[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3694 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3694

    To amend the Internal Revenue Code of 1986 to provide corporate 
                    alternative minimum tax reform.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2007

 Mr. English of Pennsylvania 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 provide corporate 
                    alternative minimum tax reform.

    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 ``Alternative Minimum Tax Reform Act 
of 2007''.

SEC. 2. LONG-TERM UNUSED CREDITS ALLOWED AGAINST MINIMUM TAX.

    (a) In General.--Subsection (c) of section 53 of the Internal 
Revenue Code of 1986 (relating to limitation) is amended by adding at 
the end the following new paragraph:
            ``(2) Special rule for corporations with long-term unused 
        credits.--
                    ``(A) In general.--If a corporation to which 
                section 56(g) applies has a long-term unused minimum 
                tax credit for a taxable year, the credit allowable 
                under subsection (a) for the taxable year shall not 
                exceed the greater of--
                            ``(i) the limitation determined under 
                        paragraph (1) for the taxable year, or
                            ``(ii) the least of the following for the 
                        taxable year:
                                    ``(I) The sum of the tax imposed by 
                                section 55 and the regular tax reduced 
                                by the sum of the credits allowed under 
                                subparts A, B, D, E, and F of this 
                                part.
                                    ``(II) The long-term unused minimum 
                                tax credit.
                                    ``(III) The sum of--
                                            ``(aa) 50 percent of 
                                        qualified investment, plus
                                            ``(bb) the qualified 
                                        investment carryover to the 
                                        taxable year.
                    ``(B) Long-term unused minimum tax credit.--For 
                purposes of this paragraph--
                            ``(i) In general.--The long-term unused 
                        minimum tax credit for any taxable year is the 
                        portion of the minimum tax credit determined 
                        under subsection (b) attributable to the 
                        adjusted net minimum tax for taxable years 
                        beginning after 1986 and ending before the 3rd 
                        taxable year immediately preceding the taxable 
                        year for which the determination is being made.
                            ``(ii) First-in, first-out ordering rule.--
                        For purposes of clause (i), credits shall be 
                        treated as allowed under subsection (a) on a 
                        first-in, first-out basis.
                    ``(C) Qualified investment and qualified investment 
                carryover.--For purposes of this paragraph--
                            ``(i) Qualified investment.--Qualified 
                        investment is property described in section 
                        1245(a)(3) placed in service in the taxable 
                        year.
                            ``(ii) Qualified investment carryover.--The 
                        qualified investment carryover is the amount by 
                        which 50 percent of qualified investment 
                        exceeds the amount of tax in paragraph 
                        (2)(A)(ii)(I). The qualified investment 
                        carryover may be carried only to the first 
                        taxable year following the current year.''.
    (b) Conforming Amendments.--Section 53(c) of such Code is amended--
            (1) by striking ``The'' and inserting the following:
            ``(1) In general.--The''; and
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively.

SEC. 3. NET OPERATING LOSSES UNDER MINIMUM TAX.

    Subsection (d) of section 56 of the Internal Revenue Code of 1986 
(relating to definition of alternative tax net operating loss 
deduction) is amended by inserting at the end thereof the following new 
paragraph:
            ``(3) Special rule for certain corporations.--In the case 
        of a corporation to which subsection (g) applies, paragraph (1) 
        shall apply without regard to any limitation imposed by 
        paragraph (1)(A)(i)(II).''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to taxable years 
beginning after December 31, 2006.
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