[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3977 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 3977

     To amend the Internal Revenue Code of 1986 to allow the work 
opportunity credit, welfare-to-work credit, and research credit against 
                      the alternative minimum tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2004

 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 allow the work 
opportunity credit, welfare-to-work credit, and research credit against 
                      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. WORK OPPORTUNITY CREDIT, WELFARE-TO-WORK CREDIT, AND 
              RESEARCH CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX.

    (a) In General.--Subsection (c) of section 38 of the Internal 
Revenue Code of 1986 (relating to limitation based on amount of tax) is 
amended by redesignating paragraph (4) as paragraph (7) and by 
inserting after paragraph (3) the following new paragraphs:
            ``(4) Special rules for work opportunity credit.--
                    ``(A) In general.--In the case of the work 
                opportunity credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to such credit, 
                        and
                            ``(ii) in applying paragraph (1) to such 
                        credit--
                                    ``(I) subparagraph (A) shall not 
                                apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the work 
                                opportunity credit, the welfare-to-work 
                                credit, or the research credit).
                    ``(B) Work opportunity credit.--For purposes of 
                this subsection, the term `work opportunity credit' 
                means the credit allowable under subsection (a) by 
                reason of section 51(a).
            ``(5) Special rules for welfare-to-work credit.--
                    ``(A) In general.--In the case of the welfare-to-
                work credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to such credit, 
                        and
                            ``(ii) in applying paragraph (1) to such 
                        credit--
                                    ``(I) subparagraph (A) shall not 
                                apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the welfare-
                                to-work credit or the research credit).
                    ``(B) Welfare-to-work credit.--For purposes of this 
                subsection, the term `welfare-to-work credit' means the 
                credit allowable under subsection (a) by reason of 
                section 51A(d)(2).
            ``(6) Special rules for research credit.--
                    ``(A) In general.--In the case of the research 
                credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to such credit, 
                        and
                            ``(ii) in applying paragraph (1) to such 
                        credit--
                                    ``(I) subparagraph (A) shall not 
                                apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the research 
                                credit).
                    ``(B) Research credit.--For purposes of this 
                subsection, the term `research credit' means the credit 
                allowable under subsection (a) by reason of section 
                41.''.
    (b) Conforming Amendments.--
            (1) Subclause (II) of section 38(c)(2)(A)(ii) of such Code 
        is amended--
                    (A) by striking ``or'' after ``employment credit'' 
                and inserting a comma, and
                    (B) by inserting ``, the work opportunity credit, 
                the welfare-to-work credit, or the research credit'' 
                after ``employee credit''.
            (2) Subclause (II) of section 38(c)(3)(A)(ii) of such Code 
        is amended by inserting ``, the work opportunity credit, the 
        welfare-to-work, or the research credit'' after ``employee 
        credit''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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