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) Exception for certain corporations Subsection (c) of section 447 is amended by inserting for any taxable year after not being a corporation . (4) Change in method of accounting Section 447(f) is amended— (A) by striking In the case of and all that follows up to paragraph (1) and inserting the following: If a taxpayer changes its method of accounting because the taxpayer is required to use an accrual method of accounting by reason of subsection (a) or is no longer required to use such method by reason of such subsection— , and (B) by striking paragraph (2) and inserting the following: (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. 13103. 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— (A) as a non-incidental material or supply, or (B) in a manner which conforms to the taxpayer's method for accounting for such property in— (i) an applicable financial statement (as defined in section 451(b)(1)), or (ii) in the case of a taxpayer that does not have an applicable