I 

111TH CONGRESS 

2D SESSION H. R. 4850 

To amend the Internal Revenue Code of 1986 to allow companies to utilize 

existing alternative minimum tax credits to create and maintain United 

States jobs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 16, 2010 

Mr. PETERS (for himself, Mr. LARSON of Connecticut, Mr. REICHERT, and 

Mr. TIBERI) 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 allow companies to utilize existing alternative minimum tax credits 

to create and maintain United States jobs, 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 ‘‘American Job Creation 

5 and Investment Act’’. 


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1 SEC. 2. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT 

2 CREDITS DETERMINED BY DOMESTIC WAGES 

3 AND DOMESTIC INVESTMENT. 

4 (a) IN GENERAL.—Section 53 of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new subsection: 

7 ‘‘(g) ELECTION FOR CORPORATIONS WITH UNUSED

8 CREDITS.— 

9 ‘‘(1) IN GENERAL.—If a corporation elects to 

10 have this subsection apply, then notwithstanding any 

11 other provision of law, the limitation imposed by 

12 subsection (c) for any such taxable year shall be in13 creased by the AMT credit adjustment amount. 

14 ‘‘(2) AMT CREDIT ADJUSTMENT AMOUNT.— 

15 For purposes of paragraph (1), the term ‘AMT cred16 it adjustment amount’ means with respect to any 

17 taxable year beginning in 2010 or 2011, the lesser 

18 of— 

19 ‘‘(A) a corporation’s minimum tax credit 

20 determined under subsection (b), or 

21 ‘‘(B) the sum of— 

22 ‘‘(i) 20 percent of new qualifying do23 mestic compensation paid during such tax24 able year, determined by taking into ac25 count not more than $100,000 for each 

26 employee, plus 


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1 ‘‘(ii) 20 percent of new domestic in2 vestments made during such taxable year, 

3 plus 

4 ‘‘(iii) 10 percent of qualifying domes5 tic compensation paid during the preceding 

6 taxable year, determined by taking into ac7 count not more than $100,000 for each 

8 employee. 

9 ‘‘(3) QUALIFYING DOMESTIC COMPENSATION.— 

10 For purposes of this subsection, the term ‘qualifying 

11 domestic compensation’ means, with respect to any 

12 person for any taxable year of such person, the sum 

13 of the amounts described in paragraphs (3), (8), and 

14 (9) of section 6051(a) paid by such person with re15 spect to employment of citizens or residents of the 

16 United States (within the meaning of section 

17 7701(a)(30)(A)) by such person during the calendar 

18 year ending during such taxable year. 

19 ‘‘(4) NEW QUALIFYING DOMESTIC COMPENSA20 TION.—For purposes of this subsection, the term 

21 ‘new qualifying domestic compensation’ means quali22 fying domestic compensation paid with respect to 

23 employment of individuals the hiring date (or, in the 

24 case of furloughed employees, the recall date) of 

25 whom occurs during the taxable year. For purposes 


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1 of the preceding sentence, rules similar to the rules 

2 of section 51(i)(1) shall apply. 

3 ‘‘(5) NEW DOMESTIC INVESTMENTS.—For pur4 poses of this subsection, the term ‘new domestic in5 vestments’ means the cost of qualified property (as 

6 defined in section 168(k)(2)(A)(i))— 

7 ‘‘(A) the original use of which commences 

8 with the taxpayer during the taxable year, and 

9 ‘‘(B) which is placed in service in the 

10 United States by the taxpayer during such tax11 able year. 

12 ‘‘(6) SPECIAL MAINTENANCE OF WORKFORCE

13 RULE.— 

14 ‘‘(A) IN GENERAL.—In any taxable year 

15 beginning in 2011, paragraph (2)(B)(iii) shall 

16 apply only if the taxpayer’s qualifying domestic 

17 compensation in such taxable year is at least 

18 100 percent of such compensation in the pre19 ceding taxable year. 

20 ‘‘(B) ACQUISITIONS, ETC.—For purposes 

21 of subparagraph (A), in determining the quali22 fying domestic compensation for the preceding 

23 taxable year, rules similar to the rules under 

24 subparagraphs (A) and (B) of section 41(f)(3) 

25 shall apply to adjust the compensation for acVerDate Nov 24 2008 02:40 Mar 17, 2010 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4850.IH H4850

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1 quisitions and dispositions (taxable or other2 wise) of any major portion of a trade or busi3 ness or any major portion of a separate unit of 

4 a trade or business. 

