I

107TH CONGRESS

1ST SESSION H. R. 871

To amend the Internal Revenue Code of 1986 to phaseout the alternative

minimum tax on individuals.

IN THE HOUSE OF REPRESENTATIVES

MARCH 6, 2001

Mr. COLLINS 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 phaseout

the alternative minimum tax on individuals.

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 ‘‘Alternative Minimum

5 Tax Repeal Act of 2001’’.

6 SEC. 2. PHASEOUT OF ALTERNATIVE MINIMUM TAX ON IN7 DIVIDUALS.

8 (a) REPEAL IN 2011.—Subsection (a) of section 55

9 of the Internal Revenue Code of 1986 is amended by add10 ing at the end the following new flush sentence:
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1 ‘‘For purposes of this title, the tentative minimum tax on

2 any taxpayer other than a corporation for any taxable year

3 beginning after December 31, 2010, shall be zero.’’.

4 (b) REDUCTION OF TAX ON INDIVIDUALS PRIOR TO

5 REPEAL.—

6 (1) IMMEDIATE INCREASE IN EXEMPTION

7 AMOUNTS.—Paragraph (1) of section 55(d) of such

8 Code is amended—

9 (A) by striking ‘‘$45,000’’ and inserting

10 ‘‘$52,000’’,

11 (B) by striking ‘‘$33,750’’ and inserting

12 ‘‘$38,000’’, and

13 (C) by striking ‘‘$22,500’’ and inserting

‘‘1 14 ⁄2 the amount applicable under subparagraph

15 (A)’’.

16 (2) ADDITIONAL INCREASES IN EXEMPTION

17 AMOUNTS; REPEAL OF PHASE-OUT OF EXEMPTION

18 AMOUNTS.—Paragraph (3) of section 55(d) of such

19 Code is amended to read as follows:

20 ‘‘(3) INCREASES IN EXEMPTION AMOUNTS FOR

21 TAXPAYERS OTHER THAN CORPORATIONS.—

22 ‘‘(A) IN GENERAL.—The exemption

23 amounts under paragraph (1) for taxable years

24 beginning in any calendar year after 2001 shall

25 be determined by increasing the dollar amounts
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1 contained in subparagraphs (A) and (B) of

2 paragraph (1) by the applicable percentage for

3 such calendar year of such dollar amounts.

4 ‘‘(B) APPLICABLE PERCENTAGE.—For

5 purposes of subparagraph (A), the applicable

6 percentage shall be determined in accordance

7 with the following table:

‘‘For calendar year— The applicable

percentage is—

2002 ............................................................................. 10

2003 ............................................................................. 20

2004 ............................................................................. 30

2005 ............................................................................. 40

2006............................................................................. 50

2007 ............................................................................. 60

2008 ............................................................................. 70

2009 ............................................................................. 80

2010 ............................................................................. 90.

8 ‘‘(C) ROUNDING.—If any amount, as in9 creased under subparagraph (A) is not a mul10 tiple of $5, such amount shall be increased to

11 the nearest multiple of $5.’’

12 (c) NONREFUNDABLE PERSONAL CREDITS FULLY

13 ALLOWED AGAINST REGULAR TAX LIABILITY.—

14 (1) IN GENERAL.—Subsection (a) of section 26

15 of such Code (relating to limitation based on amount

16 of tax) is amended to read as follows:

17 ‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The

18 aggregate amount of credits allowed by this subpart for

19 the taxable year shall not exceed the sum of—
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1 ‘‘(1) the taxpayer’s regular tax liability for the

2 taxable year reduced by the foreign tax credit allow3 able under section 27(a), and

4 ‘‘(2) the tax imposed by section 55(a) for the

5 taxable year.’’

6 (2) REPEAL OF REDUCTION OF REFUNDABLE

7 TAX CREDITS.—

8 (A) Subsection (d) of section 24 of such

9 Code is amended by striking paragraph (2) and

10 redesignating paragraph (3) as paragraph (2).

11 (B) Section 32 of such Code is amended by

12 striking subsection (h).

13 (3) CONFORMING AMENDMENT.—Section 904

14 of such Code is amended by striking subsection (h).

15 (d) LIMITATION ON USE OF CREDIT FOR PRIOR

16 YEAR MINIMUM TAX LIABILITY.—Subsection (c) of sec17 tion 53 of such Code is amended to read as follows:

18 ‘‘(c) LIMITATION.—

19 ‘‘(1) IN GENERAL.—Except as otherwise pro20 vided in this subsection, the credit allowable under

21 subsection (a) for any taxable year shall not exceed

22 the excess (if any) of—

23 ‘‘(A) the regular tax liability of the tax24 payer for such taxable year reduced by the sum
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1 of the credits allowable under subparts A, B, D,

2 E, and F of this part, over

3 ‘‘(B) the tentative minimum tax for the

4 taxable year.

5 ‘‘(2) TAXABLE YEARS BEGINNING AFTER

6 2010.—In the case of any taxable year beginning

7 after 2010, the credit allowable under subsection (a)

8 to a taxpayer other than a corporation for any tax9 able year shall not exceed 90 percent of the excess

10 (if any) of—

11 ‘‘(A) regular tax liability of the taxpayer

12 for such taxable year, over

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

14 under subparts A, B, D, E, and F of this

15 part.’’.

16 (e) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to taxable years beginning after

18 December 31, 2000.

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