119-hr137

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 137 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 137

 To amend the Internal Revenue Code of 1986 to make permanent certain 
 provisions of the Tax Cuts and Jobs Act affecting individuals, 
 families, and small businesses, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 3, 2025

 Mr. Buchanan (for himself, Mr. Smith of Nebraska, Mr. LaHood, Mr. 
 Estes, Mrs. Miller of West Virginia, Mr. Kustoff, Ms. Tenney, Ms. Van 
 Duyne, Mr. Feenstra, Mr. Carey, Mr. Yakym, Mr. Moran, Mr. Miller of 
 Ohio, Mr. Rutherford, Mr. Crenshaw, Mr. Guest, Mr. Moolenaar, Mr. 
 Amodei of Nevada, Mr. Fulcher, Mr. Ellzey, Mr. Grothman, Mr. Meuser, 
Mr. Clyde, Mr. Rouzer, Mrs. Hinson, Mr. Rulli, Mr. Ezell, Mr. Bost, Mr. 
 Barr, Mr. Weber of Texas, and Mr. Carter of Georgia) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to make permanent certain 
 provisions of the Tax Cuts and Jobs Act affecting individuals, 
 families, and small businesses, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``TCJA Permanency 
Act''.

    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
            (c) References to the Tax Cuts and Jobs Act.--Title I of Public Law 
115-97 may be cited as the ``Tax Cuts and Jobs Act''.
            (d) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title, etc.
 TITLE I--INDIVIDUAL REFORM MADE PERMANENT

 Subtitle A--Rate Reform

Sec. 101. Modification of rates.
 Subtitle B--Deduction for Qualified Business Income of Pass-Thru 
 Entities

Sec. 111. Deduction for qualified business income.

Sec. 112. Limitation on losses for taxpayers other than corporations.
 Subtitle C--Tax Benefits for Families and Individuals

Sec. 121. Increase in standard deduction.

Sec. 122. Increase in and modification of child tax credit.

Sec. 123. Increased limitation for certain charitable contributions.

Sec. 124. Increased contributions to ABLE accounts.

Sec. 125. Rollovers to ABLE programs from 529 programs.

Sec. 126. Treatment of certain individuals performing services in the 
 Sinai Peninsula of Egypt.
 Subtitle D--Education

Sec. 131. Treatment of student loan discharges.

Sec. 132. 529 account funding for homeschool and additional elementary 
 and secondary expenses.
 Subtitle E--Deductions and Exclusions

Sec. 141. Repeal of deduction for personal exemptions.

Sec. 142. Limitation on deduction for State and local, etc., taxes.

Sec. 143. Limitation on deduction for qualified residence interest.

Sec. 144. Modification of deduction for personal casualty losses.

Sec. 145. Termination of miscellaneous itemized deductions.

Sec. 146. Repeal of overall limitation on itemized deductions.

Sec. 147. Termination of exclusion for qualified bicycle commuting 
 reimbursement.

Sec. 148. Qualified moving expense reimbursement exclusion limited to 
 members of Armed Forces.

Sec. 149. Deduction for moving expenses limited to members of Armed 
 Forces.

Sec. 150. Limitation on wagering losses.
 Subtitle F--Increase in Estate and Gift Tax Exemption

Sec. 151. Increase in estate and gift tax exemption.
 TITLE II--INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM TAX MADE 
 PERMANENT

Sec. 201. Increased exemption for individuals.

 TITLE I--INDIVIDUAL REFORM MADE PERMANENT

 Subtitle A--Rate Reform

SEC. 101. MODIFICATION OF RATES.

    (a) Married Individuals Filing Joint Returns and Surviving 
Spouses.--

Section 1

    (a) is amended by striking the table contained 
therein and inserting the following:

 ``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.--

Section 1

    (b) is amended by striking the 
table contained therein and inserting the following:

 ``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.--

Section 1
            (c) is amended by striking the table contained 
therein and inserting the following:

 ``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.--

Section 1
            (d) is 
amended by striking the table contained therein and inserting the 
following:

 ``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.--

Section 1

    (e) is amended by striking the 
table contained therein and inserting the following:

 ``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) Inflation Adjustments.--

Section 1

    (f) is amended--

    (1) by amending paragraph

    (2)
        (A) to read as follows:
 ``
        (A) by increasing the minimum and maximum dollar 
 amounts for each bracket for which a tax is imposed 
 under such table by the cost-of-living adjustment for 
 such calendar year, determined under this subsection 
 for such calendar year by substituting `2017' for 
 `2016' in paragraph

    (3)
        (A)
            (ii) ,'',

    (2) by amending paragraph

    (7) to read as follows:
 ``

    (7) Rounding.--
 ``
        (A) In general.--Except as provided in 
 subparagraph
        (B) , if any increase determined under 
 paragraph

    (2)
        (A) is not a multiple of $25, such 
 increase shall be rounded to the next lowest multiple 
 of $25.
 ``
        (B) Joint returns, etc.--In the case of a table 
 prescribed under subsection

    (a) , subparagraph
        (A) shall 
 be applied by substituting `$50' for `$25' both places 
 it appears.'',

    (3) by striking paragraph

    (8) , and

    (4) in the heading, by striking ``Phaseout of Marriage 
 Penalty in 15-percent Bracket; Adjustments'' and inserting 
 ``Adjustments''.

    (g) Application of Income Tax Brackets to Capital Gains Brackets.--

Section 1

    (h) is amended--

    (1) in paragraph

    (1)
        (B)
            (i) , by striking ``25 percent'' and 
 inserting ``22 percent'',

    (2) in paragraph

    (1)
            (C) 
            (ii) 
            (I) , by striking ``which would 
 (without regard to this paragraph) be taxed at a rate below 
 39.6 percent'' and inserting ``below the maximum 15-percent 
 rate amount'', and

    (3) by adding at the end the following new paragraphs:
 ``

    (12) Maximum 15-percent rate amount defined.--For 
 purposes of this subsection, the maximum 15-percent rate amount 
 shall be--
 ``
        (A) in the case of a joint return or surviving 
 spouse (as defined in 

section 2

    (a) ), $479,000 (\1/2\ 
 such amount in the case of a married individual filing 
 a separate return),
 ``
        (B) in the case of an individual who is a head of 
 household (as defined in 

section 2

    (b) ), $452,400,
 ``
            (C) in the case of any other individual (other 
 than an estate or trust), $425,800, and
 ``
            (D) in the case of an estate or trust, $12,700.
 ``

    (13) Determination of 0 percent rate bracket for estates 
 and trusts.--In the case of any estate or trust, paragraph

    (1)
        (B) shall be applied by treating the amount determined in 
 clause
            (i) thereof as being equal to $2,600.
 ``

    (14) Inflation adjustment.--
 ``
        (A) In general.--Each of the dollar amounts in 
 paragraphs

    (12) and

    (13) 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.
 ``
        (B) Rounding.--If any increase under subparagraph
        (A) is not a multiple of $50, such increase shall be 
 rounded to the next lowest multiple of $50.''.

    (h) Conforming Amendments.--

    (1) Section 1 is amended by striking subsections
            (i) and

    (j) .

    (2) Section 3402

    (q)

    (1) is amended by striking ``third 
 lowest'' and inserting ``fourth lowest''.
            (i) Application of 

Section 15.--

    (1) In general.--Subsection

    (a) of 

section 15 is amended by 
 striking ``If any rate of tax'' and inserting ``In the case of 
 a corporation, if any rate of tax''.

    (2) Conforming amendments.--
        (A) Section 15 is amended by striking subsections
            (d) and

    (f) .
        (B) Section 6013
            (c) is amended by striking 
 ``sections 15, 443, and 7851

    (a)

    (1)
        (A) '' and inserting 
 ``

section 443''.
            (C) The heading of 

section 15 is amended by 
 inserting ``on corporations'' after ``effect of 
 changes''.
            (D) The table of sections for part III of 
 subchapter A of chapter 1 is amended by striking the 
 item relating to 

section 15 and inserting the following 
 new item:

``

Sec. 15. Effect of changes on corporations.''.

    (j) Effective Date.--

    (1) In general.--The amendments made by this section shall 
 apply to taxable years beginning after the date of the 
 enactment of this Act.

    (2) Application of 

section 15.--

Section 15 of the Internal 
 Revenue Code of 1986 shall not apply to any change in a rate of 
 tax by reason of--
        (A) section 1

    (j) of such Code (as in effect before 
 its repeal by this section), or
        (B) any amendment made by this Act.

 Subtitle B--Deduction for Qualified Business Income of Pass-Thru 
 Entities

SEC. 111. DEDUCTION FOR QUALIFIED BUSINESS INCOME.

    (a) In General.--

Section 199A is amended by striking subsection
            (i) .

    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 112. LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN CORPORATIONS.

    (a) In General.--

Section 461 is amended--

    (1) by amending subsection
            (l) (1) to read as follows:
 ``

    (1) Limitation.--In the case of a taxpayer other than a 
 corporation, any excess business loss of the taxpayer for the 
 taxable year shall not be allowed.'', and

    (2) by striking subsection

    (j) and redesignating 
 subsections

    (k) and
            (l) (as amended) as subsections

    (j) and

    (k) , respectively.

    (b) Conforming Amendments.--

    (1) Section 58

    (a)

    (2)
        (A) is amended by striking ``461

    (k) '' 
 and inserting ``461

    (j) ''.

    (2) Section 461
            (i) (4) is amended by striking ``subsection

    (k) '' and inserting ``subsection

    (j) ''.

    (3) Section 464
            (d) (2)
        (B)
            (iii) is amended by striking 
 ``

section 461

    (k)

    (2)
        (E) '' and inserting ``

section 461

    (j)

    (2)
        (E) ''.

    (4) Subparagraphs
        (B) and
            (C) of 

section 1256

    (e)

    (3) are 
 each amended by striking ``

section 461

    (k)

    (4) '' and inserting 
 ``

section 461

    (j)

    (4) ''.

    (5) Section 1258
            (d) (5)
            (C) is amended by striking ``

section 461

    (k)

    (4) '' and inserting ``

section 461

    (j)

    (4) ''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

 Subtitle C--Tax Benefits for Families and Individuals

SEC. 121. INCREASE IN STANDARD DEDUCTION.

    (a) In General.--

Section 63
            (c) (2) is amended--

    (1) by striking ``$4,400'' in subparagraph
        (B) and 
 inserting ``$18,000'', and

    (2) by striking ``$3,000'' in subparagraph
            (C) and 
 inserting ``$12,000''.

    (b) Inflation Adjustment.--

Section 63
            (c) (4) is amended to read as 
follows:
 ``

    (4) Adjustments for inflation.--
 ``
        (A) In general.--Each dollar amount in paragraph

    (2)
        (B) ,

    (2)
            (C) , or

    (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, 
 determined by substituting for `2016' in 
 subparagraph
        (A)
            (ii) thereof--
 ``
            (I) in the case of the dollar 
 amounts contained in paragraph

    (2)
        (B) or

    (2)
            (C) , `2017',
 ``
            (II) in the case of the dollar 
 amounts contained in paragraph

    (5)
        (A) or subsection

    (f) , `1987', and
 ``
            (III) in the case of the dollar 
 amount contained in paragraph

    (5)
        (B) , 
 `1997'.
 ``
        (B) Rounding.--If any increase under subparagraph
        (A) is not a multiple of $50, such increase shall be 
 rounded to the next lowest multiple of $50.''.
            (c) Conforming Amendment.--

Section 63
            (c) is amended by striking 
paragraph

    (7) .
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 122. INCREASE IN AND MODIFICATION OF CHILD TAX CREDIT.

    (a) In General.--

Section 24 is amended by striking subsections

    (a) ,

    (b) , and
            (c) and inserting the following new subsections:
 ``

    (a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of--
 ``

    (1) $2,000 for each qualifying child of the taxpayer, and
 ``

    (2) $500 for each qualifying dependent (other than a 
 qualifying child) of the taxpayer.
 ``

    (b) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowable under subsection

    (a) shall be reduced (but not below 
zero) by $50 for each $1,000 (or fraction thereof) by which the 
taxpayer's modified adjusted gross income exceeds $400,000 in the case 
of a joint return ($200,000 in any other case). For purposes of the 
preceding sentence, the term ``modified adjusted gross income'' means 
adjusted gross income increased by any amount excluded from gross 
income under 

section 911, 931, or 933.
 ``
            (c) Qualifying Child; Qualifying Dependent.--For purposes of this 
section--
 ``

    (1) Qualifying child.--The term `qualifying child' means 
 any qualifying dependent of the taxpayer--
 ``
        (A) who is a qualifying child (as defined in 
 

section 7706
            (c) ) of the taxpayer,
 ``
        (B) who has not attained age 17 at the close of 
 the calendar year in which the taxable year of the 
 taxpayer begins, and
 ``
            (C) whose name and social security number are 
 included on the taxpayer's return of tax for the 
 taxable year.
 ``

    (2) Qualifying dependent.--The term `qualifying 
 dependent' means any dependent of the taxpayer (as defined in 
 

section 7706 without regard to all that follows `resident of 
 the United States' in 

section 7706

    (b)

    (3)
        (A) ) whose name and TIN 
 are included on the taxpayer's return of tax for the taxable 
 year.
 ``

    (3) Social security number defined.--For purposes of this 
 subsection, the term `social security number' means, with 
 respect to a return of tax, 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) on or before the due date of filing such 
 return.''.

    (b) Portion of Credit Refundable.--

    (1) In general.--

Section 24
            (d) (1)
        (A) is amended to read as 
 follows:
 ``
        (A) the credit which would be allowed under this 
 section determined--
 ``
            (i) by substituting `$1,400' for `$2,000' 
 in subsection

    (a)

    (1) ,
 ``
            (ii) without regard to subsection

    (a)

    (2) , 
 and
 ``
            (iii) without regard to this subsection 
 (other than this subparagraph) and the 
 limitation under 

section 26

    (a) , or''.

    (2) Modification of limitation based on earned income.--
 

Section 24
            (d) (1)
        (B)
            (i) is amended by striking ``$3,000'' and 
 inserting ``$2,500''.

    (3) Inflation adjustment.--

Section 24
            (d) is amended by 
 inserting after paragraph

    (3) the following new paragraph:
 ``

    (4) Adjustment for inflation.--
 ``
        (A) In general.--The $1,400 amount in paragraph

    (1)
        (A)
            (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 year begins, 
 determined by substituting `2017' for `2016' in 
 subparagraph
        (A)
            (ii) thereof.
 ``
        (B) Rounding.--If any increase under subparagraph
        (A) is not a multiple of $100, such increase shall be 
 rounded to the next lowest multiple of $100.
 ``
            (C) Limitation.--The amount of any increase under 
 subparagraph
        (A) (after the application of subparagraph
        (B) ) shall not exceed $600.''.

    (4) Conforming amendments.--
        (A) Section 24

    (e) is amended to read as follows:
 ``

    (e) Taxpayer Identification Requirement.--No credit shall be 
allowed under this section if the identifying number of the taxpayer 
was issued after the due date for filing the return of tax for the 
taxable year.''.
        (B) Section 24 is amended by striking subsection

    (h) .
            (c) Repeal of Certain Later Enacted Provisions.--

    (1) Section 24 is amended by striking subsections
            (i) ,

    (j) , 
 and

    (k) .

    (2) Chapter 77 is amended by striking 

section 7527A (and by 
 striking the item relating to 

section 7527A in the table of 
 sections for such chapter).

    (3) Section 26

    (b)

    (2) is amended by inserting ``and'' at the 
 end of subparagraph
            (X) , by striking ``, and'' at the end of 
 subparagraph
        (Y) and inserting a period, and by striking 
 subparagraph
        (Z) .

