[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2432 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2432

   To amend the Internal Revenue Code of 1986 to provide alternative 
   minimum tax relief for 2007 and to provide special tax rates for 
 certain capital gains and qualified dividend income for 2007, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 6, 2007

Mr. Whitehouse 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 provide alternative 
   minimum tax relief for 2007 and to provide special tax rates for 
 certain capital gains and qualified dividend income for 2007, 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 Equity Act of 2007''.

SEC. 2. ONE-YEAR EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
              NONREFUNDABLE PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) of the Internal 
Revenue Code of 1986 (relating to special rule for taxable years 2000 
through 2006) is amended--
            (1) by striking ``or 2006'' and inserting ``2006, or 
        2007'', and
            (2) by striking ``2006'' in the heading thereof and 
        inserting ``2007''.
    (b)  Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 3. ONE-YEAR EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
              EXEMPTION AMOUNT.

    (a) In General.--Paragraph (1) of section 55(d) of the Internal 
Revenue Code of 1986 (relating to exemption amount) is amended--
            (1) by striking ``($62,550 in the case of taxable years 
        beginning in 2006)'' in subparagraph (A) and inserting 
        ``($66,250 in the case of taxable years beginning in 2007)'', 
        and
            (2) by striking ``($42,500 in the case of taxable years 
        beginning in 2006)'' in subparagraph (B) and inserting 
        ``($44,350 in the case of taxable years beginning in 2007)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 4. TEMPORARY REPEAL OF INDIVIDUAL ALTERNATIVE MINIMUM TAX FOR 
              CERTAIN TAXPAYERS.

    (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, for any taxable year beginning in 2007, 
the tentative minimum tax shall be zero on any taxpayer other than a 
corporation whose adjusted gross income for such taxable year does not 
exceed $100,000 ($200,000 in the case of a joint return).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 5. SPECIAL TAX RATES ON CERTAIN CAPITAL GAINS AND QUALIFIED 
              DIVIDEND INCOME FOR 2007.

    (a) In General.--Section 1(h)(1) of the Internal Revenue Code of 
1986 (relating to maximum capital gains rate) is amended by adding at 
the end the following new flush sentence:
        ``For purposes of any taxable year beginning in 2007, the rate 
        of tax specified in subparagraph (C) shall be increased by 1 
        percentage point (but not to be increased by more than 20 
        percentage points) for each $50,000 (or fraction thereof) by 
        which a taxpayer's adjusted gross income for such taxable year 
        exceeds $1,000,000 ($2,000,000 in the case of a joint 
        return).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2006.

SEC. 6. ONE-TIME ESTIMATED TAX SAFE HARBOR FOR INCREASED TAX LIABILITY.

    For purposes of any taxable year beginning in 2007, in the case of 
any individual with respect to whom the amendments made by section 5 
apply--
            (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 reason of such amendments 
        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 reason of such amendments, 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 reason of such 
        amendments.
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