[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2389 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2389

To amend the Internal Revenue Code of 1986 to increase the alternative 
minimum tax credit amount for individuals with long-term unused credits 
     for prior year minimum tax liability, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 16, 2007

Mr. Kerry (for himself, Ms. Cantwell, and Mr. Lieberman) 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 increase the alternative 
minimum tax credit amount for individuals with long-term unused credits 
     for prior year minimum tax liability, 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. INCREASE OF AMT REFUNDABLE CREDIT AMOUNT FOR INDIVIDUALS 
              WITH LONG-TERM UNUSED CREDITS FOR PRIOR YEAR MINIMUM TAX 
              LIABILITY, ETC.

    (a) In General.--Paragraph (2) of section 53(e) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(2) AMT refundable credit amount.--For purposes of 
        paragraph (1), the term `AMT refundable credit amount' means, 
        with respect to any taxable year, the amount (not in excess of 
        the long-term unused minimum tax credit for such taxable year) 
        equal to the greater of--
                    ``(A) 50 percent of the long-term unused minimum 
                tax credit for such taxable year, or
                    ``(B) the amount (if any) of the AMT refundable 
                credit amount determined under this paragraph for the 
                taxpayer's preceding taxable year.''.
    (b) Treatment of Certain Underpayments, Interest, and Penalties 
Attributable to the Treatment of Incentive Stock Options.--Section 53 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subsection:
    ``(f) Treatment of Certain Underpayments, Interest, and Penalties 
Attributable to the Treatment of Incentive Stock Options.--
            ``(1) Abatement.--Any underpayment of tax outstanding on 
        the date of the enactment of this subsection which is 
        attributable to the application of section 56(b)(3) for any 
        taxable year ending before January 1, 2007 (and any interest or 
        penalty with respect to such underpayment which is outstanding 
        on such date of enactment), is hereby abated. No credit shall 
        be allowed under this section with respect to any amount abated 
        under this paragraph.
            ``(2) Increase in credit for certain interest and penalties 
        already paid.--Any interest or penalty paid before the date of 
        the enactment of this subsection which would (but for such 
        payment) have been abated under paragraph (1) shall be treated 
        for purposes of this section as an amount of adjusted net 
        minimum tax imposed for the taxable year of the underpayment to 
        which such interest or penalty relates.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall apply to taxable years 
        beginning after December 31, 2006.
            (2) Abatement.--Section 53(f)(1) of the Internal Revenue 
        Code of 1986, as added by subsection (b), shall take effect on 
        the date of the enactment of this Act.
                                 <all>