environmental income tax (1) Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part: VIII Environmental Tax Sec. 59B. Environmental Tax. 59B. Environmental tax (a) Imposition of tax In the case of a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 0.12 percent of the excess of— (1) the modified environmental tax taxable income of such corporation for the taxable year, over (2) $3,130,000. (b) Modified environmental tax taxable income For purposes of this section, the term modified environmental tax taxable income means taxable income determined without regard to— (1) the net operating loss deduction allowable under section 172, and (2) the deduction allowed under section 164(a)(5). (c) Exception for RICs and REITs The tax imposed by subsection (a) shall not apply to— (1) a regulated investment company to which part I of subchapter M applies, and (2) a real estate investment trust to which part II of subchapter M applies. (d) Special rules (1) Short taxable years The application of this section to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Secretary. (2) Section 15 not to apply Section 15 shall not apply to the tax imposed by this section. (e) Inflation adjustment (1) In general In the case of a taxable year beginning after 2019, the $3,130,000 amount in subsection (a)(2) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2018 for calendar year 2016 in subparagraph (A)(ii) thereof. (2) Rounding If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000. (f) Application of tax The tax imposed by this section shall apply to taxable years beginning after the date of the