S.Amdt. 1754

SA 1754. Mr. DAINES submitted an amendment intended to be proposed to
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation
pursuant to titles II and V of the concurrent resolution on the budget
for fiscal year 2018; which was ordered to lie on the table; as
follows:

Strike section 11042 and insert the following:

SEC. 11042. MODIFICATION OF DEDUCTION FOR STATE AND LOCAL,
ETC. TAXES.

(a) In General.--
(1) Individuals and corporations.--Subsection (b) of
section 164 is amended by adding at the end the following new
paragraph:
``(6) Modification of deductions for certain taxable
years.--
``(A) Individuals.--In the case of an individual and a
taxable year beginning after December 31, 2017, and before
January 1, 2026--
``(i) paragraphs (1) and (2) of subsection (a) shall not
apply to any real property or personal property taxes, other
than taxes which

[[Page S7610]]

are paid or accrued in carrying on a trade or business or an
activity described in section 212, and
``(ii) subsection (a)(3) shall not apply to any State or
local taxes.
``(B) Corporations.--In the case of a corporation and a
taxable year beginning after December 31, 2019--
``(i) subsection (a)(3) shall not apply to any State or
local taxes, and
``(ii) the second sentence of subsection (a) shall not
apply.''.
(2) Trade or business expense.--Section 162, as amended by
sections 13307, 13308, and 13531 of this Act, is amended by
redesignating subsection (t) as subsection (u) and by
inserting after subsection (s) the following new subsection:
``(t) Elimination of Deduction for State and Local Taxes.--
In the case of a corporation and a taxable year beginning
after December 31, 2019, no deduction otherwise allowable
under this section shall be allowed for any State or local
income, war profits, and excess profits taxes (as described
in section 164(a)(3)).''.
(3) Effective date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2017.
(b) Increase in Rate for Deduction for Qualified Business
Income of Pass-thru Entities.--
(1) In general.--Section 199A of the Internal Revenue Code
of 1986, as added by section 11011 of this Act, is amended--
(A) in paragraph (2) of subsection (a), by striking ``17.4
percent'' and inserting ``22.4 percent'', and
(B) in paragraphs (1)(B) and (2)(A) of subsection (b), by
striking ``17.4 percent'' each place it appears and inserting
``22.4 percent''.
(2) Effective date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2017.
(c) Taxpayer Refund Program.--
(1) In general.--The Secretary of the Treasury shall
implement a program under which taxpayers who have paid a
penalty under section 5000A of the Internal Revenue Code of
1986 for any taxable year beginning after December 31, 2013,
and before January 1, 2016, receive 1 payment in refund of
all such penalties paid, without regard to whether or not an
amended return is filed. Such payment shall be made not later
than April 15, 2018.
(2) Waiver of statute of limitations.--Solely for purposes
of claiming the refund under paragraph (1), the period
prescribed by section 6511(a) of the Internal Revenue Code of
1986 with respect to any payment of a penalty under section
5000A shall be extended until the date prescribed by law
(including extensions) for filing the return of tax for the
taxable year that includes December 31, 2017.
(d) Child Tax Credit for Pregnant Women.--
(1) In general.--Subsection (h) of section 24, as added by
section 11022 of this Act, is amended by striking paragraphs
(4) through (8) and inserting the following:
``(4) Partial credit allowed for certain other
dependents.--
``(A) In general.--The credit determined under subsection
(a) (after the application of paragraph (2)) shall be
increased by $500 for each dependent of the taxpayer (as
defined in section 152) other than a qualifying child
described in subsection (c).
``(B) Exception for certain noncitizens.--Subparagraph (A)
shall not apply with respect to any individual who would not
be a dependent if subparagraph (A) of section 152(b)(3) were
applied without regard to all that follows `resident of the
United States'.
``(5) Maximum amount of refundable credit.--
``(A) In general.--Subsection (d)(1)(A) shall be applied
without regard to paragraphs (2) and (5) of this subsection.
``(B) Adjustment for inflation.--In the case of a taxable
year beginning after 2017, subsection (d)(1)(A) shall be
applied as if the $1,000 amount in subsection (a) were
increased (but not to exceed the amount under paragraph (2)
of this subsection) 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.
Any increase determined under the preceding sentence shall be
rounded to the next highest multiple of $100.
``(6) Earned income threshold for refundable credit.--
Subsection (d)(1)(B)(i) shall be applied by substituting
`$2,500' for `$3,000'.
``(7) Social security number required.--No credit shall be
allowed under subsection (d) to a taxpayer with respect to
any qualifying child unless the taxpayer includes the social
security number of such child on the return of tax for the
taxable year. For purposes of the preceding sentence, the
term `social security number' means a social security number
issued to an individual by the Social Security
Administration, but only if the social security number is
issued to a citizen of the United States or is issued
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.
``(8) Credit allowed with respect to unborn children.--
``(A) In general.--The term `qualifying child' includes an
unborn child (as defined in section 1841(d) of title 18,
United States Code) for any such taxable year if such child
is born and issued a social security number (as defined in
subsection (h)(7)) before the due date for the return of tax
(without regard to extensions) for the taxable year.
``(B) Double credit in case of children unable to claim
credit.--In the case of any child born during a taxable year
described in paragraph (1) who is not taken into account
under subparagraph (A) for the taxable year immediately
preceding the taxable year in which the child is born, the
amount of the credit determined under this section with
respect to such child for the taxable year of the child's
birth shall be increased by 100 percent.''.
(2) Effective date.--The amendments made by this subsection
shall take effect as if included in the amendments made by
section 11022 of this Act.
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