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 (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, 28, and 29.’’
(8) Subsection (h) of section 32 (relating to re-
duction of credit to taxpayers subject to alternative
minimum tax) is hereby repealed.
(9) Subsection (c) of section 38 (relating to
business related credits) 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).
(10) Subsection (c) of section 53 is amended by
striking ‘‘the excess’’ and all that follows and insert-
ing ‘‘the regular tax liability of the taxpayer for such
taxable year reduced by the sum of the credits allow-
able under subparts A, B, D, E, and F of this part.’’
(11) 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 1995.’’.
(12)(A) Paragraph (2) of section 148(b) is
amended by adding at the end the following new
flush sentence:
‘‘Such term shall not include any tax-exempt bond.’’
(B) Paragraph (3) of section 148(b) (relating
to higher yield investments) is hereby repealed.
(13) Subparagraph (B) of section 149(g)(3)
(relating to hedge bonds) is amended by striking all
that follows ‘‘invested in bonds’’ and inserting ‘‘the
interest on which is not includible in gross income
under section 103.’’
(14) Section 173 (relating to circulation ex-
penditures) is amended by striking ‘‘(a) GENERAL
RULE.—’’ and by striking subsection (b).
(15) 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).’’
(16) Subsection (c) of section 263 (relating to
capital expenditures) is amended by striking ‘‘59(e)
or’’.
(17) Subsection (c) of section 263A (relating to
capitalization and inclusion in inventory costs of cer-
tain expenses) is amended by striking paragraph (6).
(18) Section 382(l) (relating to net operating
loss carryforwards and certain built-in losses follow-
ing ownership change) is amended by striking para-
graph (7).
(19) Section 443 (relating to adjustment in
computing minimum tax and tax preferences) is
amended by striking subsection (d) and by redesig-
nating subsection (e) as subsection (d).
(20) Section 617 (relating to deduction and re-
capture of certain mining exploration expenditures)
is amended by striking subsection (i).
(21) Subsections (b) and (c) of section 666 (re-
lating to accumulation distribution of trust allocated
to preceding years) are each amended by striking
‘‘(other than the tax imposed by section 55)’’.
(22) 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).
(23) 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).
(24) Paragraph (1) of section 871(b) (relating
to tax on nonresident alien individuals) is amended
by striking ‘‘, 55,’’.
(25) Subsection (b) of section 877 (relating to
expatriation to avoid tax) is amended by striking
‘‘, 55,’’.
(26) Paragraph (1) of section 882(a) is amend-
ed by striking ‘‘55,’’.
(27) 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 individ-
ual, under section 871(b)(1), or
‘‘(2) in the case of a foreign corporation, under
section 8872(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.’’
(28) Subsection (j) of section 904 (relating to
limitation on credit) is amended to read as follows:
‘‘(j) 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).’’
(29) 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’’.
(30) 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 1995’’ after ‘‘preferences)’’.
(31) 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.
(32) Subparagraph (A) of section 6425(c)(1)
(defining income tax liability) is amended—
(A) by inserting ‘‘plus’’ at the end of
clause (i), and
(B) by striking clause (ii) and by redesig-
nating clause (iii) as clause (ii).
(33) Section 6654(d)(2) (relating to failure by
individual to pay estimated income tax) is amend-
ed—
(A) in clause (i) of subparagraph (B), by
striking ‘‘, alternative minimum taxable in-
come,’’, and
(B) in clause (i) of subparagraph (C), by
striking ‘‘, alternative minimum taxable in-
come,’’.
(34) Subparagraph (C) of section 6662(e)(3)
(relating to accuracy-related penalty) is amended by
inserting ‘‘, as in effect on the day before the date
of the enactment of the Alternative Minimum Tax
Repeal Act of 1995’’ after ‘‘55(c)’’.
(c) CLERICAL AMENDMENTS.—The table of parts for
subchapter A of chapter 1 is amended by striking the item
relating to part VI.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect in taxable years beginning
after December 31, 1994.
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