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131 STAT. 2057 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(i) 24-PERCENT BRACKET.—The maximum taxable income which is taxed at a rate below 24 percent shall not be more than the sum of— ‘‘(I) the earned taxable income of such child, plus ‘‘(II) the minimum taxable income for the 24- percent bracket in the table under paragraph (2)(E) (as adjusted under paragraph (3)) for the taxable year. ‘‘(ii) 35-PERCENT BRACKET.—The maximum taxable income which is taxed at a rate below 35 percent shall not be more than the sum of— ‘‘(I) the earned taxable income of such child, plus ‘‘(II) the minimum taxable income for the 35- percent bracket in the table under paragraph (2)(E) (as adjusted under paragraph (3)) for the taxable year. ‘‘(iii) 37-PERCENT BRACKET.—The maximum taxable income which is taxed at a rate below 37 percent shall not be more than the sum of— ‘‘(I) the earned taxable income of such child, plus ‘‘(II) the minimum taxable income for the 37- percent bracket in the table under paragraph (2)(E) (as adjusted under paragraph (3)) for the taxable year. ‘‘(C) COORDINATION WITH CAPITAL GAINS RATES.—For purposes of applying section 1(h) (after the modifications under paragraph (5)(A))— ‘‘(i) the maximum zero rate amount shall not be more than the sum of— ‘‘(I) the earned taxable income of such child, plus ‘‘(II) the amount in effect under paragraph (5)(B)(i)(IV) for the taxable year, and ‘‘(ii) the maximum 15-percent rate amount shall not be more than the sum of— ‘‘(I) the earned taxable income of such child, plus ‘‘(II) the amount in effect under paragraph (5)(B)(ii)(IV) for the taxable year. ‘‘(D) EARNED TAXABLE INCOME.—For purposes of this paragraph, the term ‘earned taxable income’ means, with respect to any child for any taxable year, the taxable income of such child reduced (but not below zero) by the net unearned income (as defined in subsection (g)(4)) of such child. ‘‘(5) APPLICATION OF CURRENT INCOME TAX BRACKETS TO CAPITAL GAINS BRACKETS.— ‘‘(A) IN GENERAL.—Section 1(h)(1) shall be applied— ‘‘(i) by substituting ‘below the maximum zero rate amount’ for ‘which would (without regard to this para- graph) be taxed at a rate below 25 percent’ in subpara- graph (B)(i), and ‘‘(ii) by substituting ‘below the maximum 15-per- cent rate amount’ for ‘which would (without regard VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00005 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS