II 111th CONGRESS 1st Session S. 138 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.

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.