[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5040 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5040

   To amend the Internal Revenue Code of 1986 to ensure that income 
    averaging for farmers not increase a farmer's liability for the 
                        alternative minimum tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2000

  Mr. Herger (for himself, Mrs. Thurman, Mr. Hayworth, Ms. Dunn, Mr. 
 Tanner, Mr. Camp, Mr. McCrery, Mr. English, and Mr. Foley) 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 ensure that income 
    averaging for farmers not increase a farmer's liability for 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. SHORT TITLE.

    This Act may be cited as the ``Farmer Tax Fairness Act''.

SEC. 2. INCOME AVERAGING FOR FARMERS NOT TO INCREASE ALTERNATIVE 
              MINIMUM TAX LIABILITY.

    (a) In General.--Section 55(c) of the Internal Revenue Code of 1986 
(defining regular tax) is amended by redesignating paragraph (2) as 
paragraph (3) and by inserting after paragraph (1) the following:
            ``(2) Coordination with income averaging for farmers.--
        Solely for purposes of this section, section 1301 (relating to 
        averaging of farm income) shall not apply in computing the 
        regular tax.''
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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