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Division B — Relief for individuals, families, and businesses

S. 3548 · 116th Congress · Mar 19, 2020 · Lineage

B Relief for individuals, families, and businesses

I Rebates and other individual provisions

Sec. 2101 2020 recovery rebates for individuals

(a)
In general— Subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after section 6427 the following new section:

“6428. 2020 Recovery Rebates for individuals

“(a) In general—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the lesser of—

“(1) net income tax liability, or

“(2) $1,200 ($2,400 in the case of a joint return).

“(b) Special rules

“(1) In general—In the case of a taxpayer described in paragraph (2)—

“(A) the amount determined under subsection (a) shall not be less than $600 ($1,200 in the case of a joint return), and

“(B) the amount determined under subsection (a) (after the application of subparagraph (A)) shall be increased by the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.

“(2) Taxpayer described—A taxpayer is described in this paragraph if the taxpayer—

“(A) has qualifying income of at least $2,500, or

“(B) has—

“(i) net income tax liability which is greater than zero, and

“(ii) gross income which is greater than the basic standard deduction.

“(c) Treatment of credit—The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.

“(d) Limitation based on adjusted gross income—The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).

“(e) Definitions—For purposes of this section—

“(1) Qualifying income—The term qualifying income means—

“(A) earned income,

“(B) social security benefits (within the meaning of section 86(d)), and

“(C) any compensation or pension received under chapter 11, chapter 13, or chapter 15 of title 38, United States Code.

“(2) Net income tax liability—The term net income tax liability means the excess of—

“(A) the sum of the taxpayer’s regular tax liability (within the meaning of section 26(b)) and the tax imposed by section 55 for the taxable year, over

“(B) the credits allowed by part IV (other than section 24 and subpart C thereof) of subchapter A of chapter 1.

“(3) Eligible individual—The term eligible individual means any individual other than—

“(A) any nonresident alien individual,

“(B) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and

“(C) an estate or trust.

“(4) Earned income—The term earned income has the meaning set forth in section 32(c)(2) except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income.

“(5) Basic standard deduction—The term basic standard deduction shall have the same meaning as when used in section 63 (as modified by subsection (c)(7) of such section).

“(f) Coordination with advance refunds of credit

“(1) In general—The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (g). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).

“(2) Joint returns—In the case of a refund or credit made or allowed under subsection (g) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

“(g) Advance refunds and credits

“(1) In general—Subject to paragraph (5), each individual who was an eligible individual for such individual’s first taxable year beginning in 2018 shall be treated as having made a payment against the tax imposed by chapter 1 for such first taxable year in an amount equal to the advance refund amount for such taxable year.

“(2) Advance refund amount—For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if this section (other than subsection (f) and this subsection) had applied to such taxable year.

“(3) Timing of payments—The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section as rapidly as possible. No refund or credit shall be made or allowed under this subsection after December 31, 2020.

“(4) No interest—No interest shall be allowed on any overpayment attributable to this section.

“(5) Alternate taxable year—In the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may apply such paragraph by substituting “2019” for “2018”.

“(h) Identification number requirement

“(1) In general—No credit shall be allowed under subsection (a) to an eligible individual who does not include on the return of tax for the taxable year—

“(A) such individual’s valid identification number,

“(B) in the case of a joint return, the valid identification number of such individual’s spouse, and

“(C) in the case of any qualifying child taken into account under subsection (b)(1)(B), the valid identification number of such qualifying child.

“(2) Valid identification number

“(A) In general—For purposes of paragraph (1), the term valid identification number means a social security number (as such term is defined in section 24(h)(7)).

“(B) Adoption taxpayer identification number—For purposes of paragraph (1)(C), in the case of a qualifying child who is adopted, the term valid identification number shall include the adoption taxpayer identification number of such child.

“(i) Regulations—The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section.”

(b)
Administrative amendments—
(1)
Definition of deficiency— Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by striking “and 36B, 168(k)(4)” and inserting “36B, and 6428”.
(2)
Mathematical or clerical error authority— Section 6213(g)(2)(L) of such Code is amended by striking “or 32” and inserting “32, or 6428”.
(c)
Treatment of possessions—
(1)
Payments to possessions—
(A)
Mirror code possession— The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.
(B)
Other possessions— The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents.
(2)
Coordination with credit allowed against United States income taxes— No credit shall be allowed against United States income taxes under section 6428 of the Internal Revenue Code of 1986 (as added by this section) to any person—
(A)
to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or
(B)
who is eligible for a payment under a plan described in paragraph (1)(B).
(3)
Definitions and special rules—
(A)
Possession of the United States— For purposes of this subsection, the term possession of the United States includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.
(B)
Mirror code tax system— For purposes of this subsection, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
(C)
Treatment of payments— For purposes of section 1324 of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.
(d)
Exception from Treasury Offset Program— Any credit or refund allowed or made to any individual by reason of section 6428 of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (c) of this section shall not be subject to reduction or offset pursuant to—
(1)
section 3716 or 3720A of title 31, United States Code, or
(2)
subsection (d), (e), or (f) of section 6402 of the Internal Revenue Code of 1986.
(e)
Appropriations to carry out rebates—
(1)
In general— Immediately upon the enactment of this Act, the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020:
(A)
Department of the Treasury—
(i)
For an additional amount for “Department of the Treasury—Bureau of the Fiscal Service—Salaries and Expenses”, $78,650,000, to remain available until September 30, 2021.
(ii)
For an additional amount for “Department of the Treasury—Internal Revenue Service—Taxpayer Services”, $70,200,000, to remain available until September 30, 2021.
(iii)
For an additional amount for “Department of the Treasury—Internal Revenue Service—Operations Support”, $209,600,000, to remain available until September 30, 2021.
(B)
Social security administration— For an additional amount for “Social Security Administration—Limitation on Administrative Expenses”, $38,000,000, to remain available until September 30, 2020.
(2)
Reports— No later than 15 days after enactment of this Act, the Secretary of the Treasury shall submit a plan to the Committees on Appropriations of the House of Representatives and the Senate detailing the expected use of the funds provided by paragraph (1)(A). Beginning 90 days after enactment of this Act, the Secretary of the Treasury shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate detailing the actual expenditure of funds provided by paragraph (1)(A) and the expected expenditure of such funds in the subsequent quarter.
(f)
Conforming amendments—
(1)
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting “6428,” after “54B(h),”.
(2)
The table of sections for subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 6427 the following:

Sec. 2102 Delay of certain deadlines

(a)
Filing deadlines for 2019—
(1)
In general— In the case of returns for taxable year 2019, including for purposes of section 6151(a) of the Internal Revenue Code of 1986, section 6072(a) of such Code shall be applied—
(A)
by substituting “July” for “April”, and
(B)
by substituting “the seventh month” for “the fourth month”.
(2)
Effective date— Paragraph (1) shall apply to all returns required to be filed for taxable year 2019.
(b)
Estimated tax payments for individuals—
(1)
In general— In the case of an individual, the due date for any required installment under section 6654 of the Internal Revenue Code of 1986 which (but for the application of this section) would be due during the applicable period shall not be due before October 15, 2020, and all such installments shall be treated as one installment due on such date. The Secretary of the Treasury (or the Secretary's delegate) shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this subsection.
(2)
Applicable period— For purposes of this subsection, the applicable period is the period beginning on the date of the enactment of this Act and ending before October 15, 2020.

