This part rewrites a rule that trims write-offs. The cut is a set share of the smaller of two figures. It is applied last, after every other limit. It does not touch the business income deduction.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70111 in the PDF
What the document says
“In the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by”
The section rewrites section 68 of the Internal Revenue Code of 1986. An individual's itemized deductions, worked out without regard to the section, are reduced by two thirty-sevenths of the lesser of that amount of itemized deductions and so much of the taxpayer's taxable income, worked out without regard to the section and increased by that amount of deductions, as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins for that taxpayer.
What the document actually says
“In the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by”
That sentence, in plain words
A person's write-offs are cut. The sum starts from what would be allowed without this rule.
What this is about
The cut is two thirty-sevenths of the smaller of two figures. One is the deductions themselves. The other is income above where the top rate starts.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70111 in the PDF
What the document says
“This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.”
The section provides that the limitation is applied after any other limitation on the allowance of an itemized deduction.
What the document actually says
“This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.”
That sentence, in plain words
This rule goes last. Every other limit is applied first.
What this is about
Order matters when limits stack up. This one bites on what is left. It never comes first.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“Section 199A(e)(1) is amended by inserting "without regard to section 68 and" after "shall be computed".”
The section inserts the words without regard to section 68 and into section 199A(e)(1) of the Internal Revenue Code of 1986, and inserts the words section 68 or into section 199A(g)(2)(B) for patrons of specified agricultural and horticultural cooperatives.
What the document actually says
“Section 199A(e)(1) is amended by inserting "without regard to section 68 and" after "shall be computed".”
That sentence, in plain words
New words are put into a rule on business income. They tell the reader to leave out the new limit.
What this is about
So the new cut does not shrink that deduction. A matching change is made for farm co-op members. The tax code is not indexed here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70111 in the PDF
What the document says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
The section applies its amendments to taxable years beginning after December 31, 2025.
What the document actually says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
That sentence, in plain words
The changes start with tax years that begin after December 31, 2025.
What this is about
Earlier tax years are not touched. The old rules still hold for them. The date is fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: the rewritten limitation and how it is worked out, the rule that it is applied after every other limitation, the carve-out for the qualified business income deduction, and the effective date.
The fraction and the two figures the reduction is measured against are described rather than quoted, because the source sets the fraction as a typeset expression.
The section works by rewriting section 68 of the Internal Revenue Code of 1986 and amending section 199A of that Code, neither of which is indexed here, so what itemized deductions are otherwise allowed cannot be checked against anything on this site.
