependents as if his spouse commenced work as an employee at 
     a new principal place of work at such location.''.
       (2) Section 23 of such Code is amended by striking 
     ``217(h)(3)'' each place it appears in subsections (d)(3) and 
     (e) and inserting ``217(d)(3)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __21. PERMANENT EXTENSION OF LIMITATION ON WAGERING 
                   LOSSES.

       (a) In General.--The second sentence of section 165(d) of 
     the Internal Revenue Code of 1986 is amended by striking ``in 
     the case of taxable years beginning after December 31, 2017, 
     and before January 1, 2026,''.
       (b) Effective Date.--The amendments made by this section 
     shall not apply to taxable years beginning after December 31, 
     2020.

     SEC. __22. INCREASE IN ESTATE AND GIFT TAX EXEMPTION MADE 
                   PERMANENT.

       (a) In General.--Section 2010(c)(3)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``$5,000,000'' 
     and inserting ``$10,000,000''.
       (b) Conforming Amendments.--
       (1) Section 2010(c)(3) of the Internal Revenue Code of 1986 
     is amended by striking subparagraph (C).
       (2) Subsection (g) of section 2001 of such Code 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, 2020.

     SEC. __23. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION MADE 
                   PERMANENT.

       (a) In General.--Section 55(d) of the Internal Revenue Code 
     of 1986 is amended--
       (1) in paragraph (1)--
       (A) by striking ``$78,750'' in subparagraph (A) and 
     inserting ``$109,400'', and
       (B) by striking ``$50,600'' in subparagraph (B) and 
     inserting ``$70,300'', and
       (2) in paragraph (2)--
       (A) by striking ``$150,000'' in subparagraph (A) and 
     inserting ``$1,000,000'', and
       (B) by striking subparagraphs (B) and (C) and inserting the 
     following:
       ``(B) 50 percent of the dollar amount applicable under 
     subparagraph (A) in the case of a taxpayer described in 
     subparagraph (B) or (C) of paragraph (1), and
       ``(C) 50 percent of $150,000 in the case of a taxpayer 
     described in paragraph (1)(D).''.
       (b) Inflation Adjustment.--
       (1) In general.--Section 55(d)(3)(A)(ii) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting for `calendar year 2016' in 
     subparagraph (A)(ii) thereof--

       ``(I) `calendar year 2011' in the case of the dollar 
     amounts described in clauses (i), (iv), and (v) of 
     subparagraph (B), and
       ``(II) `calendar year 2017' in the case of the dollar 
     amounts described in clauses (ii) and (iii) of subparagraph 
     (B).''.

       (2) Conforming amendments.--Section 55(d)(3)(B) of such 
     Code is amended--
       (A) by striking ``subparagraphs (A), (B), and (D) of 
     paragraph (1), and'' in clause (ii) and inserting 
     ``subparagraphs (A) and (B) of paragraph (1),'',
       (B) by striking ``subparagraphs (A) and (B) of paragraph 
     (2).'' in clause (iii) and inserting ``paragraph (2)(A),'', 
     and
       (C) by adding at the end the following:
       ``(iv) the dollar amount contained in paragraph (1)(D), and
       ``(v) the dollar amount contained in paragraph (2)(C).''.
       (c) Treatment of Unearned Income of Minor Children.--
     Section 59 of the Internal Revenue Code of 1986 is amended by 
     striking subsection (j).
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2020.

     SEC. __24. TECHNICAL AMENDMENT.

       Section 11000 of Public Law 115-97 is amended by 
     redesignating subsection (a) as subsection (b) and by 
     inserting before subsection (b) (as so redesignated) the 
     following new subsection:
       ``(a) Short Title.--This title may be cited as the `Tax 
     Cuts and Jobs Act'.''.
                                 ______