II 

109TH CONGRESS 

2D SESSION S. 2826 

To amend the Internal Revenue Code of 1986 to extend and expand relief 

from the alternative minimum tax and to repeal the extension of the 

lower rates for capital gains and dividends for 2009 and 2010. 

IN THE SENATE OF THE UNITED STATES 

MAY 17, 2006 

Mr. KERRY 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 extend 

and expand relief from the alternative minimum tax and 

to repeal the extension of the lower rates for capital 

gains and dividends for 2009 and 2010. 

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

3 SECTION 1. EXTENSION AND INCREASE IN MINIMUM TAX 

4 RELIEF TO INDIVIDUALS. 

5 (a) IN GENERAL.—Section 55(d)(1) of the Internal 

6 Revenue Code of 1986, as amended by the Tax Increase 

7 Prevention and Reconciliation Act of 2005, is amended— 


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•S 2826 IS

1 (1) by striking ‘‘$62,550 in the case of taxable 

2 years beginning in 2006’’ in subparagraph (A) and 

3 inserting ‘‘$66,100 in the case of taxable years be4 ginning in 2007’’, and 

5 (2) by striking ‘‘$42,500 in the case of taxable 

6 years beginning in 2006’’ in subparagraph (B) and 

7 inserting ‘‘$45,900 in the case of taxable years be8 ginning in 2007’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2006. 

12 SEC. 2. ALLOWANCE OF NONREFUNDABLE PERSONAL 

13 CREDITS AGAINST REGULAR AND ALTER14 NATIVE MINIMUM TAX LIABILITY. 

15 (a) IN GENERAL.—Paragraph (2) of section 26(a) of 

16 the Internal Revenue Code of 1986, as amended by the 

17 Tax Increase Prevention and Reconciliation Act of 2005, 

18 is amended— 

19 (1) by striking ‘‘2006’’ in the heading thereof 

20 and inserting ‘‘2007’’, and 

21 (2) by striking ‘‘or 2006’’ and inserting ‘‘2006, 

22 or 2007’’. 

23 (b) CONFORMING PROVISIONS.— 


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•S 2826 IS

1 (1) Section 30B(g) of the Internal Revenue 

2 Code of 1986 is amended by adding at the end the 

3 following new paragraph: 

4 ‘‘(3) SPECIAL RULE FOR 2007.—For purposes of 

5 any taxable year beginning during 2007, the credit 

6 allowed under subsection (a) (after the application of 

7 paragraph (1)) shall not exceed the excess of— 

8 ‘‘(A) the sum of the regular tax liability 

9 (as defined in section 26(b)) plus the tax im10 posed by section 55, over 

11 ‘‘(B) the sum of the credits allowable 

12 under subpart A and this subpart (other than 

13 this section and section 30C).’’. 

14 (2) Section 30C(d) of the Internal Revenue 

15 Code of 1986 is amended by adding at the end the 

16 following new paragraph: 

17 ‘‘(3) SPECIAL RULE FOR 2007.—For purposes of 

18 any taxable year beginning during 2007, the credit 

19 allowed under subsection (a) (after the application of 

20 paragraph (1)) shall not exceed the excess of— 

21 ‘‘(A) the sum of the regular tax liability 

22 (as defined in section 26(b)) plus the tax im23 posed by section 55, over 


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•S 2826 IS

1 ‘‘(B) the sum of the credits allowable 

2 under subpart A and this subpart (other than 

3 this section).’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2006. 

7 SEC. 3. REPEAL OF EXTENSION OF LOWER RATES FOR CAP8 ITAL GAINS AND DIVIDENDS. 

9 The amendment made by section 102 of the Tax In10 crease Prevention and Reconciliation Act of 2005 is re11 pealed and the Internal Revenue Code of 1986 shall be 

12 applied as if such amendment had never been enacted. 

Æ 


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