[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 138 Introduced in Senate (IS)]







111th CONGRESS
  1st Session
                                 S. 138

   To amend the Internal Revenue Code of 1986 to repeal alternative 
  minimum tax limitations on private activity bond interest, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 6, 2009

  Mr. Kerry (for himself, Ms. Snowe, and Mrs. Lincoln) 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 alternative 
  minimum tax limitations on private activity bond interest, 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. REPEAL OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON PRIVATE 
              ACTIVITY BOND INTEREST.

    (a) In General.--Section 57(a)(5) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(D) Termination.--This paragraph shall not apply 
                to bonds issued after the date of the enactment of this 
                subparagraph. The preceding sentence shall not apply to 
                any refunding bond unless such preceding sentence 
                applied to the refunded bond (or in the case of a 
                series of refundings, the original bond).''.
    (b) No Adjustment to Adjusted Current Earnings.--Clause (iii) of 
section 56(g)(4)(B) of the Internal Revenue Code of 1986 is amended to 
read as follows:
                            ``(iii) Tax exempt interest on certain 
                        bonds.--Clause (i) shall not apply in the case 
                        of any interest on a bond to which section 
                        57(a)(5)(D) applies.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
                                 <all>