I 
108TH CONGRESS 
1ST SESSION H. R. 1233
To amend the Internal Revenue Code of 1986 to repeal the alternative 
minimum tax. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 12, 2003
Mr. ENGLISH (for himself, Mr. MCCRERY, Mr. PAUL, and Mr. HERGER) in-
troduced 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Alternative Minimum Tax Repeal Act of 2003’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
SEC. 2. ALTERNATIVE MINIMUM TAX. 
(a) IN GENERAL.—Part VI of subchapter A of chap-
ter 1 (relating to alternative minimum tax) is hereby re-
pealed. 
(b) USE OF CREDIT FOR PRIOR YEAR MINIMUM TAX 
LIABILITY.—Subsection (c) of section 53 is amended to 
read as follows: 
‘‘(c) LIMITATIONS.—The credit allowable under sub-
section (a) for any taxable year shall not exceed 90 percent 
of the regular tax liability of the taxpayer for such taxable 
year reduced by the sum of the credits allowable under 
subparts A, B, D, E, and F of this part.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 1(g)(7) (relat-
ing to election to claim certain unearned income of 
child on parent’s return) is amended—
(A) by inserting ‘‘and’’ at the end of clause 
(i), 
(B) by striking ‘‘and’’ at the end of clause 
(ii) and inserting a period, and 
(C) by striking clause (iii). 
(2) Subsection (d) of section 2 (relating to 
taxes imposed on nonresident aliens) is amended by
striking ‘‘sections 1 and 55’’ and inserting ‘‘section 
1’’. 
(3) Subsection (a) of section 5 (relating to cross 
references relating to tax on individuals) is amended 
by striking paragraph (4). 
(4) Subsection (d) of section 11 (relating to 
taxes imposed on foreign corporations) is amended 
by striking ‘‘the taxes imposed by subsection (a) and 
section 55’’ and inserting ‘‘the tax imposed by sub-
section (a)’’. 
(5) Section 12 (relating to cross references re-
lating to tax on corporations) is amended by striking 
paragraph (7). 
(6) Section 26 (relating to limitation based on 
tax liability; definition of tax liability) is amended—
(A) by amending subsection (a) to read as 
follows: 
‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The 
aggregate amount of credits allowed by this subpart for 
the taxable year shall not exceed the taxpayer’s regular 
tax liability for the taxable year.’’, 
(B) in subsection (b)(2), by striking sub-
paragraph (A) and by redesignating subpara-
graphs (B) through (N) as subparagraphs (A) 
through (M), respectively, and
(C) by striking subsection (c). 
(7) Paragraph (6) of section 29(b) (relating to 
credit for producing fuel from a nonconventional 
source) is amended striking ‘‘the excess’’ and all 
that follows and inserting ‘‘the regular tax for the 
taxable year reduced by the sum of the credits allow-
able under subpart A and section 27.’’
(8) Paragraph (3) of section 30(b) (relating to 
credit for qualified electric vehicles) is amended by 
striking ‘‘the excess’’ and all that follows and insert-
ing ‘‘the regular tax for the taxable year reduced by 
the sum of the credits allowable under subpart A 
and sections 27 and 29.’’
(9) Subsection (c) of section 38 (relating to 
general business credit) is amended—
(A) by striking paragraphs (1) and (2) and 
inserting the following new paragraph: 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess (if any) of—
‘‘(A) the taxpayer’s net regular tax liabil-
ity, over
‘‘(B) 25 percent of so much of the tax-
payer’s net regular tax liability as exceeds 
$25,000.
For purposes of the preceding sentence, the term 
‘net regular tax liability’ means the regular tax li-
ability reduced by the sum of the credits allowable 
under subparts A and B of this part.’’, and 
(B) by redesignating paragraph (3) as 
paragraph (2).
(10) Paragraph (4) of section 45A(d) (relating 
to Indian employment credit) is amended by striking 
‘‘for purposes’’ and all that follows and inserting 
‘‘for purposes of determining the amount of any 
credit allowable under this chapter.’’
(11) Subparagraph (B) of section 45D(g)(4) 
(relating to new markets tax credit) is amended by 
striking ‘‘or for purposes of section 55’’. 
(12) Subsection (d) of section 53 (relating to 
credit for prior year minimum tax liability) is 
amended to read as follows: 
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) NET MINIMUM TAX.—The term ‘net min-
imum tax’ means the tax imposed by section 55. 
‘‘(2) CREDIT NOT ALLOWED FOR EXCLUSION 
PREFERENCES.—
‘‘(A) ADJUSTED NET MINIMUM TAX.—Ex-
cept as provided in subparagraph (C), the ad-
justed net minimum tax for any taxable year 
is—
‘‘(i) the amount of the net minimum 
tax for such taxable year, reduced by 
‘‘(ii) the amount which would be the 
net minimum tax for such taxable year if 
the only adjustments and items of tax 
preference taken into account were those 
specified in subparagraph (B) and if sec-
tion 59(a)(2) did not apply. 
‘‘(B) SPECIFIED
ITEMS.—The following 
are specified in this subparagraph—
‘‘(i) the adjustments provided for in 
subsection (b)(1) of section 56, and 
‘‘(ii) the items of tax preference de-
scribed in paragraphs (1), (5) and (7) of 
section 57(a). 
‘‘(C) CREDIT ALLOWABLE FOR EXCLUSION 
PREFERENCES OF CORPORATIONS.—In the case 
of a corporation, the adjusted net minimum tax 
for any taxable year is the amount of the net 
minimum tax for such year. 
‘‘(3) TREATMENT OF REFERENCES.—For pur-
poses of this subsection, references to sections 55, 
56, 57, and 59 shall be treated as references to such
sections as in effect on the day before the date of 
the enactment of the Alternative Minimum Tax Re-
peal Act of 2003.’’. 
(13) Subsection (b) of section 59A (relating to 
environmental tax) is amended by adding at the end 
the following: 
‘‘For purposes of this subsection, references to sections 
55 and 56 shall be treated as references to such sections 
as in effect on the day before the date of the enactment 
of the Alternative Minimum Tax Repeal Act of 2003.’’. 
(14)(A) Paragraph (2) of section 148(b) (relat-
ing to higher yield investments) is amended by add-
ing at the end the following new flush sentence: 
‘‘Such term shall not include any tax-exempt bond.’’
(B) Paragraph (3) of section 148(b) is hereby 
repealed. 
(15) Subparagraph (B) of section 149(g)(3) 
(relating to hedge bonds) is amended—
(A) in the heading, by striking ‘‘BONDS 
NOT SUBJECT TO MINIMUM TAX.—’’ and insert-
ing ‘‘BONDS.—’’, and 
(B) by striking all that follows ‘‘invested in 
bonds’’ and inserting ‘‘the interest on which is 
not includible in gross income under section 
103.’’
(16) Subsection (j) of section 168 (relating to 
accelerated cost recovery system) is amended by 
striking paragraph (3). 
(17) Section 173 (relating to circulation ex-
penditures) is amended by striking ‘‘(a) GENERAL 
RULE.—’’ and by striking subsection (b). 
(18) Subsection (f) of section 174 (relating to 
research and experimental expenditures) is amended 
to read as follows: 
‘‘(f) CROSS REFERENCE.—
‘‘For adjustments to basis of property for amounts 
allowed as deductions as deferred expenses under 
subsection (b), see section 1016(a)(14).’’
(19) Subsection (c) of section 263 (relating to 
capital expenditures) is amended by striking ‘‘59(e) 
or’’. 
(20) Subsection (c) of section 263A (relating to 
capitalization and inclusion in inventory costs of cer-
tain expenses) is amended by striking paragraph (6). 
(21) Section 382(l) (relating to limitation on 
net operating loss carryforwards and certain built-in 
losses following ownership change) is amended by
striking paragraph (7) and by redesignating para-
graph (8) as paragraph (7). 
(22) Section 443 (relating to returns for a pe-
riod of less than 12 months) is amended by striking
subsection (d) and by redesignating subsection (e) as 
subsection (d). 
(23) Section 616 (relating to development ex-
penditures) is amended by striking subsection (e). 
(24) Section 617 (relating to deduction and re-
capture of certain mining exploration expenditures) 
is amended by striking subsection (i). 
(25) Subsection (c) of section 641 (relating to 
imposition of tax) is amended—
(A) in paragraph (2) by striking subpara-
graph (B) and redesignating subparagraphs (C) 
and (D) as subparagraphs (B) and (C), respec-
tively, and 
(B) in paragraph (3), by striking ‘‘para-
graph 
(2)(C)’’ 
and 
inserting 
‘‘paragraph 
(2)(B)’’. 
(26) Subsections (b) and (c) of section 666 (re-
lating to accumulation distribution allocated to pre-
ceding years) are each amended by striking ‘‘(other 
than the tax imposed by section 55)’’. 
(27)(A) Subsection (a) of section 772 (relating 
to simplified flow-through) is amended by striking 
paragraph (5) and redesignating paragraphs (6), 
(7), (8), (9), (10), and (11) as paragraphs (5), (6), 
(7), (8), (9), and (10), respectively.