I
107TH CONGRESS
1ST SESSION
H. R. 871
To amend the Internal Revenue Code of 1986 to phaseout the alternative
minimum tax on individuals.
IN THE HOUSE OF REPRESENTATIVES
MARCH 6, 2001
Mr. COLLINS 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 phaseout
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.
This Act may be cited as the ‘‘Alternative Minimum
Tax Repeal Act of 2001’’.
SEC. 2. PHASEOUT OF ALTERNATIVE MINIMUM TAX ON IN-
DIVIDUALS.
(a) REPEAL IN 2011.—Subsection (a) of section 55
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new flush sentence:
‘‘For purposes of this title, the tentative minimum tax on
any taxpayer other than a corporation for any taxable year
beginning after December 31, 2010, shall be zero.’’.
(b) REDUCTION OF TAX ON INDIVIDUALS PRIOR TO
REPEAL.—
(1) IMMEDIATE
INCREASE
IN
EXEMPTION
AMOUNTS.—Paragraph (1) of section 55(d) of such
Code is amended—
(A) by striking ‘‘$45,000’’ and inserting
‘‘$52,000’’,
(B) by striking ‘‘$33,750’’ and inserting
‘‘$38,000’’, and
(C) by striking ‘‘$22,500’’ and inserting
‘‘1⁄2 the amount applicable under subparagraph
(A)’’.
(2) ADDITIONAL
INCREASES
IN
EXEMPTION
AMOUNTS; REPEAL OF PHASE-OUT OF EXEMPTION
AMOUNTS.—Paragraph (3) of section 55(d) of such
Code is amended to read as follows:
‘‘(3) INCREASES IN EXEMPTION AMOUNTS FOR
TAXPAYERS OTHER THAN CORPORATIONS.—
‘‘(A) 
IN
GENERAL.—The 
exemption
amounts under paragraph (1) for taxable years
beginning in any calendar year after 2001 shall
be determined by increasing the dollar amounts
contained in subparagraphs (A) and (B) of
paragraph (1) by the applicable percentage for
such calendar year of such dollar amounts.
‘‘(B) 
APPLICABLE
PERCENTAGE.—For
purposes of subparagraph (A), the applicable
percentage shall be determined in accordance
with the following table:
‘‘For calendar year—
The applicable
percentage is—
2002 .............................................................................
2003 .............................................................................
2004 .............................................................................
2005 .............................................................................
2006 .............................................................................
2007 .............................................................................
2008 .............................................................................
2009 .............................................................................
2010 .............................................................................
90.
‘‘(C) ROUNDING.—If any amount, as in-
creased under subparagraph (A) is not a mul-
tiple of $5, such amount shall be increased to
the nearest multiple of $5.’’
(c) NONREFUNDABLE PERSONAL CREDITS FULLY
ALLOWED AGAINST REGULAR TAX LIABILITY.—
(1) IN GENERAL.—Subsection (a) of section 26
of such Code (relating to limitation based on amount
of tax) is amended 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 sum of—
‘‘(1) the taxpayer’s regular tax liability for the
taxable year reduced by the foreign tax credit allow-
able under section 27(a), and
‘‘(2) the tax imposed by section 55(a) for the
taxable year.’’
(2) REPEAL OF REDUCTION OF REFUNDABLE
TAX CREDITS.—
(A) Subsection (d) of section 24 of such
Code is amended by striking paragraph (2) and
redesignating paragraph (3) as paragraph (2).
(B) Section 32 of such Code is amended by
striking subsection (h).
(3) CONFORMING
AMENDMENT.—Section 904
of such Code is amended by striking subsection (h).
(d) LIMITATION ON USE OF CREDIT FOR PRIOR
YEAR MINIMUM TAX LIABILITY.—Subsection (c) of sec-
tion 53 of such Code is amended to read as follows:
‘‘(c) LIMITATION.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the credit allowable under
subsection (a) for any taxable year shall not exceed
the excess (if any) of—
‘‘(A) the regular tax liability of the tax-
payer for such taxable year reduced by the sum