To amend the Internal Revenue Code of 1986 to allow State and local taxes to be deducted in computing the alternative minimum tax.

March 22, 2001

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

To amend the Internal Revenue Code of 1986 to allow State and local taxes to be deducted in computing the alternative minimum tax.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. DEDUCTION FOR STATE AND LOCAL TAXES ALLOWED IN COMPUTING ALTERNATIVE MINIMUM TAX.

(a) IN GENERAL- The last sentence of section 56(b)(1)(A) of the Internal Revenue Code of 1986 (relating to limitations on deductions) is amended by inserting before the period `and shall not apply to State and local taxes'.

(b) EFFECTIVE DATE- The amendment made by this section shall apply to taxable years beginning after December 31, 2000.

END