    (4) Section 3402

    (f)

    (1)
            (C) is amended by striking ``

section 24 (determined after application of subsection

    (j) thereof)'' 
 and inserting ``

section 24

    (a) ''.

    (5) Section 6211

    (b)

    (4)
        (A) is amended--
        (A) by striking ``24 by reason of subsections
            (d) and
            (i) (1) thereof'' and inserting ``24
            (d) '', and
        (B) by striking ``6428B, and 7527A'' and inserting 
 ``and 6428B''.

    (6) Paragraph

    (2) of 

section 1324

    (b) of title 31, United 
 States Code, is amended by striking ``6431, or 7527A'' and 
 inserting ``or 6431''.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 123. INCREASED LIMITATION FOR CERTAIN CHARITABLE CONTRIBUTIONS.

    (a) In General.--

Section 170

    (b)

    (1)
        (G) is amended to read as 
follows:
 ``
        (G) Cash contributions.--
 ``
            (i) In general.--Any contribution of cash 
 to an organization described in subparagraph
        (A) shall be allowed to the extent that the 
 aggregate of such contributions does not exceed 
 60 percent of the taxpayer's contribution base 
 for the taxable year, reduced by the aggregate 
 amount of contributions allowable under 
 subparagraph
        (A) for such taxpayer for such 
 year.
 ``
            (ii) Carryover.--If the aggregate amount 
 of contributions described in clause
            (i) exceeds the limitation of clause
            (i) , such 
 excess shall be treated (in a manner consistent 
 with the rules of subsection
            (d) (1) ) as a 
 charitable contribution to which clause
            (i) applies in each of the 5 succeeding years in 
 order of time.''.

    (b) Coordination With Limitations on Other Contributions.--

    (1) Coordination with 50 percent limitation.--

Section 170

    (b)

    (1)
        (A) is amended by striking ``Any charitable 
 contribution'' and inserting ``Any charitable contribution 
 other than a contribution described in subparagraph
        (G) ''.

    (2) Coordination with 30 percent limitation.--

Section 170

    (b)

    (1)
        (B) is amended--
        (A) in the matter preceding clause
            (i) , by striking 
 ``to which subparagraph
        (A) applies'' and inserting 
 ``to which subparagraph
        (A) or
        (G) applies'',
        (B) by amending clause
            (ii) to read as follows:
 ``
            (ii) the excess of--
 ``
            (I) the sum of 50 percent of the 
 taxpayer's contribution base for the 
 taxable year, plus so much of the 
 amount of charitable contributions 
 allowable under subparagraph
        (G) as 
 does not exceed 10 percent of such 
 contribution base, over
 ``
            (II) the amount of charitable 
 contributions allowable under 
 subparagraphs
        (A) and
        (G) (determined 
 without regard to subparagraph
            (C) ).'', 
 and
            (C) in the matter following clause
            (ii) , by 
 striking ``(to which subparagraph
        (A) does not apply)'' 
 and inserting ``(to which neither subparagraph
        (A) nor
        (G) applies)''.
            (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after the date 
of the enactment of this Act.

SEC. 124. INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS.

    (a) Increase in Limitation for Contributions From Compensation of 
Individuals With Disabilities.--

Section 529A

    (b)

    (2)
        (B)
            (ii) is amended by 
striking ``before January 1, 2026''.

    (b) Allowance of Saver's Credit for ABLE Contributions by Account 
Holder.--

Section 25B
            (d) (1)
            (D) is amended by striking ``made 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. 125. 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 after the date of the enactment of this Act.

SEC. 126. TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE 
 SINAI PENINSULA OF EGYPT.

    (a) In General.--

Section 112
            (c) (2) is amended--

    (1) by striking ``means any area'' and inserting ``means--
 ``
        (A) any area'', and

    (2) by striking the period at the end and inserting ``, and
 ``
        (B) the Sinai Peninsula of Egypt.''.

    (b) Period of Treatment.--

Section 112
            (c) (3) is amended--

    (1) by striking ``only if performed'' and inserting ``only 
 if--
 ``
        (A) in the case of an area described in paragraph

    (2)
        (A) , such service is performed'', and

    (2) by striking the period at the end and inserting ``, and
 ``
        (B) in the case of the area described in 
 paragraph

    (2)
        (B) , such service is performed during any 
 period with respect to which one or more members of the 
 Armed Forces of the United States are entitled to 
 special pay under 

section 310 of title 37, United 
 States Code (relating to special pay; duty subject to 
 hostile fire or imminent danger), for service performed 
 in such area.''.
            (c) Conforming Amendment.--The Tax Cuts and Jobs Act is amended by 
striking 

section 11026.
            (d) Effective Date.--The amendments made by this section shall 
apply with respect to services performed on or after the date of the 
enactment of this Act.

 Subtitle D--Education

SEC. 131. TREATMENT OF STUDENT LOAN DISCHARGES.

    (a) Sunset of Special Rule for Discharges of Certain Loans.--

Section 108

    (f)

    (5) is amended--

    (1) in the heading, by striking ``2025'' and inserting 
 ``2024'', and

    (2) by striking ``January 1, 2026'' and inserting ``January 
 1, 2025''.

    (b) Reinstatement of Rule for Discharges on Account of Death or 
Disability After 2024.--

Section 108

    (f) is amended by adding at the end 
the following new paragraph:
 ``

    (6) Discharges on account of death or disability after 
 2024.--
 ``
        (A) In general.--In the case of an individual, 
 gross income does not include any amount which (but for 
 this subsection) would be includible in gross income 
 for such taxable year by reasons of the discharge (in 
 whole or in part) of any loan described in subparagraph
        (B) after December 31, 2024, if such discharge was--
 ``
            (i) pursuant to subsection

    (a) or
            (d) of 
 

section 437 of the Higher Education Act of 1965 
 or the parallel benefit under part D of title 
 IV of such Act (relating to the repayment of 
 loan liability),
 ``
            (ii) pursuant to 

section 464
            (c) (1)
        (F) of 
 such Act, or
 ``
            (iii) otherwise discharged on account of 
 the death or total and permanent disability of 
 the student.
 ``
        (B) Loans described.--A loan is described in this 
 subparagraph if such loan is--
 ``
            (i) a student loan (as defined in 
 paragraph

    (2) ), or
 ``
            (ii) a private education loan (as defined 
 in 

section 140

    (7) of the Consumer Credit 
 Protection Act (15 U.S.C. 1650

    (7) )).''.
            (c) Effective Date.--The amendments made by this section shall 
apply to discharges of indebtedness after December 31, 2024.

SEC. 132. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND ADDITIONAL ELEMENTARY 
 AND SECONDARY EXPENSES.

    (a) In General.--

Section 529
            (c) (7) of the Internal Revenue Code of 
1986 is amended to read as follows:
 ``

    (7) Treatment of elementary and secondary tuition.--Any 
 reference in this section to the term `qualified higher 
 education expense' shall include a reference to the following 
 expenses in connection with enrollment or attendance at, or for 
 students enrolled at or attending, an elementary or secondary 
 public, private, or religious school:
 ``
        (A) Tuition.
 ``
        (B) Curriculum and curricular materials.
 ``
            (C) Books or other instructional materials.
 ``
            (D) Online educational materials.
 ``
        (E) Tuition for tutoring or educational classes 
 outside of the home, including at a tutoring facility, 
 but only if the tutor or instructor is not related to 
 the student and--
 ``
            (i) is licensed as a teacher in any 
 State,
 ``
            (ii) has taught at an eligible 
 educational institution, or
 ``
            (iii) is a subject matter expert in the 
 relevant subject.
 ``
        (F) Fees for a nationally standardized norm-
 referenced achievement test, an advanced placement 
 examination, or any examinations related to college or 
 university admission.
 ``
        (G) Fees for dual enrollment in an institution of 
 higher education.
 ``
        (H) Educational therapies for students with 
 disabilities provided by a licensed or accredited 
 practitioner or provider, including occupational, 
 behavioral, physical, and speech-language therapies.
 Such term shall include expenses for the purposes described in 
 subparagraphs
        (A) through
        (H) in connection with a homeschool 
 (whether treated as a homeschool or a private school for 
 purposes of applicable State law).''.

