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131 STAT. 2086 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(A) foreign real property taxes shall not be taken into account under subsection (a)(1), and ‘‘(B) the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed $10,000 ($5,000 in the case of a married indi- vidual filing a separate return). The preceding sentence shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph (1) and (2) of subsection (a) which are paid or accrued in carrying on a trade or business or an activity described in section 212. For purposes of subparagraph (B), an amount paid in a taxable year beginning before January 1, 2018, with respect to a State or local income tax imposed for a taxable year beginning after December 31, 2017, shall be treated as paid on the last day of the taxable year for which such tax is so imposed.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2016. SEC. 11043. LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST. (a) IN GENERAL.—Section 163(h)(3) is amended by adding at the end the following new subparagraph: ‘‘(F) SPECIAL RULES FOR TAXABLE YEARS 2018 THROUGH 2025.— ‘‘(i) IN GENERAL.—In the case of taxable years beginning after December 31, 2017, and before January 1, 2026— ‘‘(I) DISALLOWANCE OF HOME EQUITY INDEBTED- NESS INTEREST.—Subparagraph (A)(ii) shall not apply. ‘‘(II) LIMITATION ON ACQUISITION INDEBTED- NESS.—Subparagraph (B)(ii) shall be applied by substituting ‘$750,000 ($375,000’ for ‘$1,000,000 ($500,000’. ‘‘(III) TREATMENT OF INDEBTEDNESS INCURRED ON OR BEFORE DECEMBER 15, 2017.—Subclause (II) shall not apply to any indebtedness incurred on or before December 15, 2017, and, in applying such subclause to any indebtedness incurred after such date, the limitation under such subclause shall be reduced (but not below zero) by the amount of any indebtedness incurred on or before December 15, 2017, which is treated as acquisition indebtedness for purposes of this subsection for the taxable year. ‘‘(IV) BINDING CONTRACT EXCEPTION.—In the case of a taxpayer who enters into a written binding contract before December 15, 2017, to close on the purchase of a principal residence before January 1, 2018, and who purchases such resi- dence before April 1, 2018, subclause (III) shall be applied by substituting ‘April 1, 2018’ for ‘December 15, 2017’. ‘‘(ii) TREATMENT OF LIMITATION IN TAXABLE YEARS AFTER DECEMBER 31, 2025.—In the case of taxable years 26 USC 163. 26 USC 164 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00034 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS