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106TH CONGRESS

1ST SESSION H. R. 2318

To amend the Internal Revenue Code of 1986 to provide corporate alternative

minimum tax reform.

IN THE HOUSE OF REPRESENTATIVES

JUNE 23, 1999

Mr. HAYWORTH (for himself, Mr. SAM JOHNSON of Texas, Mr. LEWIS of Kentucky, Ms. DUNN, Mr. ENGLISH, Mr. CRANE, Mr. MCCRERY, Mr. WATKINS, and Mrs. JOHNSON of Connecticut) 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 provide

corporate alternative minimum tax reform.

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 Reform Act of 1999.’’.

6 SEC. 2. LONG-TERM UNUSED CREDITS ALLOWED AGAINST

7 MINIMUM TAX.

8 (a) IN GENERAL.—Subsection (c) of section 53 of the

9 Internal Revenue Code of 1986 (relating to limitation) is
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1 amended by adding at the end the following new para2 graph:

3 ‘‘(2) SPECIAL RULE FOR CORPORATIONS WITH

4 LONG-TERM UNUSED CREDITS.—

5 ‘‘(A) IN GENERAL.—If a corporation to

6 which section 56(g) applies has a long-term un7 used minimum tax credit for a taxable year, the

8 credit allowable under subsection (a) for the

9 taxable year shall not exceed the greater of—

10 ‘‘(i) the limitation determined under

11 paragraph (1) for the taxable year, or

12 ‘‘(ii) the least of the following for the

13 taxable year:

14 ‘‘(I) The sum of the tax imposed

15 by section 55 and the regular tax re16 duced by the sum of the credits al17 lowed under subparts A, B, D, E, and

18 F of this part.

19 ‘‘(II) The long-term unused min20 imum tax credit.

21 ‘‘(III) The sum of—

22 ‘‘(aa) the excess (if any) of

23 the amount under paragraph

24 (1)(A) over the amount under

25 paragraph (1)(B), plus
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1 ‘‘(bb) 50 percent of the ten2 tative minimum tax (determined

3 under section 55(b)(1)(B)).

4 ‘‘(B) LONG-TERM UNUSED MINIMUM TAX

5 CREDIT.—For purposes of this paragraph—

6 ‘‘(i) IN GENERAL.—The long-term un7 used minimum tax credit for any taxable

8 year is the portion of the minimum tax

9 credit determined under subsection (b) at10 tributable to the adjusted net minimum tax

11 for taxable years beginning after 1986 and

12 ending before the 3rd taxable year imme13 diately preceding the taxable year for

14 which the determination is being made.

15 ‘‘(ii) FIRST-IN, FIRST-OUT ORDERING

16 RULE.—For purposes of clause (i), credits

17 shall be treated as allowed under sub18 section (a) on a first-in, first-out basis.’’.

19 (b) CONFORMING AMENDMENTS.—Section 53(c) of

20 such Code is amended—

21 (1) by striking ‘‘The’’ and inserting the fol22 lowing:

23 ‘‘(1) IN GENERAL.—The’’; and

24 (2) by redesignating paragraphs (1) and (2) as

25 subparagraphs (A) and (B), respectively.
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1 SEC. 3. 10-YEAR CARRYBACK OF CERTAIN NET OPERATING

2 LOSSES.

3 Section 56(d) of the Internal Revenue Code of 1986

4 (relating to definition of alternative tax net operating loss

5 deduction) is amended by inserting at the end thereof the

6 following new paragraph:

7 ‘‘(3) SPECIAL RULE.—In the case of a corpora8 tion to which section 56(g) applies which has a net

9 operating loss under this part for 3 or more consecu10 tive taxable years which includes a taxable year be11 ginning after the date of enactment of this para12 graph, the loss for each such year shall be a net op13 erating loss carryback for purposes of this part to

14 each of the 10 years preceding the taxable year of

15 such loss.’’.

16 SEC. 4. EFFECTIVE DATE.

17 The amendments made by this Act shall apply to tax18 able years beginning after December 31, 1998.

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