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131 STAT. 2117 PUBLIC LAW 115–97—DEC. 22, 2017 (B) was prohibited under the Internal Revenue Code of 1986 prior to such amendments and is permitted under such Code after such amendments. (e) SPECIAL RULES FOR ORIGINAL ISSUE DISCOUNT.—Notwith- standing subsection (c), in the case of income from a debt instrument having original issue discount— (1) the amendments made by this section shall apply to taxable years beginning after December 31, 2018, and (2) the period for taking into account any adjustments under section 481 by reason of a qualified change in method of accounting (as defined in subsection (d)) shall be 6 years. PART IV—BUSINESS-RELATED EXCLUSIONS AND DEDUCTIONS SEC. 13301. LIMITATION ON DEDUCTION FOR INTEREST. (a) IN GENERAL.—Section 163(j) is amended to read as follows: ‘‘(j) LIMITATION ON BUSINESS INTEREST.— ‘‘(1) IN GENERAL.—The amount allowed as a deduction under this chapter for any taxable year for business interest shall not exceed the sum of— ‘‘(A) the business interest income of such taxpayer for such taxable year, ‘‘(B) 30 percent of the adjusted taxable income of such taxpayer for such taxable year, plus ‘‘(C) the floor plan financing interest of such taxpayer for such taxable year. The amount determined under subparagraph (B) shall not be less than zero. ‘‘(2) CARRYFORWARD OF DISALLOWED BUSINESS INTEREST.— The amount of any business interest not allowed as a deduction for any taxable year by reason of paragraph (1) shall be treated as business interest paid or accrued in the succeeding taxable year. ‘‘(3) EXEMPTION FOR CERTAIN SMALL BUSINESSES.—In the case of any taxpayer (other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3)) which meets the gross receipts test of section 448(c) for any taxable year, paragraph (1) shall not apply to such taxpayer for such taxable year. In the case of any taxpayer which is not a corporation or a partnership, the gross receipts test of section 448(c) shall be applied in the same manner as if such taxpayer were a corporation or partnership. ‘‘(4) APPLICATION TO PARTNERSHIPS, ETC.— ‘‘(A) IN GENERAL.—In the case of any partnership— ‘‘(i) this subsection shall be applied at the partner- ship level and any deduction for business interest shall be taken into account in determining the non-sepa- rately stated taxable income or loss of the partnership, and ‘‘(ii) the adjusted taxable income of each partner of such partnership— ‘‘(I) shall be determined without regard to such partner’s distributive share of any items of income, gain, deduction, or loss of such partnership, and 26 USC 163. 26 USC 451 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00065 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS