[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 437 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 437
To amend the Internal Revenue Code of 1986 to repeal the alternative
minimum tax.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2001
Mr. English 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 repeal 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; AMENDMENT OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Alternative
Minimum Tax Repeal Act of 2001''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
SEC. 2. ALTERNATIVE MINIMUM TAX.
(a) In General.--Part VI of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to alternative minimum tax) is
hereby repealed.
(b) Expedited Use of Credit for Prior Year Minimum Tax Liability of
Corporations.--Subsection (c) of section 53 of such Code is amended to
read as follows:
``(c) Limitations.--
``(1) In general.--Except as provided in paragraph (2), the
credit allowable under subsection (a) for any taxable year
shall not exceed the excess (if any) of--
``(A) the regular tax liability of the taxpayer for
such taxable year reduced by the sum of the credits
allowable under subparts A, B, D, E, and F of this
part, over
``(B) the tentative minimum tax for the taxable
year.
``(2) Corporations.--In the case of a corporation, the
credit allowable under subsection (a) for any taxable year
shall not exceed 90 percent of the regular tax liability of the
taxpayer for such taxable year reduced by the sum of the
credits allowable under subparts B, D, E, and F of this
part.''.
(c) Conforming Amendments.--
(1) Subparagraph (B) of section 1(g)(7) (relating to
election to claim certain unearned income of child on parent's
return) is amended--
(A) by inserting ``and'' at the end of clause (i),
(B) by striking ``and'' at the end of clause (ii)
and inserting a period, and
(C) by striking clause (iii).
(2) Subsection (d) of section 2 (relating to taxes imposed
on nonresident aliens) is amended by striking ``sections 1 and
55'' and inserting ``section 1''.
(3) Subsection (a) of section 5 (relating to cross
references relating to tax on individuals) is amended by
striking paragraph (4).
(4) Subsection (d) of section 11 (relating to taxes imposed
on foreign corporations) is amended by striking ``the taxes
imposed by subsection (a) and section 55'' and inserting ``the
tax imposed by subsection (a)''.
(5) Section 12 (relating to cross references relating to
tax on corporations) is amended by striking paragraph (7).
(6) Subsection (d) of section 24 (relating to child tax
credit) is amended by striking paragraph (2) and redesignating
paragraph (3) as paragraph (2).
(7) Section 26 (relating to limitation based on tax
liability; definition of tax liability) is amended--
(A) by amending subsection (a) 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 taxpayer's regular tax liability for the taxable year.'',
(B) in subsection (b)(2), by striking subparagraph
(A) and by redesignating subparagraphs (B) through (N)
as subparagraphs (A) through (M), respectively, and
(C) by striking subsection (c).
(8) Paragraph (6) of section 29(b) (relating to credit for
producing fuel from a nonconventional source) is amended
striking ``the excess'' and all that follows and inserting
``the regular tax for the taxable year reduced by the sum of
the credits allowable under subpart A and section 27.''
(9) Paragraph (3) of section 30(b) (relating to credit for
qualified electric vehicles) is amended by striking ``the
excess'' and all that follows and inserting ``the regular tax
for the taxable year reduced by the sum of the credits
allowable under subpart A and sections 27 and 29.''
(10) Subsection (h) of section 32 (relating to reduction of
credit to taxpayers subject to alternative minimum tax) is
hereby repealed.
(11) Subsection (c) of section 38 (relating to general
business credit) is amended--
(A) by striking paragraphs (1) and (2) and
inserting the following new paragraph:
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed 25 percent of so much of
the taxpayer's net regular tax liability as exceeds $25,000.
For purposes of the preceding sentence, the term `net regular
tax liability' means the regular tax liability reduced by the
sum of the credits allowable under subparts A and B of this
part.'', and
(B) by redesignating paragraph (3) as paragraph
(2).
(12) Paragraph (4) of section 45A(d) (relating to Indian
employment credit) is amended by striking ``for purposes'' and
all that follows and inserting ``for purposes of determining
the amount of any credit allowable under this chapter.''
(13) Subparagraph (B) of section 45D(g)(4) (relating to new
markets tax credit) is amended by striking ``or for purposes of
section 55''.
(14) Subsection (d) of section 53 (relating to credit for
prior year minimum tax liability) is amended by adding at the
end the following:
``For purposes of this subsection, references to sections 55, 56, and
59 shall be treated as references to such sections as in effect on the
day before the date of the enactment of the Alternative Minimum Tax
Repeal Act of 2001.''.