Sec. 2103 Special rules for use of retirement funds

(a)
Tax-favored withdrawals from retirement plans—
(1)
In general— Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any coronavirus-related distribution.
(2)
Aggregate dollar limitation—
(A)
In general— For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as coronavirus-related distributions for any taxable year shall not exceed $100,000.
(B)
Treatment of plan distributions— If a distribution to an individual would (without regard to subparagraph (A)) be a coronavirus-related distribution, a plan shall not be treated as violating any requirement of the Internal Revenue Code of 1986 merely because the plan treats such distribution as a coronavirus-related distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $100,000.
(C)
Controlled group— For purposes of subparagraph (B), the term controlled group means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986.
(3)
Amount distributed may be repaid—
(A)
In general— Any individual who receives a coronavirus-related distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make 1 or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of the Internal Revenue Code of 1986, as the case may be.
(B)
Treatment of repayments of distributions from eligible retirement plans other than IRAs— For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a coronavirus-related distribution from an eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the coronavirus-related distribution in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
(C)
Treatment of repayments of distributions from IRAs— For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a coronavirus-related distribution from an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, the coronavirus-related distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
(4)
Definitions— For purposes of this subsection—
(A)
Coronavirus-related distribution— Except as provided in paragraph (2), the term coronavirus-related distribution means any distribution from an eligible retirement plan made—
(i)
on or after the date of the enactment of this Act and before December 31, 2020,
(ii)
to an individual—
(I)
who is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention,
(II)
whose spouse or dependent (as defined in section 152 of the Internal Revenue Code of 1986) is diagnosed with such virus or disease by such a test, or
(III)
who experiences adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease, being unable to work due to lack of child care due to such virus or disease, closing or reducing hours of a business owned or operated by the individual due to such virus or disease, or other factors as determined by the Secretary of the Treasury (or the Secretary's delegate).
(B)
Eligible retirement plan— The term eligible retirement plan has the meaning given such term by section 402(c)(8)(B) of the Internal Revenue Code of 1986.
(5)
Income inclusion spread over 3-year period—
(A)
In general— In the case of any coronavirus-related distribution, unless the taxpayer elects not to have this paragraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable-year period beginning with such taxable year.
(B)
Special rule— For purposes of subparagraph (A), rules similar to the rules of subparagraph (E) of section 408A(d)(3) of the Internal Revenue Code of 1986 shall apply.
(6)
Special rules—
(A)
Exemption of distributions from trustee to trustee transfer and withholding rules— For purposes of sections 401(a)(31), 402(f), and 3405 of the Internal Revenue Code of 1986, coronavirus-related distributions shall not be treated as eligible rollover distributions.
(B)
Coronavirus-related distributions treated as meeting plan distribution requirements— For purposes of the Internal Revenue Code of 1986, a coronavirus-related distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A) of such Code.
(b)
Loans from qualified plans—
(1)
Increase in limit on loans not treated as distributions— In the case of any loan from a qualified employer plan (as defined under section 72(p)(4) of the Internal Revenue Code of 1986) to a qualified individual made during the 180-day period beginning on the date of the enactment of this Act—
(A)
clause (i) of section 72(p)(2)(A) of such Code shall be applied by substituting “$100,000” for “$50,000”, and
(B)
clause (ii) of such section shall be applied by substituting “the present value of the nonforfeitable accrued benefit of the employee under the plan” for “one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan”.
(2)
Delay of repayment— In the case of a qualified individual with an outstanding loan (on or after the date of the enactment of this Act) from a qualified employer plan (as defined in section 72(p)(4) of the Internal Revenue Code of 1986)—
(A)
if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code for any repayment with respect to such loan occurs during the period beginning on the date of the enactment of this Act and ending on December 31, 2020, such due date shall be delayed for 1 year (or, if later, until the date which is 180 days after the date of the enactment of this Act),
(B)
any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph (A) and any interest accruing during such delay, and
(C)
in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2) of such Code, the period described in subparagraph (A) of this paragraph shall be disregarded.
(3)
Qualified individual— For purposes of this subsection, the term qualified individual means any individual who is described in subsection (a)(4)(A)(ii).
(c)
Provisions relating to plan amendments—
(1)
In general— If this subsection applies to any amendment to any plan or annuity contract, such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph (2)(B)(i).
(2)
Amendments to which subsection applies—
(A)
In general— This subsection shall apply to any amendment to any plan or annuity contract which is made—
(i)
pursuant to any provision of this section, or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor (or the delegate of either such Secretary) under any provision of this section, and
(ii)
on or before the last day of the first plan year beginning on or after January 1, 2020, or such later date as the Secretary of the Treasury (or the Secretary's delegate) may prescribe.
(B)
Conditions— This subsection shall not apply to any amendment unless—
(i)
during the period—
(I)
beginning on the date that this section or the regulation described in subparagraph (A)(i) takes effect (or in the case of a plan or contract amendment not required by this section or such regulation, the effective date specified by the plan), and
(II)
ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted),
(ii)
such plan or contract amendment applies retroactively for such period.