    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.

 Subtitle E--Deductions and Exclusions

SEC. 141. REPEAL OF DEDUCTION FOR PERSONAL EXEMPTIONS.

    (a) In General.--Part V of subchapter B of chapter 1 is hereby 
repealed.

    (b) Definition of Dependent Retained.--

Section 152, prior to the 
repeal made by subsection

    (a) , is hereby redesignated as 

section 7706 
and moved to the end of chapter 79.
            (c) Application to Trusts and Estates.--

Section 642

    (b) is amended--

    (1) in paragraph

    (2)
            (C) --
        (A) in clause
            (i) , by striking ``the exemption 
 amount under 

section 151
            (d) '' and all that follows 
 through the period at the end and inserting ``the 
 dollar amount in effect under 

section 7706
            (d) (1)
        (B) .'', 
 and
        (B) by striking clause
            (iii) ,

    (2) by striking paragraph

    (3) , and

    (3) by striking ``Deduction For Personal Exemption'' in the 
 heading thereof and inserting ``Basic Deduction''.
            (d) Application to Nonresident Aliens.--

Section 873

    (b) is amended 
by striking paragraph

    (3) .

    (e) Modification of Return Requirement.--

    (1) In general.--

Section 6012

    (a)

    (1) is amended to read as 
 follows:
 ``

    (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 for such taxable year under 
 

section 63 if such individual and such 
 individual's spouse made a joint return,
 ``
            (ii) such individual's spouse does not 
 make a separate return, and
 ``
            (iii) neither such individual nor such 
 individual's spouse is an individual described 
 in 

section 63
            (c) (4) who has income (other than 
 earned income) in excess of the amount in 
 effect under 

section 63
            (c) (4)
        (A) .''.

    (2) Bankruptcy estates.--

Section 6012

    (a)

    (8) is amended by 
 striking ``the sum of the exemption amount plus the basic 
 standard deduction under 

section 63
            (c) (2)
            (C) '' and inserting 
 ``the standard deduction in effect under 

section 63
            (c) (1)
        (B) ''.

    (3) Conforming amendment.--

Section 6012 is amended by 
 striking subsection

    (f) .

    (f) Conforming Amendments.--

    (1) Section 1

    (g)

    (5)
        (A) is amended by striking ``

section 152

    (e) '' and inserting ``

section 7706

    (e) ''.

    (2) Section 2

    (a)

    (1)
        (B) is amended--
        (A) by striking ``

section 152'' and inserting 
 ``

section 7706'', and
        (B) by striking ``with respect to whom the taxpayer 
 is entitled to a deduction for the taxable year under 
 

section 151'' and inserting ``whose TIN is included on 
 the taxpayer's return of tax for the taxable year''.

    (3) Section 2

    (b)

    (1)
        (A)
            (i) is amended--
        (A) in the matter preceding subclause
            (I) --
            (i) by striking ``

section 152
            (c) '' and 
 inserting ``

section 7706
            (c) '', and
            (ii) by striking ``

section 152

    (e) '' and 
 inserting ``

section 7706

    (e) '', and
        (B) in subclause
            (II) , by striking ``

section 152

    (b)

    (2) or 152

    (b)

    (3) '' and inserting ``

section 7706

    (b)

    (2) or 7706

    (b)

    (3) ''.

    (4) Section 2

    (b)

    (1)
        (A)
            (ii) is amended by striking ``if the 
 taxpayer is entitled to a deduction for the taxable year for 
 such person under 

section 151'' and inserting ``if the taxpayer 
 included such person's TIN on the return of tax for the taxable 
 year''.

    (5) Section 2

    (b)

    (1)
        (B) is amended by striking ``if the 
 taxpayer is entitled to a deduction for the taxable year for 
 such father or mother under 

section 151'' and inserting ``if 
 such father or mother is a dependent of the taxpayer and the 
 taxpayer included such father or mother's TIN on the return of 
 tax for the taxable year''.

    (6) Section 2

    (b)

    (3)
        (B) is amended--
        (A) by striking ``

section 152
            (d) (2) '' in clause
            (i) and inserting ``

section 7706
            (d) (2) '', and
        (B) by striking ``

section 152
            (d) '' in clause
            (ii) and inserting ``

section 7706
            (d) ''.

    (7) Section 21

    (b)

    (1)
        (A) is amended by striking ``

section 152

    (a)

    (1) '' and inserting ``

section 7706

    (a)

    (1) ''.

    (8) Section 21

    (b)

    (1)
        (B) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (9) Section 21

    (e)

    (5)
        (A) is amended by striking ``

section 152

    (e) '' and inserting ``

section 7706

    (e) ''.

    (10) Section 21

    (e)

    (5) is amended by striking ``

section 152

    (e)

    (4)
        (A) '' in the matter following subparagraph
        (B) and 
 inserting ``

section 7706

    (e)

    (4)
        (A) ''.

    (11) Section 21

    (e)

    (6)
        (A) is amended to read as follows:
 ``
        (A) who is a dependent of either the taxpayer or 
 the taxpayer's spouse for the taxable year, or''.

    (12) Section 21

    (e)

    (6)
        (B) is amended by striking ``

section 152

    (f)

    (1) '' and inserting ``

section 7706

    (f)

    (1) ''.

    (13) Section 25A

    (f)

    (1)
        (A)
            (iii) is amended by striking 
 ``with respect to whom the taxpayer is allowed a deduction 
 under 

section 151''.

    (14) Section 25A

    (g)

    (3) is amended by striking ``If a 
 deduction under 

section 151 with respect to an individual is 
 allowed to another taxpayer'' and inserting ``If an individual 
 is a dependent of another taxpayer''.

    (15) Section 25B
            (c) (2)
        (A) is amended by striking ``any 
 individual with respect to whom a deduction under 

section 151 
 is allowed to another taxpayer'' and inserting ``any individual 
 who is a dependent of another taxpayer''.

    (16) Section 25B
            (c) (2)
        (B) is amended by striking ``

section 152

    (f)

    (2) '' and inserting ``

section 7706

    (f)

    (2) ''.

    (17) Section 32
            (c) (1)
        (A)
            (ii) 
            (III) is amended by striking 
 ``a dependent for whom a deduction is allowable under 

section 151 to another taxpayer'' and inserting ``a dependent of 
 another taxpayer''.

    (18) Section 32
            (c) (3) is amended--
        (A) in subparagraph
        (A) --
            (i) by striking ``

section 152
            (c) '' and 
 inserting ``

section 7706
            (c) '', and
            (ii) by striking ``

section 152

    (e) '' and 
 inserting ``

section 7706

    (e) '',
        (B) in subparagraph
        (B) , by striking ``unless the 
 taxpayer is entitled to a deduction under 

section 151 
 for such taxable year with respect to such individual 
 (or would be so entitled but for 

section 152

    (e) '' and 
 inserting ``if such individual is not treated as a 
 dependent of such taxpayer for such taxable year by 
 reason of 

section 7706

    (b)

    (2) (determined without regard 
 to 

section 7706

    (e) )'', and
            (C) in subparagraph
            (C) , by striking ``

section 152
            (c) (1)
        (B) '' and inserting ``

section 7706
            (c) (1)
        (B) ''.

    (19) Section 35
            (d) (1)
        (B) is amended by striking ``with 
 respect to whom the taxpayer is entitled to a deduction under 
 

section 151
            (c) '' and inserting ``if the taxpayer included such 
 person's TIN on the return of tax for the taxable year''.

    (20) Section 35
            (d) (2) is amended--
        (A) by striking ``

section 152

    (e) '' and inserting 
 ``

section 7706

    (e) '', and
        (B) by striking ``

section 152

    (e)

    (4)
        (A) '' and 
 inserting ``

section 7706

    (e)

    (4)
        (A) ''.

    (21) Section 36B

    (b)

    (2)
        (A) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (22) Section 36B

    (b)

    (3)
        (B) is amended--
        (A) in clause
            (ii) 
            (I) (aa) , by striking ``who is not 
 allowed a deduction under 

section 151 for the taxable 
 year with respect to a dependent'' and inserting ``who 
 does not have any dependents for the taxable year'', 
 and
        (B) in the flush matter at the end, by striking 
 ``unless a deduction is allowed under 

section 151 for 
 the taxable year with respect to a dependent'' and 
 inserting ``unless the taxpayer has a dependent for the 
 taxable year (and the taxpayer included such 
 dependent's TIN on the return of tax for the taxable 
 year)''.

    (23) Section 36B
            (c) (1)
            (D) 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''.

    (24) Section 36B
            (d) (1) 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 individuals who are dependents of the taxpayer for 
 the taxable year''.

    (25) Section 36B

    (e)

    (1) 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''.

    (26) Section 42
            (i) (3)
            (D) 
            (ii) 
            (I) is amended by striking 
 ``

section 152'' and inserting ``

section 7706''.

    (27) Section 45R

    (e)

    (1)
        (A)
            (iv) is amended--
        (A) by striking ``

section 152
            (d) (2) '' and inserting 
 ``

section 7706
            (d) (2) '', and
        (B) by striking ``

section 152
            (d) (2)
        (H) '' and 
 inserting ``

section 7706
            (d) (2)
        (H) ''.

    (28) Section 51
            (i) (1) is amended--
        (A) by striking ``

section 152
            (d) (2) '' in 
 subparagraphs
        (A) and
        (B) and inserting ``

section 7706
            (d) (2) '', and
        (B) by striking ``

section 152
            (d) (2)
        (H) '' in 
 subparagraph
            (C) and inserting ``

section 7706
            (d) (2)
        (H) ''.

    (29) Section 56

    (b)

    (1)
            (D) is amended--
        (A) by striking ``, the deduction for personal 
 exemptions under 

section 151,'', and
        (B) by striking ``and deduction for personal 
 exemptions'' in the heading thereof.

    (30) Section 63

    (b) is amended by adding ``and'' at the end 
 of paragraph

    (1) , by striking paragraph

    (2) , and by 
 redesignating paragraph

    (3) as paragraph

    (2) .

    (31) Section 63
            (c) , as amended by 

section 121, is amended 
 by striking paragraph

    (3) and redesignating paragraphs

    (4) ,

    (5) , and

    (6) as paragraphs

    (3) ,

    (4) , and

    (5) , respectively.

    (32) Section 63
            (c) (4) , as redesignated, is amended--
        (A) by striking ``with respect to whom a deduction 
 under 

section 151 is allowable to'' and inserting ``who 
 is a dependent of'', and
        (B) by striking ``certain'' in the heading thereof.

    (33) Section 63

    (f) is amended by striking all that precedes 
 paragraph

    (3) and inserting the following:
 ``

    (f) Additional Standard Deduction for the Aged and Blind.--
 ``

    (1) In general.--For purposes of subsection
            (c) (1) , the 
 additional standard deduction is, with respect to a taxpayer 
 for a taxable year, the sum of--
 ``
        (A) $600 if the taxpayer has attained age 65 
 before the close of such taxable year, and
 ``
        (B) $600 if the taxpayer is blind as of the close 
 of such taxable year.
 ``

    (2) Application to married individuals.--
 ``
        (A) Joint returns.--In the case of a joint 
 return, paragraph

    (1) shall be applied separately with 
 respect to each spouse.
 ``
        (B) Certain married individuals filing 
 separately.--In the case of a married individual filing 
 a separate return, if--
 ``
            (i) the spouse of such individual has no 
 gross income for the calendar year in which the 
 taxable year of such individual begins,
 ``
            (ii) such spouse is not the dependent of 
 another taxpayer for a taxable year beginning 
 in the calendar year in which such individual's 
 taxable year begins, and
 ``
            (iii) the TIN of such spouse is included 
 on such individual's return of tax for the 
 taxable year,
 the additional standard deduction shall be determined 
 in the same manner as if such individual and such 
 individual's spouse filed a joint return.''.

    (34) Section 63

    (f)

    (3) is amended by striking ``paragraphs

    (1) and

    (2) '' and inserting ``subparagraphs
        (A) and
        (B) of 
 paragraph

    (1) ''.

    (35) Section 72

    (t)

    (2)
            (D) 
            (i) 
            (III) is amended by striking 
 ``

section 152'' and inserting ``

section 7706''.

    (36) Section 72

    (t)

    (7)
        (A)
            (iii) is amended by striking 
 ``

section 152

    (f)

    (1) '' and inserting ``

section 7706

    (f)

    (1) ''.

    (37) Section 105

    (b) 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) ''.

    (38) Section 105
            (c) (1) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (39) Section 125

    (e)

    (1)
            (D) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (40) Section 129
            (c) (1) is amended to read as follows:
 ``

    (1) who is a dependent of such employee or of such 
 employee's spouse, or''.

    (41) Section 129
            (c) (2) is amended by striking ``

section 152

    (f)

    (1) '' and inserting ``

section 7706

    (f)

    (1) ''.

    (42) Section 132

    (h)

    (2)
        (B) 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) ''.

    (43) Section 139D
            (c) (5) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (44) Section 139E
            (c) (2) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (45) Section 162
            (l) (1)
            (D) is amended by striking ``

section 152

    (f)

    (1) '' and inserting ``

section 7706

    (f)

    (1) ''.

    (46) Section 170

    (g)

    (1) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (47) Section 170

    (g)

    (3) is amended by striking ``

section 152
            (d) (2) '' and inserting ``

section 7706
            (d) (2) ''.

    (48) Section 172
            (d) is amended by striking paragraph

    (3) .

    (49) Section 213

    (a) is amended by striking ``

section 152'' 
 and inserting ``

section 7706''.

    (50) Section 213
            (d) (5) is amended by striking ``

section 152

    (e) '' and inserting ``

section 7706

    (e) ''.

    (51) Section 213
            (d) (11) is amended by striking ``

section 152
            (d) (2) '' in the matter following subparagraph
        (B) and 
 inserting ``

section 7706
            (d) (2) ''.

    (52) Section 220

    (b)

    (6) is amended by striking ``with 
 respect to whom a deduction under 

section 151 is allowable to'' 
 and inserting ``who is a dependent of''.

    (53) Section 220
            (d) (2)
        (A) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (54) Section 221
            (d) (4) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (55) Section 223

    (b)

    (6) is amended by striking ``with 
 respect to whom a deduction under 

section 151 is allowable to'' 
 and inserting ``who is a dependent of''.

    (56) Section 223
            (d) (2)
        (A) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (57) Section 401

    (h) is amended by striking ``

section 152

    (f)

    (1) '' in the last sentence and inserting ``

section 7706

    (f)

    (1) ''.

    (58) Section 402
            (l) (4)
            (D) is amended by striking ``

section 152'' and inserting ``

section 7706''.

    (59) Section 409A

    (a)

    (2)
        (B)
            (ii) 
            (I) is amended by striking 
 ``

section 152

    (a) '' and inserting ``

section 7706

    (a) ''.

    (60) Section 441

    (f)

    (2)
        (B)
            (iii) is amended by striking ``, 
 but only the adjusted amount of the deductions for personal 
 exemptions as described in 

section 443
            (c) ''.

    (61) Section 443 is amended--
        (A) in subsection

    (b) --
            (i) by striking paragraph

    (3) , and
            (ii) by striking ``modified taxable 
 income'' and inserting ``taxable income'' each 
 place such term appears,
        (B) by striking subsection
            (c) , and
            (C) by redesignating subsections
            (d) and

    (e) as 
 subsections
            (c) and
            (d) , respectively.

    (62) Section 501
            (c) (9) is amended by striking ``

section 152

    (f)

    (1) '' and inserting ``

section 7706

    (f)

    (1) ''.

    (63) Section 529

    (e)

    (2)
        (B) is amended by striking ``

section 152
            (d) (2) '' and inserting ``

section 7706
            (d) (2) ''.

    (64) Section 529A

    (e)

    (4) is amended--
        (A) by striking ``

section 152
            (d) (2)
        (B) '' and 
 inserting ``

section 7706
            (d) (2)
        (B) '', and
        (B) by striking ``

section 152

    (f)

    (1)
        (B) '' and 
 inserting ``

section 7706

    (f)

    (1)
        (B) ''.

    (65) Section 643

    (a)

    (2) is amended--
        (A) by striking ``(relating to deduction for 
 personal exemptions)'' and inserting ``(relating to 
 basic deduction)'', and
        (B) by striking ``Deduction for personal 
 exemption'' in the heading thereof and inserting 
 ``Basic deduction''.

    (66) Section 703

    (a)

    (2) is amended by striking subparagraph
        (A) and by redesignating subparagraphs
        (B) through
        (F) as 
 subparagraphs
        (A) through
        (E) , respectively.

    (67) Section 874 is amended by striking subsection

    (b) and 
 by redesignating subsection
            (c) as subsection

    (b) .

    (68) Section 891 is amended by striking ``under 

section 151 
 and''.

    (69) Section 904

    (b)

    (1) is amended to read as follows:
 ``

    (1) Deduction for estates and trusts.--For purposes of 
 subsection

    (a) , the taxable income of an estate or trust shall 
 be computed without any deduction under 

section 642

    (b) .''.

    (70) Section 931

    (b)

    (1) is amended to read as follows:
 ``

    (1) any deduction from gross income, or''.

    (71) Section 933 is amended--
        (A) by striking ``as a deduction from his gross 
 income any deductions (other than the deduction under 
 

section 151, relating to personal exemptions)'' in 
 paragraph

    (1) and inserting ``any deduction from gross 
 income'', and
        (B) by striking ``as a deduction from his gross 
 income any deductions (other than the deduction for 
 personal exemptions under 

section 151)'' in paragraph

    (2) and inserting ``any deduction from gross income''.

    (72) Section 1212

    (b)

    (2)
        (B)
            (ii) 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) .''.

    (73) Section 1361
            (c) (1)
            (C) is amended by striking ``

section 152

    (f)

    (1)
            (C) '' and inserting ``

section 7706

    (f)

    (1)
            (C) ''.

    (74) Section 1402

    (a) is amended by striking paragraph

    (7) .

    (75) Section 2032A
            (c) (7)
            (D) is amended by striking 
 ``

section 152

    (f)

    (2) '' and inserting ``

section 7706

    (f)

    (2) ''.

    (76) Section 3402

    (f)

    (1)
        (A) is amended by striking ``for 
 whom a deduction is allowable with respect to another taxpayer 
 under 

section 151'' and inserting ``who is a dependent of 
 another taxpayer''.

    (77) Section 3402
            (m) (1) is amended by striking ``other than 
 the deductions referred to in 

section 151 and''.

    (78) Section 3402
            (m) (3) is amended by striking ``

section 63
            (c) (3) '' and inserting ``

section 63

    (f) ''.

    (79) Section 3402

    (r)

    (2) is amended by striking ``the sum 
 of--'' and all that follows and inserting ``the basic standard 
 deduction (as defined in 

section 63
            (c) ) for an individual to 
 whom 

section 63
            (c) (2)
            (C) applies.''.

    (80) Section 5000A

    (b)

    (3)
        (A) is amended by striking 
 ``

section 152'' and inserting ``

section 7706''.

    (81) Section 5000A
            (c) (4)
        (A) 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''.

    (82) Section 6013

    (b)

    (3)
        (A) 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) .

    (83) Section 6014

    (a) is amended by striking ``

section 6012

    (a)

    (1)
            (C) 
            (i) '' and inserting ``

section 6012

    (a)

    (1)
        (B)
            (iii) ''.

    (84) Section 6014

    (b)

    (4) is amended by striking ``63
            (c) (5) '' 
 and inserting ``63
            (c) (4) ''.

    (85) Section 6103
            (l) (13) is amended--
        (A) in subparagraph
        (A) , by striking clause
            (iv) and redesignating clauses
            (v) and
            (vi) as clauses
            (iv) and
            (v) , respectively, and
        (B) in subparagraph
            (C) 
            (i) , by striking ``clauses
            (i) through
            (iv) '' and inserting ``clauses
            (i) through
            (iii) ''.

    (86) Section 6103
            (l) (21)
        (A)
            (iii) is amended to read as 
 follows:
 ``
            (iii) the number of the taxpayer's 
 dependents,''.

    (87) Section 6213

    (g)

    (2)
        (H) is amended by striking ``

section 21 (relating to expenses for household and dependent care 
 services necessary for gainful employment) or 

section 151 
 (relating to allowance of deductions for personal exemptions)'' 
 and inserting ``subsection

    (a)

    (1)
        (B) ,

    (b)

    (1)
        (A)
            (ii) , or

    (b)

    (1)
        (B) of 

section 2 or 

section 21, 35
            (d) (1)
        (B) , 
 36B

    (b)

    (3)
        (B) , or 63

    (f)

    (2)
        (B) ''.

    (88) Section 6334
            (d) is amended--
        (A) by amending paragraph

    (2) 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--
 ``
            (i) the dollar amount in effect under 
 

section 7706
            (d) (1)
        (B) , multiplied by
 ``
            (ii) the number of the taxpayer's 
 dependents for the taxable year in which the 
 levy occurs.
 ``
            (C) 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.'', and
        (B) by striking paragraph

    (4) .

    (89) Section 7702B

    (f)

    (2)
            (C) 
            (iii) is amended by striking 
 ``

section 152
            (d) (2) '' and inserting ``

section 7706
            (d) (2) ''.

    (90) Section 7703

    (a) is amended by striking ``part V of 
 subchapter B of chapter 1 and''.

    (91) Section 7703

    (b)

    (1) is amended by striking ``

section 152

    (f)

    (1) )'' and all that follows and inserting ``

section 7706

    (f)

    (1) ) who is a dependent of such individual for the 
 taxable year (or would be but for 

section 7706

    (e) ),''.

    (92) Section 7706

    (a) , as redesignated by this section, is 
 amended by striking ``this subtitle'' and inserting ``this 
 title''.

    (93)
        (A) Section 7706
            (d) (1)
        (B) , 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) , as redesignated by this section, is 
 amended by adding at the end the following new paragraph:
 ``

    (6) Inflation adjustment.--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 the calendar year in which 
 such taxable year begins, 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 $50, such increase shall be rounded to the next 
 lowest multiple of $50.''.

    (94) Section 7706

    (e)

    (3) , as redesignated by this section, 
 is amended by inserting ``(as in effect before its repeal)'' 
 after ``

section 151''.

    (95) Section 7706

    (f)

    (6)
        (B) , as redesignated by this 
 section, is amended by striking clause
            (i) and designating 
 clauses
            (ii) ,
            (iii) , and
            (iv) as clauses
            (i) ,
            (ii) , and
            (iii) , 
 respectively.

    (96) The table of parts for subchapter B of chapter 1 is 
 amended by striking the item relating to part V.

    (97) The table of sections for chapter 79 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 the date of the enactment of 
this Act.

SEC. 142. LIMITATION ON DEDUCTION FOR STATE AND LOCAL, ETC., TAXES.

