Sec. 101. Amendments relating to Protecting Americans from Tax Hikes Act of 2015
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105 Section 132(f)(6)(A) is amended by striking the second sentence. 121 Section 41(c) is amended— by striking paragraph (4), by redesignating paragraphs (5), (6), and
(7)as paragraphs (4), (5), and (6), respectively, and by striking the last sentence of paragraph (4)(C) (as so redesignated). 143 Section 168(k)(2)(B)(i)(III) is amended by inserting binding before contract . Section 168(k)(5)(B)(ii) is amended— by inserting crop or after more than one , and by inserting a marketable crop or yield of after begins bearing . Section 168(k)(5)(F) is amended— by striking (or is grafted to a plant that has already been planted before such date) , by inserting or grafted after which is planted , and by striking (or so grafted) in clauses
(i)and
(ii)and inserting or grafted . Section 168(k)(6) is amended to read as follows: In the case of qualified property placed in service by the taxpayer after December 31, 2017 (December 31, 2018, in the case of property described in subparagraph
(B)or
(C)of paragraph (2)), paragraph (1)(A) shall be applied by substituting for 50 percent — 40 percent in the case of— property placed in service in 2018 (other than property described in subparagraph
(B)or
(C)of paragraph (2)), and property described in subparagraph
(B)or
(C)of paragraph
(2)which is placed in service in 2019, and 30 percent in the case of— property placed in service in 2019 (other than property described in subparagraph
(B)or
(C)of paragraph (2)), and property described in subparagraph
(B)or
(C)of paragraph
(2)which is placed in service in 2020. . Section 168(k)(7) is amended by striking paragraphs
(1)and (2)(F) and inserting paragraphs (1), (2)(F), and
(4). Section 168(j)(3) is amended by striking property to which paragraph
(1)applies and inserting qualified Indian reservation property . Section 168(j)(8) is amended by striking this subsection and inserting paragraph
(1). 202 Section 6722(c)(3)(A) is amended— by striking any information return in clause
(iii)and inserting such payee statement , and by striking filed in the flush matter at the end and inserting furnished . Section 202(e) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking provided and inserting furnished . 203 Section 6109(i)(1)(A)(i) is amended by striking community-based certified acceptance agent and inserting community-based certifying acceptance agent . Section 6109(i)(1)(B) is amended by striking Internal Revenue Service and inserting Internal Revenue Service, a community-based certifying acceptance agent approved by the Secretary, . Section 6109(i)(3) is amended— in subparagraph (A)— by inserting ending after the issuance of such number before the period at the end of the first sentence, and by striking on the last day of such third consecutive taxable year and inserting on the day after the due date for the return of tax for such third consecutive taxable year , and by striking subparagraph (B)(ii) and inserting the following: if the individual does not file a return of tax (or is not included as a dependent on the return of tax of another taxpayer) for 3 consecutive taxable years at least one of which ends after December 18, 2015, the due date for the return of tax for such third consecutive taxable year. . Section 203(c) of the Protecting Americans from Tax Hikes Act of 2015 is amended— by striking section 6109(i)(1)(A)(i) and inserting section 6109(i)(1) , by striking community-based certified acceptance agents and inserting community-based certifying acceptance agents , and by striking in the heading thereof and inserting Certified . Certifying Section 203(f) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking The amendments and inserting Except to the extent provided in . section 6109(i)(3) of the Internal Revenue Code of 1986, the amendments 204 Section 204(b) of the Protecting Americans from Tax Hikes Act of 2015 is amended— by striking paragraph (2), and by striking so much as precedes amendment made by this section and inserting the following:
(b). Effective date. —The 205 Section 24(e)(2) is amended by striking identifying number and inserting taxpayer identification number . Section 205(c) of the Protecting Americans from Tax Hikes Act of 2015 is amended— by striking paragraph (2), and by striking so much as precedes shall apply to any return of tax and inserting the following:
(c). Effective date. —The amendments made by this section 206 Section 206(b) of the Protecting Americans from Tax Hikes Act of 2015 is amended— by striking Except as provided in paragraph (2), the amendment in paragraph
(1)and inserting The amendment , and by striking paragraph
(2)and redesignating paragraph
(3)as paragraph (2). 209 Section 209(d)(2) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking amendment made by subsection
(b)and inserting amendments made by subsections
(b)and
(c). 102 , 206 , 207 , 208 , and 211 Section 25A(b)(1) is amended— in subparagraph
(A)by striking $1,000 and inserting $2,000 , and in subparagraph (B)— by striking 50 percent and inserting 25 percent , by striking $1,000 and inserting $2,000 , and by striking the applicable limit and inserting $4,000 . Subparagraphs
(A)and
(C)of section 25A(b)(2) are amended by striking 2 in the heading and text of each subparagraph and inserting 4 . Section 25A(b)(4) is amended to read as follows: No American Opportunity Tax Credit shall be allowed under this section for any taxable year in the disallowance period. For purposes of subparagraph (A), the disallowance period is— the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer’s claim of the American Opportunity Tax Credit under this section was due to fraud, and the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of the American Opportunity Tax Credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud). In the case of a taxpayer who is denied the American Opportunity Tax Credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no American Opportunity Tax Credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit. . Section 25A(d) is amended to read as follows: The American Opportunity Tax Credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— the excess of— the taxpayer’s modified adjusted gross income for such taxable year, over $80,000 ($160,000 in the case of a joint return), bears to $10,000 ($20,000 in the case of a joint return). The Lifetime Learning Credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as— the excess of— the taxpayer’s modified adjusted gross income for such taxable year, over $40,000 ($80,000 in the case of a joint return), bears to $10,000 ($20,000 in the case of a joint return). For purposes of this subsection, the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. . Section 25A(f)(1) is amended by adding at the end the following new subparagraph: For purposes of determining the American Opportunity Tax Credit, subparagraph
(A)shall be applied by substituting tuition, fees, and course materials for tuition and fees . . Section 25A(g)(1) is amended— by striking No credit and inserting the following: No credit , and by adding at the end the following new subparagraph: The requirements of subparagraph
(A)shall not be treated as met with respect to the American Opportunity Tax Credit unless the individual's taxpayer identification number was issued on or before the due date for filing the return of tax for the taxable year. No American Opportunity Tax Credit shall be allowed under this section if the taxpayer identification number of the taxpayer was issued after the due date for filing the return for the taxable year. No American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which qualified tuition and related expenses were paid with respect to the individual. . Section 25A(h) is amended to read as follows: In the case of a taxable year beginning after 2001, the $40,000 and $80,000 amounts in subsection (d)(2) shall each be increased by an amount equal to— such dollar amount, multiplied by 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 2000 for calendar year 1992 in subparagraph
(B)thereof. If any amount as adjusted under paragraph
(1)is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000. . Section 25A(i) is amended to read as follows: Forty percent of so much of the credit allowed under subsection
(a)as is attributable to the American Opportunity Tax Credit (determined after application of subsection
(d)and without regard to this paragraph and section 26(a)) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection
(g)of section 1 applies for such taxable year. . The heading of section 25A is amended by striking and inserting Hope . American Opportunity The item relating to section 25A in the table of contents for subpart A of part IV of subchapter A of chapter 1 is amended to read as follows: Sec. 25A. American Opportunity and Lifetime Learning credits. . The heading of section 25A(b) is amended by striking and inserting Hope Scholarship Credit . American Opportunity Tax Credit The heading of section 25A(b)(2) is amended by striking and inserting hope scholarship credit . american opportunity tax credit The heading of section 25A(c)(2)(A) is amended by striking and inserting hope scholarship . american opportunity tax credit Section 25A , as amended by the preceding provisions of this Act, is amended by striking Hope Scholarship Credit each place it appears in the text and inserting American Opportunity Tax Credit . The heading of section 529(c)(3)(B)(v) is amended by striking and inserting hope . american opportunity The heading of section 530(d)(2)(C) is amended by striking and inserting hope . american opportunity Section 6211(b)(4)(A), as amended by this Act, is amended by striking subsection (i)(5) and inserting subsection
(i). Section 6213(g)(2)(Q) is amended to read as follows: an omission of information required by section 25A(b)(4)(B) or an entry on the return claiming the American Opportunity Tax Credit for a taxable year for which such credit is disallowed under section 25A(b)(4)(A). . Section 207(b)(1) of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking the American opportunity tax credit under section 25A(i) of such Code and inserting the American Opportunity Tax Credit under section 25A of such Code . 311 The last sentence of section 355(h)(2)(B) is amended by striking 80 percent both places it appears and inserting at least 80 percent . Section 355(h)(2) is amended— by striking in the heading of such paragraph and inserting spinoffs , and distributions by striking in the headings of subparagraphs
(A)and
(B)and inserting Spinoffs . Distributions 318 Section 856(c)(9)(A) is amended— by striking Personal property and inserting the following: Personal property , and by adding at the end the following new clause: If— personal property is leased under, or in connection with, a lease of real property, for a period of not less than 1 year, and rents attributable to such personal property are treated as rents from real property under subsection (d)(1)(C), any portion of such personal property and any portion of such real property are sold, or otherwise disposed of, in a single disposition (or contemporaneously in separate dispositions), and the fair market value of the personal property so sold or contemporaneously disposed of (determined at the time of disposition) does not exceed 15 percent of the total fair market value of all of the personal and real property so sold or contemporaneously disposed of (determined at the time of disposition), any gain from such dispositions shall be treated for purposes of paragraphs (2)(H) and (3)(H) as gain from the disposition of a real estate asset. . Section 856(c)(9)(B) is amended to read as follows: In the case of an obligation secured by a mortgage on both real property and personal property, if the fair market value of such personal property does not exceed 15 percent of the total fair market value of all such property, such obligation shall be treated— for purposes of paragraph (3)(B), as an obligation described therein, for purposes of paragraph (4)(A), as a real estate asset, and for purposes of paragraphs (2)(D) and (3)(C), as a mortgage on real property. Except as provided in subclause (II), the fair market value of all such property shall be determined for purposes of clause
