110 HR 3694 IH: Alternative Minimum Tax Reform Act of U.S. House of Representatives 2007-09-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3694 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.

1.

Short title

This Act may be cited as the Alternative Minimum Tax Reform Act of 2007.

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.

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). .

4.

Effective date

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