SEC. 70101. Extension and enhancement of reduced rates.
(a) In general.—Section 1(j) is amended—
(1) in paragraph (1), by striking “, and before January 1, 2026”, and
(2) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(b) Inflation adjustment.—Section 1(j)(3)(B)(i) is amended by inserting “solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins,” before “subsection (f)(3)”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70102. Extension and enhancement of increased standard deduction.
(a) In general.—Section 63(c)(7) is amended—
(1) by striking “, and before January 1, 2026” in the matter preceding subparagraph (A), and
(2) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(b) Additional increase in standard deduction.—Paragraph (7) of section 63(c) is amended—
(1) by striking “$18,000” both places it appears in subparagraphs (A)(i) and (B)(ii) and inserting “$23,625”,
(2) by striking “$12,000” both places it appears in subparagraphs (A)(ii) and (B)(ii) and inserting “$15,750”,
(3) by striking “2018” in subparagraph (B)(ii) and inserting “2025”, and
(4) by striking “2017” in subparagraph (B)(ii)(II) and inserting “2024”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
SEC. 70103. Termination of deduction for personal exemptions other than temporary senior deduction.
(a) In general.—Section 151(d)(5) is amended—
(1) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”,
(2) by striking “, and before January 1, 2026”, and
(3) by adding at the end the following new subparagraph:
“(C) DEDUCTION FOR SENIORS.—
“(i) IN GENERAL.—In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer.
“(ii) QUALIFIED INDIVIDUAL.—For purposes of clause (i), the term ‘qualified individual’ means—
“(I) the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and
“(II) in the case of a joint return, the taxpayer’s spouse, if such spouse has attained age 65 before the close of the taxable year.
“(iii) LIMITATION BASED ON MODIFIED ADJUSTED GROSS INCOME.—
“(I) IN GENERAL.—In the case of any taxpayer for any taxable year, the $6,000 amount in clause (i) shall be reduced (but not below zero) by 6 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).
“(II) MODIFIED ADJUSTED GROSS INCOME.—For purposes of this clause, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.
“(iv) SOCIAL SECURITY NUMBER REQUIRED.—
“(I) IN GENERAL.—Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual’s social security number on the return of tax for the taxable year.
“(II) SOCIAL SECURITY NUMBER.—For purposes of subclause (I), the term ‘social security number’ has the meaning given such term in section 24(h)(7).
“(v) MARRIED INDIVIDUALS.—If the taxpayer is a married individual (within the meaning of section 7703), this subparagraph shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.”.
(b) Omission of correct social security number treated as mathematical or clerical error.—Section 6213(g)(2) is amended by striking “and” at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting “, and”, and by inserting after subparagraph (V) the following new subparagraph:
“(W) an omission of a correct social security number required under section 151(d)(5)(C) (relating to deduction for seniors).”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
SEC. 70104. Extension and enhancement of increased child tax credit.
(a) Extension and increase of expanded child tax credit.—Section 24(h) is amended—
(1) in paragraph (1), by striking “, and before January 1, 2026”,
(2) in paragraph (2), by striking “$2,000” and inserting “$2,200”, and
(3) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(b) Social security number required.—Section 24(h)(7) is amended to read as follows:
“(7) SOCIAL SECURITY NUMBER REQUIRED.—
“(A) IN GENERAL.—No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year—
“(i) the taxpayer’s social security number (or, in the case of a joint return, the social security number of at least 1 spouse), and
“(ii) the social security number of such qualifying child.
“(B) SOCIAL SECURITY NUMBER.—For purposes of this paragraph, the term ‘social security number’ means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued—
“(i) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and
“(ii) before the due date for such return.”.
(c) Inflation adjustments.—Section 24(i) is amended to read as follows:
“(i) Inflation adjustments.—
“(1) MAXIMUM AMOUNT OF REFUNDABLE CREDIT.—In the case of a taxable year beginning after 2024, the $1,400 amount in subsection (h)(5) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2017’ for ‘2016’ in subparagraph (A)(ii) thereof.
“(2) SPECIAL RULE FOR ADJUSTMENT OF CREDIT AMOUNT.—In the case of a taxable year beginning after 2025, the $2,200 amount in subsection (h)(2) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2024’ for ‘2016’ in subparagraph (A)(ii) thereof.
“(3) ROUNDING.—If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.”.
(d) Conforming amendment.—Section 24(h)(5) is amended to read as follows:
“(5) MAXIMUM AMOUNT OF REFUNDABLE CREDIT.—The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400, and such subsection shall be applied without regard to paragraph (4) of this subsection.”.
(e) Omission of correct social security number treated as mathematical or clerical error.—Section 6213(g)(2)(I) is amended by striking “section 24(e)” and inserting “section 24”.
(f) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
SEC. 70105. Extension and enhancement of deduction for qualified business income.
(a) Increase in taxable income limitation phase-in amounts.—
(1) IN GENERAL.—Subparagraph (B) of section 199A(b)(3) is amended by striking “$50,000 ($100,000 in the case of a joint return)” each place it appears and inserting “$75,000 ($150,000 in the case of a joint return)”.
(2) CONFORMING AMENDMENT.—Paragraph (3) of section 199A(d) is amended by striking “$50,000 ($100,000 in the case of a joint return)” each place it appears and inserting “$75,000 ($150,000 in the case of a joint return)” .
(b) Minimum deduction for active qualified business income.—
(1) IN GENERAL.—Subsection (i) of section 199A is amended to read as follows:
“(i) Minimum deduction for active qualified business income.—
“(1) IN GENERAL.—In the case of an applicable taxpayer for any taxable year, the deduction allowed under subsection (a) for the taxable year shall be equal to the greater of—
“(A) the amount of such deduction determined without regard to this subsection, or
“(B) $400.
“(2) APPLICABLE TAXPAYER.—For purposes of this subsection—
“(A) IN GENERAL.—The term ‘applicable taxpayer’ means, with respect to any taxable year, a taxpayer whose aggregate qualified business income with respect to all active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000.
“(B) ACTIVE QUALIFIED TRADE OR BUSINESS.—The term ‘active qualified trade or business’ means, with respect to any taxpayer for any taxable year, any qualified trade or business of the taxpayer in which the taxpayer materially participates (within the meaning of section 469(h)).
“(3) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 2026, the $400 amount in paragraph (1)(B) and the $1,000 amount in paragraph (2)(A) shall each be increased by an amount equal to —
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.
If any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5.”.
(2) CONFORMING AMENDMENT.—Section 199A(a) is amended by inserting “except as provided in subsection (i), ” before “there”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70106. Extension and enhancement of increased estate and gift tax exemption amounts.
(a) In general.—Section 2010(c)(3) is amended—
(1) in subparagraph (A) by striking “$5,000,000” and inserting “$15,000,000”,
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by striking “2011” and inserting “2026”, and
(B) in clause (ii), by striking “calendar year 2010” and inserting “calendar year 2025”, and
(3) by striking subparagraph (C).
(b) Effective date.—The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025.
SEC. 70107. Extension of increased alternative minimum tax exemption amounts and modification of phaseout thresholds.
(a) In general.—Section 55(d)(4) is amended—
(1) in subparagraph (A), by striking “, and before January 1, 2026”, and
(2) by striking “and before 2026” in the heading.
(b) Modification of inflation adjustment.—Section 55(d)(4)(B) is amended—
(1) by striking “2018” and inserting “2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))”, and
(2) by striking “determined by substituting ‘calendar year 2017’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.” and inserting “determined by substituting for ‘calendar year 2016’ in subparagraph (A)(ii) thereof—
“(1) ‘calendar year 2017’, in the case of the $109,400 amount in subparagraph (A)(i)(I) and the $70,300 amount in subparagraph (A)(i)(II), and
“(2) ‘calendar year 2025’, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I).”.
(c) Modification of phaseout amount.—Section 55(d)(4)(A)(ii) is amended by striking “and” at the end of subclause (II), and by adding at the end the following new subclause:
“(IV) by substituting ‘50 percent’ for ‘25 percent’, and”.
(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70108. Extension and modification of limitation on deduction for qualified residence interest.
(a) In general.—Section 163(h)(3)(F) is amended—
(1) in clause (i)—
(A) by striking “, and before January 1, 2026”,
(B) by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively,
(C) by striking “subclause (III)” in subclause (V), as so redesignated, and inserting “subclause (IV)”, and
(D) by inserting after subclause (II) the following new subclause:
“(III) MORTGAGE INSURANCE PREMIUMS TREATED AS INTEREST.—Clause (iv) of subparagraph (E) shall not apply.”,
(2) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and
(3) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70109. Extension and modification of limitation on casualty loss deduction.
(a) In general.—Section 165(h)(5) is amended—
(1) in subparagraph (A), by striking “, and before January 1, 2026”, and
(2) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(b) Extension to State declared disasters.—
(1) IN GENERAL.—Subparagraph (A) of section 165(h)(5), as amended by subsection (a), is further amended by striking “(i)(5))” and inserting “(i)(5)) or a State declared disaster”.
(2) EXCEPTION RELATED TO PERSONAL CASUALTY GAINS.—Clause (i) of section 165(h)(5)(B) is amended by striking “(as so defined)” and inserting “(as so defined) or a State declared disaster”.
(3) STATE DECLARED DISASTER.—Paragraph (5) of section 165(h) is amended by adding at the end the following new subparagraph:
“(C) STATE DECLARED DISASTER.—For purposes of this paragraph—
“(i) IN GENERAL.—The term ‘State declared disaster’ means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) and the Secretary causes damage of sufficient severity and magnitude to warrant the application of the rules of this section.
“(ii) STATE.—The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70110. Termination of miscellaneous itemized deductions other than educator expenses.
(a) In general.—Section 67(g) is amended—
(1) by striking “, and before January 1, 2026”, and
(2) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(b) Deduction for educator expenses.—
(1) IN GENERAL.—Section 67(b) is amended by striking “and” at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting “, and”, and by adding at the end the following new paragraph:
“(13) the deductions allowed by section 162 for educator expenses (as defined in subsection (g)).”.
(2) INCLUSION OF COACHES AND CERTAIN NONATHLETIC INSTRUCTIONAL EQUIPMENT.—Section 67 is amended by redesignating subsection (g), as amended by this section, as subsection (h), and by inserting after subsection (f) the following new section:
“(g) Educator expenses.—For purposes of subsection (b)(13), the term ‘educator expenses’ means expenses of a type which would be described in section 62(a)(2)(D) if—
“(1) such section were applied—
“(A) without regard to the dollar limitation,
“(B) without regard to ‘(other than nonathletic supplies for courses of instruction in health or physical education)’ in clause (ii) thereof, and
“(C) by substituting ‘as part of instructional activity’ for ‘in the classroom’ in clause (ii) thereof, and
“(2) section 62(d)(1)(A) were applied by inserting ‘, interscholastic sports administrator or coach,’ after ‘counselor’.”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70111. Limitation on tax benefit of itemized deductions.
(a) In general.—Section 68 is amended to read as follows:
“(a) In general.—In the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by 2⁄37 of the lesser of—
“(1) such amount of itemized deductions, or
“(2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer.
“(b) Coordination with other limitations.—This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.”.
(b) Limitation not applicable to determination of deduction for qualified business income.—
(1) IN GENERAL.—Section 199A(e)(1) is amended by inserting “without regard to section 68 and” after “shall be computed”.
(2) PATRONS OF SPECIFIED AGRICULTURAL AND HORTICULTURAL COOPERATIVES.—Section 199A(g)(2)(B) is amended by inserting “section 68 or” after “without regard to”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70112. Extension and modification of qualified transportation fringe benefits.
(a) In general.—Section 132(f) is amended—
(1) by striking subparagraph (D) of paragraph (1),
(2) in paragraph (2), by inserting “and” at the end of subparagraph (A), by striking “, and” at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C),
(3) by striking “(other than a qualified bicycle commuting reimbursement)” in paragraph (4),
(4) by striking subparagraph (F) of paragraph (5), and
(5) by striking paragraph (8).
(b) Inflation adjustment.—Clause (ii) of section 132(f)(6)(A) is amended by striking “1998” in clause (ii) and inserting “1997”.
(c) Coordination with disallowance of certain expenses.—Subsection (l) of section 274 is amended—
(1) by striking “benefits.—” and all that follows through “No deduction” and inserting “benefits.—No deduction”, and
(2) by striking paragraph (2).
(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70113. Extension and modification of limitation on deduction and exclusion for moving expenses.
(a) Extension of limitation on deduction.—Section 217(k) is amended—
(1) by striking “, and before January 1, 2026”, and
(2) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(b) Allowance of deduction for members of the intelligence community.—Section 217(k), as amended by subsection (a), is further amended—
(1) by striking “2017.—Except in the case” and inserting “2017.—
“(1) IN GENERAL.—Except in the case”, and
(2) by adding at the end the following new paragraph:
“(2) MEMBERS OF THE INTELLIGENCE COMMUNITY.—An employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment which requires relocation shall be treated for purposes of this section in the same manner as an individual to whom subsection (g) applies.”.
(c) Extension of limitation on exclusion.—Section 132(g)(2) is amended—
(1) by striking “, and before January 1, 2026”, and
(2) by striking “2018 through 2025” in the heading and inserting “beginning after 2017”.
(d) Allowance of exclusion for members of the intelligence community.—Section 132(g)(2) of the Internal Revenue Code of 1986 is amended by inserting “, or an employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment that requires relocation” after “change of station”.
(e) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70114. Extension and modification of limitation on wagering losses.
(a) In general.—Section 165 is amended by striking subsection (d) and inserting the following:
“(d) Wagering losses.—
“(1) IN GENERAL.—For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year—
“(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and
“(B) shall be allowed only to the extent of the gains from such transactions during such taxable year.
“(2) SPECIAL RULE.—For purposes of paragraph (1), the term ‘losses from wagering transactions’ includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.”.
(b) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70115. Extension and enhancement of increased limitation on contributions to ABLE accounts.
(a) In general.—Section 529A(b)(2)(B) is amended—
(1) in clause (i), by inserting “(determined by substituting ‘1996’ for ‘1997’ in paragraph (2)(B) thereof)” after “section 2503(b)”, and
(2) in clause (ii), by striking “before January 1, 2026”.
(b) Effective dates.—
(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2025.
(2) MODIFIED INFLATION ADJUSTMENT.—The amendment made by subsection (a)(1) shall apply to taxable years beginning after December 31, 2025.
SEC. 70116. Extension and enhancement of savers credit allowed for ABLE contributions.
(a) Extension.—
(1) IN GENERAL.—Section 25B(d)(1) is amended to read as follows:
“(1) IN GENERAL.—The term ‘qualified retirement savings contributions’ means, with respect to any taxable year, the sum of—
“(A) the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and
“(B) in the case of any taxable year beginning before January 1, 2027—
“(i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,
“(ii) the amount of—
“(I) any elective deferrals (as defined in section 402(g)(3)) of such individual, and
“(II) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and
“(iii) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).”.
(2) COORDINATION WITH SECURE 2.0 ACT OF 2022 AMENDMENT.—Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted.
(3) EFFECTIVE DATE.—The amendments and repeal made by this subsection shall apply to taxable years ending after December 31, 2025.
(b) Increase of credit amount.—
(1) IN GENERAL.—Section 25B(a) is amended by striking “$2,000” and inserting “$2,100”.
(2) EFFECTIVE DATE.—The amendment made by this subsection shall apply to taxable years beginning after December 31, 2026.
SEC. 70117. Extension of rollovers from qualified tuition programs to ABLE accounts permitted.
(a) In general.—Section 529(c)(3)(C)(i)(III) is amended by striking “before January 1, 2026,”.
(b) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025.
SEC. 70118. Extension of treatment of certain individuals performing services in the Sinai Peninsula and enhancement to include additional areas.
(a) Treatment made permanent.—Section 11026(a) of Public Law 115–97 is amended by striking “, with respect to the applicable period”.
(b) Kenya, Mali, Burkina Faso, and Chad included as hazardous duty areas.—Section 11026(b) of Public Law 115–97 is amended to read as follows:
“(b) Qualified hazardous duty area.—For purposes of this section, the term ‘qualified hazardous duty area’ means each of the following locations, but only during the period for which any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location:
“(1) the Sinai Peninsula of Egypt.
“(2) Kenya.
“(3) Mali.
“(4) Burkina Faso.
“(5) Chad.”.
(c) Conforming amendment.—Section 11026 of Public Law 115–97 is amended by striking subsections (c) and (d).
(d) Effective date.—The amendments made by this section shall take effect on January 1, 2026.
SEC. 70119. Extension and modification of exclusion from gross income of student loans discharged on account of death or disability.
(a) In general.—Section 108(f)(5) is amended to read as follows:
“(5) DISCHARGES ON ACCOUNT OF DEATH OR DISABILITY.—
“(A) IN GENERAL.—In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income for such taxable year by reason of the discharge (in whole or in part) of any loan described in subparagraph (B), if such discharge was—
“(i) pursuant to subsection (a) or (d) of section 437 of the Higher Education Act of 1965 or the parallel benefit under part D of title IV of such Act (relating to the repayment of loan liability),
“(ii) pursuant to section 464(c)(1)(F) of such Act, or
“(iii) otherwise discharged on account of death or total and permanent disability of the student.
“(B) LOANS DISCHARGED.—A loan is described in this subparagraph if such loan is—
“(i) a student loan (as defined in paragraph (2)), or
“(ii) a private education loan (as defined in section 140(a) of the Consumer Credit Protection Act (15 U.S.C. 1650(a)).
“(C) SOCIAL SECURITY NUMBER REQUIREMENT.—
“(i) IN GENERAL.—Subparagraph (A) shall not apply with respect to any discharge during any taxable year unless the taxpayer includes the taxpayer’s social security number on the return of tax for such taxable year.
“(ii) SOCIAL SECURITY NUMBER.—For purposes of this subparagraph, the term ‘social security number’ has the meaning given such term in section 24(h)(7).”.
(b) Omission of correct social security number treated as mathematical or clerical error.—Section 6213(g)(2), as amended by this Act, is further amended by striking “and” at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting “, and”, and by inserting after subparagraph (W) the following new subparagraph:
“(X) an omission of a correct social security number required under section 108(f)(5)(C) (relating to discharges on account of death or disability).”.
(c) Effective date.—The amendments made by this section shall apply to discharges after December 31, 2025.
SEC. 70120. Limitation on individual deductions for certain state and local taxes, etc.
(a) In general.—Section 164(b)(6) is amended—
(1) by striking “and before January 1, 2026”, and
(2) by striking “$10,000 ($5,000 in the case of a married individual filing a separate return)” and inserting “the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return)”.
(b) Applicable limitation amount.—Section 164(b) is amended by adding at the end the following new paragraph:
“(7) APPLICABLE LIMITATION AMOUNT.—
“(A) IN GENERAL.—For purposes of paragraph (6), the term ‘applicable limitation amount’ means—
“(i) in the case of any taxable year beginning in calendar year 2025, $40,000,
“(ii) in the case of any taxable year beginning in calendar year 2026, $40,400,
“(iii) in the case of any taxable year beginning after calendar year 2026 and before 2030, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year, and
“(iv) in the case of any taxable year beginning after calendar year 2029, $10,000.
“(B) PHASEDOWN BASED ON MODIFIED ADJUSTED GROSS INCOME.—
“(i) IN GENERAL.—Except as provided in clause (iii), in the case of any taxable year beginning before January 1, 2030, the applicable limitation amount shall be reduced by 30 percent of the excess (if any) of the taxpayer’s modified adjusted gross income over the threshold amount (half the threshold amount in the case of a married individual filing a separate return).
“(ii) THRESHOLD AMOUNT.—For purposes of this subparagraph, the term ‘threshold amount’ means—
“(I) in the case of any taxable year beginning in calendar year 2025, $500,000,
“(II) in the case of any taxable year beginning in calendar year 2026, $505,000, and
“(III) in the case of any taxable year beginning after calendar year 2026, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year.
“(iii) LIMITATION ON REDUCTION.—The reduction under clause (i) shall not result in the applicable limitation amount being less than $10,000.
“(iv) MODIFIED ADJUSTED GROSS INCOME.—For purposes of this paragraph, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.