II 110th CONGRESS 1st Session S. 14 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.

1.

Short title

This Act may be cited as the Invest in America Act.

2.

Repeal of EGTRRA sunset

Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 is repealed.

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Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (relating to sunset of title) is repealed.

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.

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.

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.

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.

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.