H.R. 696 – Tax Relief Certainty Act of 2011

112th CONGRESS

1st Session

H. R. 696

IN THE HOUSE OF REPRESENTATIVES

February 14, 2011

Mr. Pence introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To permanently extend the 2001 and 2003 tax relief provisions, and to permanently repeal the estate tax, and to provide permanent AMT relief, and for other purposes.

Short title

This Act may be cited as the Tax Relief Certainty Act of 2011.

Permanent tax relief

101.

Repeal of EGTRRA sunset

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is repealed.

102.

Repeal of JGTRRA sunset

Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 is repealed.

103.

Technical and conforming amendments

The Secretary of the Treasury or the Secretary’s delegate shall, not later than 90 days after the date of the enactment of this Act, submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a draft of any technical and conforming changes in the Internal Revenue Code of 1986 which are necessary to reflect throughout such Code the purposes of the provisions of, and amendments made by, this Act.

Permanent individual AMT relief

201.

Permanent individual AMT relief

(a)

Modification of alternative minimum tax exemption amount

(1)

In general

Paragraph (1) of section 55(d) of the Internal Revenue Code of 1986 (relating to exemption amount) is amended to read as follows:

(1)

Exemption amount for taxpayers other than corporations

In the case of a taxpayer other than a corporation, the term exemption amount means—

(A)

the dollar amount for taxable years beginning in the calendar year as specified in the table contained in paragraph (4)(A) in the case of—

(i)

a joint return, or

(ii)

a surviving spouse,

(B)

the dollar amount for taxable years beginning in the calendar year as specified in the table contained in paragraph (4)(B) in the case of an individual who—

(i)

is not a married individual, and

(ii)

is not a surviving spouse,

(C)

50 percent of the dollar amount applicable under paragraph (1)(A) in the case of a married individual who files a separate return, and

(D)

$22,500 in the case of an estate or trust.

For purposes of this paragraph, the term surviving spouse has the meaning given to such term by section 2(a), and marital status shall be determined under section 7703.

(2)

Specified exemption amounts

Section 55(d) of such Code is amended by adding at the end the following new paragraph:

(4)

Specified exemption amounts

(A)

Taxpayers described in paragraph (1)(A)

For purposes of paragraph (1))(A)—

For taxable years beginning in—	The exemption amount is:
2011	$74,450
2012	$78,250
2013	$81,450
2014	$85,050
2015	$88,650
2016	$92,650
2017	$96,550
2018	$100,950
2019	$105,150
2020	$109,950
2021	$112,250.

(B)

Taxpayers described in paragraph (1)(B)

For purposes of paragraph (1))(B)—

For taxable years beginning in—	The exemption amount is:
2011	$48,450
2012	$50,350
2013	$51,950
2014	$53,750
2015	$55,550
2016	$57,550
2017	$59,500
2018	$61,700
2019	$63,800
2020	$66,200
2021	$68,200.

(b)

Alternative minimum tax relief for nonrefundable credits

(1)

In general

Subsection (a) of section 26 of the Internal Revenue Code of 1986 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 amendments

(A)

Child tax credit

(i)

Section 24(b) of such Code is amended by striking paragraph (3).

(ii)

Section 24(d)(1) of such Code is amended—

(I)

by striking section 26(a)(2) or subsection (b)(3), as the case may be, each place it appears in subparagraphs (A) and (B) and inserting section 26(a), and

(II)

by striking section 26(a)(2) or subsection (b)(3), as the case may be in the second last sentence and inserting section 26(a).

(B)

Credit for interest on certain home mortgages

Section 25(e)(1)(C) of such Code is amended to read as follows:

(C)

Applicable tax limit

For purposes of this paragraph, the term applicable tax limit means the limitation imposed by section 26(a) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 25D, and 1400C).

(C)

Savers' credit

Section 25B of such Code is amended by striking subsection (g).

(D)

Residential energy efficient property

Section 25D(c) of such Code is amended to read as follows:

(c)

Carryforward of unused credit

If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

(E)

Certain plug-in electric vehicles

Section 30(c)(2) of such Code is amended to read as follows:

(2)

Personal credit

For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.

(F)

Alternative motor vehicle credit

Section 30B(g)(2) of such Code is amended to read as follows:

(2)

Personal credit

(G)

New qualified plug-in electric vehicle credit

Section 30D(c)(2) of such Code is amended to read as follows:

(2)

Personal credit

(H)

Cross references

Section 55(c)(3) of such Code is amended by striking 26(a), 30C(d)(2), and inserting 30C(d)(2).

(I)

Foreign tax credit

Section 904 of such Code is amended by striking subsection (i) and by redesignating subsections (j), (k), and (l) as subsections (i), (j), and (k), respectively.

(J)

First-time home buyer credit for the District of Columbia

Section 1400C(d) of such Code is amended to read as follows:

(d)

Carryforward of unused credit

If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under subpart A of part IV of subchapter A (other than this section and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.

(3)

Adoption credit

(A)

In general

Section 10909 of the Patient Protection and Affordable Care Act, and the amendments made thereby, are repealed; and the Internal Revenue Code of 1986 shall be applied as if such section, and amendments, had never been enacted.

(B)

Conforming amendments

(i)

Section 23(b) of the Internal Revenue Code of 1986, as in effect on December 31, 2009, is amended by striking paragraph (4).

(ii)

Section 23(c) of such Code, as in effect on December 31, 2009, is amended by striking paragraphs (1) and (2) and inserting before paragraph (3) the following:

(1)

In general

If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year, reduced by the sum of the credits allowable under this subpart (other than this section and sections 25D and 1400C), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.

(iii)

Section 23(c) of such Code, as in effect on December 31, 2009, is amended by redesignating paragraph (3) as paragraph (2).

(c)

Effective date

The amendments and the repeal made by this section shall apply to taxable years beginning after December 31, 2010.

III

Permanent estate tax relief

301.

Permanent estate tax relief

(a)

In general

Title III of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, and the amendments made thereby, are repealed; and the Internal Revenue Code of 1986 shall be applied as if such title, and amendments, had never been enacted.

(b)

Effective date

The repeal made by this section shall apply to estates of decedents dying, gifts made, and generation skipping transfers after December 31, 2009.

Tax Relief Certainty Act of 2011

Legislative Activity

Bill Text