of $50, such increase shall be increased to the nearest multiple of $100). . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. II Deduction for qualified business income of pass-thru entities 11011. Deduction for qualified business income (a) In general Part VI of subchapter B of chapter 1 is amended by adding at the end the following new section: 199A. Qualified business income (a) In general In the case of a taxpayer other than a corporation, there shall be allowed as a deduction for any taxable year an amount equal to the lesser of— (1) the combined qualified business income amount of the taxpayer, or (2) an amount equal to 17.4 percent of the excess (if any) of— (A) the taxable income of the taxpayer for the taxable year, over (B) any net capital gain (as defined in section 1(h)) of the taxpayer for the taxable year. (b) Combined qualified business income amount For purposes of this section— (1) In general The term combined qualified business income amount means, with respect to any taxable year, an amount equal to— (A) the sum of the amounts determined under paragraph (2) for each qualified trade or business carried on by the taxpayer, plus (B) 17.4 percent of the aggregate amount of the qualified REIT dividends and qualified cooperative dividends of the taxpayer for the taxable year. (2) Determination of deductible amount for each trade or business The amount determined under this paragraph with respect to any qualified trade or business is the lesser of— (A) 17.4 percent of the taxpayer's qualified business income with respect to the qualified trade or business, or (B) 50 percent of the W-2 wages with respect to the qualified trade or business. (3) Modifications to the wage limit based on taxable income (A) Exception from wage limit In the case of any taxpayer whose taxable income for the taxable year does not exceed the threshold amount, paragraph (2) shall be applied without regard to subparagraph (B). (B) Phase-in of limit for certain