Sec. 2104 Allowance of partial above the line deduction for charitable contributions

(a)
In general— Section 62(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (21) the following new paragraph:

“(22) Charitable contributions—In the case of taxable years beginning in 2020, the amount (not to exceed $300) of qualified charitable contributions made by an eligible taxpayer during the taxable year .”

(b)
Definitions— Section 62 of such Code is amended by adding at the end the following new subsection:

“(f) Definitions relating to qualified charitable contributions—For purposes of subsection (a)(22)—

“(1) Eligible taxpayer—The term eligible taxpayer means any individual who does not elect to itemize deductions.

“(2) Qualified charitable contributions—The term qualified charitable contribution means a charitable contribution (as defined in section 170(c))—

“(A) which is made in cash,

“(B) for which a deduction is allowable under section 170 (determined without regard to subsection (b) thereof), and

“(C) which is—

“(i) made to an organization described in section 170(b)(1)(A), and

“(ii) not—

“(I) to an organization described in section 509(a)(3), or

“(II) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2)).”

(c)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

Sec. 2105 Modification of limitations on charitable contributions during 2020

(a)
Temporary suspension of limitations on certain cash contributions—
(1)
In general— Except as otherwise provided in paragraph (2), qualified contributions shall be disregarded in applying subsections (b) and (d) of section 170 of the Internal Revenue Code of 1986.
(2)
Treatment of excess contributions— For purposes of section 170 of the Internal Revenue Code of 1986—
(A)
Individuals— In the case of an individual—
(i)
Limitation— Any qualified contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s contribution base (as defined in subparagraph (H) of section 170(b)(1) of such Code) over the amount of all other charitable contributions allowed under section 170(b)(1) of such Code.
(ii)
Carryover— If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of clause (i), such excess shall be added to the excess described in section 170(b)(1)(G)(ii).
(B)
Corporations— In the case of a corporation—
(i)
Limitation— Any qualified contribution shall be allowed as a deduction only to the extent that the aggregate of such contributions does not exceed the excess of 25 percent of the taxpayer’s taxable income (as determined under paragraph (2) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph.
(ii)
Carryover— If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(2) of such Code) exceeds the limitation of clause (i), such excess shall be appropriately taken into account under section 170(d)(2) subject to the limitations thereof.
(3)
Qualified contributions—
(A)
In general— For purposes of this subsection, the term qualified contribution means any charitable contribution (as defined in section 170(c) of the Internal Revenue Code of 1986) if—
(i)
such contribution is paid in cash during calendar year 2020 to an organization described in section 170(b)(1)(A) of such Code, and
(ii)
the taxpayer has elected the application of this section with respect to such contribution.
(B)
Exception— Such term shall not include a contribution by a donor if the contribution is—
(i)
to an organization described in section 509(a)(3) of the Internal Revenue Code of 1986, or
(ii)
for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) of such Code).
(C)
Application of election to partnerships and s corporations— In the case of a partnership or S corporation, the election under subparagraph (A)(ii) shall be made separately by each partner or shareholder.
(b)
Increase in limits on contributions of food inventory— In the case of any charitable contribution of food during 2020 to which section 170(e)(3)(C) of the Internal Revenue Code of 1986 applies, subclauses (I) and (II) of clause (ii) thereof shall each be applied by substituting “25 percent” for “15 percent.”
(c)
Effective date— This section shall apply to taxable years ending after December 31, 2019.

II Business provisions

Sec. 2201 Delay of estimated tax payments for corporations

(a)
In general— In the case of a corporation, the due date for any required installment under section 6655 of the Internal Revenue Code of 1986 which (but for the application of this section) would be due during the applicable period shall not be due before October 15, 2020, and all such installments shall be treated as one installment due on such date. The Secretary of the Treasury (or the Secretary's delegate) shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section.
(b)
Applicable period— For purposes of this section, the applicable period is the period beginning on the date of the enactment of this Act and ending before October 15, 2020.

