II 

110TH CONGRESS 

1ST SESSION S. 102 

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 

JANUARY 4, 2007 

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 is amended— 

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

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


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•S 102 IS

1 inserting ‘‘$67,100 in the case of taxable years be2 ginning in 2007’’, and 

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

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

5 inserting ‘‘$44,800 in the case of taxable years be6 ginning in 2007’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2006. 

10 SEC. 2. ALLOWANCE OF NONREFUNDABLE PERSONAL 

11 CREDITS AGAINST REGULAR AND ALTER12 NATIVE MINIMUM TAX LIABILITY. 

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

14 the Internal Revenue Code of 1986 is amended— 

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

16 and inserting ‘‘2007’’, and 

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

18 or 2007’’. 

19 (b) CONFORMING PROVISIONS.— 

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

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

22 following new paragraph: 

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

24 any taxable year beginning during 2007, the credit 


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

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

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

4 (as defined in section 26(b)) plus the tax im5 posed by section 55, over 

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

7 under subpart A and this subpart (other than 

8 this section and section 30C).’’. 

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

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

11 following new paragraph: 

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

13 any taxable year beginning during 2007, the credit 

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

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

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

17 (as defined in section 26(b)) plus the tax im18 posed by section 55, over 

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

20 under subpart A and this subpart (other than 

21 this section).’’. 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2006. 


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1 SEC. 3. REPEAL OF EXTENSION OF LOWER RATES FOR CAP2 ITAL GAINS AND DIVIDENDS. 

3 The amendment made by section 102 of the Tax In4 crease Prevention and Reconciliation Act of 2005 is re5 pealed and the Internal Revenue Code of 1986 shall be 

6 applied as if such amendment had never been enacted. 

Æ 


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