in section 852(b)(3)), nor (II) taken into account in determining qualified dividend income (as defined in paragraph (11)), and (ii) any dividend which is includible in gross income and which is received from an organization or corporation described in section 501(c)(12) or 1381(a). . (c) Clerical amendment The table of sections for part I of subchapter A of chapter 1 is amended by inserting after the item relating to section 3 the following new item: Sec. 4. 25 percent maximum rate on business income of individuals. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. (e) Transition rule In the case of any taxable year which includes December 31, 2017, the amendment made by subsection (a) shall apply with respect to such taxable year adjusted— (1) so as to apply with respect to the rates of tax in effect under section 1 of the Internal Revenue Code of 1986 with respect to such taxable year (and so as to achieve a 25 percent effective rate of tax on the business income (determined without regard to paragraph (2)) in the same manner as such amendment applies to taxable years beginning after such date with respect to the rates of tax in effect for such years), and (2) by reducing the amount of the reduction in tax (as otherwise determined under paragraph (1)) by the amount which bears the same proportion to the amount of such reduction as the number of days in the taxable year which are before January 1, 2018, bears to the number of days in the entire taxable year. 1005. Conforming amendments related to simplification of individual income tax rates (a) Amendments related to modification of inflation adjustment (1) Section 32(b)(2)(B)(ii)(II) is amended by striking section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting calendar year 2008 for calendar year 1992 in subparagraph (B) thereof and inserting section 1(c)(2)(A) for the calendar year in which the taxable year begins determined by substituting