II 

110TH CONGRESS 

1ST SESSION S. 14 

To repeal the sunset on certain tax rates and other incentives and to repeal 

the individual alternative minimum tax, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 17, 2007 

Mr. KYL (for himself, Mr. MCCONNELL, Mr. GRASSLEY, Mr. LOTT, Mr. ENSIGN, Mr. HATCH, Mr. THOMAS, Mr. SMITH, Mr. BUNNING, Mr. CRAPO, 

Mr. ROBERTS, Mr. DEMINT, Mr. ALEXANDER, Mr. MARTINEZ, Mr. 

CHAMBLISS, Mr. BROWNBACK, Mr. CRAIG, Mr. ALLARD, Mr. GRAHAM, 

Mr. ENZI, Mr. INHOFE, Mr. BURR, and Mr. COBURN) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To repeal the sunset on certain tax rates and other incentives 

and to repeal the individual alternative minimum tax, 

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 ‘‘Invest in America 

5 Act’’. 

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1 SEC. 2. REPEAL OF EGTRRA SUNSET. 

2 Title IX of the Economic Growth and Tax Relief Rec3 onciliation Act of 2001 is repealed. 

4 SEC. 3. PERMANENT REDUCTIONS IN INDIVIDUAL CAPITAL 

5 GAINS AND DIVIDENDS TAX RATES. 

6 Section 303 of the Jobs and Growth Tax Relief Rec7 onciliation Act of 2003 (relating to sunset of title) is re8 pealed. 

9 SEC. 4. PERMANENT EXTENSION OF RESEARCH CREDIT. 

10 (a) IN GENERAL.—Section 41 of the Internal Rev11 enue Code of 1986 is amended by striking subsection (h). 

12 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

13 section 45C(b) of such Code is amended by striking sub14 paragraph (D). 

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

16 this section shall apply to amounts paid or incurred after 

17 the date of the enactment of this Act. 

18 SEC. 5. PERMANENT EXTENSION OF EXPENSING FOR 

19 SMALL BUSINESSES. 

20 (a) DOLLAR LIMITATION.—Paragraph (1) of section 

21 179(b) of the Internal Revenue Code of 1986 is amended 

22 by striking ‘‘$25,000 ($100,000 in the case of taxable 

23 years beginning after 2002 and before 2010)’’ and insert24 ing ‘‘$100,000’’. 

25 (b) REDUCTION IN LIMITATION.—Paragraph (2) of 

26 section 179(b) of the Internal Revenue Code of 1986 is 

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1 amended by striking ‘‘$200,000 ($400,000 in the case of 

2 taxable years beginning after 2002 and before 2010)’’ and 

3 inserting ‘‘$400,000’’. 

4 (c) INFLATION ADJUSTMENTS.—Subparagraph (A) 

5 of section 179(b)(5) of the Internal Revenue Code of 1986 

6 is amended by striking ‘‘and before 2010’’. 

7 (d) ELECTION.—Paragraph (2) of section 179(c) of 

8 the Internal Revenue Code of 1986 is amended by striking 

9 ‘‘and before 2010’’. 

10 (e) COMPUTER SOFTWARE.—Clause (ii) of section 

11 179(d)(1)(A) of the Internal Revenue Code of 1986 is 

12 amended by striking ‘‘and before 2010’’. 

13 SEC. 6. PERMANENT EXTENSION OF ABOVE-THE-LINE DE14 DUCTION FOR CERTAIN EXPENSES OF ELE15 MENTARY AND SECONDARY SCHOOL TEACH16 ERS. 

17 Subparagraph (D) of section 62(a)(2) of the Internal 

18 Revenue Code of 1986 is amended by striking ‘‘In the case 

19 of taxable years beginning during 2002, 2003, 2004, 

20 2005, 2006, or 2007, the deductions’’ and inserting ‘‘The 

21 deductions’’. 

22 SEC. 7. REPEAL OF INDIVIDUAL ALTERNATIVE MINIMUM 

23 TAX. 

24 (a) IN GENERAL.—Section 55(a) of the Internal Rev25 enue Code of 1986 (relating to alternative minimum tax 

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1 imposed) is amended by adding at the end the following 

2 new flush sentence: 

3 ‘‘For purposes of this title, the tentative minimum tax on 

4 any taxpayer other than a corporation for any taxable year 

5 beginning after December 31, 2006, shall be zero.’’. 

6 (b) MODIFICATION OF LIMITATION ON USE OF

7 CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY.— 

8 Subsection (c) of section 53 of the Internal Revenue Code 

9 of 1986 (relating to credit for prior year minimum tax 

10 liability) is amended to read as follows: 

11 ‘‘(c) LIMITATION.— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), the credit allowable under subsection (a) 

14 for any taxable year shall not exceed the excess (if 

15 any) of— 

16 ‘‘(A) the regular tax liability of the tax17 payer for such taxable year reduced by the sum 

18 of the credits allowable under subparts A, B, D, 

19 E, and F of this part, over 

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

21 taxable year. 

22 ‘‘(2) TAXABLE YEARS BEGINNING AFTER

23 2006.—In the case of any taxable year beginning 

24 after 2006, the credit allowable under subsection (a) 

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1 able year shall not exceed 90 percent of the regular 

2 tax liability of the taxpayer for such taxable year re3 duced by the sum of the credits allowable under sub4 parts A, B, D, E, and F of this part.’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2006. 

8 SEC. 8. SENSE OF THE SENATE REGARDING SIMPLIFICA9 TION OF THE FEDERAL INCOME TAX SYSTEM. 

10 (a) FINDINGS.—The Senate finds that— 

11 (1) the average time burden for all taxpayers 

12 filing a Form 1040 Federal income tax return is 30 

13 hours; 

14 (2) more than 6 in 10 Americans now hire 

15 someone to help prepare their tax returns every 

16 year; and 

17 (3) the hundreds of billions of dollars spent 

18 each year complying with the Federal tax system 

19 could be used more efficiently by families and busi20 nesses to grow the Nation’s economy and create 

21 jobs. 

22 (b) SENSE OF THE SENATE.—It is the sense of the 

23 Senate that the Committee on Finance of the Senate 

24 should report legislation before December 31, 2007, to 

25 simplify the Federal income tax system, ensuring that the 

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1 system is equitable, economically efficient, simple, trans2 parent and administrable, without raising tax rates. 

Æ 

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