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131 STAT. 2095 PUBLIC LAW 115–97—DEC. 22, 2017 be treated as a reference to such section as in effect before the amendments made by Tax Cuts and Jobs Act.’’. (c) CONFORMING AMENDMENT.—Section 1374(b)(3)(B) is amended by striking the last sentence thereof. (d) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. (2) CONFORMING AMENDMENT.—The amendment made by subsection (c) shall apply to taxable years beginning after December 31, 2021. SEC. 12003. INCREASED EXEMPTION FOR INDIVIDUALS. (a) IN GENERAL.—Section 55(d), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: ‘‘(4) SPECIAL RULE FOR TAXABLE YEARS BEGINNING AFTER 2017 AND BEFORE 2026.— ‘‘(A) IN GENERAL.—In the case of any taxable year beginning after December 31, 2017, and before January 1, 2026— ‘‘(i) paragraph (1) shall be applied— ‘‘(I) by substituting ‘$109,400’ for ‘$78,750’ in subparagraph (A), and ‘‘(II) by substituting ‘$70,300’ for ‘$50,600’ in subparagraph (B), and ‘‘(ii) paragraph (2) shall be applied— ‘‘(I) by substituting ‘$1,000,000’ for ‘$150,000’ in subparagraph (A), ‘‘(II) by substituting ‘50 percent of the dollar amount applicable under subparagraph (A)’ for ‘$112,500’ in subparagraph (B), and ‘‘(III) in the case of a taxpayer described in paragraph (1)(D), without regard to the substi- tution under subclause (I). ‘‘(B) INFLATION ADJUSTMENT.— ‘‘(i) IN GENERAL.—In the case of any taxable year beginning in a calendar year after 2018, the amounts described in clause (ii) shall each be increased by an amount equal to— ‘‘(I) such dollar amount, multiplied by ‘‘(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by sub- stituting ‘calendar year 2017’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. ‘‘(ii) AMOUNTS DESCRIBED.—The amounts described in this clause are the $109,400 amount in subpara- graph (A)(i)(I), the $70,300 amount in subparagraph (A)(i)(II), and the $1,000,000 amount in subparagraph (A)(ii)(I). ‘‘(iii) ROUNDING.—Any increased amount deter- mined under clause (i) shall be rounded to the nearest multiple of $100. ‘‘(iv) COORDINATION WITH CURRENT ADJUST- MENTS.—In the case of any taxable year to which subparagraph (A) applies, no adjustment shall be made under paragraph (3) to any of the numbers which 26 USC 53 note. 26 USC 1374. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00043 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS