article: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. (a) Short Title.--This Act may be cited as the ``Alternative Minimum Tax Repeal Act of 1995''. (b) Amendment of 1986 Code.--Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. SEC. 2. ALTERNATIVE MINIMUM TAX. (a) In General.--Part VI of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to alternative minimum tax) is hereby repealed. (b) Conforming Amendments.-- (1) Subparagraph (B) of section 1(g)(7) (relating to election to claim certain unearned income of child on parent's return) is amended-- (A) by inserting ``and'' at the end of clause (i), (B) by striking ``and'' and the end of clause (ii) and inserting a period, and (C) by striking clause (iii). (2) Subsection (d) of section 2 (relating to taxes imposed on nonresident aliens) is amended by striking ``sections 1 and 55'' and inserting ``section 1''. (3) Subsection (a) of section 5 (relating to cross references relating to tax on individuals) is amended by striking paragraph (4). (4) Subsection (d) of section 11 (relating to taxes imposed on foreign corporations) is amended by striking ``the taxes imposed by subsection (a) and section 55'' and inserting ``the tax imposed by subsection (a)''. (5) Section 12 (relating to cross references relating to tax on corporations) is amended by striking paragraph (7). (6) Section 26 (relating to limitation based on tax liability; definition of tax liability) is amended-- (A) by amending subsection (a) 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 taxpayer's regular tax liability for the taxable year.'', (B) in subsection (b)(2), by striking subparagraph (A) and by redesignating subparagraphs (B) through (N) as subparagraphs (A) through (M), respectively, and (C) by striking subsection (c). (7) Paragraph (3) of section 30(b) (relating to credit for qualified electric vehicles) is amended by striking ``the excess'' and all that follows and inserting ``the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27, 28, and 29.'' (8) Subsection (h) of section 32 (relating to reduction of credit to taxpayers subject to alternative minimum tax) is hereby repealed. (9) Subsection (c) of section 38 (relating to business related credits) is amended-- (A) by striking paragraphs (1) and (2) and inserting the following new paragraph: ``(1) In general.--The credit allowed under subsection (a) for any taxable year shall not exceed 25 percent of so much of the taxpayer's net regular tax liability as exceeds $25,000. For purposes of the preceding sentence, the term `net regular tax liability' means the regular tax liability reduced by the sum of the credits allowable under subparts A and B of this part.'', and (B) by redesignating paragraph (3) as paragraph (2). (10) Subsection (c) of section 53 is amended by striking ``the excess'' and all that follows and inserting ``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.'' (11) Subsection (b) of section 59A (relating to environmental tax) is amended by adding at the end the following: ``For purposes of this subsection, references to sections 55 and 56 shall be treated as references to such sections as in effect on the day before the date of the enactment of the Alternative Minimum Tax Repeal Act of 1995.''. (12)(A) Paragraph (2) of section 148(b) is amended by adding at the end the following new flush sentence: ``Such term shall not include any tax-exempt bond.'' (B) Paragraph (3) of section 148(b) (relating to higher yield investments) is hereby repealed. (13) Subparagraph (B) of section 149(g)(3) (relating to hedge bonds) is amended by striking all that follows ``invested in bonds'' and inserting ``the interest on which is not includible in gross income under section 103.'' (14) Section 173 (relating to circulation expenditures) is amended by striking ``(a) General Rule.--'' and by striking subsection (b). (15) Subsection (f) of section 174 (relating to research and experimental expenditures) is amended to read as follows: ``(f) Cross Reference.-- ``For adjustments to basis of property for amounts allowed as deductions as deferred expenses under subsection (b), see section 1016(a)(14).'' (16) Subsection (c) of section 263 (relating to capital expenditures) is amended by striking ``59(e) or''. (17) Subsection (c) of section 263A (relating to capitalization and inclusion in inventory costs of certain expenses) is amended by striking paragraph (6). (18) Section 382(l) (relating to net operating loss carryforwards and certain built-in losses following ownership change) is amended by striking paragraph (7). (19) Section 443 (relating to adjustment in computing minimum tax and tax preferences) is amended by striking subsection (d) and by redesignating subsection (e) as subsection (d). (20) Section 617 (relating to deduction and recapture of certain mining exploration expenditures) is amended by striking subsection (i). (21) Subsections (b) and (c) of section 666 (relating to accumulation distribution of trust allocated to preceding years) are each amended by striking ``(other than the tax imposed by section 55)''. (22) Section 847 (relating to special estimated tax payments) is amended-- (A) in paragraph (9), by striking the last sentence; (B) in paragraph (10), by inserting ``and'' at the end of subparagraph (A) and by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). (23) Section 848 (relating to capitalization of certain policy acquisition expenses) is amended by striking subsection (i) and by redesignating subsection (j) as subsection (i). (24) Paragraph (1) of section 871(b) (relating to tax on nonresident alien individuals) is amended by striking ``, 55,''. (25) Subsection (b) of section 877 (relating to expatriation to avoid tax) is amended by striking ``, 55,''. (26) Paragraph (1) of section 882(a) is amended by striking ``55,''. (27) Subsection (a) of section 897 (relating to disposition of investment in United States real property) is amended to read as follows: ``(a) Treatment as Effectively Connected With United States Trade or Business.--For purposes of this title, gain or loss of a nonresident alien individual or a foreign corporation from the disposition of a United States real property interest shall be taken into account-- ``(1) in the case of a nonresident alien individual, under section 871(b)(1), or ``(2) in the case of a foreign corporation, under section 8872(a)(1), as if the taxpayer were engaged in a trade or business within the United States during the taxable year and as if such gain or loss were effectively connected with such trade or business.'' (28) Subsection (j) of section 904 (relating to limitation on credit) is amended to read as follows: ``(j) Cross Reference.-- ``For increase of limitation under subsection (a) for taxes paid with respect to amounts received which were included in the gross income of the taxpayer for a prior taxable year as a United States shareholder with respect to a controlled foreign corporation, see section 960(b).'' (29) Paragraph (1) of section 962(a) (relating to election by individuals to be subject to tax at corporate rates) is amended-- (A) by striking ``sections 1 and 55'' and inserting ``section 1'', and (B) by striking ``sections 11 and 55'' and inserting ``section 11''. (30) Paragraph (20) of section 1016(a) (relating to adjustments to basis) is amended by inserting ``, as in effect on the day before the date of the enactment of the Alternative Minimum Tax Repeal Act of 1995'' after ``preferences)''. (31) Subsection (a) of section 1561 (relating to limitations on certain multiple tax benefits in the case of certain controlled corporations) is amended by striking the last sentence. (32) Subparagraph (A) of section 6425(c)(1) (defining income tax liability) is amended-- (A) by inserting ``plus'' at the end of clause (i), and (B) by striking clause (ii) and by redesignating clause (iii) as clause (ii). (33) Section 6654(d)(2) (relating to failure by individual to pay estimated income tax) is amended-- (A) in clause (i) of subparagraph (B), by striking ``, alternative minimum taxable income,'', and (B) in clause (i) of subparagraph (C), by striking ``, alternative minimum taxable income,''. (34) Subparagraph (C) of section 6662(e)(3) (relating to accuracy-related penalty) is amended by inserting ``, as in effect on the day before the date of the enactment of the Alternative Minimum Tax Repeal Act of 1995'' after ``55(c)''. (c) Clerical Amendments.--The table of parts for subchapter A of chapter 1 is amended by striking the item relating to part VI. (d) Effective Date.--The amendments made by this section shall take effect in taxable years beginning after December 31, 1994.
summary: Alternative Minimum Tax Repeal Act of 1995 - Amends the Internal Revenue Code to repeal the alternative minimum tax.