[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2318 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 476
110th CONGRESS
  1st Session
                                S. 2318

  To amend the Internal Revenue Code of 1986 to repeal the individual 
  alternative minimum tax and to permanently extend the reductions in 
               income tax rates, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 7, 2007

 Mr. Ensign (for himself, Mr. Crapo, Mr. Roberts, Mr. Bunning, and Mr. 
  Smith) introduced the following bill; which was read the first time

                            November 8, 2007

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to repeal the individual 
  alternative minimum tax and to permanently extend the reductions in 
               income tax rates, 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 ``AMT Repeal and Tax Freedom Act''.

SEC. 2. 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. 3. ONE-TIME ESTIMATED TAX SAFE HARBOR FOR ALTERNATIVE MINIMUM TAX 
              LIABILITY.

    For purposes of any taxable year beginning in 2006, in the case of 
any individual with respect to whom there was no liability for the tax 
imposed under section 55 of the Internal Revenue Code of 1986 for the 
preceding taxable year--
            (1) the tax shown on the return under section 
        6654(d)(1)(B)(i) of such Code shall be reduced (but not below 
        zero) by the amount of tax imposed by such section 55 shown on 
        the return,
            (2) the tax for the taxable year under section 
        6654(d)(2)(B)(i) of such Code (before multiplication by the 
        applicable percentage) shall be reduced (but not below zero) by 
        the tax imposed by such section 55, and
            (3) the amount of tax for the taxable year for purposes of 
        section 6654(e)(1) of such Code shall be reduced (but not below 
        zero) by the amount of tax imposed by such section 55.

SEC. 4. REDUCTIONS IN INDIVIDUAL INCOME TAX RATES MADE PERMANENT.

    Section 901 of the Economic Growth and Tax Relief and 
Reconciliation Act of 2001 (relating to sunset provisions) shall not 
apply to section 101 of such Act (relating to reduction in income tax 
rates for individuals).

SEC. 5. 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.
                                                       Calendar No. 476

110th CONGRESS

  1st Session

                                S. 2318

_______________________________________________________________________

                                 A BILL

  To amend the Internal Revenue Code of 1986 to repeal the individual 
  alternative minimum tax and to permanently extend the reductions in 
               income tax rates, and for other purposes.

_______________________________________________________________________

                            November 8, 2007

            Read the second time and placed on the calendar