. (6) Conforming amendment Section 1 of such Code is amended by striking subsection (i). (b) Recapture of lower capital gains rates for individuals subject to added rate brackets (1) In general Section 1 of such Code is amended by adding at the end the following new subsection: (j) Special rule for capital gains in case of taxable income subject to at least 45-Percent rate bracket If for the taxable year a taxpayer has taxable income in excess of the minimum dollar amount for the 45-percent rate bracket and has a net capital gain, then— (1) the tax imposed by this section for the taxable year with respect to such excess shall be determined without regard to subsection (h), and (2) the amount of net capital gain of the taxpayer taken into account for the taxable year under subsection (h) shall be reduced by the lesser of— (A) such excess, or (B) the net capital gain for the taxable year. Any reduction in net capital gain under the preceding sentence shall be allocated between adjusted net capital gain, unrecaptured 1250 gain, and section 1202 gain in amounts proportionate to the amounts of each such gain. Any term used in this subsection which is also used in subsection (h) shall have the meaning given such term in subsection (h). . (2) Conforming amendment Paragraph (1) of section 1(h) of such Code is amended by striking If a taxpayer has and inserting Except to the extent provided in subsection (j), if a taxpayer has . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016.