[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 ``m