S.Amdt. 1755

SA 1755. 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 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) Extension of 100 Percent Expensing.--
(1) In general.--Section 168(k), as amended by section
13201 of this Act, is amended--
(A) in the heading, by striking ``January 1, 2023'' and
inserting ``January 1, 2024'',
(B) in paragraph (2)--
(i) in subparagraph (A)(iii), clauses (i)(III) and (ii) of
subparagraph (B), and subparagraph (E)(i), by striking
``January 1, 2023'' each place it appears and inserting
``January 1, 2024'', and
(ii) in subparagraph (B)--

(I) in clause (i)(II), by striking ``January 1, 2024'' and
inserting ``January 1, 2025'', and
(II) in the heading of clause (ii), by striking ``pre-
january 1, 2023'' and inserting ``pre-january 1, 2024'', and

(C) in paragraph (5)(A), by striking ``January 1, 2023''
and inserting ``January 1, 2024''.
(2) Conforming amendment.--Clause (ii) of section
460(c)(6)(B) is amended by striking ``January 1, 2023
(January 1, 2024'' and inserting ``January 1, 2024 (January
1, 2024''.
(3) Effective dates.--The amendments made by this
subsection shall take effect as if included in the amendments
made by section 13201 of this Act.
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