[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 14 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 14

 To repeal the sunset on certain tax rates and other incentives and to 
 repeal the individual alternative minimum tax, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 17, 2007

   Mr. Kyl (for himself, Mr. McConnell, Mr. Grassley, Mr. Lott, Mr. 
 Ensign, Mr. Hatch, Mr. Thomas, Mr. Smith, Mr. Bunning, Mr. Crapo, Mr. 
 Roberts, Mr. DeMint, Mr. Alexander, Mr. Martinez, Mr. Chambliss, Mr. 
Brownback, Mr. Craig, Mr. Allard, Mr. Graham, Mr. Enzi, Mr. Inhofe, Mr. 
  Burr, and Mr. Coburn) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To repeal the sunset on certain tax rates and other incentives and to 
 repeal the individual alternative minimum tax, and for other purposes.

    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 ``Invest in America Act''.

SEC. 2. REPEAL OF EGTRRA SUNSET.

    Title IX of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 is repealed.

SEC. 3. PERMANENT REDUCTIONS IN INDIVIDUAL CAPITAL GAINS AND DIVIDENDS 
              TAX RATES.

    Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 
2003 (relating to sunset of title) is repealed.

SEC. 4. PERMANENT EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986 is 
amended by striking subsection (h).
    (b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such 
Code is amended by striking subparagraph (D).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 5. PERMANENT EXTENSION OF EXPENSING FOR SMALL BUSINESSES.

    (a) Dollar Limitation.--Paragraph (1) of section 179(b) of the 
Internal Revenue Code of 1986 is amended by striking ``$25,000 
($100,000 in the case of taxable years beginning after 2002 and before 
2010)'' and inserting ``$100,000''.
    (b) Reduction in Limitation.--Paragraph (2) of section 179(b) of 
the Internal Revenue Code of 1986 is amended by striking ``$200,000 
($400,000 in the case of taxable years beginning after 2002 and before 
2010)'' and inserting ``$400,000''.
    (c) Inflation Adjustments.--Subparagraph (A) of section 179(b)(5) 
of the Internal Revenue Code of 1986 is amended by striking ``and 
before 2010''.
    (d) Election.--Paragraph (2) of section 179(c) of the Internal 
Revenue Code of 1986 is amended by striking ``and before 2010''.
    (e) Computer Software.--Clause (ii) of section 179(d)(1)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``and before 
2010''.

SEC. 6. PERMANENT EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR CERTAIN 
              EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    Subparagraph (D) of section 62(a)(2) of the Internal Revenue Code 
of 1986 is amended by striking ``In the case of taxable years beginning 
during 2002, 2003, 2004, 2005, 2006, or 2007, the deductions'' and 
inserting ``The deductions''.

SEC. 7. REPEAL OF INDIVIDUAL ALTERNATIVE MINIMUM TAX.

    (a) In General.--Section 55(a) of the Internal Revenue Code of 1986 
(relating to alternative minimum tax imposed) is amended by adding at 
the end the following new flush sentence:
``For purposes of this title, the tentative minimum tax on any taxpayer 
other than a corporation for any taxable year beginning after December 
31, 2006, shall be zero.''.
    (b) Modification of Limitation on Use of Credit for Prior Year 
Minimum Tax Liability.--Subsection (c) of section 53 of the Internal 
Revenue Code of 1986 (relating to credit for prior year minimum tax 
liability) is amended to read as follows:
    ``(c) Limitation.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        credit allowable under subsection (a) for any taxable year 
        shall not exceed the excess (if any) of--
                    ``(A) the regular tax liability of the taxpayer for 
                such taxable year reduced by the sum of the credits 
                allowable under subparts A, B, D, E, and F of this 
                part, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(2) Taxable years beginning after 2006.--In the case of 
        any taxable year beginning after 2006, the credit allowable 
        under subsection (a) to a taxpayer other than a corporation for 
        any taxable year shall not exceed 90 percent of the regular tax 
        liability of the taxpayer for such taxable year reduced by the 
        sum of the credits allowable under subparts A, B, D, E, and F 
        of this part.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 8. SENSE OF THE SENATE REGARDING SIMPLIFICATION OF THE FEDERAL 
              INCOME TAX SYSTEM.

    (a) Findings.--The Senate finds that--
            (1) the average time burden for all taxpayers filing a Form 
        1040 Federal income tax return is 30 hours;
            (2) more than 6 in 10 Americans now hire someone to help 
        prepare their tax returns every year; and
            (3) the hundreds of billions of dollars spent each year 
        complying with the Federal tax system could be used more 
        efficiently by families and businesses to grow the Nation's 
        economy and create jobs.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Committee on Finance of the Senate should report legislation before 
December 31, 2007, to simplify the Federal income tax system, ensuring 
that the system is equitable, economically efficient, simple, 
transparent and administrable, without raising tax rates.
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