Page 32 - Tax Reform

131 STAT. 2082 PUBLIC LAW 115–97—DEC. 22, 2017

‘‘(7) TREATMENT OF ELEMENTARY AND SECONDARY TUI-
TION.—Any reference in this subsection to the term ‘qualified
higher education expense’ shall include a reference to expenses
for tuition in connection with enrollment or attendance at an
elementary or secondary public, private, or religious school.’’.
26 USC 529. (2) LIMITATION.—Section 529(e)(3)(A) is amended by adding
at the end the following: ‘‘The amount of cash distributions
from all qualified tuition programs described in subsection
(b)(1)(A)(ii) with respect to a beneficiary during any taxable
year shall, in the aggregate, include not more than $10,000
in expenses described in subsection (c)(7) incurred during the
taxable year.’’.
26 USC 529 note. (b) EFFECTIVE DATE.—The amendments made by this section
shall apply to distributions made after December 31, 2017.

PART V—DEDUCTIONS AND EXCLUSIONS

SEC. 11041. SUSPENSION OF DEDUCTION FOR PERSONAL EXEMPTIONS.
(a) IN GENERAL.—Subsection (d) of section 151 is amended—
(1) by striking ‘‘In the case of’’ in paragraph (4) and
inserting ‘‘Except as provided in paragraph (5), in the case
of’’, and
(2) by adding at the end the following new paragraph:
‘‘(5) SPECIAL RULES FOR TAXABLE YEARS 2018 THROUGH
2025.—In the case of a taxable year beginning after December
31, 2017, and before January 1, 2026—
‘‘(A) EXEMPTION AMOUNT.—The term ‘exemption
amount’ means zero.
‘‘(B) REFERENCES.—For purposes of any other provision
of this title, the reduction of the exemption amount to
zero under subparagraph (A) shall not be taken into
account in determining whether a deduction is allowed
or allowable, or whether a taxpayer is entitled to a deduc-
tion, under this section.’’.
(b) APPLICATION TO ESTATES AND TRUSTS.—Section 642(b)(2)(C)
is amended by adding at the end the following new clause:
‘‘(iii) YEARS WHEN PERSONAL EXEMPTION AMOUNT
IS ZERO.—
‘‘(I) IN GENERAL.—In the case of any taxable
year in which the exemption amount under section
151(d) is zero, clause (i) shall be applied by sub-
stituting ‘$4,150’ for ‘the exemption amount under
section 151(d)’.
‘‘(II) INFLATION ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year
after 2018, the $4,150 amount in subparagraph
(A) shall be increased in the same manner as
provided in section 6334(d)(4)(C).’’.
(c) MODIFICATION OF WAGE WITHHOLDING RULES.—
(1) IN GENERAL.—Section 3402(a)(2) is amended by striking
‘‘means the amount’’ and all that follows and inserting ‘‘means
the amount by which the wages exceed the taxpayer’s with-
holding allowance, prorated to the payroll period.’’.
(2) CONFORMING AMENDMENTS.—
dkrause on DSKBC28HB2PROD with PUBLAWS VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00030 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097
(A) Section 3401 is amended by striking subsection
(e).