110 HR 3758 IH: Family Tax Relief Act of U.S. House of Representatives 2007-10-04 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. 3758 IN THE HOUSE OF REPRESENTATIVES October 4, 2007 Mr. Hall of New York 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 reduce the alternative minimum tax by increasing the exemption amounts and adjusting them for inflation and by making permanent law the allowance of the dependent care credit, the child credit, and the adoption credit against such tax.

1.

Short title

This Act may be cited as the Family Tax Relief Act of 2007.

2.

Modifications to Alternative Minimum Tax

(a)

Increase in exemption amounts

(1)

In general

Paragraph (1) of section 55(d) of the Internal Revenue Code of 1986 is amended— (A)by striking $45,000 ($62,550 in the case of taxable years beginning in 2006) and inserting $100,000, (B)by striking $33,750 ($42,500 in the case of taxable years beginning in 2006) and inserting 50 percent of the dollar amount applicable under subparagraph (A), and (C)by striking paragraph (1)(A) and inserting subparagraph (A). (2)

Inflation adjustment

Subsection (d) of section 55 of such Code is amended by adding at the end the following new paragraph: (4)

Inflation adjustment

(A)

In general

In the case of any taxable year beginning in a calendar year after 2008, the dollar amounts contained in paragraphs (1) and (3) shall be increased by an amount equal to— (i)such dollar amount, multiplied by (ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2007 for calendar year 1992 in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.(B)

Exceptions

Subparagraph (A) shall not apply for purposes of determining any dollar amount applicable to a corporation, estate, or trust. . (b)

Allowance of child credit and adoption credit against AMT made permanent law

Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the amendments made by sections 201(b) and 202(f) of such Act. (c)

Allowance of dependent care credit against AMT made permanent law

(1)Paragraph (1) of section 26(a) of such Code is amended by inserting 21, before 23,. (2)Section 21 of such Code is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: (f)

Limitation based on amount of tax

In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of— (1)the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over (2)the sum of the credits allowable under this subpart (other than this section and sections 23, 24, and 25B) and section 27 for the taxable year. . (d)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2007. (2)

Allowance of dependent care credit against amt

The amendments made by subsection (c) shall apply to taxable years beginning after December 31, 2006.