[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 268 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 268

   To amend the Internal Revenue Code of 1986 to allow nonrefundable 
 personal credits, the standard deduction, and personal exemptions in 
computing alternative minimum tax liability, to increase the amount of 
    the individual exemption from such tax, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 6, 2001

    Mrs. Lincoln (for herself, Mr. Lugar, Mr. Breaux, Mr. Kyl, Ms. 
  Landrieu, Mr. Cochran, and Mr. Bayh) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow nonrefundable 
 personal credits, the standard deduction, and personal exemptions in 
computing alternative minimum tax liability, to increase the amount of 
    the individual exemption from such tax, and for other purposes.

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

SECTION 1. NONREFUNDABLE PERSONAL CREDITS, STANDARD DEDUCTION, AND 
              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 reduced by the foreign tax credit allowable under section 
        27(a), and
            ``(2) the tax imposed for the taxable year by section 
        55(a).''
    (b) Allowance of Standard Deduction and Deduction for Personal 
Exemption.--Paragraph (1) of section 56(b) of such Code is amended by 
striking subparagraph (E) and by redesignating subparagraph (F) as 
subparagraph (E).
    (c) Conforming Amendments.--
            (1) Subsection (d) of section 24 of such Code is amended by 
        striking paragraph (2) and by redesignating paragraph (3) as 
        paragraph (2).
            (2) Section 32 of such Code is amended by striking 
        subsection (h).
            (3) Section 904 of such Code is amended by striking 
        subsection (h) and by redesignating subsections (i), (j), and 
        (k) as subsections (h), (i), and (j), respectively.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 2. INCREASE IN INDIVIDUAL EXEMPTION AMOUNT FROM ALTERNATIVE 
              MINIMUM TAX.

    (a) In General.--Section 55(d) of the Internal Revenue Code of 1986 
(relating to exemption amount) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``$45,000'' in subparagraph (A) and 
                inserting ``$50,000'',
                    (B) by striking ``$33,750'' in subparagraph (B) and 
                inserting ``$37,500'', and
                    (C) by striking ``$22,500'' in subparagraph (C) and 
                inserting ``$25,000'', and
            (2) by adding at the end the following:
            ``(4) Adjustment for inflation.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2001, each dollar 
                amount contained in paragraph (1) shall be increased by 
                an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins 
                        by substituting `calendar year 2000' for 
                        `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any increase determined under 
                subparagraph (A) is not a multiple of $50, such 
                increase shall be rounded to the next lowest multiple 
                of $50.''
    (b) Conforming Amendment.--The last sentence of section 55(d)(3) of 
such Code is amended to read as follows: ``In the case of a taxpayer 
described in paragraph (1)(C)(i), alternative minimum taxable income 
shall be increased by the lesser of (i) 25 percent of the excess of 
such income (determined without regard to this sentence) over the 
minimum amount of such income (as so determined) for which the 
exemption amount under paragraph (1)(C) is zero, or (ii) such exemption 
amount (determined without regard to this paragraph).''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
                                 <all>