I 

109TH CONGRESS 

1ST SESSION H. R. 3385 

To amend the Internal Revenue Code of 1986 to make the credit for prior 

year minimum tax liability refundable for individuals after a period 

of years, to require returns with respect to certain stock options, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 21, 2005 

Mr. SAM JOHNSON of Texas (for himself, Mr. NEAL of Massachusetts, Mr. 

MCCRERY, Mr. JEFFERSON, Mr. RAMSTAD, Mr. SHAW, Mrs. JOHNSON

of Connecticut, Mr. ENGLISH of Pennsylvania, Ms. ZOE LOFGREN of 

California, Mr. SIMMONS, Mr. HONDA, Mr. MCCAUL of Texas, Mr. PAUL, 

and Mr. GERLACH) introduced the following bill; which was referred to 

the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

the credit for prior year minimum tax liability refundable 

for individuals after a period of years, to require returns 

with respect to certain stock options, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘AMT Credit Fairness 

5 Act of 2005’’. 
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1 SEC. 2. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY 

2 MADE REFUNDABLE AFTER PERIOD OF 

3 YEARS. 

4 (a) IN GENERAL.—Section 53 of the Internal Rev5 enue Code of 1986 (relating to credit for prior year min6 imum tax liability) is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(e) SPECIAL RULE FOR INDIVIDUALS WITH LONG9 TERM UNUSED CREDITS.— 

10 ‘‘(1) IN GENERAL.—If an individual has a long11 term unused minimum tax credit for any taxable 

12 year, the amount determined under subsection (c) 

13 for such taxable year shall not be less than an 

14 amount equal to the greater of— 

15 ‘‘(A) the lesser of— 

16 ‘‘(i) $5,000, or 

17 ‘‘(ii) the amount of such credit, or 

18 ‘‘(B) 20 percent of the amount of such 

19 credit. 

20 ‘‘(2) LONG-TERM UNUSED MINIMUM TAX CRED21 IT.— 

22 ‘‘(A) IN GENERAL.—For purposes of this 

23 subsection, the term ‘long-term unused min24 imum tax credit’ means, with respect to any 

25 taxable year, the portion of the minimum tax 

26 credit determined under subsection (b) attrib-
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1 utable to the adjusted net minimum tax for tax2 able years before the 3rd taxable year imme3 diately preceeding such taxable year. 

4 ‘‘(B) FIRST-IN, FIRST-OUT ORDERING

5 RULE.—For purposes of subparagraph (A), 

6 credits shall be treated as allowed under sub7 section (a) on a first-in, first-out basis. 

8 ‘‘(3) CREDIT REFUNDABLE.—For purposes of 

9 this title (other than this section), the credit allowed 

10 by reason of this subsection shall be treated as if it 

11 were allowed under subpart C.’’. 

12 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

13 section 1324(b) of title 31, United States Code, is amend14 ed by inserting ‘‘or 53(e)’’ after ‘‘section 35’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years ending after the 

17 date of the enactment of this Act. 

18 SEC. 3. RETURNS REQUIRED IN CONNECTION WITH CER19 TAIN OPTIONS. 

20 (a) IN GENERAL.—So much of section 6039(a) of the 

21 Internal Revenue Code of 1986 as follows paragraph (2) 

22 is amended to read as follows: 

23 ‘‘shall, for such calendar year, make a return at such time 

24 and in such manner, and setting forth such information, 

25 as the Secretary may by regulations prescribe.’’. 
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1 (b) STATEMENTS TO PERSONS WITH RESPECT TO

2 WHOM INFORMATION IS FURNISHED.—Section 6039 of 

3 such Code is amended by redesignating subsections (b) 

4 and (c) as subsection (c) and (d), respectively, and by in5 serting after subsection (a) the following new subsection: 

6 ‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS

7 WITH RESPECT TO WHOM INFORMATION IS RE8 PORTED.—Every corporation making a return under sub9 section (a) shall furnish to each person whose name is set 

10 forth in such return a written statement setting forth such 

11 information as the Secretary may by regulations prescribe. 

12 The written statement required under the preceding sen13 tence shall be furnished to such person on or before Janu14 ary 31 of the year following the calendar year for which 

15 the return under subsection (a) was made.’’. 

16 (c) CONFORMING AMENDMENTS.— 

17 (1) Section 6724(d)(1)(B) of such Code is 

18 amended by striking ‘‘or’’ at the end of clause (xvii), 

19 by striking ‘‘and’’ at the end of clause (xviii) and in20 serting ‘‘or’’, and by adding at the end the following 

21 new clause: 

22 ‘‘(xix) section 6039(a) (relating to re23 turns required with respect to certain op24 tions), and’’. 
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1 (2) Section 6724(d)(2)(B) of such Code is 

2 amended by striking ‘‘section 6039(a)’’ and inserting 

3 ‘‘section 6039(b)’’. 

4 (3) The heading of section 6039 of such Code 

5 and the item relating to such section in the table of 

6 sections of subpart A of part III of subchapter A of 

7 chapter 61 of such Code are each amended by strik8 ing ‘‘Information’’ and inserting ‘‘Returns’’. 

9 (4) The heading of subsection (a) of section 

10 6039 of such Code is amended by striking ‘‘FUR11 NISHING OF INFORMATION’’ and inserting ‘‘RE12 QUIREMENT OF REPORTING’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to calendar years beginning after 

15 the date of the enactment of this Act. 

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