[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1000 Introduced in Senate (IS)]

  1st Session
                                S. 1000

    To amend the Internal Revenue Code of 1986 to provide that the 
  depreciation rules which apply for regular tax purposes shall also 
 apply for alternative minimum tax purposes, to allow a portion of the 
 tentative minimum tax to be offset by the minimum tax credit, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 29 (legislative day, June 19), 1995

  Mr. Burns (for himself, Mr. Nickles, Mr. Hatch, Mr. Murkowski, Mr. 
 Breaux, Mr. D'Amato, Mr. Mack, Mr. Grams, and Mr. Inhofe) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide that the 
  depreciation rules which apply for regular tax purposes shall also 
 apply for alternative minimum tax purposes, to allow a portion of the 
 tentative minimum tax to be offset by the minimum tax credit, and for 
                            other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ALTERNATIVE MINIMUM TAX DEPRECIATION DETERMINED UNDER 
              REGULAR TAX RULES.

    (a) In General.--Clause (i) of section 56(a)(1)(A) of the Internal 
Revenue Code of 1986 (relating to depreciation) is amended by inserting 
``and before January 1, 1995'' after ``December 31, 1986''.
    (b) ACE Preference.--
            (1) In general.--Subparagraph (A) of section 56(g)(4) of 
        such Code is amended by striking clause (iv), by redesignating 
        clauses (i), (ii), and (iii) as clauses (ii), (iii), and (iv), 
        respectively, and by inserting before clause (ii) the following 
        new clause:
                            ``(i) Property placed in service before 
                        1981 and after 1994.--In the case of property 
                        not described in clause (ii), (iii), or (iv), 
                        the amount allowable as depreciation or 
                        amortization with respect to such property 
                        shall be determined in the same manner as for 
                        purposes of computing taxable income.''
            (2) Conforming amendment.--Clause (ii) of section 
        56(g)(4)(A) of such Code, as redesignated by paragraph (1), is 
        amended--
                    (A) by inserting ``and before 1995'' after ``after 
                1989'' in the heading and the text, and
                    (B) by striking ``after December 31, 1993'' and 
                inserting ``during 1994''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 1994.

SEC. 2. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY ALLOWED AGAINST 
              MINIMUM TAX.

    (a) In General.--Section 53(c) of the Internal Revenue Code of 1986 
(relating to limitation) is amended by adding at the end the following 
new paragraph:
            ``(2) Special rule for taxpayers with long-term unused 
        credits.--
                    ``(A) In general.--If this paragraph applies to a 
                taxpayer for any taxable year, paragraph (1) shall not 
                apply and the credit allowable under subsection (a) for 
                such taxable year shall not exceed the excess (if any) 
                of--
                            ``(i) the regular tax liability of the 
                        taxpayer for the taxable year (or, if greater, 
                        the taxpayer's tentative minimum tax for the 
                        taxable year), reduced by the sum of the 
                        credits allowable under subparts A, B, D, E, 
                        and F of this part, over
                            ``(ii) 50 percent of the tentative minimum 
                        tax for the taxable year.
                    ``(B) Taxpayers to which paragraph applies.--This 
                paragraph shall apply to a taxpayer for a taxable year 
                if, during at least 3 of the 5 immediately preceding 
                taxable years, the taxpayer had an unused minimum tax 
                credit.''
    (b) Conforming Amendments.--Section 53(c) of such Code (as in 
effect before the amendment made by subsection (a)) is amended--
            (1) by striking ``The'' and inserting:
            ``(1) In general.--The'', and
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.
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