Sec. 2202 Delay of payment of employer payroll taxes

(a)
In general—
(1)
Taxes— Notwithstanding any other provision of law, the payment for applicable employment taxes for the payroll tax deferral period shall not be due before the applicable date.
(2)
Deposits— Notwithstanding section 6302 of the Internal Revenue Code of 1986, an employer shall be treated as having timely made all deposits of applicable employment taxes that are required to be made (without regard to this section) for such taxes during the payroll tax deferral period if all such deposits are made not later than the applicable date.
(3)
Exception— This subsection shall not apply to any taxpayer if such taxpayer has had indebtedness forgiven under section 1105 of this Act with respect to a loan under section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
(b)
SECA—
(1)
In general— Notwithstanding any other provision of law, the payment for 50 percent of the taxes imposed under section 1401(a) of the Internal Revenue Code of 1986 for the payroll tax deferral period shall not be due before the applicable date.
(2)
Estimated taxes— For purposes of applying section 6654 of the Internal Revenue Code of 1986 to any taxable year which includes any part of the payroll tax deferral period, 50 percent of the of the taxes imposed under section 1401(a) of such Code for the payroll tax deferral period shall not be treated as taxes to which such section 6654 applies.
(c)
Definitions— For purposes of this section—
(1)
Applicable employment taxes— The term applicable employment taxes means the following:
(A)
The taxes imposed under section 3111(a) of the Internal Revenue Code of 1986.
(B)
So much of the taxes imposed under section 3211(a) of such Code as are attributable to the rate in effect under section 3111(a) of such Code.
(C)
So much of the taxes imposed under section 3221(a) of such Code as are attributable to the rate in effect under section 3111(a) of such Code.
(2)
Payroll tax deferral period— The term payroll tax deferral period means the period beginning on the date of the enactment of this Act and ending before January 1, 2021.
(3)
Applicable date— The term applicable date means—
(A)
December 31, 2021, with respect to 50 percent of the amounts to which subsection (a) or (b), as the case may be, apply, and
(B)
December 31, 2022, with respect to the remaining such amounts.
(d)
Trust funds held harmless— There are hereby appropriated (out of any money in the Treasury not otherwise appropriated) for each fiscal year to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) and the Social Security Equivalent Benefit Account established under section 15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 231n–1(a)) an amount equal to the reduction in the transfers to such fund for such fiscal year by reason of this section. Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted.
(e)
Regulatory authority— The Secretary of the Treasury (or the Secretary's delegate) shall issue such regulations or other guidance as necessary to carry out the purposes of this section.

Sec. 2203 Modifications for net operating losses

(a)
Temporary repeal of taxable income limitation—
(1)
In general— The first sentence of section 172(a) of the Internal Revenue Code of 1986 is amended by striking “an amount equal to” and all that follows and inserting

“(1) in the case of a taxable year beginning before January 1, 2021, the aggregate of the net operating loss carryovers to such year, plus the net operating loss carrybacks to such year, and

“(2) in the case of a taxable year beginning after December 31, 2020, the sum of—

“(A) the aggregate amount of net operating losses arising in taxable years beginning before January 1, 2018, carried to such taxable year, plus

“(B) the lesser of—

“(i) the aggregate amount of net operating losses arising in taxable years beginning after December 31, 2017, carried to such taxable year, or

“(ii) 80 percent of the excess (if any) of—

“(I) taxable income computed without regard to the deductions under this section and sections 199A and 250, over

“(II) the amount determined under subparagraph (A).”

(2)
Conforming amendments—
(A)
Section 172(b)(2)(C) of such Code is amended to read as follows:

“(C) for taxable years beginning after December 31, 2020, be reduced by 20 percent of the excess (if any) described in subsection (a)(2)(B)(ii) for such taxable year.”