(15) Subsection (b) of section 59A (relating to
environmental tax) is amended by adding at the end the
following:
``For purposes of this subsection, references to sections 55 and 56
shall be treated as references to such sections as in effect on the day
before the date of the enactment of the Alternative Minimum Tax Repeal
Act of 2001.''.
(16)(A) Paragraph (2) of section 148(b) (relating to higher
yield investments) is amended by adding at the end the
following new flush sentence:
``Such term shall not include any tax-exempt bond.''
(B) Paragraph (3) of section 148(b) is hereby repealed.
(17) Subparagraph (B) of section 149(g)(3) (relating to
hedge bonds) is amended--
(A) in the heading, by striking ``bonds not subject
to minimum tax.--'' and inserting ``bonds.--'', and
(B) by striking all that follows ``invested in
bonds'' and inserting ``the interest on which is not
includible in gross income under section 103.''
(18) Subsection (j) of section 168 (relating to accelerated
cost recovery system) is amended by striking paragraph (3).
(19) Section 173 (relating to circulation expenditures) is
amended by striking ``(a) General Rule.--'' and by striking
subsection (b).
(20) Subsection (f) of section 174 (relating to research
and experimental expenditures) is amended to read as follows:
``(f) Cross Reference.--
``For adjustments to basis of property
for amounts allowed as deductions as deferred expenses under subsection
(b), see section 1016(a)(14).''
(21) Subsection (c) of section 263 (relating to capital
expenditures) is amended by striking ``59(e) or''.
(22) Subsection (c) of section 263A (relating to
capitalization and inclusion in inventory costs of certain
expenses) is amended by striking paragraph (6).
(23) Section 382(l) (relating to limitation on net
operating loss carryforwards and certain built-in losses
following ownership change) is amended by striking paragraph
(7) and by redesignating paragraph (8) as paragraph (7).
(24) Section 443 (relating to returns for a period of less
than 12 months) adjustment in computing minimum tax and tax
preferences) is amended by striking subsection (d) and by
redesignating subsection (e) as subsection (d).
(25) Section 616 (relating to development expenditures) is
amended by striking subsection (e).
(26) Section 617 (relating to deduction and recapture of
certain mining exploration expenditures) is amended by striking
subsection (i).
(27) Subsection (c) of section 641 (relating to imposition
of tax) is amended--
(A) in paragraph (2) by striking subparagraph (B)
and redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively, and
(B) in paragraph (3), by striking ``paragraph
(2)(C)'' and inserting ``paragraph (2)(B)''.
(28) Subsections (b) and (c) of section 666 (relating to
accumulation distribution allocated to preceding years) are
each amended by striking ``(other than the tax imposed by
section 55)''.
(29)(A) Subsection (a) of section 772 (relating to
simplified flow-through) is amended by striking paragraph (5)
and redesignating paragraphs (6), (7), (8), (9), (10), and (11)
as paragraphs (5), (6), (7), (8), (9), and (10), respectively.
(B) Subsection (c) of section 772 is amended--
(i) in paragraph (2), by striking ``paragraphs
(3)(A) and (5)(A)'' and inserting ``paragraph (3)(A)'',
(ii) by striking paragraph (5), and
(iii) by redesignating paragraph (6) as paragraph
(5), and in that paragraph by striking ``paragraph (6)
of subsection (a)'' and inserting ``paragraph (5) of
subsection (a)''.
(C) Subsection (d) of section 772 is amended--
(i) by striking paragraph (3) and redesignating
paragraphs (4), (5), and (6) as paragraphs (3), (4),
and (5), respectively, and
(ii) in subparagraph (A) of paragraph (3), as so
redesignated, by striking ``subsection (a)(11)'' and
inserting ``subsection (a)(10)''.
(30) Paragraph (2) of section 815(c) (relating to
distributions to shareholders from pre-1984 policyholders
surplus account) is amended by striking the last sentence.
(31) Section 847 (relating to special estimated tax
payments) is amended--
(A) in paragraph (9), by striking the last
sentence;
(B) in paragraph (10), by inserting ``and'' at the
end of subparagraph (A) and by striking subparagraph
(B) and redesignating subparagraph (C) as subparagraph
(B).
(32) Section 848 (relating to capitalization of certain
policy acquisition expenses) is amended by striking subsection
(i) and by redesignating subsection (j) as subsection (i).
(33) Subsection (a) of section 860E (relating to treatment
of income in excess of daily accruals on residual interests) is
amended by striking paragraph (4).
(34) Section 860J (relating to non-FASIT losses not to
offset certain FASIT inclusions) is amended by striking
subsection (c) and redesignating subsection (d) as subsection
(c).
(35) Paragraph (1) of section 871(b) (relating to tax on
nonresident alien individuals) is amended by striking ``or
55''.
(36) Subsection (b) of section 877 (relating to
expatriation to avoid tax) is amended by striking ``or 55''.
(37) Paragraph (1) of section 882(a) (relating to tax on
income of foreign corporations connected with United States
business) is amended by striking ``55,''.
(38) Subsection (a) of section 897 (relating to disposition
of investment in United States real property) is amended to
read as follows:
``(a) Treatment as Effectively Connected With United States Trade
or Business.--For purposes of this title, gain or loss of a nonresident
alien individual or a foreign corporation from the disposition of a
United States real property interest shall be taken into account--
``(1) in the case of a nonresident alien individual, under
section 871(b)(1), or
``(2) in the case of a foreign corporation, under section
882(a)(1),
as if the taxpayer were engaged in a trade or business within the
United States during the taxable year and as if such gain or loss were
effectively connected with such trade or business.''
(39) Subsection (k) of section 904 (relating to limitation
on credit) is amended to read as follows:
``(k) Cross Reference.--
``For increase of limitation under
subsection (a) for taxes paid with respect to amounts received which
were included in the gross income of the taxpayer for a prior taxable
year as a United States shareholder with respect to a controlled
foreign corporation, see section 960(b).''
(40) Paragraph (1) of section 962(a) (relating to election
by individuals to be subject to tax at corporate rates) is
amended--
(A) by striking ``sections 1 and 55'' and inserting
``section 1'', and
(B) by striking ``sections 11 and 55'' and
inserting ``section 11''.
(41) Paragraph (20) of section 1016(a) (relating to
adjustments to basis) is amended by inserting ``, as in effect
on the day before the date of the enactment of the Alternative
Minimum Tax Repeal Act of 2001'' after ``preferences)''.
(42) Paragraph (4) of section 1260(b) (relating to gains
from constructive ownership transactions) is amended by
striking ``for purposes'' and all that follows and inserting
``for purposes of determining the amount of any credit
allowable under this chapter.''
(43) Paragraph (1) of section 1397E(c) (relating to credit
to holders of qualified zone academy bonds) is amended by
striking ``plus the tax imposed by section 55''.
(44) Subsection (f) of section 1400I (relating to
commercial revitalization deduction) is amended by striking
paragraph (4).
(45) Subsection (a) of section 1561 (relating to
limitations on certain multiple tax benefits in the case of
certain controlled corporations) is amended by striking the
last sentence.
(46) Subparagraph (B) of section 6015(d)(2) (relating to
relief from joint and several liability on joint return) is
amended by striking ``or 55''.
(47) Subparagraph (A) of section 6425(c)(1) (defining
income tax liability) is amended--
(A) by inserting ``plus'' at the end of clause (i),
and
(B) by striking clause (ii) and redesignating
clause (iii) as clause (ii).
(48) Section 6654(d)(2) (relating to failure by individual
to pay estimated income tax) is amended--
(A) in clause (i) of subparagraph (B), by striking
``, alternative minimum taxable income,'', and
(B) in clause (i) of subparagraph (C), by striking
``, alternative minimum taxable income,''.
(49) Subparagraph (A) of section 6655(g)(1) (relating to
failure by corporation to pay estimated income tax) is
amended--
(A) by striking clause (ii), and
(B) by redesignating clauses (iii) and (iv) as
clauses (ii) and (iii), respectively.
(50) Subparagraph (C) of section 6662(e)(3) (relating to
imposition of accuracy-related penalty) is amended by inserting
``, as in effect on the day before the date of the enactment of
the Alternative Minimum Tax Repeal Act of 2001'' after
``55(c)''.
(d) Clerical Amendment.--The table of parts for subchapter A of
chapter 1 is amended by striking the item relating to part VI.
(e) Effective Date.--The amendments made by this section shall take
effect in taxable years beginning after December 31, 2000.
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