II 110th CONGRESS 1st Session S. 1851 IN THE SENATE OF THE UNITED STATES July 23, 2007 Mr. Sessions (for himself and Mr. Bunning) 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 allow personal exemptions under the individual alternative minimum tax, and for other purposes.

1.

Short title

This Act may be cited as the Saving Families First Alternative Minimum Tax Relief Act of 2007.

2.

Allowance of deduction for personal exemptions against individual alternative minimum tax

(a)

In general

Section 56(b)(1)(E) of the Internal Revenue Code of 1986 (relating to standard deduction and deduction for personal exemptions) is amended by striking , the deduction for personal exemptions under section 151, and the deduction under section 642(b). (b)

Clerical amendment

The heading for section 56(b)(1)(E) is amended by striking and deduction for personal exemptions. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

3.

Adjustment for inflation of individual alternative minimum tax exemption amount

Section 55(d) of the Internal Revenue Code of 1986 (relating to exemption amount) is amended by adding at the end the following new paragraph: (4)

Adjustments for inflation

In the case of a taxable year beginning after December 31, 2007, each of the dollar amounts in paragraphs (1) and (3) shall be increased by an amount equal to— (A)such dollar amount, multiplied by (B)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 2006 for calendar year 1992 in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10..