(i)in the same manner as the fair market value of real property is determined for purposes of apportioning interest income between real property and personal property under paragraph (3)(B). For purposes of applying clause (i)(III), fair market value shall be determined at the time of sale or other disposition. . 322 Section 897(k)(2) is amended— by striking so much of subparagraph
(B)as precedes amounts realized by the qualified shareholder and inserting the following: In the case of a qualified shareholder with one or more applicable investors— subparagraph (A)(i) shall not apply to the applicable percentage of the stock of the real estate investment trust held by the qualified shareholder, and the applicable percentage of the , and by adding at the end the following new subparagraph: For purposes of subparagraph (B), the term applicable percentage means the percentage of the value of the interests (other than interests held solely as a creditor) in the qualified shareholder held by applicable investors. . Section 897(k)(2)(D) is amended by striking paragraph and inserting subsection . Section 897(k)(2)(E) is amended by striking and
(C)and paragraph
(4)and inserting and
(D). Section 897(k)(3)(B)(i) is amended by striking so much as precedes for a reduced rate of withholding and inserting the following: which— is eligible for benefits under the comprehensive income tax treaty described in subparagraph (A)(i)(I), but only if the dividends article of such treaty imposes conditions on the benefits allowable in the case of dividends paid by a real estate investment trust, and is eligible under such treaty . Section 897(k)(3)(B)(ii) is amended— by adding and at the end of subclause (II), and by striking United States corporation in subclause
(III)and inserting domestic corporation . Section 322 of the Protecting Americans from Tax Hikes Act of 2015 is amended by striking subsections (b)(2) and (c)(3), and the Internal Revenue Code of 1986 shall be applied as if such subsections, and amendments made thereby, had never been enacted. Section 322(c)(2) of such Act is amended by striking take effect on and inserting the following: apply with respect to testing periods (as defined in . section 897(h)(4)(D) of the Internal Revenue Code of 1986) ending on or after 323 So much of subsection
(l)of section 897 as precedes paragraph
(2)thereof is amended to read as follows: For purposes of this section, a qualified foreign pension fund shall not be treated as a nonresident alien individual or a foreign corporation. For purposes of the preceding sentence, an entity all the interests of which are held by a qualified foreign pension fund shall be treated as such a fund. . Subparagraph
(B)of section 897(l)(2) is amended to read as follows: which is established— by such country (or one or more political subdivisions thereof) to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (including self-employed individuals) or persons designated by such employees, as a result of services rendered by such employees to their employers, or by one or more employers to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (including self-employed individuals) or persons designated by such employees in consideration for services rendered by such employees to such employers, . Section 897(l)(2)(D) is amended by striking provides annual information reporting about its beneficiaries to the relevant tax authorities and inserting with respect to which annual information about its beneficiaries is provided, or is otherwise available, to the relevant tax authorities . Section 897(l)(2)(E) is amended— by striking such entity in clause
(i)and inserting such entity or arrangement , and by striking or such income is taxed at a reduced rate in clause
(ii)and inserting , or such income is excluded from the gross income of such entity or arrangement or is taxed at a reduced rate . Section 831(b)(2) is amended by redesignating subparagraph
(D)as subparagraph
(E)and by inserting after subparagraph
(C)the following new subparagraph: In the case of reinsurance or any fronting, intermediary, or similar arrangement, the term policyholder means each policyholder of the underlying direct written insurance with respect to such reinsurance or arrangement. . Subclause
(II)of section 831(b)(2)(B)(i) is amended by striking specified assets and inserting relevant specified assets . Section 831(b)(2)(B)(ii) is amended by redesignating subclauses (II), (III), and
(IV)as subclauses (III), (IV), and (V), respectively, and by inserting after subclause
(I)the following new subclause: The term relevant specified assets means, with respect to any specified holder with respect to any insurance company, the aggregate amount of the specified assets, with respect to such insurance company, any interest in which is held (directly or indirectly) by any spouse or specified relation of such specified holder. Such term shall not include any specified asset solely by reason of an interest in such asset which was acquired by such spouse or specified relation by bequest, devise, or inheritance from a decedent during the taxable year of the insurance company or the preceding taxable year. For purposes of this subclause, the term specified relation means any individual with respect to whom the specified holder bears a relationship described in subclause (I). . The amendments made by this section shall take effect as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015 to which they relate.