(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.