ADJUSTMENT OF DOLLAR LIMITATION ON SECTION 911 EXCLUSION.

SEC. 1172. ADJUSTMENT OF DOLLAR LIMITATION ON SECTION 911 EXCLUSION. (a) General Rule.—Paragraph (2) of section 911(b) is amended by— (1) by striking “of $70,000” in subparagraph (A) and inserting “equal to the exclusion amount for the calendar year in which such taxable year begins”, and (2) by adding at the end the following new subparagraph: “(D) Exclusion amount.— “(i) In general.—The exclusion amount for any calendar year is the exclusion amount determined in accordance with the following table (as adjusted by clause (ii)): “For calendar year— The exclusion amount is— 1998 $72,000 1999 74,000 2000 76,000 2001 78,000 2002 and thereafter 80,000 “(ii) Inflation adjustment.—In the case of any taxable year beginning in a calendar year after 2007, the $80,000 amount in clause (i) shall be increased by an amount equal to the product of— “(I) such dollar amount, and “(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2006’ for ‘1992’ in subparagraph (B) thereof. If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.”. (b) Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 1997.