S.Amdt. 2606

1. Adds SEC. ___. EXTENSION AND INCREASE IN MINIMUM TAX RELIEF TO INDIVIDUALS on page 235, between lines 13 and 14

   Adds a sectionPrinted page

   Inserted: SEC. ___. EXTENSION AND INCREASE IN MINIMUM TAX RELIEF TO INDIVIDUALS.

   Inserted: (a) In General.--Section 55(d)(1) is amended--

   Inserted: (1) by striking "$58,000" and all that follows through "2005" in subparagraph (A) and inserting "$62,550 in the case of taxable years beginning in 2006", and

   Inserted: (2) by striking "$40,250" and all that follows through "2005" in subparagraph (B) and inserting "$42,500 in the case of taxable years beginning in 2006".

   Inserted: (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2005.

   Inserted: SEC. ___. MODIFICATION OF EXCLUSION FOR CITIZENS LIVING ABROAD.

   Inserted: (a) Inflation Adjustment of Foreign Earned Income Limitation.--Clause (ii) of section 911(b)(2)(D) (relating to inflation adjustment) is amended--

   Inserted: (1) by striking "2007" and inserting "2005", and

   Inserted: (2) by striking "2006" in subclause (II) and inserting "2004".

   Inserted: (b) Modification of Housing Cost Amount.--

   Inserted: (1) Minimum amount.--Clause (i) of section 911(c)(1)(B) is amended to read as follows:

   Inserted: "(i) 16 percent of the amount (computed on a daily basis) in effect under subsection (b)(2)(D) for the calendar year in which such taxable year begins, multiplied by".

   Show 29 more inserted paragraphsShow less

   Inserted: (2) Maximum amount of exclusion.--

   Inserted: (A) In general.--Subparagraph (A) of section 911(c)(1) is amended by inserting "to the extent such expenses do not exceed the amount determined under paragraph (2)" after "the taxable year".

   Inserted: (B) Limitation.--Subsection (c) of section 911 is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph:

   Inserted: "(2) Limitation.--The amount determined under this paragraph is an amount equal to the product of--

   Inserted: "(A) 30 percent of the amount (computed on a daily basis) in effect under subsection (b)(2)(D) for the calendar year in which the taxable year of the individual begins, multiplied by

   Inserted: "(B) the number of days of such taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(1).".

   Inserted: (C) Conforming amendments.--

   Inserted: (i) Section 911(d)(4) is amended by striking "and (c)(1)(B)(ii)" and inserting ", (c)(1)(B)(ii), and (c)(2)(B)"

   Inserted: (ii) Section 911(d)(7) is amended by striking "subsection (c)(3)" and inserting "subsection (c)(4)".

   Inserted: (c) Rates of Tax Applicable to Nonexcluded Income.--Section 911 (relating to exclusion of certain income of citizens and residents of the United States living abroad) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

   Inserted: "(f) Determination of Tax Liability on Nonexcluded Amounts.--If any amount is excluded from the gross income of a taxpayer under subsection (a) for any taxable year, then, notwithstanding section 1 or 55--

   Inserted: "(1) the tax imposed by section 1 on the taxpayer for such taxable year shall be equal to the excess (if any) of--

   Inserted: "(A) the tax which would be imposed by section 1 for the taxable year if the taxpayer's taxable income were equal to the sum of--

   Inserted: "(i) the taxpayer's taxable income for the taxable year (determined without regard to this subsection), plus

   Inserted: "(ii) the amount excluded under subsection (a) for the taxable year, over

   Inserted: "(B) the tax which would be imposed by section 1 for the taxable year if the taxpayer's taxable income were equal to the amount excluded under subsection (a) for the taxable year, and

   Inserted: "(2) the tax imposed by section 55 for such taxable year shall be equal to the excess (if any) of--

   Inserted: "(A) the amount which would be the tentative minimum tax under section 55 for the taxable year if the taxpayer's alternative minimum taxable income were equal to the sum of--

   Inserted: "(i) the taxpayer's alternative minimum taxable income for the taxable year (determined without regard to this subsection), plus

   Inserted: "(ii) the amount excluded under subsection (a) for the taxable year, over

   Inserted: "(B) the sum of--

   Inserted: "(i) the amount which would be the tentative minimum tax under section 55 for the taxable year if the taxpayer's alternative minimum taxable income were equal to the amount excluded under subsection (a) for the taxable year, plus

   Inserted: "(ii) the amount which would be the regular tax for the taxable year if the tax imposed by section 1 were the tax computed under paragraph (1).

   Inserted: For purposes of this subsection, the amount excluded under subsection (a) shall be reduced by the aggregate amount of any deductions or exclusions disallowed under subsection (d)(6) with respect to such excluded amount.".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2005.

   Inserted: SEC. ___. MODIFICATION OF INDIVIDUAL ESTIMATED TAX SAFE HARBOR.

   Inserted: (a) In General.--The table contained in section 6654(d)(1)(C) is amended by striking "2002 or thereafter" and inserting "2002, 2003, 2004, or 2005" and by adding at the end the following new items:

   Inserted: "2006.........................................................121.1 2007 or thereafter.............................................110".

   Inserted: (b) Effective Date.--The amendments made by this section shall apply with respect to any installment payment for taxable years beginning after December 31, 2005.

   Original wording

   On page 235, between lines 13 and 14, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed