[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 43 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 43
To amend the Internal Revenue Code of 1986 to repeal the alternative
minimum tax on corporations and individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 7, 2003
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 repeal the alternative
minimum tax on corporations and individuals.
Be it enacted by the Senate and House of Representatives 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 2003''.
SEC. 2. REPEAL OF ALTERNATIVE MINIMUM TAX ON CORPORATIONS.
(a) In General.--Subsection (a) of section 55 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
sentence:
``No tax shall be imposed by this section on any corporation for any
taxable year beginning after December 31, 2002, and the tentative
minimum tax of any corporation for any such taxable year shall be zero
for purposes of this title.''
(b) Limitation on Use of Credit for Prior Year Minimum Tax
Liability.--Subsection (c) of section 53 of such Code is amended to
read as follows:
``(c) Limitation.--
``(1) In general.--Except as otherwise provided 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 taxpayer for
such taxable year reduced by the sum of the credits
allowable under subparts A, B, D, E, and F of this
part, over
``(B) the tentative minimum tax for the taxable
year.
``(2) Corporations.--In the case of corporation for any
taxable year beginning after December 31, 2002, the limitation
under paragraph (1) shall be determined--
``(A) without regard to the last sentence of
section 55(a), and
``(B) by taking into account only the applicable
percentage of the tentative minimum tax determined in
accordance with the following table.
``For taxable years beginning
The applicable
in calendar year--
percentage is--
2003........................................... 80
2004........................................... 60
2005........................................... 40
2006........................................... 20
2007 or thereafter............................. 0.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
SEC. 3. REPEAL OF ALTERNATIVE MINIMUM TAX ON INDIVIDUALS.
(a) Repeal in 2011.--Subsection (a) of section 55 of the Internal
Revenue Code of 1986 is amended by adding 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, 2012, 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 ($49,000 in the case of
taxable years beginning in 2001, 2002, 2003, and
2004)'' and inserting ``$52,000'',
(B) by striking ``$33,750 ($37,750 in the case of
taxable years beginning in 2001, 2002, 2003, and
2004)'' 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 2003 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--
2004................................... 10
2005................................... 20
2006................................... 30
2007................................... 40
2008................................... 50
2009................................... 60
2010................................... 70
2011................................... 80
2012................................... 90.
``(C) Rounding.--If any amount, as increased under
subparagraph (A) is not a multiple 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 allowable under section
27(a), and
``(2) the tax imposed by section 55(a) for the taxable
year.''.
(2) 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 section 53 of such Code, as amended by
section 1, is amended by adding at the end the following new paragraph:
``(3) Individuals for taxable years beginning after 2012.--
In the case of any taxable year beginning after 2012, the
credit allowable under subsection (a) to a taxpayer other than
a corporation for any taxable year shall not exceed 90 percent
of the excess (if any) of--
``(A) regular tax liability of the taxpayer for
such taxable year, over
``(B) the sum of the credits allowable under
subparts A, B, D, E, and F of this part.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E31)
Referred to the House Committee on Ways and Means.
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