[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1242 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1242

 To amend the Internal Revenue Code of 1986 to allow the nonrefundable 
    personal credits, the standard deduction, and the deduction for 
 personal exemptions in determining alternative minimum tax liability.


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                   IN THE SENATE OF THE UNITED STATES

                            October 1, 1997

  Mr. Kerrey introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow the nonrefundable 
    personal credits, the standard deduction, and the deduction for 
 personal exemptions in determining alternative minimum tax liability.

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

SECTION 1. NONREFUNDABLE PERSONAL CREDITS, THE STANDARD DEDUCTION, AND 
              THE DEDUCTION FOR PERSONAL EXEMPTIONS ALLOWED IN 
              DETERMINING ALTERNATIVE MINIMUM TAX LIABILITY.

    (a) Allowance of Nonrefundable Personal Credits.--Subsection (a) of 
section 26 of the Internal Revenue Code of 1986 (relating to limitation 
based on tax liability; definition of tax liability) 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, plus
            ``(2) the tax imposed by section 55 for such taxable 
        year.''
    (b) Allowance of Standard Deduction and Deduction for Personal 
Exemptions.--Paragraph (1) of section 56(b) of such Code is amended by 
striking subparagraph (E) and by redesignating subparagraph (F) as 
subparagraph (E).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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