I
106TH CONGRESS
1ST SESSION
H. R. 2364
To amend the Internal Revenue Code of 1986 to repeal the alternative
minimum tax.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1999
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 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 1999’’.
(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 of the Internal Revenue Code of 1986 (relating to
alternative minimum tax) is hereby repealed.
(b) 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) Subsection (d) of section 24 (relating to
child tax credit) is amended by striking paragraph
(2) and redesignating paragraph (3) as paragraph
(2).
(7) 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).
(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 (h) of section 32 (relating to re-
duction of credit to taxpayers subject to alternative
minimum tax) is hereby repealed.
(10) 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
25 percent of so much of the taxpayer’s net regular
tax liability as exceeds $25,000. For purposes of the
preceding sentence, the term ‘net regular tax liabil-
ity’ means the regular tax liability 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).
(11) Subsection (c) of section 53 (relating to
credit for prior year minimum tax liability) is
amended by striking ‘‘the excess’’ and all that fol-
lows and inserting ‘‘the regular tax liability of the
taxpayer for such taxable year reduced by the sum
(21) Section 617 (relating to deduction and re-
capture of certain mining exploration expenditures)
is amended by striking subsection (i).
(22) 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)’’.
(23)(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.
(B) Subsection (c) of section 772 is amended—
(i) in paragraph (2), by striking ‘‘para-
graphs (3)(A) and (5)(A)’’ and inserting ‘‘para-
graph (3)(A)’’,
(ii) by striking paragraph (5), and
(iii) by redesignating paragraph (6) as
paragraph (5), and in that paragraph by strik-
ing ‘‘paragraph (6) of subsection (a)’’ and in-
serting ‘‘paragraph (5) of subsection (a)’’.
(C) Subsection (d) of section 772 is amended—
(i) by striking paragraph (3) and redesig-
nating paragraphs (4), (5), and (6) as para-
graphs (3), (4), and (5), respectively, and
(ii) in subparagraph (A) of paragraph (3),
as so redesignated, by striking ‘‘subsection
(a)(11)’’ and inserting ‘‘subsection (a)(10)’’.
(24) Section 847 (relating to special estimated
tax payments) is amended—
(A) in paragraph (9), by striking the last
sentence;
(B) in paragraph (10), by inserting ‘‘and’’
at the end of subparagraph (A) and by striking
subparagraph (B) and redesignating subpara-
graph (C) as subparagraph (B).
(25) Section 848 (relating to capitalization of
certain policy acquisition expenses) is amended by
striking subsection (i) and by redesignating sub-
section (j) as subsection (i).
(26) Paragraph (1) of section 871(b) (relating
to tax on nonresident alien individuals) is amended
by striking ‘‘, 55,’’.
(27) Subsection (b) of section 877 (relating to
expatriation to avoid tax) is amended by striking ‘‘or
55’’.
(28) Paragraph (1) of section 882(a) (relating
to tax on income of foreign corporations connected
with United States business) is amended by striking
‘‘55,’’.
(29) Subsection (a) of section 897 (relating to
disposition of investment in United States real prop-
erty) is amended to read as follows:
‘‘(a) TREATMENT
AS EFFECTIVELY CONNECTED
WITH UNITED STATES TRADE OR BUSINESS.—For pur-
poses of this title, gain or loss of a nonresident alien indi-
vidual or a foreign corporation from the disposition of a
United States real property interest shall be taken into
account—
‘‘(1) in the case of a nonresident alien indi-
vidual, under section 871(b)(1), or
‘‘(2) in the case of a foreign corporation, under
section 882(a)(1),
as if the taxpayer were engaged in a trade or business
within the United States during the taxable year and as
if such gain or loss were effectively connected with such
trade or business.’’
(30) Subsection (k) of section 904 (relating to
limitation on credit) is amended to read as follows:
‘‘(k) CROSS REFERENCE.—
‘‘For increase of limitation under subsection (a)
for taxes paid with respect to amounts received
which were included in the gross income of the tax-
payer for a prior taxable year as a United States
shareholder with respect to a controlled foreign cor-
poration, see section 960(b).’’
(31) Paragraph (1) of section 962(a) (relating
to election by individuals to be subject to tax at cor-
porate rates) is amended—
(A) by striking ‘‘sections 1 and 55’’ and
inserting ‘‘section 1’’, and
(B) by striking ‘‘sections 11 and 55’’ and
inserting ‘‘section 11’’.
(32) Paragraph (20) of section 1016(a) (relat-
ing to adjustments to basis) is amended by inserting
‘‘, as in effect on the day before the date of the en-
actment of the Alternative Minimum Tax Repeal Act
of 1999’’ after ‘‘preferences)’’.
(33) Paragraph (1) of section 1397E(c) (relat-
ing to credit to holders of qualified zone academy
bonds) is amended by striking ‘‘plus the tax imposed
by section 55’’.
(34) Subsection (a) of section 1561 (relating to
limitations on certain multiple tax benefits in the
case of certain controlled corporations) is amended
by striking the last sentence.