Page 11

131 STAT. 2063 PUBLIC LAW 115–97—DEC. 22, 2017 of $50, such increase shall be increased to the nearest multiple of $100).’’. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. PART II—DEDUCTION FOR QUALIFIED BUSINESS INCOME OF PASS-THRU ENTITIES SEC. 11011. DEDUCTION FOR QUALIFIED BUSINESS INCOME. (a) IN GENERAL.—Part VI of subchapter B of chapter 1 is amended by adding at the end the following new section: ‘‘SEC. 199A. QUALIFIED BUSINESS INCOME. ‘‘(a) IN GENERAL.—In the case of a taxpayer other than a corporation, there shall be allowed as a deduction for any taxable year an amount equal to the sum of— ‘‘(1) the lesser of— ‘‘(A) the combined qualified business income amount of the taxpayer, or ‘‘(B) an amount equal to 20 percent of the excess (if any) of— ‘‘(i) the taxable income of the taxpayer for the taxable year, over ‘‘(ii) the sum of any net capital gain (as defined in section 1(h)), plus the aggregate amount of the quali- fied cooperative dividends, of the taxpayer for the tax- able year, plus ‘‘(2) the lesser of— ‘‘(A) 20 percent of the aggregate amount of the qualified cooperative dividends of the taxpayer for the taxable year, or ‘‘(B) taxable income (reduced by the net capital gain (as so defined)) of the taxpayer for the taxable year. The amount determined under the preceding sentence shall not exceed the taxable income (reduced by the net capital gain (as so defined)) of the taxpayer for the taxable year. ‘‘(b) COMBINED QUALIFIED BUSINESS INCOME AMOUNT.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘combined qualified business income amount’ means, with respect to any taxable year, an amount equal to— ‘‘(A) the sum of the amounts determined under para- graph (2) for each qualified trade or business carried on by the taxpayer, plus ‘‘(B) 20 percent of the aggregate amount of the qualified REIT dividends and qualified publicly traded partnership income of the taxpayer for the taxable year. ‘‘(2) DETERMINATION OF DEDUCTIBLE AMOUNT FOR EACH TRADE OR BUSINESS.—The amount determined under this para- graph with respect to any qualified trade or business is the lesser of— ‘‘(A) 20 percent of the taxpayer’s qualified business income with respect to the qualified trade or business, or ‘‘(B) the greater of— ‘‘(i) 50 percent of the W–2 wages with respect to the qualified trade or business, or 26 USC 199A. 26 USC 1 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00011 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS