S.Amdt. 1825

SA 1825. Mr. HOEVEN (for himself, Mr. Gardner, Mr. Boozman, Mrs.
Ernst, Mr. Blunt, Mr. Risch, Mr. Rounds, Mr. Moran, Mr. Cotton, and 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 13305 and insert the following:

SEC. 13305. DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC
PRODUCTION ACTIVITIES FOR FARMING BUSINESSES.

(a) Limitation.--
(1) In general.--Section 199 is amended--
(A) in subsection (a), by striking ``There shall be'' and
inserting ``Subject to subsection (e), there shall be''; and
(B) by adding at the end the following new subsection:
``(e) Limitation.--Effective with taxable years beginning
after December 31, 2018, the deduction for income
attributable to domestic production activities provided under
this section shall be allowed only with respect to domestic
production activities incurred in any farming trade or
business, including with respect to any agricultural and
horticultural cooperative described in subsection (d).''.
(2) Administration.--Until the date on which any
regulations necessary to carry out the provisions of and
amendments made by this subsection are fully implemented, the
Secretary shall continue to carry out section 199 of the
Internal Revenue Code of 1986 in the same manner as on the
day before the date of enactment of this Act, including with
respect to agricultural and horticultural cooperatives,
except that deductions allowed under such section shall be
allowed consistent with subsection (e) of such section (as
added by paragraph (1)).
(b) Tax on Certain Farmers' Cooperatives.--
(1) In general.--Section 1381(b) is amended to read as
follows:
``(b) Tax on Certain Farmers' Cooperatives.--An
organization described in subsection (a)(1) shall be subject
to the tax imposed by section 11, except that in the case of
an organization eligible for a deduction under section 199
for the taxable year by reason of subsection (e) thereof,
section 11(b) shall be applied by substituting `35 percent'
for `20 percent'.''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31,
2018.
(c) Repeal of Special Rule for Deduction for Qualified
Cooperative Dividends.--
(1) In general.--Section 199A, as added by section 11011 of
this Act is amended --
(A) by striking ``and qualified cooperative dividends'' in
subsection (b)(1)(B) thereof, and
(B) by striking paragraph (4) of subsection (e) thereof.
(2) Effective date.--The amendments made by this section
shall apply as if included in the amendments made by section
11011 of this Act.
______