Yes, it is ordinary income so you can put it on line 15b.
Sounds like great planning with that plug in vehicle.
Right now the tax rates for 2017 are virtually unchanged (due to low inflation), so it should be fairly accurate, unless Congress makes some major changes this year.
EDITED 3/6/2017
dmertz is correct about 15b and I looked at "What-if" worksheet and it is listed there.
