S. 734

AMT Rate Reduction Act of 2007

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II

110th CONGRESS

1st Session

S. 734

IN THE SENATE OF THE UNITED STATES

March 1, 2007

Mr. Specter introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to reduce the rate of the tentative minimum tax for noncorporate taxpayers to 24 percent.

1.

Short title

This Act may be cited as the AMT Rate Reduction Act of 2007.

2.

Reduction in rate of tentative minimum tax for noncorporate taxpayers

(a)

In general

Clause (i) of section 55(b)(1)(A) of the Internal Revenue Code of 1986 (relating to noncorporate taxpayers) is amended to read as follows:

(i)

In general

In the case of a taxpayer other than a corporation, the tentative minimum tax for the taxable year is—

(I)

24 percent of the taxable excess, reduced by

(II)

the alternative minimum tax foreign tax credit for the taxable year.

.

(b)

Conforming amendment

Subparagraph (A) of section 55(b)(1) of such Code is amended by striking clause (iii).

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.