[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4489 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4489

  To amend the Internal Revenue Code of 1986 to simplify the $500 per 
    child tax credit and other individual nonrefundable credits by 
  repealing the complex limitations on the allowance of those credits 
   resulting from their interaction with the alternative minimum tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1998

 Mr. Neal of Massachusetts (for himself, Mrs. Kennelly of Connecticut, 
   Mr. Matsui, Mr. Stark, Mrs. Thurman, and Ms. Lee) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to simplify the $500 per 
    child tax credit and other individual nonrefundable credits by 
  repealing the complex limitations on the allowance of those credits 
   resulting from their interaction with the alternative minimum tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SIMPLIFICATION OF $500 PER CHILD FAMILY CREDIT.

    (a) Allowance of Personal Nonrefundable Credits Against Minimum 
Tax.--Subsection (a) of section 26 of the Internal Revenue Code of 1986 
(relating to limitation based on amount of tax) is amended to read as 
follows:
    ``(a) Limitation Based on Amount of Tax.--The aggregate amount of 
credits allowed by this subpart for the taxable year shall not exceed 
the sum of--
            ``(1) the taxpayer's regular tax liability for the taxable 
        year, and
            ``(2) the tax imposed for the taxable year by section 
        55(a).''.
    (b) Simplification of Partially Refundable Credit.--
            (1) Subsection (d) of section 24 of such Code (as amended 
        by the Internal Revenue Service Restructuring and Reform Act of 
        1998) is amended by striking paragraph (2) and redesignating 
        paragraph (3) as paragraph (2).
            (2) Section 32 of such Code (as amended by the Internal 
        Revenue Service Restructuring and Reform Act of 1998) is 
        amended by striking subsection (n).
    (c) Reduction in Income Threshold Amount for Phaseout of Child Tax 
Credit.--Paragraph (2) of section 24(b) of such Code (relating to 
threshold amount) is amended--
            (1) in subparagraph (A) by striking ``$110,000'' and 
        inserting ``$89,000'',
            (2) in subparagraph (B) by striking ``$75,000'' and 
        inserting ``$60,000'', and
            (3) in subparagraph (C) by striking ``$55,000'' and 
        inserting ``$44,500''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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