Page 19

131 STAT. 2071 PUBLIC LAW 115–97—DEC. 22, 2017 year, subparagraph (A) shall be applied by substituting ‘5 percent’ for ‘10 percent’.’’. (d) CONFORMING AMENDMENTS.— (1) Section 172(d) is amended by adding at the end the following new paragraph: ‘‘(8) QUALIFIED BUSINESS INCOME DEDUCTION.—The deduc- tion under section 199A shall not be allowed.’’. (2) Section 246(b)(1) is amended by inserting ‘‘199A,’’ before ‘‘243(a)(1)’’. (3) Section 613(a) is amended by inserting ‘‘and without the deduction under section 199A’’ after ‘‘and without the deduc- tion under section 199’’. (4) Section 613A(d)(1) is amended by redesignating sub- paragraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively, and by inserting after subparagraph (B), the following new subparagraph: ‘‘(C) any deduction allowable under section 199A,’’. (5) Section 170(b)(2)(D) is amended by striking ‘‘and’’ in clause (iv), by striking the period at the end of clause (v), and by adding at the end the following new clause: ‘‘(vi) section 199A(g).’’. (6) The table of sections for part VI of subchapter B of chapter 1 is amended by inserting at the end the following new item: ‘‘Sec. 199A. Qualified business income.’’. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 11012. LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN CORPORATIONS. (a) IN GENERAL.—Section 461 is amended by adding at the end the following new subsection: ‘‘(l) LIMITATION ON EXCESS BUSINESS LOSSES OF NONCORPORATE TAXPAYERS.— ‘‘(1) LIMITATION.—In the case of taxable year of a taxpayer other than a corporation beginning after December 31, 2017, and before January 1, 2026— ‘‘(A) subsection (j) (relating to limitation on excess farm losses of certain taxpayers) shall not apply, and ‘‘(B) any excess business loss of the taxpayer for the taxable year shall not be allowed. ‘‘(2) DISALLOWED LOSS CARRYOVER.—Any loss which is dis- allowed under paragraph (1) shall be treated as a net operating loss carryover to the following taxable year under section 172. ‘‘(3) EXCESS BUSINESS LOSS.—For purposes of this sub- section— ‘‘(A) IN GENERAL.—The term ‘excess business loss’ means the excess (if any) of— ‘‘(i) the aggregate deductions of the taxpayer for the taxable year which are attributable to trades or businesses of such taxpayer (determined without regard to whether or not such deductions are dis- allowed for such taxable year under paragraph (1)), over ‘‘(ii) the sum of— 26 USC 62 note. 26 USC 161 prec. 26 USC 172. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00019 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS