S 2318
Calendar No. 476
110th CONGRESS
1st Session
S. 2318
To amend the Internal Revenue Code of 1986 to repeal the individual
alternative minimum tax and to permanently extend the reductions in
income tax rates, and for other purposes.
IN THE SENATE OF THE UNITED STATES
November 7, 2007
Mr. ENSIGN (for himself, Mr. CRAPO, Mr. ROBERTS, Mr. BUNNING, and Mr.
SMITH) introduced the following bill; which was read the first time
November 8, 2007
Read the second time and placed on the calendar
A BILL
To amend the Internal Revenue Code of 1986 to repeal the individual
alternative minimum tax and to permanently extend the reductions in
income tax rates, 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 Repeal and Tax Freedom Act'.
SEC. 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:
`(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.
SEC. 3. ONE-TIME ESTIMATED TAX SAFE HARBOR FOR ALTERNATIVE MINIMUM
TAX LIABILITY.
For purposes of any taxable year beginning in 2006, in the case of any
individual with respect to whom there was no liability for the tax imposed
under section 55 of the Internal Revenue Code of 1986 for the preceding
taxable year--
(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 such section 55 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 such section
55, 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 such section 55.
SEC. 4. REDUCTIONS IN INDIVIDUAL INCOME TAX RATES MADE PERMANENT.
Section 901 of the Economic Growth and Tax Relief and Reconciliation
Act of 2001 (relating to sunset provisions) shall not apply to section
101 of such Act (relating to reduction in income tax rates for individuals).
SEC. 5. PERMANENT REDUCTIONS IN INDIVIDUAL CAPITAL GAINS AND DIVIDENDS
TAX RATES.
Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of
2003 (relating to sunset of title) is repealed.
Calendar No. 476
110th CONGRESS
1st Session
S. 2318
A BILL
To amend the Internal Revenue Code of 1986 to repeal the individual
alternative minimum tax and to permanently extend the reductions in
income tax rates, and for other purposes.
November 8, 2007
Read the second time and placed on the calendar
END
