Page 21 - Tax Reform

PUBLIC LAW 115–97—DEC. 22, 2017 131 STAT. 2071

year, subparagraph (A) shall be applied by substituting
‘5 percent’ for ‘10 percent’.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 172(d) is amended by adding at the end the 26 USC 172.
following new paragraph:
‘‘(8) QUALIFIED BUSINESS INCOME DEDUCTION.—The deduc-
tion under section 199A shall not be allowed.’’.
(2) Section 246(b)(1) is amended by inserting ‘‘199A,’’ before
‘‘243(a)(1)’’.
(3) Section 613(a) is amended by inserting ‘‘and without
the deduction under section 199A’’ after ‘‘and without the deduc-
tion under section 199’’.
(4) Section 613A(d)(1) is amended by redesignating sub-
paragraphs (C), (D), and (E) as subparagraphs (D), (E), and
(F), respectively, and by inserting after subparagraph (B), the
following new subparagraph:
‘‘(C) any deduction allowable under section 199A,’’.
(5) Section 170(b)(2)(D) is amended by striking ‘‘and’’ in
clause (iv), by striking the period at the end of clause (v),
and by adding at the end the following new clause:
‘‘(vi) section 199A(g).’’.
(6) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting at the end the following 26 USC 161 prec.
new item:
‘‘Sec. 199A. Qualified business income.’’.
(e) EFFECTIVE DATE.—The amendments made by this section 26 USC 62 note.
shall apply to taxable years beginning after December 31, 2017.

SEC. 11012. LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN
CORPORATIONS.
(a) IN GENERAL.—Section 461 is amended by adding at the
end the following new subsection:
‘‘(l) LIMITATION ON EXCESS BUSINESS LOSSES OF NONCORPORATE
TAXPAYERS.—
‘‘(1) LIMITATION.—In the case of taxable year of a taxpayer
other than a corporation beginning after December 31, 2017,
and before January 1, 2026—
‘‘(A) subsection (j) (relating to limitation on excess farm
losses of certain taxpayers) shall not apply, and
‘‘(B) any excess business loss of the taxpayer for the
taxable year shall not be allowed.
‘‘(2) DISALLOWED LOSS CARRYOVER.—Any loss which is dis-
allowed under paragraph (1) shall be treated as a net operating
loss carryover to the following taxable year under section 172.
‘‘(3) EXCESS BUSINESS LOSS.—For purposes of this sub-
section—
‘‘(A) IN GENERAL.—The term ‘excess business loss’
means the excess (if any) of—
‘‘(i) the aggregate deductions of the taxpayer for
the taxable year which are attributable to trades or
businesses of such taxpayer (determined without
regard to whether or not such deductions are dis-
allowed for such taxable year under paragraph (1)),
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over
‘‘(ii) the sum of—