of gross receipts test (1) In general So much of section 448(c) as precedes paragraph (2) is amended to read as follows: (c) Gross receipts test (1) In general A corporation or partnership meets the gross receipts test of this subsection for any taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed the applicable dollar limit. . (2) Applicable dollar limit Subsection (c) of section 448 is amended by adding at the end the following new paragraph: (4) Applicable dollar limit (A) In general The applicable dollar limit is $15,000,000. (B) Adjustment for inflation In the case of any taxable year beginning after December 31, 2018, the $15,000,000 amount under subparagraph (A) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000. . (3) Change in method of accounting Paragraph (7) of section 448(d) is amended— (A) by striking In the case of and all that follows up to subparagraph (A) and inserting: If a taxpayer changes its method of accounting because the taxpayer is prohibited from using the cash receipts and disbursement method of accounting by reason of subsection (a) or is no longer prohibited from using such method by reason of such subsection— , and (B) by inserting and at the end of subparagraph (A), by striking , and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C). (4) Conforming amendment Paragraph (3) of section 448(b) is amended to read as follows: (3) Entities satisfying gross receipts test Paragraphs (1) and (2) of subsection (a) shall not apply to any corporation