    (a) In General.--

Section 164

    (b)

    (6) is amended by striking all that 
precedes ``The preceding sentence'' and inserting the following:
 ``

    (6) Limitation on individual deductions.--In the case of 
 an individual--
 ``
        (A) no deduction shall be allowed under this 
 chapter for foreign real property taxes paid or accrued 
 during the taxable year, and
 ``
        (B) the aggregate amount of the deduction allowed 
 under this chapter for taxes described in paragraphs

    (1) ,

    (2) , and

    (3) of subsection

    (a) and paragraph

    (5) of this subsection (and any tax described in any such 
 paragraph taken into account under 

section 216

    (a)

    (1) ) 
 paid or accrued by the taxpayer during the taxable year 
 shall not exceed $10,000 ($5,000 in the case of a 
 married individual filing a separate return).''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 143. LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST.

    (a) Interest on Home Equity Indebtedness.--

Section 163

    (h)

    (3)
        (A) is 
amended by striking ``during the taxable year on'' and all that follows 
through ``residence of the taxpayer.'' and inserting ``during the 
taxable year on acquisition indebtedness with respect to any qualified 
residence of the taxpayer.''.

    (b) Limitation on Acquisition Indebtedness.--

Section 163

    (h)

    (3)
        (B)
            (ii) is amended to read as follows:
 ``
            (ii) Limitation.--The aggregate amount 
 treated as acquisition indebtedness for any 
 period shall not exceed the excess (if any) 
 of--
 ``
            (I) $750,000 ($375,000, in the 
 case of a married individual filing a 
 separate return), over
 ``
            (II) the sum of the aggregate 
 outstanding pre-October 13, 1987, 
 indebtedness (as defined in 
 subparagraph
            (D) ) plus the aggregate 
 outstanding pre-December 15, 2017, 
 indebtedness (as defined in 
 subparagraph
            (C) ).''.
            (c) Treatment of Indebtedness Incurred on or Before December 15, 
2017.--

Section 163

    (h)

    (3)
            (C) is amended to read as follows:
 ``
            (C) Treatment of indebtedness incurred on or 
 before december 15, 2017.--
 ``
            (i) In general.--In the case of any pre-
 December 15, 2017, indebtedness, subparagraph
        (B)
            (ii) shall not apply and the aggregate 
 amount of such indebtedness treated as 
 acquisition indebtedness for any period shall 
 not exceed the excess (if any) of--
 ``
            (I) $1,000,000 ($500,000, in the 
 case of a married individual filing a 
 separate return), over
 ``
            (II) the aggregate outstanding 
 pre-October 13, 1987, indebtedness (as 
 defined in subparagraph
            (D) ).
 ``
            (ii) Pre-december 15, 2017, 
 indebtedness.--For purposes of this 
 subparagraph--
 ``
            (I) In general.--The term `pre-
 December 15, 2017, indebtedness' means 
 indebtedness (other than pre-October 
 13, 1987, indebtedness) incurred on or 
 before December 15, 2017.
 ``
            (II) Binding written 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, the term `pre-December 
 15, 2017, indebtedness' shall include 
 indebtedness secured by such residence.
 ``
            (iii) Refinancing 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 this subparagraph 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).''.
            (d) Coordination With Treatment of Indebtedness Incurred on or 
Before October 13, 1987.--

Section 163

    (h)

    (3)
            (D) is amended--

    (1) by striking clause
            (ii) and redesignating clauses
            (iii) and
            (iv) as clauses
            (ii) and
            (iii) , respectively, and

    (2) in clause
            (iii) (as so redesignated)--
        (A) by striking ``clause
            (iii) '' in the matter 
 preceding subclause
            (I) and inserting ``clause
            (ii) '', 
 and
        (B) by striking ``clause
            (iii) 
            (I) '' in subclauses
            (I) and
            (II) and inserting ``clause
            (ii) 
            (I) ''.

    (e) Coordination With Exclusion of Income From Discharge of 
Indebtedness.--

Section 108

    (h)

    (2) is amended by striking ``applied by 
substituting `$750,000 ($375,000' for `$1,000,000 ($500,000' in clause
            (ii) thereof and''.

    (f) Conforming Amendment.--

Section 163

    (h)

    (3) is amended by striking 
subparagraph
        (F) .

    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 144. MODIFICATION OF DEDUCTION FOR PERSONAL CASUALTY LOSSES.

    (a) In General.--

Section 165

    (h)

    (5)
        (A) is amended by striking ``in a 
taxable year beginning after December 31, 2017, and before January 1, 
2026,''.

    (b) Conforming Amendments.--

    (1) Section 165

    (h)

    (5)
        (B) is amended by striking ``for any 
 taxable year to which subparagraph
        (A) applies''.

    (2) Section 165

    (h)

    (5) is amended by striking ``for taxable 
 years 2018 through 2025'' in the heading thereof and inserting 
 ``to losses attributable to federally declared disasters''.
            (c) Effective Date.--The amendments made by this section shall 
apply to losses sustained in taxable years beginning after the date of 
the enactment of this Act.

SEC. 145. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS.

    (a) In General.--

Section 67 is amended--

    (1) by amending subsection

    (a) to read as follows:
 ``

    (a) In General.--In the case of an individual, miscellaneous 
itemized deductions shall not be allowed.'', and

    (2) by striking subsection

    (g) .

    (b) Movement of Definition of Adjusted Gross Income for Estates and 
Trusts.--

    (1) Section 67 is amended by striking subsection

    (e) .

    (2) Section 641 is amended by adding at the end the 
 following new subsection:
 ``
            (d) Computation of Adjusted Gross Income.--For purposes of this 
title, the adjusted gross income of an estate or trust shall be 
computed in the same manner as in the case of an individual, except 
that--
 ``

    (1) the deductions for costs which are paid or incurred 
 in connection with the administration of the estate or trust 
 and which would not have been incurred if the property were not 
 held in such trust or estate, and
 ``

    (2) the deductions allowable under sections 642

    (b) , 651, 
 and 661,
shall be treated as allowable in arriving at adjusted gross income.''.
            (c) Conforming Amendments.--

    (1) Section 56

    (b)

    (1)
        (A) is amended to read as follows:
 ``
        (A) Certain taxes.--No deduction (other than a 
 deduction allowable in computing adjusted gross income) 
 shall be allowed for any taxes described in paragraph

    (1) ,

    (2) , or

    (3) of 

section 164

    (a) or clause
            (ii) of 
 

section 164

    (b)

    (5)
        (A) .''.

    (2) Section 56

    (b)

    (1)
            (C) , as amended by the preceding 
 provisions of this Act, is amended by striking ``subparagraph
        (A)
            (ii) '' and inserting ``subparagraph
        (A) ''.

    (3) Section 62

    (a) is amended by striking ``subtitle'' in 
 the matter preceding paragraph

    (1) and inserting ``title''.

    (4) Section 641
            (c) (2)
        (E) is amended to read as follows:
 ``
        (E) Section 642
            (c) shall not apply.''.

    (5) Section 1411

    (a)

    (2) is amended by striking ``(as defined 
 in 

section 67

    (e) )''.

    (6) Section 6654
            (d) (1)
            (C) is amended by striking clause
            (iii) .

    (7) Section 67 is amended in the heading, by striking ``2-
 percent floor on'' and inserting ``denial of''.

    (8) The table of sections for part 1 of subchapter B of 
 chapter 1 is amended by striking the item relating to 

section 67 and inserting the following new item:

``

Sec. 67. Denial of miscellaneous itemized deductions.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 146. REPEAL OF OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.

    (a) In General.--Part 1 of subchapter B of chapter 1 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 56

    (b)

    (1) , as amended by the preceding 
 provisions of this Act, is amended by striking subparagraph
        (E) .

    (2) Section 164

    (b)

    (5)
        (H)
            (ii) 
            (III) is amended by striking 
 ``(as determined under 

section 68

    (b) )''.

    (3) Section 164

    (b)

    (5)
        (H) is amended by adding at the end 
 the following new clause:
 ``
            (iii) Applicable amount defined.--For 
 purposes of clause
            (ii) , the term `applicable 
 amount' means--
 ``
            (I) $300,000 in the case of a 
 joint return or a surviving spouse,
 ``
            (II) $275,000 in the case of a 
 head of household,
 ``
            (III) $250,000 in the case of an 
 individual who is not married and who 
 is not a surviving spouse or head of 
 household, and
 ``
            (IV) \1/2\ the amount applicable 
 under subclause
            (I) in the case of a 
 married individual filing a separate 
 return.
 For purposes of this paragraph, marital status 
 shall be determined under 

section 7703. In the 
 case of any taxable year beginning in calendar 
 years after the date of the enactment of this 
 clause, each of the dollar amounts in this 
 clause shall be increased by an amount equal to 
 such dollar amount, multiplied by the cost-of-
 living adjustment determined under 

section 1

    (f)

    (3) for the calendar year in which the 
 taxable year begins, determined by substituting 
 `2012' for `2016' in subparagraph
        (A)
            (ii) thereof. If any amount after adjustment under 
 the preceding sentence is not a multiple of 
 $50, such amount shall be rounded to the next 
 lowest multiple of $50.''.
            (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. 147. TERMINATION OF EXCLUSION FOR QUALIFIED BICYCLE COMMUTING 
 REIMBURSEMENT.

    (a) In General.--

Section 132

    (f)

    (1) is amended by striking 
subparagraph
            (D) .

    (b) Conforming Amendments.--

    (1) Section 132

    (f)

    (2) is amended by adding ``and'' at the 
 end of subparagraph
        (A) , striking ``, and'' at the end of 
 subparagraph
        (B) and inserting a period, and striking 
 subparagraph
            (C) .

    (2) Section 132

    (f)

    (4) is amended by striking ``(other than 
 a qualified bicycle commuting reimbursement)''.

    (3) Section 132

    (f) is amended by striking paragraph

    (8) .

    (4) Section 274
            (l) (2) is amended by striking ``after 
 December 31, 2017, and 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. 148. QUALIFIED MOVING EXPENSE REIMBURSEMENT EXCLUSION LIMITED TO 
 MEMBERS OF ARMED FORCES.

    (a) In General.--

Section 132

    (g) is amended--

    (1) by striking ``by an individual'' in paragraph

    (1) and 
 inserting ``by a qualified military individual'', and

    (2) by striking paragraph

    (2) and inserting the following 
 new paragraph:
 ``

    (2) Qualified military individual.--For purposes of this 
 subsection, the term `qualified military individual' 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 the date of the enactment of 
this Act.

SEC. 149. DEDUCTION FOR MOVING EXPENSES LIMITED TO MEMBERS OF ARMED 
 FORCES.

    (a) In General.--

Section 217 is amended--

    (1) by amending subsection

    (a) to read as follows:
 ``

    (a) Deduction Allowed.--There shall be allowed as a deduction 
moving expenses paid or incurred during the taxable year 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.'',

    (2) by striking subsections
            (c) ,
            (d) ,

    (f) ,

    (g) , and

    (k) and 
 redesignating subsections

    (h) ,
            (i) , and

    (j) as subsections
            (c) ,
            (d) , and

    (f) , respectively, and

    (3) by inserting after subsection
            (d) , as so redesignated, 
 the following new subsection:
 ``

    (e) Expenses Furnished In-Kind.--Any moving and storage expenses 
which are furnished in-kind (or for which reimbursement or an allowance 
is provided, but only to the extent of the expenses paid or incurred)--
 ``

    (1) to a member described in subsection

    (a) , or to such 
 member's spouse or dependents, shall not be includible in gross 
 income, and no reporting with respect to such expenses shall be 
 required by the Secretary of Defense or the Secretary of 
 Transportation, as the case may be, and
 ``

    (2) to the spouse and dependents of a member described in 
 subsection

    (a) with regard to moving to a location other than 
 the one to which such member moves (or from a location other 
 than the one from which such member moves), this section shall 
 apply with respect to the moving expenses of such spouse and 
 dependents as if such spouse were a member described in 
 subsection

    (a) .''.

    (b) Conforming Amendments.--

    (1) Subsections
            (d) (3)
            (C) and

    (e) of 

section 23 are each 
 amended by striking ``

section 217

    (h)

    (3) '' and inserting 
 ``

section 217
            (c) (3) ''.

    (2) Section 7872

    (f) is amended by striking paragraph

    (11) .

    (3) Section 217 is amended in the heading by striking 
 ``moving expenses'' and inserting ``certain moving expenses of 
 members of armed forces''.

    (4) The table of sections for part VII of subchapter B of 
 chapter 1 is amended by striking the item relating to 

section 217 and inserting the following new item:

``

Sec. 217. Certain moving expenses of members of Armed Forces.''.
            (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. 150. LIMITATION ON WAGERING LOSSES.

    (a) In General.--

Section 165
            (d) is amended by striking ``in the 
case of taxable years beginning after December 31, 2017, and before 
January 1, 2026,''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

 Subtitle F--Increase in Estate and Gift Tax Exemption

SEC. 151. INCREASE IN ESTATE AND GIFT TAX EXEMPTION.

    (a) In General.--

Section 2010
            (c) (3) is amended in subparagraph
        (A) , 
by striking ``$5,000,000'' and inserting ``$10,000,000''.

    (b) Conforming Amendment.--

Section 2010
            (c) (3) is amended by 
striking subparagraph
            (C) .
            (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying and gifts made after the date of 
the enactment of this Act.

 TITLE II--INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM TAX MADE 
 PERMANENT

SEC. 201. INCREASED EXEMPTION FOR INDIVIDUALS.

    (a) In General.--

Section 55
            (d) (1) is amended--

    (1) by striking ``$78,750'' in subparagraph
        (A) and 
 inserting ``$109,400'', and

    (2) by striking ``$50,600'' in subparagraph
        (B) and 
 inserting ``$70,300''.

    (b) Phase-Out of Exemption Amount.--

Section 55
            (d) (2) is amended--

    (1) by striking ``$150,000'' in subparagraph
        (A) and 
 inserting ``$1,000,000'', and

    (2) by striking subparagraphs
        (B) and
            (C) and by inserting 
 the following new subparagraphs:
 ``
        (B) 50 percent of the dollar amount applicable 
 under subparagraph
        (A) in the case of a taxpayer 
 described in paragraph

    (1)
        (B) or

    (1)
            (C) , and
 ``
            (C) $75,000 in the case of a taxpayer described 
 in paragraph

    (1)
            (D) .''.
            (c) Inflation Adjustment.--

Section 55
            (d) (3) is amended to read as 
follows:
 ``

    (3) Inflation adjustment.--Each dollar amount described 
 in clause
            (i) or
            (ii) of subparagraph
        (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 the calendar year in which 
 the taxable year begins, determined by substituting--
 ``
            (i) in the case of a dollar amount 
 contained in paragraph

    (1)
            (D) or

    (2)
            (C) or in 
 subsection

    (b)

    (1)
        (A) , `calendar year 2011' for 
 `calendar year 2016' in subparagraph
        (A)
            (ii) thereof, and
 ``
            (ii) in the case of a dollar amount 
 contained in paragraph

    (1)
        (A) ,

    (1)
        (B) , or

    (2)
        (A) , `calendar year 2017' for `calendar year 
 2016' in subparagraph
        (A)
            (ii) thereof.
 Any increased amount determined under this paragraph shall be 
 rounded to the nearest multiple of $100 ($50 in the case of the 
 dollar amount contained in paragraph

    (2)
            (C) ).''.
            (d) Repeal of Coordination With Rules Relating to the Taxation of 
Unearned Children.--

Section 59 is amended by striking subsection

    (j) .

    (e) Conforming Amendment.--

Section 55
            (d) is amended by striking 
paragraph

    (4) .

    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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