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139 STAT. 162 PUBLIC LAW 119–21—JULY 4, 2025 active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000. ‘‘(B) ACTIVE QUALIFIED TRADE OR BUSINESS.—The term ‘active qualified trade or business’ means, with respect to any taxpayer for any taxable year, any qualified trade or business of the taxpayer in which the taxpayer materi- ally participates (within the meaning of section 469(h)). ‘‘(3) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 2026, the $400 amount in paragraph (1)(B) and the $1,000 amount in paragraph (2)(A) shall each be increased by an amount equal to — ‘‘(A) such dollar amount, multiplied by ‘‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5.’’. (2) CONFORMING AMENDMENT.—Section 199A(a) is amended by inserting ‘‘except as provided in subsection (i),’’ before ‘‘there’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT TAX EXEMPTION AMOUNTS. (a) IN GENERAL.—Section 2010(c)(3) is amended— (1) in subparagraph (A) by striking ‘‘$5,000,000’’ and inserting ‘‘$15,000,000’’, (2) in subparagraph (B)— (A) in the matter preceding clause (i), by striking ‘‘2011’’ and inserting ‘‘2026’’, and (B) in clause (ii), by striking ‘‘calendar year 2010’’ and inserting ‘‘calendar year 2025’’, and (3) by striking subparagraph (C). (b) EFFECTIVE DATE.—The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025. SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS AND MODIFICATION OF PHASE- OUT THRESHOLDS. (a) IN GENERAL.—Section 55(d)(4) is amended— (1) in subparagraph (A), by striking ‘‘, and before January 1, 2026’’, and (2) by striking ‘‘AND BEFORE 2026’’ in the heading. (b) MODIFICATION OF INFLATION ADJUSTMENT.—Section 55(d)(4)(B) is amended— (1) by striking ‘‘2018’’ and inserting ‘‘2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))’’, and (2) by striking ‘‘determined by substituting ‘calendar year 2017’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.’’ and inserting ‘‘determined by substituting for ‘calendar year 2016’ in subparagraph (A)(ii) thereof— 26 USC 2010 note. 26 USC 199A note. Effective date.