S.Amdt. 2608

SA 2608. Mr. LUJAN submitted an amendment intended to be proposed to
amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill
H.R. 1, to provide for reconciliation pursuant to title II of H. Con.
Res. 14; which was ordered to lie on the table; as follows:

Strike section 70105 and insert the following:

SEC. 70105. MODIFICATION OF 199A DEDUCTION.

(a) Deduction Allowed for First $25,000 of Qualified
Business Income.--
(1) In general.--Section 199A(b)(1) is amended to read as
follows:
``(1) In general.--The term `combined qualified business
income amount' means, with respect to any taxable year, an
amount equal to the lesser of--
``(A) the sum of the taxpayer's qualified business income
for each qualified trade or business carried on by the
taxpayer, or
``(B) $25,000.''.
(2) Conforming amendments.--
(A) Section 199A(a)(2) is amended by striking ``20 percent
of''.
(B) Section 199A(b) is amended by striking paragraph (2).
(b) Consolidated Taxpayer Level Adjusted Gross Income
Limitation.--Section 199A(b), as amended by subsection (a),
is amended--
(1) by striking paragraph (3), and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Adjusted gross income limitation.--The combined
qualified business income of the taxpayer for the taxable
year shall be reduced (but not below zero) by so much of the
amount by which the adjusted gross income of the taxpayer
exceeds $200,000 ($400,000 in the case of a joint return).''.
(c) Simplification With Respect to Loss Carryover.--Section
199(c) is amended by striking paragraph (2).
(d) Other Conforming Amendments.--
(1)(A) Section 199A(b) is amended by striking paragraph
(4).
(B) Section 199A(g)(1)(B)(ii) is amended to read as
follows:
``(ii) W-2 wages.--For purposes of this subparagraph--

``(I) In general.--The term `W-2 wages' means, with respect
to any person for any taxable year of such person, the
amounts described in paragraphs (3) and (8) of section
6051(a) paid by such person with respect to employment of
employees by such person during the calendar year ending
during such taxable year.
``(II) Must be properly allocable to domestic production
gross receipts.--The W-2 wages of the taxpayer shall not
include any amount which is not properly allocable to
domestic production gross receipts for purposes of paragraph
(3)(A).
``(III) Return requirement.--Such term shall not include
any amount which is not properly included in a return filed
with the Social Security Administration on or before the 60th
day after the due date (including extensions) for such
return.''.

(C) Section 199A(f)(1) is amended--
(i) by inserting ``and'' at the end of subparagraph (A)(i),
(ii) by striking ``, and'' at the end of subparagraph
(A)(ii),
(iii) by striking clause (iii),
(iv) by striking ``For purposes of clause (iii)'' and all
that follows through ``For purposes of this subparagraph''
and inserting ``For purposes of this subparagraph'', and
(v) by striking subparagraph (B) and redesignating
subparagraph (C) as subparagraph (B).
(2)(A) Section 199A(b) is amended by striking paragraph
(5).
(B) Section 199A(g)(5) is amended by adding at the end the
following new subparagraph:
``(F) Acquisitions, dispositions, and short taxable
years.--The Secretary shall provide for the application of
this subsection in cases of a short taxable year or where the
taxpayer acquires, or disposes of, the major portion of a
trade or business or the major portion of a separate unit of
a trade or business during the taxable year.''.
(3) Section 199A(b) is amended by striking paragraph (6).
(4)(A) Section 199A(b) is amended by redesignating
paragraph (7) as paragraph (3).
(B) Section 199A(b)(3) (as so redesignated) is amended by
striking ``under paragraph (2)'' and inserting ``under
paragraph (1)(A)''.
(5) Section 199A(d) is amended to read as follows:
``(d) Qualified Trade or Business.--For purposes of this
section, the term `qualified trade or business' means any
trade or business other than the trade or business of
performing services as an employee.''.
(6) Section 199A(e) is amended to read as follows:
``(e) Taxable Income Defined.--For purposes of this
section, except as otherwise provided in subsection
(g)(2)(B), taxable income shall be computed without regard to
any deduction allowable under this section.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2025.
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