of the preceding sentence, in the case of taxable years beginning after December 31, 2017, and before January 1, 2026, the term losses from wagering transactions includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017. VI Increase in estate and gift tax exemption 11061. Increase in estate and gift tax exemption (a) In general Section 2010(c)(3) is amended by adding at the end the following new subparagraph: (C) Increase in basic exclusion amount In the case of estates of decedents dying or gifts made after December 31, 2017, and before January 1, 2026, subparagraph (A) shall be applied by substituting $10,000,000 for $5,000,000 . . (b) Conforming amendment Subsection (g) of section 2001 is amended to read as follows: (g) Modifications to tax payable (1) Modifications to gift tax payable to reflect different tax rates For purposes of applying subsection (b)(2) with respect to 1 or more gifts, the rates of tax under subsection (c) in effect at the decedent's death shall, in lieu of the rates of tax in effect at the time of such gifts, be used both to compute— (A) the tax imposed by chapter 12 with respect to such gifts, and (B) the credit allowed against such tax under section 2505, including in computing— (i) the applicable credit amount under section 2505(a)(1), and (ii) the sum of the amounts allowed as a credit for all preceding periods under section 2505(a)(2). (2) Modifications to estate tax payable to reflect different basic exclusion amounts The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this section with respect to any difference between— (A) the basic exclusion amount under section 2010(c)(3) applicable at the time of the decedent's death, and (B) the basic exclusion amount under such section applicable with respect to any gifts made by the decedent. . (c) Effective date The amendments