,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #biga  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #bc1 #bjai,mr4   
,biggs introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to increase & exp& !     
d$uction = qualifi$ bus9ess income4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,fre$om = ,small ,bus9esses ,act (      
#bjai4  #b4 ,increase & expansion (     
d$uction = qualifi$ bus9ess income  7a7 
,d$uction made p]man5t ,section #aii;,a 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by /rik+ subsection 7i74  7b7     
,d$uction ,to a*ieve a top rate on      
qualifi$ bus9ess income ( #ba p]c5t     
,subsections 7a77#b71 7b77#a77;,b71 &   
7b77#b77;,a7 ( section #aii;,a ( su*    
,code are ea* am5d$ by /rik+ #bj p]c5t &
 ins]t+ #dc p]c5t 7#dg p]c5t 9 ! case ( 
any taxable ye> beg9n+ aft] ,decemb]    
#ca1 #bjbe74  7c7 ,repeal ( limitation  
bas$ on ,w-#b wages paid ) respect to ! 
trade or bus9ess ,section #aii;,a7b77#b7

 ( section #aii;,a ( su* ,code1 z am5d$ 
by subsection 7a71 is am5d$ to read z   
foll[s3  7#b7 ,det]m9ation ( d$uctible  
am\nt = ea* trade or bus9ess ,! am\nt   
det]m9$ "u ?is p>agraph ) respect to any
 qualifi$ trade or bus9ess is #dc p]c5t 
7#dg p]c5t 9 ! case ( any taxable ye>   
beg9n+ aft] ,decemb] #ca1 #bjbe7 ( !    
taxpay]'s qualifi$ bus9ess income )     
respect to ! qualifi$ trade or bus9ess4 
4  7d7 ,repeal ( exclusion ( specifi$   
s]vice trades or bus9esses ,section     
#aii;,a7d7 ( su* ,code is am5d$ to read 
z foll[s3  7d7 ,qualifi$ trade or       
bus9ess ,= purposes ( ?is section1 ! t]m
 qualifi$ trade or bus9ess means any    
trade or bus9ess o!r ?an ! trade or     
bus9ess ( p]=m+ s]vices z an employee4  
4  7e7 ,con=m+ am5dm5ts  7#a7 ,section  
#aii;,a7b7 ( su* ,code1 z am5d$ by      
subsection 7d71 is am5d$-- 7,a7 by /rik+
 p>agraphs 7#c71 7#d71 & 7#f71 &        
r$esignat+ p>agraphs 7#e7 & 7#g7 z      
p>agraphs 7#c7 & 7#d71 &  7,b7 by !     
less] (-- & all t foll[s 9 p>agraph 7#d7

 7z s r$esignat$7 & ins]t+ #i p]c5t ( s 
mu* ( ! qualifi$ bus9ess income )       
respect to su* trade or bus9ess z is    
prop]ly allocable to qualifi$ paym5ts   
receiv$ f su* coop]ative4  7#b7 ,section
 #aii;,a7e7 ( su* ,code is am5d$ by     
/rik+ p>agraph 7#b74  7#c7 ,section     
#aii;,a7f77#a7 ( su* ,code is am5d$ to  
read z foll[s3  7#a7 ,application to    
p>tn]%ips & s corporations  7,a7 ,9     
g5]al ,9 ! case ( a p>tn]%ip or ,s      
corporation-- 7i7 ?is section %all be   
appli$ at ! p>tn] or %>ehold] level1 &  
7ii7 ea* p>tn] or %>ehold] %all take    
into acc\nt su* p]son's allocable %>e ( 
ea* qualifi$ item ( income1 ga91        
d$uction1 & loss4  ,= purposes ( ?is    
subp>agraph1 9 ! case ( an ,s           
corporation1 an allocable %>e %all be ! 
%>ehold]'s pro rata %>e ( an item4  7,b7
 ,treatm5t ( trades or bus9ess 9 ,pu]to 
,rico ,9 ! case ( any taxpay] ) qualifi$
 bus9ess income f s\rces )9 !           
commonweal? ( ,pu]to ,rico1 if all su*  
income is taxable "u section #a = su*   

taxable ye>1 !n = purposes ( det]m9+ !  
qualifi$ bus9ess income ( su* taxpay] = 
su* taxable ye>1 ! t]m ,unit$ ,/ates    
%all include ! ,commonweal? ( ,pu]to    
,rico4  4  7#d7 ,section                
#aii;,a7f77#d77;,a7 ( su* ,code is am5d$
 by /rik+ & wages4  7#e7 ,section       
#aii;,a7g77#a7 ( su* ,code is am5d$ by  
/rik+ subp>agraph 7,b7 & r$esignat+     
subp>agraph 7,c7 z subp>agraph 7,b74    
7#f7 ,section #aii;,a ( su* ,code is    
am5d$ by /rik+ subsection 7h74  7f7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjai4