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131 STAT. 2059 PUBLIC LAW 115–97—DEC. 22, 2017 (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 11002. INFLATION ADJUSTMENTS BASED ON CHAINED CPI. (a) IN GENERAL.—Subsection (f) of section 1 is amended by striking paragraph (3) and by inserting after paragraph (2) the following new paragraph: ‘‘(3) COST-OF-LIVING ADJUSTMENT.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The cost-of-living adjustment for any calendar year is the percentage (if any) by which— ‘‘(i) the C-CPI-U for the preceding calendar year, exceeds ‘‘(ii) the CPI for calendar year 2016, multiplied by the amount determined under subparagraph (B). ‘‘(B) AMOUNT DETERMINED.—The amount determined under this clause is the amount obtained by dividing— ‘‘(i) the C-CPI-U for calendar year 2016, by ‘‘(ii) the CPI for calendar year 2016. ‘‘(C) SPECIAL RULE FOR ADJUSTMENTS WITH A BASE YEAR AFTER 2016.—For purposes of any provision of this title which provides for the substitution of a year after 2016 for ‘2016’ in subparagraph (A)(ii), subparagraph (A) shall be applied by substituting ‘the C-CPI-U for calendar year 2016’ for ‘the CPI for calendar year 2016’ and all that follows in clause (ii) thereof.’’. (b) C-CPI-U.—Subsection (f) of section 1 is amended by striking paragraph (7), by redesignating paragraph (6) as paragraph (7), and by inserting after paragraph (5) the following new paragraph: ‘‘(6) C-CPI-U.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘C-CPI-U’ means the Chained Consumer Price Index for All Urban Consumers (as published by the Bureau of Labor Statistics of the Department of Labor). The values of the Chained Consumer Price Index for All Urban Consumers taken into account for purposes of determining the cost-of-living adjustment for any calendar year under this subsection shall be the latest values so published as of the date on which such Bureau publishes the initial value of the Chained Con- sumer Price Index for All Urban Consumers for the month of August for the preceding calendar year. ‘‘(B) DETERMINATION FOR CALENDAR YEAR.—The C-CPI- U for any calendar year is the average of the C-CPI- U as of the close of the 12-month period ending on August 31 of such calendar year.’’. (c) APPLICATION TO PERMANENT TAX TABLES.— (1) IN GENERAL.—Section 1(f)(2)(A) is amended to read as follows: ‘‘(A) except as provided in paragraph (8), by increasing the minimum and maximum dollar amounts for each bracket for which a tax is imposed under such table by the cost-of-living adjustment for such calendar year, deter- mined— ‘‘(i) except as provided in clause (ii), by substituting ‘1992’ for ‘2016’ in paragraph (3)(A)(ii), and ‘‘(ii) in the case of adjustments to the dollar amounts at which the 36 percent rate bracket begins 26 USC 1. 26 USC 1 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00007 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS