I 

111TH CONGRESS 

2D SESSION H. R. 6538 

To prevent pending tax increases and to permanently repeal the estate tax. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2010 

Mr. MACK introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To prevent pending tax increases and to permanently repeal 

the estate tax. 

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 ‘‘Permanent Tax Relief 

5 Act of 2010’’. 

6 SEC. 2. EGTRRA AND JGTRRA TAX RELIEF MADE PERMA7 NENT. 

8 (a) ECONOMIC GROWTH AND TAX RELIEF REC9 ONCILIATION ACT OF 2001.—Title IX of the Economic 

10 Growth and Tax Relief Reconciliation Act of 2001 is here11 by repealed. 

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1 (b) INCOME TAX RATES ON DIVIDENDS AND NET

2 CAPITAL GAIN.—Section 303 of the Jobs and Growth Tax 

3 Relief Reconciliation Act of 2003 is hereby repealed. 

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

5 this section shall take effect on the date of the enactment 

6 of this Act. 

7 SEC. 3. PERMANENT INDIVIDUAL AMT RELIEF. 

8 (a) MODIFICATION OF ALTERNATIVE MINIMUM TAX

9 EXEMPTION AMOUNT.— 

10 (1) IN GENERAL.—Paragraph (1) of section 

11 55(d) of the Internal Revenue Code of 1986 (relat12 ing to exemption amount) is amended to read as fol13 lows: 

14 ‘‘(1) EXEMPTION AMOUNT FOR TAXPAYERS

15 OTHER THAN CORPORATIONS.—In the case of a tax16 payer other than a corporation, the term ‘exemption 

17 amount’ means— 

18 ‘‘(A) the dollar amount for taxable years 

19 beginning in the calendar year as specified in 

20 the table contained in paragraph (4)(A) in the 

21 case of— 

22 ‘‘(i) a joint return, or 

23 ‘‘(ii) a surviving spouse, 

24 ‘‘(B) the dollar amount for taxable years 

25 beginning in the calendar year as specified in 

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1 the table contained in paragraph (4)(B) in the 

2 case of an individual who— 

3 ‘‘(i) is not a married individual, and 

4 ‘‘(ii) is not a surviving spouse, 

5 ‘‘(C) 50 percent of the dollar amount ap6 plicable under paragraph (1)(A) in the case of 

7 a married individual who files a separate re8 turn, and 

9 ‘‘(D) $22,500 in the case of an estate or 

10 trust. 

11 For purposes of this paragraph, the term ‘surviving 

12 spouse’ has the meaning given to such term by sec13 tion 2(a), and marital status shall be determined 

14 under section 7703.’’. 

15 (2) SPECIFIED EXEMPTION AMOUNTS.—Section 

16 55(d) of such Code is amended by adding at the end 

17 the following new paragraph: 

18 ‘‘(4) SPECIFIED EXEMPTION AMOUNTS.— 

19 ‘‘(A) TAXPAYERS DESCRIBED IN PARA20 GRAPH (1)(A).—For purposes of paragraph 

21 (1))(A)— 

‘‘For taxable years beginning in— 

The exemption amount 

is: 

2010 ................................................................................................ $72,450

2011 ................................................................................................ $74,450

2012 ................................................................................................ $78,250

2013 ................................................................................................ $81,450

2014 ................................................................................................ $85,050

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‘‘For taxable years beginning in— 

The exemption amount 

is: 

2015 ................................................................................................ $88,650

2016 ................................................................................................ $92,650

2017 ................................................................................................ $96,550

2018 ................................................................................................ $100,950

2019 ................................................................................................ $105,150

2020 ................................................................................................ $109,950. 

1 ‘‘(B) TAXPAYERS DESCRIBED IN PARA2 GRAPH (1)(B).—For purposes of paragraph 

3 (1))(B)— 

‘‘For taxable years beginning in— 

The exemption amount 

is: 

2010 ................................................................................................ $47,450

2011 ................................................................................................ $48,450

2012 ................................................................................................ $50,350

2013 ................................................................................................ $51,950

2014 ................................................................................................ $53,750

2015 ................................................................................................ $55,550

2016 ................................................................................................ $57,550

2017 ................................................................................................ $59,500

2018 ................................................................................................ $61,700

2019 ................................................................................................ $63,800

2020 ................................................................................................ $66,200.’’. 

4 (b) ALTERNATIVE MINIMUM TAX RELIEF FOR NON5 REFUNDABLE CREDITS.— 

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

7 of the Internal Revenue Code of 1986 is amended to 

8 read as follows: 

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

10 aggregate amount of credits allowed by this subpart for 

11 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) CONFORMING AMENDMENTS.— 

7 (A) ADOPTION CREDIT.— 

8 (i) Section 23(b) of such Code, as in 

9 effect on December 31, 2009, is amended 

10 by striking paragraph (4). 

11 (ii) Section 23(c) of such Code, as in 

12 effect on December 31, 2009, is amended 

13 by striking paragraphs (1) and (2) and in14 serting the following: 

15 ‘‘(1) IN GENERAL.—If the credit allowable 

16 under subsection (a) for any taxable year exceeds 

17 the limitation imposed by section 26(a) for such tax18 able year reduced by the sum of the credits allowable 

19 under this subpart (other than this section and sec20 tions 25D and 1400C), such excess shall be carried 

21 to the succeeding taxable year and added to the 

22 credit allowable under subsection (a) for such tax23 able year.’’. 

24 (iii) Section 23(c) of such Code, as in 

25 effect on December 31, 2009 amended by 

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1 redesignating paragraph (3) as paragraph 

2 (2). 

3 (B) CHILD TAX CREDIT.— 

4 (i) Section 24(b) of such Code is 

5 amended by striking paragraph (3). 

6 (ii) Section 24(d)(1) of such Code is 

7 amended— 

8 (I) by striking ‘‘section 26(a)(2) 

9 or subsection (b)(3), as the case may 

10 be,’’ each place it appears in subpara11 graphs (A) and (B) and inserting 

12 ‘‘section 26(a)’’, and 

13 (II) by striking ‘‘section 26(a)(2) 

14 or subsection (b)(3), as the case may 

15 be’’ in the second last sentence and 

16 inserting ‘‘section 26(a)’’. 

17 (C) CREDIT FOR INTEREST ON CERTAIN

18 HOME MORTGAGES.—Section 25(e)(1)(C) of 

19 such Code is amended to read as follows: 

20 ‘‘(C) APPLICABLE TAX LIMIT.—For pur21 poses of this paragraph, the term ‘applicable 

22 tax limit’ means the limitation imposed by sec23 tion 26(a) for the taxable year reduced by the 

24 sum of the credits allowable under this subpart 

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1 (other than this section and sections 23, 25D, 

2 and 1400C).’’. 

3 (D) SAVERS’ CREDIT.—Section 25B of 

4 such Code is amended by striking subsection 

5 (g). 

6 (E) RESIDENTIAL ENERGY EFFICIENT

7 PROPERTY.—Section 25D(c) of such Code is 

8 amended to read as follows: 

9 ‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the 

10 credit allowable under subsection (a) exceeds the limita11 tion imposed by section 26(a) for such taxable year re12 duced by the sum of the credits allowable under this sub13 part (other than this section), such excess shall be carried 

14 to the succeeding taxable year and added to the credit al15 lowable under subsection (a) for such succeeding taxable 

16 year.’’. 

17 (F) CERTAIN PLUG-IN ELECTRIC VEHI18 CLES.—Section 30(c)(2) of such Code is 

19 amended to read as follows: 

20 ‘‘(2) PERSONAL CREDIT.—For purposes of this 

21 title, the credit allowed under subsection (a) for any 

22 taxable year (determined after application of para23 graph (1)) shall be treated as a credit allowable 

24 under subpart A for such taxable year.’’. 

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1 (G) ALTERNATIVE MOTOR VEHICLE CRED2 IT.—Section 30B(g)(2) of such Code is amend3 ed to read as follows: 

4 ‘‘(2) PERSONAL CREDIT.—For purposes of this 

5 title, the credit allowed under subsection (a) for any 

6 taxable year (determined after application of para7 graph (1)) shall be treated as a credit allowable 

8 under subpart A for such taxable year.’’. 

9 (H) NEW QUALIFIED PLUG-IN ELECTRIC

10 VEHICLE CREDIT.—Section 30D(c)(2) of such 

11 Code is amended to read as follows: 

12 ‘‘(2) PERSONAL CREDIT.—For purposes of this 

13 title, the credit allowed under subsection (a) for any 

14 taxable year (determined after application of para15 graph (1)) shall be treated as a credit allowable 

16 under subpart A for such taxable year.’’. 

17 (I) CROSS REFERENCES.—Section 55(c)(3) 

18 of such Code is amended by striking ‘‘26(a), 

19 30C(d)(2),’’ and inserting ‘‘30C(d)(2)’’. 

20 (J) FOREIGN TAX CREDIT.—Section 904 of 

21 such Code is amended by striking subsection (i) 

22 and by redesignating subsections (j), (k), and 

23 (l) as subsections (i), (j), and (k), respectively. 

24 (K) FIRST-TIME HOME BUYER CREDIT FOR

25 THE DISTRICT OF COLUMBIA.—Section 

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1 1400C(d) of such Code is amended to read as 

2 follows: 

3 ‘‘(d) CARRYFORWARD OF UNUSED CREDIT.—If the 

4 credit allowable under subsection (a) exceeds the limita5 tion imposed by section 26(a) for such taxable year re6 duced by the sum of the credits allowable under subpart 

7 A of part IV of subchapter A (other than this section and 

8 section 25D), such excess shall be carried to the suc9 ceeding taxable year and added to the credit allowable 

10 under subsection (a) for such taxable year.’’. 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2009. 

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