To amend the Internal Revenue Code of 1986 to limit the increase in the number of individuals affected by the alternative minimum tax and to repeal the alternative minimum tax for individuals in 2014.

April 2, 2004

Mr. HOUGHTON introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to limit the increase in the number of individuals affected by the alternative minimum tax and to repeal the alternative minimum tax for individuals in 2014.

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 `Alternative Minimum Tax Repeal Act of 2004'.

SEC. 2. LIMITATION ON INCREASE IN NUMBER OF INDIVIDUALS AFFECTED BY THE ALTERNATIVE MINIMUM TAX; REPEAL OF ALTERNATIVE MINIMUM TAX FOR INDIVIDUALS IN 2014.

(a) Limitation on Increase in Number of Individuals Affected by the Alternative Minimum Tax- Section 55(d) of the Internal Revenue Code of 1986 (relating to exemption amount for taxpayers other than corporations) is amended--

(1) in paragraph (1)(A), by striking `$45,000 ($58,000 in the case of taxable years beginning in 2003 and 2004)' and inserting `the applicable joint return amount',

(2) in paragraph (1)(B), by striking `$33,750 ($40,250 in the case of taxable years beginning in 2003 and 2004)' and inserting `the applicable non-joint return amount', and

(3) by inserting after paragraph (3) the following new paragraph:

`(4) Applicable joint and non-joint return amounts- For purposes of paragraph (1), the applicable joint return amount and the applicable non-joint return amount shall be determined in accordance with the following table:

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`For taxable years beginning in calendar year: The applicable joint return amount is: The applicable non-joint return amount is: 

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                                          2006                                $59,700                                    $41,400 

                                          2007                                $60,000                                    $41,600 

                           2008, 2009, or 2010                                $61,500                                    $42,650 

                                  2011 or 2012                                $49,900                                    $34,600 

                                          2013                                $49,950                                  $34,650'. 

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(b) Repeal of Alternative Minimum Tax for Individuals in 2014- Subsection (a) of section 55 of such Code is amended by adding at the end the following new flush sentence:

`Notwithstanding subsection (b), in the case of a taxpayer other than a corporation, the tentative minimum tax for any taxable year beginning after December 31, 2013, shall be zero.'.

(c) Exception to EGTRRA Sunset- Subsection (a) of section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the amendments made by title VII of such Act (relating to alternative minimum tax).

(d) Effective Dates-

(1) Subsection (a)- The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2005.

(2) Subsection (b)- The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2013.

END