[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 102 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 102

To amend the Internal Revenue Code of 1986 to extend and expand relief 
  from the alternative minimum tax and to repeal the extension of the 
     lower rates for capital gains and dividends for 2009 and 2010.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 2007

   Mr. Kerry introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to extend and expand relief 
  from the alternative minimum tax and to repeal the extension of the 
     lower rates for capital gains and dividends for 2009 and 2010.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXTENSION AND INCREASE IN MINIMUM TAX RELIEF TO INDIVIDUALS.

    (a) In General.--Section 55(d)(1) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``$62,550 in the case of taxable years 
        beginning in 2006'' in subparagraph (A) and inserting ``$67,100 
        in the case of taxable years beginning in 2007'', and
            (2) by striking ``$42,500 in the case of taxable years 
        beginning in 2006'' in subparagraph (B) and inserting ``$44,800 
        in the case of taxable years beginning in 2007''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 2. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST REGULAR AND 
              ALTERNATIVE MINIMUM TAX LIABILITY.

    (a) In General.--Paragraph (2) of section 26(a) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``2006'' in the heading thereof and 
        inserting ``2007'', and
            (2) by striking ``or 2006'' and inserting ``2006, or 
        2007''.
    (b) Conforming Provisions.--
            (1) Section 30B(g) of the Internal Revenue Code of 1986 is 
        amended by adding at the end the following new paragraph:
            ``(3) Special rule for 2007.--For purposes of any taxable 
        year beginning during 2007, the credit allowed under subsection 
        (a) (after the application of paragraph (1)) shall not exceed 
        the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under 
                subpart A and this subpart (other than this section and 
                section 30C).''.
            (2) Section 30C(d) of the Internal Revenue Code of 1986 is 
        amended by adding at the end the following new paragraph:
            ``(3) Special rule for 2007.--For purposes of any taxable 
        year beginning during 2007, the credit allowed under subsection 
        (a) (after the application of paragraph (1)) shall not exceed 
        the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under 
                subpart A and this subpart (other than this 
                section).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 3. REPEAL OF EXTENSION OF LOWER RATES FOR CAPITAL GAINS AND 
              DIVIDENDS.

    The amendment made by section 102 of the Tax Increase Prevention 
and Reconciliation Act of 2005 is repealed and the Internal Revenue 
Code of 1986 shall be applied as if such amendment had never been 
enacted.
                                 <all>