II 110th CONGRESS 1st Session S. 55 IN THE SENATE OF THE UNITED STATES January 4, 2007 Mr. Baucus (for himself, Mr. Grassley, Mr. Schumer, Mr. Kyl, and Mr. Crapo) 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 repeal the individual alternative minimum tax.

1.

Short title

This Act may be cited as the Individual Alternative Minimum Tax Repeal Act of 2007.

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.