I 

108TH CONGRESS 

2D SESSION H. R. 3977

To amend the Internal Revenue Code of 1986 to allow the work opportunity 

credit, welfare-to-work credit, and research credit against the alternative 

minimum tax. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 16, 2004

Mr. ENGLISH 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 the 

work opportunity credit, welfare-to-work credit, and research credit against the alternative minimum 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. WORK OPPORTUNITY CREDIT, WELFARE-TO4 WORK CREDIT, AND RESEARCH CREDIT AL5 LOWED AGAINST ALTERNATIVE MINIMUM 

6 TAX. 

7 (a) IN GENERAL.—Subsection (c) of section 38 of the 

8 Internal Revenue Code of 1986 (relating to limitation 

9 based on amount of tax) is amended by redesignating 
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1 paragraph (4) as paragraph (7) and by inserting after 

2 paragraph (3) the following new paragraphs: 

3 ‘‘(4) SPECIAL RULES FOR WORK OPPORTUNITY

4 CREDIT.—

5 ‘‘(A) IN GENERAL.—In the case of the 

6 work opportunity credit—

7 ‘‘(i) this section and section 39 shall 

8 be applied separately with respect to such 

9 credit, and 

10 ‘‘(ii) in applying paragraph (1) to 

11 such credit—

12 ‘‘(I) subparagraph (A) shall not 

13 apply, and 

14 ‘‘(II) the limitation under para15 graph (1) (as modified by subclause 

16 (I)) shall be reduced by the credit al17 lowed under subsection (a) for the 

18 taxable year (other than the work op19 portunity credit, the welfare-to-work 

20 credit, or the research credit). 

21 ‘‘(B) WORK OPPORTUNITY CREDIT.—For 

22 purposes of this subsection, the term ‘work op23 portunity credit’ means the credit allowable 

24 under subsection (a) by reason of section 51(a). 
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1 ‘‘(5) SPECIAL RULES FOR WELFARE-TO-WORK

2 CREDIT.—

3 ‘‘(A) IN GENERAL.—In the case of the wel4 fare-to-work credit—

5 ‘‘(i) this section and section 39 shall 

6 be applied separately with respect to such 

7 credit, and 

8 ‘‘(ii) in applying paragraph (1) to 

9 such credit—

10 ‘‘(I) subparagraph (A) shall not 

11 apply, and 

12 ‘‘(II) the limitation under para13 graph (1) (as modified by subclause 

14 (I)) shall be reduced by the credit al15 lowed under subsection (a) for the 

16 taxable year (other than the welfare17 to-work credit or the research credit). 

18 ‘‘(B) WELFARE-TO-WORK CREDIT.—For 

19 purposes of this subsection, the term ‘welfare20 to-work credit’ means the credit allowable under 

21 subsection (a) by reason of section 51A(d)(2). 

22 ‘‘(6) SPECIAL RULES FOR RESEARCH CREDIT.—

23 ‘‘(A) IN GENERAL.—In the case of the re24 search credit—
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1 ‘‘(i) this section and section 39 shall 

2 be applied separately with respect to such 

3 credit, and 

4 ‘‘(ii) in applying paragraph (1) to 

5 such credit—

6 ‘‘(I) subparagraph (A) shall not 

7 apply, and 

8 ‘‘(II) the limitation under para9 graph (1) (as modified by subclause 

10 (I)) shall be reduced by the credit al11 lowed under subsection (a) for the 

12 taxable year (other than the research 

13 credit). 

14 ‘‘(B) RESEARCH CREDIT.—For purposes of 

15 this subsection, the term ‘research credit’ 

16 means the credit allowable under subsection (a) 

17 by reason of section 41.’’. 

18 (b) CONFORMING AMENDMENTS.—

19 (1) Subclause (II) of section 38(c)(2)(A)(ii) of 

20 such Code is amended—

21 (A) by striking ‘‘or’’ after ‘‘employment 

22 credit’’ and inserting a comma, and 

23 (B) by inserting ‘‘, the work opportunity 

24 credit, the welfare-to-work credit, or the re25 search credit’’ after ‘‘employee credit’’. 
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1 (2) Subclause (II) of section 38(c)(3)(A)(ii) of 

2 such Code is amended by inserting ‘‘, the work op3 portunity credit, the welfare-to-work, or the research 

4 credit’’ after ‘‘employee credit’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2004.

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