I 
109TH CONGRESS 
1ST SESSION H. R. 3385 
To amend the Internal Revenue Code of 1986 to make the credit for prior 
year minimum tax liability refundable for individuals after a period 
of years, to require returns with respect to certain stock options, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 21, 2005 
Mr. SAM JOHNSON of Texas (for himself, Mr. NEAL of Massachusetts, Mr. 
MCCRERY, Mr. JEFFERSON, Mr. RAMSTAD, Mr. SHAW, Mrs. JOHNSON 
of Connecticut, Mr. ENGLISH of Pennsylvania, Ms. ZOE LOFGREN of 
California, Mr. SIMMONS, Mr. HONDA, Mr. MCCAUL of Texas, Mr. PAUL, 
and Mr. GERLACH) 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 make 
the credit for prior year minimum tax liability refundable 
for individuals after a period of years, to require returns 
with respect to certain stock options, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘AMT Credit Fairness 
Act of 2005’’.
SEC. 2. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY 
MADE 
REFUNDABLE 
AFTER 
PERIOD 
OF 
YEARS. 
(a) IN GENERAL.—Section 53 of the Internal Rev-
enue Code of 1986 (relating to credit for prior year min-
imum tax liability) is amended by adding at the end the 
following new subsection: 
‘‘(e) SPECIAL RULE FOR INDIVIDUALS WITH LONG- 
TERM UNUSED CREDITS.— 
‘‘(1) IN GENERAL.—If an individual has a long- 
term unused minimum tax credit for any taxable 
year, the amount determined under subsection (c) 
for such taxable year shall not be less than an 
amount equal to the greater of— 
‘‘(A) the lesser of— 
‘‘(i) $5,000, or 
‘‘(ii) the amount of such credit, or 
‘‘(B) 20 percent of the amount of such 
credit. 
‘‘(2) LONG-TERM UNUSED MINIMUM TAX CRED-
IT.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘long-term unused min-
imum tax credit’ means, with respect to any 
taxable year, the portion of the minimum tax 
credit determined under subsection (b) attrib-
utable to the adjusted net minimum tax for tax-
able years before the 3rd taxable year imme-
diately preceeding such taxable year. 
‘‘(B) 
FIRST-IN, 
FIRST-OUT
ORDERING 
RULE.—For purposes of subparagraph (A), 
credits shall be treated as allowed under sub-
section (a) on a first-in, first-out basis. 
‘‘(3) CREDIT REFUNDABLE.—For purposes of 
this title (other than this section), the credit allowed 
by reason of this subsection shall be treated as if it 
were allowed under subpart C.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (2) of 
section 1324(b) of title 31, United States Code, is amend-
ed by inserting ‘‘or 53(e)’’ after ‘‘section 35’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 3. RETURNS REQUIRED IN CONNECTION WITH CER-
TAIN OPTIONS. 
(a) IN GENERAL.—So much of section 6039(a) of the 
Internal Revenue Code of 1986 as follows paragraph (2) 
is amended to read as follows: 
‘‘shall, for such calendar year, make a return at such time 
and in such manner, and setting forth such information, 
as the Secretary may by regulations prescribe.’’.
(b) STATEMENTS TO PERSONS WITH RESPECT TO 
WHOM INFORMATION IS FURNISHED.—Section 6039 of 
such Code is amended by redesignating subsections (b) 
and (c) as subsection (c) and (d), respectively, and by in-
serting after subsection (a) the following new subsection: 
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS 
WITH
RESPECT
TO
WHOM
INFORMATION
IS
RE-
PORTED.—Every corporation making a return under sub-
section (a) shall furnish to each person whose name is set 
forth in such return a written statement setting forth such 
information as the Secretary may by regulations prescribe. 
The written statement required under the preceding sen-
tence shall be furnished to such person on or before Janu-
ary 31 of the year following the calendar year for which 
the return under subsection (a) was made.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6724(d)(1)(B) of such Code is 
amended by striking ‘‘or’’ at the end of clause (xvii), 
by striking ‘‘and’’ at the end of clause (xviii) and in-
serting ‘‘or’’, and by adding at the end the following 
new clause: 
‘‘(xix) section 6039(a) (relating to re-
turns required with respect to certain op-
tions), and’’.
(2) Section 6724(d)(2)(B) of such Code is 
amended by striking ‘‘section 6039(a)’’ and inserting 
‘‘section 6039(b)’’. 
(3) The heading of section 6039 of such Code 
and the item relating to such section in the table of 
sections of subpart A of part III of subchapter A of 
chapter 61 of such Code are each amended by strik-
ing ‘‘Information’’ and inserting ‘‘Returns’’. 
(4) The heading of subsection (a) of section 
6039 of such Code is amended by striking ‘‘FUR-
NISHING
OF INFORMATION’’ and inserting ‘‘RE-
QUIREMENT OF REPORTING’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
the date of the enactment of this Act. 
Æ