Page 17

131 STAT. 2069 PUBLIC LAW 115–97—DEC. 22, 2017 an allocable share shall be the shareholder’s pro rata share of an item. ‘‘(B) APPLICATION TO TRUSTS AND ESTATES.—Rules similar to the rules under section 199(d)(1)(B)(i) (as in effect on December 1, 2017) for the apportionment of W– 2 wages shall apply to the apportionment of W–2 wages and the apportionment of unadjusted basis immediately after acquisition of qualified property under this section. ‘‘(C) TREATMENT OF TRADES OR BUSINESS IN PUERTO RICO.— ‘‘(i) IN GENERAL.—In the case of any taxpayer with qualified business income from sources within the commonwealth of Puerto Rico, if all such income is taxable under section 1 for such taxable year, then for purposes of determining the qualified business income of such taxpayer for such taxable year, the term ‘United States’ shall include the Commonwealth of Puerto Rico. ‘‘(ii) SPECIAL RULE FOR APPLYING LIMIT.—In the case of any taxpayer described in clause (i), the deter- mination of W–2 wages of such taxpayer with respect to any qualified trade or business conducted in Puerto Rico shall be made without regard to any exclusion under section 3401(a)(8) for remuneration paid for serv- ices in Puerto Rico. ‘‘(2) COORDINATION WITH MINIMUM TAX.—For purposes of determining alternative minimum taxable income under section 55, qualified business income shall be determined without regard to any adjustments under sections 56 through 59. ‘‘(3) DEDUCTION LIMITED TO INCOME TAXES.—The deduction under subsection (a) shall only be allowed for purposes of this chapter. ‘‘(4) REGULATIONS.—The Secretary shall prescribe such regulations as are necessary to carry out the purposes of this section, including regulations— ‘‘(A) for requiring or restricting the allocation of items and wages under this section and such reporting require- ments as the Secretary determines appropriate, and ‘‘(B) for the application of this section in the case of tiered entities. ‘‘(g) DEDUCTION ALLOWED TO SPECIFIED AGRICULTURAL OR HORTICULTURAL COOPERATIVES.— ‘‘(1) IN GENERAL.—In the case of any taxable year of a specified agricultural or horticultural cooperative beginning after December 31, 2017, there shall be allowed a deduction in an amount equal to the lesser of— ‘‘(A) 20 percent of the excess (if any) of— ‘‘(i) the gross income of a specified agricultural or horticultural cooperative, over ‘‘(ii) the qualified cooperative dividends (as defined in subsection (e)(4)) paid during the taxable year for the taxable year, or ‘‘(B) the greater of— ‘‘(i) 50 percent of the W–2 wages of the cooperative with respect to its trade or business, or ‘‘(ii) the sum of 25 percent of the W–2 wages of the cooperative with respect to its trade or business, VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00017 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS