of such subsection— , and (B) by striking paragraph (2) and inserting: (2) such change shall be treated as initiated by the taxpayer, and . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 202. Clarification of inventory accounting rules for small businesses (a) Clarification of inventory rules (1) In general Section 471 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Small business taxpayers not required To use inventories (1) In general A qualified taxpayer shall not be required to use inventories under this section for a taxable year. (2) Treatment of taxpayers not using inventories A qualified taxpayer who is not required under this subsection to use inventories with respect to any property for a taxable year beginning after December 31, 2017, may treat such property as an incidental material or supply for such taxable year. (3) Qualified taxpayer For purposes of this subsection, the term qualified taxpayer means, with respect to any taxable year, a taxpayer who meets the gross receipts test of section 448(c) for the taxable year. Such term shall not include a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3). (4) Coordination with section 481 If a taxpayer changes its method of accounting because the taxpayer is not required to use inventories by reason of paragraph (1) or is required to use inventories because such paragraph no longer applies to the taxpayer— (A) such change shall be treated as initiated by the taxpayer, and (B) such change shall be treated as made with the consent of the Secretary. . (2) Conforming amendment Subsection (c) of section 263A is amended by adding at the end the following new paragraph: (8) Exclusion from inventory rules Nothing in this section shall require the use of inventories for any taxable year by a qualified taxpayer (within the meaning of section