[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1831 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1831

  To provide alternative minimum tax relief with respect to incentive 
                  stock options exercised during 2000.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 14, 2001

Mr. Grassley (for himself and Mr. Kerry) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To provide alternative minimum tax relief with respect to incentive 
                  stock options exercised during 2000.

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

SECTION 1. ALTERNATIVE MINIMUM TAX RELIEF WITH RESPECT TO INCENTIVE 
              STOCK OPTIONS EXERCISED DURING 2000.

    (a) In General.--In the case of an incentive stock option (as 
defined in section 422 of the Internal Revenue Code of 1986) exercised 
during calendar year 2000, the amount taken into account under section 
56(b)(3) of such Code by reason of such exercise shall not exceed the 
amount that would have been taken into account if, on the date of such 
exercise, the fair market value of the stock acquired pursuant to such 
option had been its fair market value as of April 15, 2001 (or, if such 
stock is sold or exchanged on or before such date, the amount realized 
on such sale or exchange).
    (b) Limitation.--
            (1) In general.--If the adjusted gross income of a taxpayer 
        for the taxable year in which an exercise described in 
        paragraph (1) occurs exceeds the threshold amount, the amount 
        otherwise not taken into account under paragraph (1) shall be 
        reduced by the amount which bears the same ratio to such amount 
        as the taxpayer's adjusted gross income in excess of the 
        threshold amount bears to the phaseout amount.
            (2) Threshold amount.--For purposes of this subsection, the 
        threshold amount is equal to--
                    (A) $106,000 in the case of a taxpayer described in 
                section 1(a) of such Code,
                    (B) $84,270 in the case of a taxpayer described in 
                section 1(b) of such Code, and
                    (C) $53,000 in the case of a taxpayer described in 
                section 1(c) or 1(d) of such Code.
            (3) Phaseout amount.--For purposes of this subsection, the 
        phaseout amount is equal to--
                    (A) $230,000 in the case of a taxpayer described in 
                section 1(a) of such Code,
                    (B) $172,500 in the case of a taxpayer described in 
                section 1(b) of such Code, and
                    (C) $115,000 in the case of a taxpayer described in 
                section 1(c) or 1(d) of such Code.
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