I 108th CONGRESS 2d Session H. R. 3977 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.

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.