1. (b) Modified adjusted gross income threshold amount.—Section 164(b)(7)(B)(ii)(II) of such Code is amended by striking “2026, $505,000, and” and inserting the following: “2026—

1. (c) Conforming amendments.—

1. (1) Subparagraphs (A)(iii) and (B)(ii)(III) of section 164(b)(7) of such Code are each amended—

(A) by inserting “with respect to the filling status of the taxpayer for the taxable year,” before “101 percent”, and

(B) by inserting “, with respect to such filing status,” after “in effect”.

1. (2) Section 164(b)(6)(B) of such Code is amended by striking “(half the applicable limitation amount in the case of a married individual filing a separate return)”.
2. (3) Section 164(b)(7)(A)(iv) of such Code is amended by inserting “(half such amount in the case of a married individual filing a separate return)”.
3. (4) Section 164(b)(7)(B)(i) of such Code is amended by striking “(half the threshold amount in the case of a married individual filing a separate return)”.

Effective date.—(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2026.

1. (b) Modified adjusted gross income threshold amount.—Section 164(b)(7)(B)(ii)(II) of such Code is amended by striking “2026, $505,000, and” and inserting the following: “2026—

1. (c) Conforming amendments.—

1. (1) Subparagraphs (A)(iii) and (B)(ii)(III) of section 164(b)(7) of such Code are each amended—

(A) by inserting “with respect to the filling status of the taxpayer for the taxable year,” before “101 percent”, and

(B) by inserting “, with respect to such filing status,” after “in effect”.

1. (2) Section 164(b)(6)(B) of such Code is amended by striking “(half the applicable limitation amount in the case of a married individual filing a separate return)”.
2. (3) Section 164(b)(7)(A)(iv) of such Code is amended by inserting “(half such amount in the case of a married individual filing a separate return)”.
3. (4) Section 164(b)(7)(B)(i) of such Code is amended by striking “(half the threshold amount in the case of a married individual filing a separate return)”.

Effective date.—(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2026.