(B)
Section 172(d)(6)(C) of such Code is amended by striking “subsection (a)(2)” and inserting “subsection (a)(2)(B)(ii)(I)”.
(C)
Section 860E(a)(3)(B) of such Code is amended by striking all that follows “for purposes of” and inserting “subsection (a)(2)(B)(ii)(I) and the second sentence of subsection (b)(2) of section 172.”.
(b)
Modification of rules relating to carrybacks—
(1)
In general— Section 172(b)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

“(D) Special rule for losses arising in 2018, 2019, and 2020

“(i) In general—In the case of any net operating loss arising in a taxable year beginning after December 31, 2017, and before January 1, 2020—

“(I) such loss shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss, and

“(II) subparagraphs (B) and (C)(i) shall not apply.

“(ii) Special rules for REIT's—For purposes of this subparagraph—

“(I) In general—A net operating loss for a REIT year shall not be a net operating loss carryback to any taxable year preceding the taxable year of such loss.

“(II) Special rule—In the case of any net operating loss for a taxable year which is not a REIT year, such loss shall not be carried back to any taxable year which is a REIT year.

“(III) REIT year—For purposes of this subparagraph, the term REIT year means any taxable year for which the provisions of part II of subchapter M (relating to real estate investment trusts) apply to the taxpayer.

“(iii) Election—A taxpayer may elect not to have clause (i) apply for any taxable year. Such election shall be made in such manner as prescribed by the Secretary and shall be made—

“(I) in the case of any election relating to a net operating loss arising in a taxable year beginning in 2018 or 2019, by the due date (including extensions of time) for filing the taxpayer's return for the first taxable year ending after the date of the enactment of this subparagraph, and

“(II) in the case of any election relating to a net operating loss arising in a taxable year beginning in 2020, by the due date (including extensions of time) for such taxable year.”

(2)
Conforming amendment— Section 170(b)(1)(A) of such Code, as amended by subsection (c)(2), is amended by striking “and (C)(i)” and inserting “, (C)(i), and (D)”.
(c)
Technical amendment relating to section 13302 of Public Law 115–97—
(1)
Section 13302(e) of Public Law 115–97 is amended to read as follows:

“(e) Effective dates

“(1) Net operating loss limitation—The amendments made by subsections (a) and (d)(2) shall apply to—

“(A) taxable years beginning after December 31, 2017, and

“(B) taxable years beginning on or before December 31, 2017, to which net operating losses arising in taxable years beginning after December 31, 2017, are carried.

“(2) Carryforwards and carrybacks—The amendments made by subsections (b), (c), and (d)(1) shall apply to net operating losses arising in taxable years beginning after December 31, 2017.”

(2)
Section 172(b)(1)(A) of the Internal Revenue Code of 1986 is amended to read as follows:

“(A) General rule—A net operating loss for any taxable year—

“(i) shall be a net operating loss carryback to the extent provided in subparagraphs (B) and (C)(i), and

“(ii) except as provided in subparagraph (C)(ii), shall be a net operating loss carryover—

“(I) in the case of a net operating loss arising in a taxable year beginning before January 1, 2018, to each of the 20 taxable years following the taxable year of the loss, and

“(II) in the case of a net operating loss arising in a taxable year beginning after December 31, 2017, to each taxable year following the taxable year of the loss.”

(d)
Effective dates—
(1)
Net operating loss limitation— The amendments made by subsection (a) shall apply—
(A)
to taxable years beginning after December 31, 2017, and
(B)
taxable years beginning on or before December 31, 2017, to which net operating losses arising in taxable years beginning after December 31, 2017, are carried.
(2)
Carryforwards and carrybacks— The amendment made by subsection (b) shall apply to net operating losses arising in taxable years beginning after December 31, 2017.
(3)
Technical amendments— The amendments made by subsection (c) shall take effect as if included in the provisions of Public Law 115–97 to which they relate.
(4)
Special rule— In the case of a net operating loss arising in a taxable year beginning before January 1, 2018, and ending after December 31, 2017—
(A)
an application under section 6411(a) of the Internal Revenue Code of 1986 with respect to the carryback of such net operating loss shall not fail to be treated as timely filed if filed not later than the date which is 120 days after the date of the enactment of this Act, and
(B)
an election to—
(i)
forgo any carryback of such net operating loss,
(ii)
reduce any period to which such net operating loss may be carried back, or
(iii)
revoke any election made under section 172(b) to forgo any carryback of such net operating loss,

Sec. 2204 Modification of limitation on losses for taxpayers other than corporations

(a)
In general— Section 461(l)(1) of the Internal Revenue Code of 1986 is amended by striking “December 31, 2017” and inserting “December 31, 2020”.
(b)
Technical amendments relating to section 11012 of Public Law 115–97—
(1)
Section 461(l)(2) of the Internal Revenue Code of 1986 is amended by striking “a net operating loss carryover to the following taxable year under section 172” and inserting “a net operating loss for the taxable year for purposes of determining any net operating loss carryover under section 172(b) for subsequent taxable years”.
(2)
Section 461(l)(3)(A) of such Code is amended—
(A)
in clause (i), by inserting “and without regard to any deduction allowable under section 172 or 199A” after “under paragraph (1)”, and
(B)
by adding at the end the following flush sentence:
(3)
Section 461(l)(3) of such Code is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:

“(B) Treatment of capital gains and losses

“(i) Losses—Deductions for losses from sales or exchanges of capital assets shall not be taken into account under subparagraph (A)(i).

“(ii) Gains—The amount of gains from sales or exchanges of capital assets taken into account under subparagraph (A)(ii) shall not exceed the lesser of—

“(I) the capital gain net income determined by taking into account only gains and losses attributable to a trade or business, or

“(II) the capital gain net income.”

(c)
Effective dates—
(1)
In general— The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2017.
(2)
Technical amendments— The amendments made by subsection (b) shall take effect as if included in the provisions of Public Law 115–97 to which they relate.

Sec. 2205 Modification of credit for prior year minimum tax liability of corporations

(a)
In general— Section 53(e) of the Internal Revenue Code of 1986 is amended to read as follows:

“(e) Credit treated as refundable for certain taxpayers—In the case of the first taxable year of a corporation beginning in 2018—

“(1) subsection (c) shall not apply, and

“(2) for purposes of this title (other than this section), the credit allowed by reason of this subsection shall be treated as allowed under subpart C (and not this subpart).”

(b)
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

Sec. 2206 Modification of limitation on business interest

(a)
In general— Section 163(j) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (10) as paragraph (11) and by inserting after paragraph (9) the following new paragraph:

“(10) Special rule for taxable years beginning in 2019 and 2020

“(A) In general—In the case of any taxable year beginning in 2019 or 2020, paragraph (1)(B) shall be applied by substituting “50 percent” for “30 percent”.

“(B) Election to use 2019 income for taxable years beginning in 2020

“(i) In general—Subject to clause (ii), in the case of any taxable year beginning in 2020, the taxpayer may elect to apply this subsection by substituting the adjusted taxable income of the taxpayer for the last taxable year beginning in 2019 for the adjusted taxable income for such taxable year.

“(ii) Special rule for short taxable years—No election may be made under clause (i) with respect to any taxable year beginning in 2020 if such taxable year is a short taxable year.”

(b)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2018.

Sec. 2207 Technical amendments regarding qualified improvement property

(a)
In general— Section 168 of the Internal Revenue Code of 1986 is amended—
(1)
in subsection (e)—
(A)
in paragraph (3)(E), by striking “and” at the end of clause (v), by striking the period at the end of clause (vi) and inserting “, and”, and by adding at the end the following new clause:

“(vii) any qualified improvement property.”

(B)
in paragraph (6)(A), by inserting “made by the taxpayer” after “any improvement”, and
(2)
in the table contained in subsection (g)(3)(B)—
(A)
by striking the item relating to subparagraph (D)(v), and
(B)
by inserting after the item relating to subparagraph (E)(vi) the following new item:
(b)
Effective date— The amendments made by this section shall take effect as if included in section 13204 of Public Law 115–97.

