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131 STAT. 2064 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(ii) the sum of 25 percent of the W–2 wages with respect to the qualified trade or business, plus 2.5 percent of the unadjusted basis immediately after acquisition of all qualified property. ‘‘(3) MODIFICATIONS TO LIMIT BASED ON TAXABLE INCOME.— ‘‘(A) EXCEPTION FROM LIMIT.—In the case of any tax- payer whose taxable income for the taxable year does not exceed the threshold amount, paragraph (2) shall be applied without regard to subparagraph (B). ‘‘(B) PHASE-IN OF LIMIT FOR CERTAIN TAXPAYERS.— ‘‘(i) IN GENERAL.—If— ‘‘(I) the taxable income of a taxpayer for any taxable year exceeds the threshold amount, but does not exceed the sum of the threshold amount plus $50,000 ($100,000 in the case of a joint return), and ‘‘(II) the amount determined under paragraph (2)(B) (determined without regard to this subpara- graph) with respect to any qualified trade or busi- ness carried on by the taxpayer is less than the amount determined under paragraph (2)(A) with respect such trade or business, then paragraph (2) shall be applied with respect to such trade or business without regard to subparagraph (B) thereof and by reducing the amount determined under subparagraph (A) thereof by the amount deter- mined under clause (ii). ‘‘(ii) AMOUNT OF REDUCTION.—The amount deter- mined under this subparagraph is the amount which bears the same ratio to the excess amount as— ‘‘(I) the amount by which the taxpayer’s tax- able income for the taxable year exceeds the threshold amount, bears to ‘‘(II) $50,000 ($100,000 in the case of a joint return). ‘‘(iii) EXCESS AMOUNT.—For purposes of clause (ii), the excess amount is the excess of— ‘‘(I) the amount determined under paragraph (2)(A) (determined without regard to this para- graph), over ‘‘(II) the amount determined under paragraph (2)(B) (determined without regard to this para- graph). ‘‘(4) WAGES, ETC.— ‘‘(A) IN GENERAL.—The term ‘W–2 wages’ means, with respect to any person for any taxable year of such person, the amounts described in paragraphs (3) and (8) of section 6051(a) paid by such person with respect to employment of employees by such person during the calendar year ending during such taxable year. ‘‘(B) LIMITATION TO WAGES ATTRIBUTABLE TO QUALIFIED BUSINESS INCOME.—Such term shall not include any amount which is not properly allocable to qualified business income for purposes of subsection (c)(1). ‘‘(C) RETURN REQUIREMENT.—Such term shall not include any amount which is not properly included in a return filed with the Social Security Administration on VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00012 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS