I
106TH CONGRESS
1ST SESSION
H. R. 1561
To amend the Internal Revenue Code of 1986 to repeal the alternative
minimum tax on individuals.
IN THE HOUSE OF REPRESENTATIVES
APRIL 26, 1999
Mr. CRANE 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 individuals.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Tax Equity Preservation 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
(5) Subsection (c) of section 26 is amended by
inserting before the period ‘‘; except that such
amount shall be treated as being zero in the case of
a taxpayer other than a corporation.’’
(6) Paragraph (6) of section 29(b) is amended
to read as follows:
‘‘(6) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the regular tax for the taxable
year reduced by the sum of the credits allowable
under subpart A and section 27. In the case of a
corporation, the limitation under the preceding sen-
tence shall be reduced (but not below zero) by the
tentative minimum tax for the taxable year.’’.
(7) Paragraph (3) of section 30(b) is amended
to read as follows:
‘‘(3) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the regular tax for the taxable
year reduced by the sum of the credits allowable
under subpart A and sections 27 and 29. In the case
of a corporation, the limitation under the preceding
sentence shall be reduced (but not below zero) by the
tentative minimum tax for the taxable year.’’.
(8) Section 32 is amended by striking sub-
section (h).
(9) Subsection (d) of section 53(d) 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 in-
creased by the amount of the credit not allowed
under section 29 (relating to credit for producing
fuel from a nonconventional source) solely by reason
of the application of the last sentence of section
29(b)(6), or not allowed under section 30 solely by
reason of the application of the last sentence of sec-
tion 30(b)(3).
‘‘(2) TENTATIVE
MINIMUM
TAX.—The term
‘tentative minimum tax’ has the meaning given to
such term by section 55(b); except that such tax
shall be treated as being zero in the case of a tax-
payer other than a corporation.’’.
(10)(A) Subsection (b) of section 55 (relating
to alternative minimum tax imposed) is amended to
read as follows:
‘‘(b) TENTATIVE MINIMUM TAX.—For purposes of
this part—
‘‘(1) AMOUNT OF TENTATIVE TAX.—The ten-
tative minimum tax for the taxable year is—
‘‘(A) 20 percent of so much of the alter-
native minimum taxable income for the taxable
year as exceeds the exemption amount, reduced
by
‘‘(B) the alternative minimum tax foreign
tax credit for the taxable year.
‘‘(2) ALTERNATIVE
MINIMUM
TAXABLE
IN-
COME.—The term ‘alternative minimum taxable in-
come’ means the taxable income of the taxpayer for
the taxable year—
‘‘(A) determined with the adjustments pro-
vided in section 56, and
‘‘(B) increased by the amount of the items
of tax preference described in section 57.
If a taxpayer is subject to the regular tax, such tax-
payer shall be subject to the tax imposed by this sec-
tion (and, if the regular tax is determined by ref-
erence to an amount other than taxable income, such
amount shall be treated as the taxable income of
such taxpayer for purposes of the preceding sen-
tence).’’.
(B) Subsection (d) of section 55 is amended to
read as follows:
‘‘(d) EXEMPTION AMOUNT.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The term ‘exemption
amount’ means $40,000.
‘‘(2) PHASE-OUT
OF
EXEMPTION
AMOUNT.—
The exemption amount of any taxpayer shall be re-
duced (but not below zero) by an amount equal to
25 percent of the amount by which the alternative
minimum taxable income of the taxpayer exceeds
$150,000.’’.
(11)(A) Paragraph (6) of section 56(a) is
amended to read as follows:
‘‘(6) ADJUSTED BASIS.—The adjusted basis of
any property to which paragraph (1) or (5) applies
(or with respect to which there are any expenditures
to which paragraph (2) applies) shall be determined
on the basis of the treatment prescribed in para-
graph (1), (2), or (5), whichever applies.’’.
(B) Section 56 is amended by striking sub-
section (b).
(C) Subsection (c) of section 56 is amended by
striking so much of the subsection as precedes para-
graph (1), by redesignating paragraphs (1), (2), and
(3) as paragraphs (8), (9), and (10), respectively,
and moving them to the end of subsection (a).