[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3385 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3385

To amend the Internal Revenue Code of 1986 to make the credit for prior 
year minimum tax liability refundable for individuals after a period of 
 years, to require returns with respect to certain stock options, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 2005

 Mr. Sam Johnson of Texas (for himself, Mr. Neal of Massachusetts, Mr. 
    McCrery, Mr. Jefferson, Mr. Ramstad, Mr. Shaw, Mrs. Johnson of 
     Connecticut, Mr. English of Pennsylvania, Ms. Zoe Lofgren of 
California, Mr. Simmons, Mr. Honda, Mr. McCaul of Texas, Mr. Paul, and 
 Mr. Gerlach) 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 make the credit for prior 
year minimum tax liability refundable for individuals after a period of 
 years, to require returns with respect to certain stock options, 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. SHORT TITLE.

    This Act may be cited as the ``AMT Credit Fairness Act of 2005''.

SEC. 2. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE REFUNDABLE 
              AFTER PERIOD OF YEARS.

    (a) In General.--Section 53 of the Internal Revenue Code of 1986 
(relating to credit for prior year minimum tax liability) is amended by 
adding at the end the following new subsection:
    ``(e) Special Rule for Individuals With Long-Term Unused Credits.--
            ``(1) In general.--If an individual has a long-term unused 
        minimum tax credit for any taxable year, the amount determined 
        under subsection (c) for such taxable year shall not be less 
        than an amount equal to the greater of--
                    ``(A) the lesser of--
                            ``(i) $5,000, or
                            ``(ii) the amount of such credit, or
                    ``(B) 20 percent of the amount of such credit.
            ``(2) Long-term unused minimum tax credit.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `long-term unused minimum tax credit' means, 
                with respect to any taxable year, the portion of the 
                minimum tax credit determined under subsection (b) 
                attributable to the adjusted net minimum tax for 
                taxable years before the 3rd taxable year immediately 
                preceeding such taxable year.
                    ``(B) First-in, first-out ordering rule.--For 
                purposes of subparagraph (A), credits shall be treated 
                as allowed under subsection (a) on a first-in, first-
                out basis.
            ``(3) Credit refundable.--For purposes of this title (other 
        than this section), the credit allowed by reason of this 
        subsection shall be treated as if it were allowed under subpart 
        C.''.
    (b) Conforming Amendment.--Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by inserting ``or 53(e)'' 
after ``section 35''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 3. RETURNS REQUIRED IN CONNECTION WITH CERTAIN OPTIONS.

    (a) In General.--So much of section 6039(a) of the Internal Revenue 
Code of 1986 as follows paragraph (2) is amended to read as follows:
``shall, for such calendar year, make a return at such time and in such 
manner, and setting forth such information, as the Secretary may by 
regulations prescribe.''.
    (b) Statements to Persons With Respect to Whom Information Is 
Furnished.--Section 6039 of such Code is amended by redesignating 
subsections (b) and (c) as subsection (c) and (d), respectively, and by 
inserting after subsection (a) the following new subsection:
    ``(b) Statements to Be Furnished to Persons With Respect to Whom 
Information Is Reported.--Every corporation making a return under 
subsection (a) shall furnish to each person whose name is set forth in 
such return a written statement setting forth such information as the 
Secretary may by regulations prescribe. The written statement required 
under the preceding sentence shall be furnished to such person on or 
before January 31 of the year following the calendar year for which the 
return under subsection (a) was made.''.
    (c) Conforming Amendments.--
            (1) Section 6724(d)(1)(B) of such Code is amended by 
        striking ``or'' at the end of clause (xvii), by striking 
        ``and'' at the end of clause (xviii) and inserting ``or'', and 
        by adding at the end the following new clause:
                            ``(xix) section 6039(a) (relating to 
                        returns required with respect to certain 
                        options), and''.
            (2) Section 6724(d)(2)(B) of such Code is amended by 
        striking ``section 6039(a)'' and inserting ``section 6039(b)''.
            (3) The heading of section 6039 of such Code and the item 
        relating to such section in the table of sections of subpart A 
        of part III of subchapter A of chapter 61 of such Code are each 
        amended by striking ``Information'' and inserting ``Returns''.
            (4) The heading of subsection (a) of section 6039 of such 
        Code is amended by striking ``Furnishing of Information'' and 
        inserting ``Requirement of Reporting''.
    (d) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after the date of the enactment of 
this Act.
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