[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7336 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7336

 To amend the Internal Revenue Code of 1986 to prevent the alternative 
 minimum tax from effectively repealing the Federal tax exemption for 
          interest on State and local private activity bonds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 10, 2008

  Mr. Neal of Massachusetts 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 prevent the alternative 
 minimum tax from effectively repealing the Federal tax exemption for 
          interest on State and local private activity bonds.

    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 ON PRIVATE ACTIVITY BONDS.

    (a) In General.--Subsection (a) of section 57 of the Internal 
Revenue Code of 1986 (relating to items of tax preference) is amended 
by striking paragraph (5).
    (b) Conforming Amendments.--
            (1) Subparagraph (B) of section 1(g)(7) of such Code is 
        amended by adding ``and'' at the end of clause (i), by striking 
        ``, and'' at the end of clause (ii) and inserting a period, and 
        by striking clause (iii).
            (2) Subclause (II) of section 53(d)(1)(B)(ii) of such Code 
        is amended by striking ``, (5),''.
            (3) Subparagraph (C) of section 56(b)(1) of such Code is 
        amended by striking clause (iii) and redesignating clauses (iv) 
        and (v) as clauses (iii) and (iv), respectively.
            (4) Paragraph (3) of section 148(b) of such Code is amended 
        to read as follows:
            ``(3) Exception for tax-exempt bonds.--The term `investment 
        property' does not include any tax-exempt bond.''.
            (5) Subparagraph (B) of section 149(g)(3) of such Code is 
        amended to read as follows:
                    ``(B) Exception for investment in tax-exempt 
                bonds.--Such term shall not include any bond issued as 
                part of an issue 95 percent of the net proceeds of 
                which are invested in bonds the interest on which is 
                not includible in gross income under section 103.''.
            (6) Paragraph (5) of section 1400L(d) of such Code is 
        amended by striking subparagraph (E).
            (7) Paragraph (5) of section 1400N(a) of such Code is 
        amended by striking subparagraph (G).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>