Sec. 2208 Installments not to prevent credit or refund of overpayments or increase estimated taxes

(a)
In general— Section 965(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(7) Installments not to prevent credit or refund of overpayments or increase estimated taxes—If an election is made under paragraph (1) to pay the net tax liability under this section in installments—

“(A) no installment of such net tax liability shall—

“(i) in the case of a request for credit or refund, be taken into account as a liability for purposes of determining whether an overpayment exists for purposes of section 6402 before the date on which such installment is due, or

“(ii) for purposes of sections 6425, 6654, and 6655, be treated as a tax imposed by section 1, section 11, or subchapter L of chapter 1, and

“(B) the first sentence of section 6403 shall not apply with respect to any such installment.”

(b)
Limitation on payment of interest— In the case of the portion of any overpayment which exists by reason of the application of section 965(h)(7) of the Internal Revenue Code of 1986 (as added by this section)—
(1)
if credit or refund of such portion is made on or before the date which is 45 days after the date of the enactment of this Act, no interest shall be allowed or paid under section 6611 of such Code with respect to such portion; and
(2)
if credit or refund of such portion is made after the date which is 45 days after the date of the enactment of this Act, no interest shall be allowed or paid under section 6611 of such Code with respect to such portion for any period before the date of the enactment of this Act.
(c)
Effective date— The amendment made by subsection (a) shall take effect as if included in section 14103 of Public Law 115–97.

Sec. 2209 Restoration of limitation on downward attribution of stock ownership in applying constructive ownership rules

(a)
In general— Section 958(b) of the Internal Revenue Code of 1986 is amended—
(1)
by inserting after paragraph (3) the following:

“(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person.”

(2)
by striking “Paragraph (1)” in the last sentence and inserting “Paragraphs (1) and (4)”.
(b)
Foreign controlled United States shareholders— Subpart F of part III of subchapter N of chapter 1 of such Code is amended by inserting after section 951A the following new section:

“951B. Amounts included in gross income of foreign controlled United States shareholders

“(a) In general—In the case of any foreign controlled United States shareholder of a foreign controlled foreign corporation—

“(1) this subpart (other than sections 951A, 951(b), 957, and 965) shall be applied with respect to such shareholder (separately from, and in addition to, the application of this subpart without regard to this section)—

“(A) by substituting “foreign controlled United States shareholder” for “United States shareholder” each place it appears therein, and

“(B) by substituting “foreign controlled foreign corporation” for “controlled foreign corporation” each place it appears therein, and

“(2) sections 951A and 965 shall be applied with respect to such shareholder —

“(A) by treating each reference to “United States shareholder” in such sections as including a reference to such shareholder, and

“(B) by treating each reference to “controlled foreign corporation” in such sections as including a reference to such foreign controlled foreign corporation.

“(b) Foreign controlled United States shareholder—For purposes of this section, the term “foreign controlled United States shareholder” means, with respect to any foreign corporation, any United States person which would be a United States shareholder with respect to such foreign corporation if—

“(1) section 951(b) were applied by substituting “more than 50 percent” for “10 percent or more”, and

“(2) section 958(b) were applied without regard to paragraph (4) thereof.

“(c) Foreign controlled foreign corporation—For purposes of this section, the term “foreign controlled foreign corporation” means a foreign corporation, other than a controlled foreign corporation, which would be a controlled foreign corporation if section 957(a) were applied—

“(1) by substituting “foreign controlled United States shareholders” for “United States shareholders”, and

“(2) by substituting “section 958(b) (other than paragraph (4) thereof)” for “section 958(b)”.

“(d) Regulations—The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance—

“(1) to treat a foreign controlled United States shareholder or a foreign controlled foreign corporation as a United States shareholder or as a controlled foreign corporation, respectively, for purposes of provisions of this title other than this subpart, and

“(2) to prevent the avoidance of the purposes of this section.”

(c)
Clerical amendment— The table of sections for subpart F of part III of subchapter N of chapter 1 of such Code is amended by inserting after the item relating to section 951A the following new item:
(d)
Effective date— The amendments made by this section shall apply to—
(1)
the last taxable year of foreign corporations beginning before January 1, 2018, and each subsequent taxable year of such foreign corporations, and
(2)
taxable years of United States persons in which or with which such taxable years of foreign corporations end.