[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5141 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5141

 To amend the Internal Revenue Code of 1986 to repeal the alternative 
minimum tax treatment of incentive stock options, thereby changing the 
  taxable event from the exercise of the stock option to the sale of 
                                 stock.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 2004

 Ms. Lofgren 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 treatment of incentive stock options, thereby changing the 
  taxable event from the exercise of the stock option to the sale of 
                                 stock.

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

SECTION 1. REPEAL OF ALTERNATIVE MINIMUM TAX TREATMENT OF INCENTIVE 
              STOCK OPTIONS.

    (a) In General.--Subsection (b) of section 56 of the Internal 
Revenue Code of 1986 (relating to adjustments applicable to 
individuals) is amended by striking paragraph (3).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to incentive stock options exercised in 2000 or 
thereafter regardless of when such options were granted.
    (c) Waiver of Limitations.--If refund or credit of any overpayment 
of tax resulting from the application of the amendment made by 
subsection (a) is prevented at any time before the close of the 1-year 
period beginning on the date of the enactment of this Act by the 
operation of any law or rule of law (including res judicata), such 
refund or credit may nevertheless be made or allowed if claim therefor 
is filed before the close of such period.
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