To amend the Internal Revenue Code of 1986 to allow the deduction for State and local income and property taxes under the alternative minimum tax.

Amends the Internal Revenue Code to allow the tax deduction for state and local income and property taxes as an adjustment in computing alternative minium taxable income.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2987 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2987

 To amend the Internal Revenue Code of 1986 to allow the deduction for 
State and local income and property taxes under the alternative minimum 
                                  tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2005

 Mr. Andrews 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 allow the deduction for 
State and local income and property taxes under the alternative minimum 
                                  tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEDUCTION FOR STATE AND LOCAL INCOME AND PROPERTY TAXES 
              ALLOWED UNDER THE ALTERNATIVE MINIMUM TAX.

    (a) In General.--Subparagraph (A) of section 56(b)(1) of the 
Internal Revenue Code of 1986 (relating to general limitation on 
deductions) is amended by striking ``or'' at the end of clause (i) and 
by striking clause (ii) and inserting the following new clauses:
                            ``(ii) for any foreign real property taxes 
                        described in paragraph (1) of section 164(a), 
                        or
                            ``(iii) for so much of paragraph (3) of 
                        section 164(a) as relates to foreign income, 
                        war profits, and excess profits taxes.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2004.
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