Preferential rates for dividends and capital gains limited to incomes of $1,000,000 or less

(a) In general Section 1(h) of the Internal Revenue Code of 1986 is amended by inserting on so much of such gain as does not cause the taxable income of the taxpayer to exceed $1,000,000 (computed after taking into account all other taxable income of the taxpayer) after the tax imposed by this section for such taxable year. (b) Treatment of qualifying family farm or business Section 1(h) of such Code, as amended by subsection (a), is further amended by inserting and without regard to gain realized from the transfer by gift or bequest of a qualifying family farm or business described in section 139M(c) after all other taxable income of the taxpayer. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.