Sec. 13102. Modifications of gross receipts test for use of cash method of accounting by corporations and partnerships

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So much of section 448(c) as precedes paragraph

(2)is amended to read as follows: A corporation or partnership meets the gross receipts test of this subsection for any taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed the applicable dollar limit. . Subsection

(c)of section 448 is amended by adding at the end the following new paragraph: The applicable dollar limit is $15,000,000. In the case of any taxable year beginning after December 31, 2018, the $15,000,000 amount under subparagraph

(A)shall 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, by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000. . Paragraph

(7)of section 448(d) is amended— by striking In the case of and all that follows up to subparagraph

(A)and inserting: If a taxpayer changes its method of accounting because the taxpayer is prohibited from using the cash receipts and disbursement method of accounting by reason of subsection

(a)or is no longer prohibited from using such method by reason of such subsection— , and by inserting and at the end of subparagraph (A), by striking , and at the end of subparagraph

(B)and inserting a period, and by striking subparagraph (C). Paragraph

(3)of section 448(b) is amended to read as follows: Paragraphs

(1)and

(2)of subsection

(a)shall not apply to any corporation or partnership for any taxable year if such entity meets the gross receipts test of subsection

(c)for the taxable year. . Paragraph

(1)of section 447(d) is amended to read as follows: A corporation meets the requirements of this subsection for any taxable year with respect to its gross receipts if the corporation meets the gross receipts test of section 448(c) for the taxable year. . Paragraph

(2)of section 447(d) is amended— by striking subparagraph

(A)and inserting the following: In the case of a family corporation, in applying section 448(c) for purposes of paragraph (1)— paragraph

(1)of section 448(c) shall be applied by substituting the applicable family corporation limit for the applicable dollar limit, and the rules of subparagraph

(B)shall apply in computing gross receipts. , in subparagraph (B)(i), by striking the last sentence of paragraph

(1)and inserting paragraph

(2)of section 448(c) , and by adding at the end the following new subparagraph: The applicable family corporation limit is $25,000,000. In the case of any taxable year beginning after December 31, 2018, the $25,000,000 amount under clause

(i)shall 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, by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000. . Subsection

(c)of section 447 is amended by inserting for any taxable year after not being a corporation . Section 447(f) is amended— by striking In the case of and all that follows up to paragraph

(1)and inserting the following: If a taxpayer changes its method of accounting because the taxpayer is required to use an accrual method of accounting by reason of subsection

(a)or is no longer required to use such method by reason of such subsection— , and by striking paragraph

(2)and inserting the following: such change shall be treated as initiated by the taxpayer, and . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.