---
kind: "diff"
citation: "H.R. 5377"
bill: "116-hr-5377"
heading: "Restoring Tax Fairness for States and Localities Act"
from: "ih"
from_label: "Introduced in House"
to: "rh"
to_label: "Reported in House"
sections_amended: 2
sections_added: 2
sections_removed: 0
url: "https://uscodex.org/bills/116/hr/5377/changes/rh"
---
# H.R. 5377 — what changed
H.R. 5377, Restoring Tax Fairness for States and Localities Act — 2 sections amended and 2 added between Introduced in House and Reported in House.
Edits are marked `struck` and `inserted`.
## Sec. 3 Elimination for 2020 and 2021 of limitation on deduction of State and local taxes
- (a) In general— Section 164(b)(6)(B) of the Internal Revenue Code of 1986 is amended by inserting “in the case of a taxable year beginning before January 1, 2020, or after December 31, 2021,” before “the aggregate amount of taxes”.
- (b) Conforming amendments— Section 164(b)(6) of the Internal Revenue Code of 1986 is amended—
- (1) by striking “For purposes of subparagraph (B)” and inserting “For purposes of this section”;section”,
- (2) by striking “January 1, 2018” and inserting “January 1, 2022”;2022”,
- (3) by striking “December 31, 2017, shall” and inserting “December 31, 2021, shall”; shall”, and
- (4) by adding at the end the following: “For purposes of this section, in the case of State or local taxes with respect to any real or personal property paid during a taxable year beginning in 2020 or 2021, the Secretary shall prescribe rules which treat all or a portion of such taxes as paid in a taxable year or years other than the taxable year in which actually paid as necessary or appropriate to prevent the avoidance of the limitations of this subsection.”.
- (c) Effective date— The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after December 31, 2019.
## Sec. 4 Increase in deduction for certain expenses of elementary and secondary school teachers
- (a) In general—Increase— The tables contained in subparagraphs (A), (B), (C), (D), and (E) of section 1(j)(2) Section 62(a)(2)(D) of the Internal Revenue Code of 1986 are each is amended by striking “37%” “$250” and inserting “39.6%” and—“$500”.
- (b) Conforming amendments— Section 62(d)(3) of the Internal Revenue Code of 1986 is amended—
- (1) in subparagraph (A)—
- (A) by striking “$600,00” each place such term appears and inserting “$479,000”; and
- (B) by striking “$161,379” and inserting “$119,029”;
- (2) in subparagraph (B)—
- (A) by striking “$500,000” each place such term appears and inserting “$452,400”; and
- (B) by striking “$149,298” and inserting “$132,638”;
- (3) in subparagraph (C)—
- (A) by striking “$500,000” each place such term appears and inserting “$425,800”; and
- (B) by striking “$150,689.50” and inserting “$124,719.50”; and
- (4) in subparagraph (D)—
- (A) by striking “$300,000” each place such term appears and inserting “$239,500”; and
- (B) by striking “$80,689.50” and inserting “$59,514.50”.
- (b) Conforming amendments— Section 1(j)(4)(B)(iii) of the Internal Revenue Code of 1986 is amended—
- (A) in the matter preceding subclause (I), by striking “37 percent” and inserting “39.6 percent”;
- (B) in subclause (II), by striking “37-percent bracket” and inserting “39.6-percent bracket”; and
- (C) in the heading, by striking “37-percent bracket” and inserting “39.6-percent bracket”.
- (1) Section 1(j)(4)(C) of such Code is amended—by striking “2015” and inserting “2019”,
- (A) in clause (i)(II), by striking “paragraph (5)(B)(i)(IV)” and inserting “paragraph (5)(B)(iv)”; and
- (B) by amending clause (ii) to read as follows:
- “(ii) the amount which would (without regard to this paragraph) be taxed at a rate below 39.6 percent shall not be more than the sum of—
- “(I) the earned taxable income of such child, plus
- “(II) the maximum dollar amount for the 35-percent rate bracket for estates and trusts.”
- (2) The heading of section 1(j)(5) of such Code is amended to read as follows: “Application of zero percent capital gain rate brackets”.by striking “$250” and inserting “$500”, and
- (3) Subparagraphs (A) in subparagraph (B), by striking “2014” and (B) of section 1(j)(5) of such Code are amended to read as follows:inserting “2018”.
- “(A) In general—Subsection (h)(1)(B)(i) shall be applied by substituting “below the maximum zero rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 25 percent”.
- “(B) Maximum zero rate amount defined—For purposes of subparagraph (A), the term “maximum zero rate amount” means—
- “(i) in the case of a joint return or surviving spouse, $77,200,
- “(ii) in the case of an individual who is a head of household (as defined in section 2(b)), $51,700,
- “(iii) in the case of any other individual (other than an estate or trust), an amount equal to ½ of the amount in effect for the taxable year under clause (i), and
- “(iv) in the case of an estate or trust, $2,600.”
- (5) Section 1(j)(5)(C) of such Code is amended by striking “clauses (i) and (ii) of”.
- (c) Effective date— The amendments made by this subsection section shall apply to taxable years beginning after December 31, 2019.2018.
- (d) Section 15 not To apply— Section 15 of the Internal Revenue Code of 1986 shall not apply to any change in a rate of tax by reason of any amendment made by this section.
## Sec. 5 Above-the-line deduction allowed for certain expenses of first responders — added
- (a) In general— Section 62(a)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
- “(F) Certain expenses of first responders—The deductions allowed by section 162 which consist of expenses, not in excess of $500, paid or incurred by a first responder—
- “(i) as tuition or fees for the participation of the first responder in professional development courses related to service as a first responder, or
- “(ii) for uniforms used by the first responder in service as a first responder.”
- (b) First responder defined— Section 62(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
- “(4) First responder—For purposes of subsection (a)(2)(F), the term “first responder” means, with respect to any taxable year, any individual who is employed as a law enforcement officer, firefighter, paramedic, or emergency medical technician for at least 1000 hours during such taxable year.”
- (c) Inflation adjustment— Section 62(d)(3) of the Internal Revenue Code of 1986, as amended by section 4, is further amended by striking “the $500 amount in subsection (a)(2)(D)” and inserting “the $500 amount in each of subparagraphs (D) and (F) of subsection (a)(2)”.
- (d) Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2019.
## Sec. 6 Increase of top marginal individual income tax rate under temporary rules — added
- (a) In general— The tables contained in subparagraphs (A), (B), (C), (D), and (E) of section 1(j)(2) of the Internal Revenue Code of 1986 are each amended by striking “37%” and inserting “39.6%” and—
- (1) in subparagraph (A)—
- (A) by striking “$600,000” each place such term appears and inserting “$479,000”, and
- (B) by striking “$161,379” and inserting “$119,029”,
- (2) in subparagraph (B)—
- (A) by striking “$500,000” each place such term appears and inserting “$452,400”, and
- (B) by striking “$149,298” and inserting “$132,638”,
- (3) in subparagraph (C)—
- (A) by striking “$500,000” each place such term appears and inserting “$425,800”, and
- (B) by striking “$150,689.50” and inserting “$124,719.50”, and
- (4) in subparagraph (D)—
- (A) by striking “$300,000” each place such term appears and inserting “$239,500”, and
- (B) by striking “$80,689.50” and inserting “$59,514.50”.
- (b) Conforming amendments—
- (1) Section 1(j)(4)(B)(iii) of the Internal Revenue Code of 1986 is amended—
- (A) in the matter preceding subclause (I), by striking “37 percent” and inserting “39.6 percent”,
- (B) in subclause (II), by striking “37-percent bracket” and inserting “39.6-percent bracket”, and
- (C) in the heading, by striking “37-percent bracket” and inserting “39.6-percent bracket”.
- (2) Section 1(j)(4)(C) of such Code is amended—
- (A) in clause (i)(II), by striking “paragraph (5)(B)(i)(IV)” and inserting “paragraph (5)(B)(iv)”, and
- (B) by amending clause (ii) to read as follows:
- “(ii) the amount which would (without regard to this paragraph) be taxed at a rate below 39.6 percent shall not be more than the sum of—
- “(I) the earned taxable income of such child, plus
- “(II) the maximum dollar amount for the 35-percent rate bracket for estates and trusts.”
- (3) The heading of section 1(j)(5) of such Code is amended to read as follows: “Application of zero percent capital gain rate brackets”.
- (4) Subparagraphs (A) and (B) of section 1(j)(5) of such Code are amended to read as follows:
- “(A) In general—Subsection (h)(1)(B)(i) shall be applied by substituting “below the maximum zero rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 25 percent”.
- “(B) Maximum zero rate amount defined—For purposes of subparagraph (A), the term “maximum zero rate amount” means—
- “(i) in the case of a joint return or surviving spouse, $77,200,
- “(ii) in the case of an individual who is a head of household (as defined in section 2(b)), $51,700,
- “(iii) in the case of any other individual (other than an estate or trust), an amount equal to ½ of the amount in effect for the taxable year under clause (i), and
- “(iv) in the case of an estate or trust, $2,600.”
- (5) Section 1(j)(5)(C) of such Code is amended by striking “clauses (i) and (ii) of”.
- (c) Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2019.
- (d) Section 15 not to apply— Section 15 of the Internal Revenue Code of 1986 shall not apply to any change in a rate of tax by reason of any amendment made by this section.