5 ‘‘(7) CREDIT REFUNDABLE.—For purposes of 

6 subsections (b) and (c) of section 6401, the aggre7 gate increase in the credits allowable under part IV 

8 of subchapter A for any taxable year resulting from 

9 the application of this subsection shall be treated as 

10 allowed under subpart C of such part (and not to 

11 any other subpart). 

12 ‘‘(8) ELECTION.— 

13 ‘‘(A) IN GENERAL.—An election under this 

14 subsection shall be made at such time and in 

15 such manner as prescribed by the Secretary, 

16 and once effective, may be revoked only with 

17 the consent of the Secretary. 

18 ‘‘(B) INTERIM ELECTIONS.—Until such 

19 time as the Secretary prescribes a manner for 

20 making an election under this subsection, a tax21 payer is treated as having made a valid election 

22 by providing written notification to the Sec23 retary and the Commissioner of Internal Rev24 enue of such election. 


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1 ‘‘(C) ELECTION TO INCREASE LIMITATION

2 IN EARLIER YEAR.—A corporation may elect to 

3 increase the limitation under subsection (c) for 

4 its taxable year which includes December 31, 

5 2009. The increase in the limitation under sub6 section (c) to which an election under this sub7 paragraph applies shall not exceed the AMT 

8 credit adjustment amount (as determined under 

9 paragraph (2)) as of the date of such election 

10 is made. Any AMT credit adjustment amount 

11 not included in such election will be included in 

12 the corporation’s return for its first taxable 

13 year beginning after December 31, 2009. Such 

14 election, once made, is irrevocable. Such elec15 tion may be made only if the corporation files 

16 such amended returns (and pays such tax) as 

17 is necessary to comply with paragraph (11). 

18 ‘‘(9) AGGREGATION RULE.—For purposes of 

19 this subsection— 

20 ‘‘(A) all corporations which are members 

21 of an affiliated group of corporations filing a 

22 consolidated tax return, and 

23 ‘‘(B) all partnerships in which more than 

24 50 percent of the capital and profits interest in 

25 the partnership are owned by the corporation 


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1 (directly or indirectly) at all times during the 

2 taxable year in which an election under this 

3 subsection is in effect, 

4 shall be treated as a single corporation. 

5 ‘‘(10) APPLICATION TO PARTNERSHIPS.—In the 

6 case of a partnership— 

7 ‘‘(A) this subsection shall be applied at the 

8 partner level, and 

9 ‘‘(B) each partner shall be treated as hav10 ing for the taxable year an amount equal to 

11 such partner’s allocable share of the qualifying 

12 domestic compensation, new qualifying domestic 

13 compensation, and new domestic investments of 

14 the partnership for such taxable year (as deter15 mined under regulations prescribed by the Sec16 retary). 

17 ‘‘(11) NO DOUBLE BENEFIT.—Notwithstanding 

18 clause (iii)(II) of section 172(b)(1)(H), any taxpayer 

19 which has previously made an election under such 

20 section shall be deemed to have revoked such elec21 tion by the making of its first election under this 

22 subsection. 

23 ‘‘(12) REGULATIONS.—The Secretary may issue 

24 such regulations or other guidance as may be nec25 essary or appropriate to carry out the purposes of 


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1 this subsection, including to prevent fraud and abuse 

2 under this subsection. 

3 ‘‘(13) TERMINATION.—This subsection shall not 

4 apply to any taxable year that begins after Decem5 ber 31, 2011.’’. 

6 (b) QUICK REFUND OF REFUNDABLE CREDIT.—Sec7 tion 6425 of the Internal Revenue Code of 1986 is amend8 ed by adding at the end the following new subsection: 

9 ‘‘(e) ALLOWANCE OF AMT CREDIT ADJUSTMENT

10 AMOUNT.—The amount of an adjustment under this sec11 tion as determined under subsection (c)(2) for any taxable 

12 year may be increased to the extent of the corporation’s 

13 AMT credit adjustment amount determined under section 

14 53(g) for such taxable year.’’. 

15 (c) EFFECTIVE DATE.— 

16 (1) SUBSECTION (a).—The amendment made 

17 by subsection (a) shall apply to taxable years ending 

18 after December 30, 2009. 

19 (2) SUBSECTION (b).—The amendment made 

20 by subsection (b) shall apply to taxable years begin21 ning after December 31, 2009. 

Æ 


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