I 

108TH CONGRESS 

1ST SESSION H. R. 43

To amend the Internal Revenue Code of 1986 to repeal the alternative 

minimum tax on corporations and individuals. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2003

Mr. COLLINS 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 repeal 

the alternative minimum tax on corporations and individuals.

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 Repeal Act of 2003’’.

6 SEC. 2. REPEAL OF ALTERNATIVE MINIMUM TAX ON COR7 PORATIONS. 

8 (a) IN GENERAL.—Subsection (a) of section 55 of the 

9 Internal Revenue Code of 1986 is amended by adding at 

10 the end the following new sentence: 
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1 ‘‘No tax shall be imposed by this section on any corpora2 tion for any taxable year beginning after December 31, 

3 2002, and the tentative minimum tax of any corporation 

4 for any such taxable year shall be zero for purposes of 

5 this title.’’

6 (b) LIMITATION ON USE OF CREDIT FOR PRIOR

7 YEAR MINIMUM TAX LIABILITY.—Subsection (c) of sec8 tion 53 of such Code is amended to read as follows: 

9 ‘‘(c) LIMITATION.—

10 ‘‘(1) IN GENERAL.—Except as otherwise pro11 vided in this subsection, the credit allowable under 

12 subsection (a) for any taxable year shall not exceed 

13 the excess (if any) of—

14 ‘‘(A) the regular tax liability of the tax15 payer for such taxable year reduced by the sum 

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

17 E, and F of this part, over 

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

19 taxable year. 

20 ‘‘(2) CORPORATIONS.—In the case of corpora21 tion for any taxable year beginning after December 

22 31, 2002, the limitation under paragraph (1) shall 

23 be determined—

24 ‘‘(A) without regard to the last sentence of 

25 section 55(a), and 
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1 ‘‘(B) by taking into account only the appli2 cable percentage of the tentative minimum tax 

3 determined in accordance with the following 

4 table.

‘‘For taxable years beginning The applicable 

in calendar year— percentage is—

2003 ..................................................................................... 80

2004 ..................................................................................... 60

2005 ..................................................................................... 40

2006 ..................................................................................... 20

2007 or thereafter ................................................................ 0.’’.

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2002. 

8 SEC. 3. REPEAL OF ALTERNATIVE MINIMUM TAX ON INDI9 VIDUALS. 

10 (a) REPEAL IN 2011.—Subsection (a) of section 55 

11 of the Internal Revenue Code of 1986 is amended by add12 ing at the end the following new flush sentence: 

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

14 any taxpayer other than a corporation for any taxable year 

15 beginning after December 31, 2012, shall be zero.’’. 

16 (b) REDUCTION OF TAX ON INDIVIDUALS PRIOR TO

17 REPEAL.—

18 (1) IMMEDIATE INCREASE IN EXEMPTION

19 AMOUNTS.—Paragraph (1) of section 55(d) of such 

20 Code is amended—
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1 (A) by striking ‘‘$45,000 ($49,000 in the 

2 case of taxable years beginning in 2001, 2002, 

3 2003, and 2004)’’ and inserting ‘‘$52,000’’, 

4 (B) by striking ‘‘$33,750 ($37,750 in the 

5 case of taxable years beginning in 2001, 2002, 

6 2003, and 2004)’’ and inserting ‘‘$38,000’’, 

7 and 

8 (C) by striking ‘‘$22,500’’ and inserting 

‘‘1 9 ⁄2 the amount applicable under subparagraph 

10 (A)’’. 

11 (2) ADDITIONAL INCREASES IN EXEMPTION

12 AMOUNTS; REPEAL OF PHASE-OUT OF EXEMPTION

13 AMOUNTS.—Paragraph (3) of section 55(d) of such 

14 Code is amended to read as follows: 

15 ‘‘(3) INCREASES IN EXEMPTION AMOUNTS FOR

16 TAXPAYERS OTHER THAN CORPORATIONS.—

17 ‘‘(A) IN GENERAL.—The exemption 

18 amounts under paragraph (1) for taxable years 

19 beginning in any calendar year after 2003 shall 

20 be determined by increasing the dollar amounts 

21 contained in subparagraphs (A) and (B) of 

22 paragraph (1) by the applicable percentage for 

23 such calendar year of such dollar amounts. 

24 ‘‘(B) APPLICABLE PERCENTAGE.—For 

25 purposes of subparagraph (A), the applicable 
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1 percentage shall be determined in accordance 

2 with the following table:

‘‘For calendar year— The applicable 

percentage is—

2004 ............................................................................. 10

2005 ............................................................................. 20

2006 ............................................................................. 30

2007 ............................................................................. 40

2008 ............................................................................. 50

2009 ............................................................................. 60

2010 ............................................................................. 70

2011 ............................................................................. 80

2012 ............................................................................. 90.

3 ‘‘(C) ROUNDING.—If any amount, as in4 creased under subparagraph (A) is not a mul5 tiple of $5, such amount shall be increased to 

6 the nearest multiple of $5.’’

7 (c) NONREFUNDABLE PERSONAL CREDITS FULLY

8 ALLOWED AGAINST REGULAR TAX LIABILITY.—

9 (1) IN GENERAL.—Subsection (a) of section 26 

10 of such Code (relating to limitation based on amount 

11 of tax) is amended to read as follows: 

12 ‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The 

13 aggregate amount of credits allowed by this subpart for 

14 the taxable year shall not exceed the sum of—

15 ‘‘(1) the taxpayer’s regular tax liability for the 

16 taxable year reduced by the foreign tax credit allow17 able under section 27(a), and 

18 ‘‘(2) the tax imposed by section 55(a) for the 

19 taxable year.’’. 
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1 (2) CONFORMING AMENDMENT.—Section 904 

2 of such Code is amended by striking subsection (h). 

3 (d) LIMITATION ON USE OF CREDIT FOR PRIOR

4 YEAR MINIMUM TAX LIABILITY.—Subsection (c) of sec5 tion 53 of such Code, as amended by section 1, is amended 

6 by adding at the end the following new paragraph: 

7 ‘‘(3) INDIVIDUALS FOR TAXABLE YEARS BEGIN8 NING AFTER 2012.—In the case of any taxable year 

9 beginning after 2012, the credit allowable under 

10 subsection (a) to a taxpayer other than a corpora11 tion for any taxable year shall not exceed 90 percent 

12 of the excess (if any) of—

13 ‘‘(A) regular tax liability of the taxpayer 

14 for such taxable year, over 

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

16 under subparts A, B, D, E, and F of this 

17 part.’’. 

18 (e) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2002.

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