HR 2927 IH Key Provisions
HR 2927 IH: Key Provisions and Analysis
Section 1. Raising the Threshold for Certain Exclusions from Gross Income
(a) The threshold amount shall be increased by $100,000 for tax years 2026 and subsequent years.
Section 2. Modifications to the Tax Cuts and Jobs Act
(a) Section 901 of the Internal Revenue Code of 1986 is amended—
- (bold) by striking "25 percent" and inserting "30 percent";
- (bold) by striking "20% for tax years beginning after December 31, 2025," and inserting "30% for tax years beginning after December 31, 2026.";
Section 3. Exclusion of Discharge of Indebtedness
(a) Section 108(a)(1)(E) is amended by striking "20 percent" and inserting "25 percent."
Cross-References
Section 229 of the Internal Revenue Code of 1986 is added, as follows:
- Sec. 229. Rent.
(a) In general, this section shall be applicable to taxable years beginning after December 31, 2026.
- Sec. 229. Cross reference.
This section contains no cross-reference to other sections of the Internal Revenue Code of 1986.
Effective Dates
(d) The amendments made by this section shall apply to debt incurred after December 31, 2026.
Increase in Capital Gains Rate
(a) Section 1(h)(1)(D) of the Internal Revenue Code of 1986 is amended—
- (bold) by striking "20 percent" and inserting "25 percent";
- (bold) by striking "25 percent for tax years beginning after December 31, 2025," and inserting "30% for tax years beginning after December 31, 2026.";
Coordination of Exclusions
(c) Section 108 is amended by striking subsections (f) and (h).
Currency Exchange Rate Certainty
(1) The President shall submit to Congress a report on the most effective currency exchange rate options available to taxpayers, including foreign tax credits.
Precedence of Exclusions
(d) Subparagraphs (A), (B), (C), and (D) of paragraph (1) shall not apply to a discharge to which subparagraph (E) of such paragraph applies.