S 722 IS
111th CONGRESS
1st Session
S. 722
To amend the Internal Revenue Code of 1986 to provide for permanent alternative minimum tax relief, middle class tax relief, and estate tax relief, and to permanently extend certain expiring provisions, and for other purposes.
IN THE SENATE OF THE UNITED STATES
March 26, 2009
Mr. BAUCUS (for himself, Mr. ROCKEFELLER, and Mr. SCHUMER) 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 provide for permanent alternative minimum tax relief, middle class tax relief, and estate tax relief, and to permanently extend certain expiring provisions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title- This Act may be cited as the ‘Taxpayer Certainty and Relief Act of 2009’.
(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.
(c) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title, etc.
TITLE I--PERMANENT ALTERNATIVE MINIMUM TAX RELIEF
Sec. 101. Exemption amounts made permanent.
Sec. 102. Exemption amounts indexed for inflation.
Sec. 103. Alternative minimum tax relief for nonrefundable credits.
TITLE II--PERMANENT MIDDLE CLASS TAX RELIEF
Sec. 201. Permanent reduction in tax rates for lower-income and middle-income individuals.
Sec. 202. Permanent reduction in rates on capital gains for lower-income and middle-income taxpayers.
Sec. 203. Modifications to child tax credit.
Sec. 204. Repeal of sunset on marriage penalty relief.
Sec. 205. Repeal of sunset on expansion of dependent care credit.
Sec. 206. Repeal of sunset on expansion of adoption credit and adoption assistance programs.
Sec. 207. Expansion of earned income tax credit.
TITLE III--PERMANENT ESTATE TAX RELIEF
TITLE I--PERMANENT ALTERNATIVE MINIMUM TAX RELIEF
SEC. 101. EXEMPTION AMOUNTS MADE PERMANENT.
(a) In General- Paragraph (1) of section 55(d) is amended--
(1) by striking ‘$45,000 ($70,950 in the case of taxable years beginning in 2009)’ in subparagraph (A) and inserting ‘$70,950 in the case of’,
(2) by striking ‘$33,750 ($46,700 in the case of taxable years beginning in 2009)’ in subparagraph (B) and inserting ‘$46,700 in the case of an individual who’, and
(3) by striking ‘paragraph (1)(A)’ in subparagraph (C) and inserting ‘subparagraph (A)’.
(b) Repeal of EGTRRA Sunset- Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall not apply to section 701 of such Act (relating to increase in alternative minimum tax exemption).
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
SEC. 102. EXEMPTION AMOUNTS INDEXED FOR INFLATION.
(a) In General- Subsection (d) of section 55 is amended by adding at the end the following new paragraph:
‘(4) INFLATION ADJUSTMENT-
‘(A) IN GENERAL- In the case of any taxable year beginning in a calendar year after 2009, each of the dollar amounts contained in subsection (b)(1)(A)(i) and paragraphs (1)(A), (1)(B), (1)(D), (3)(A), and (3)(B) of this subsection shall be increased by an amount equal to--
‘(i) such dollar amount, multiplied by
‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof.
‘(B) ROUNDING- Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of $100.’.
(b) Conforming Amendments-
(1) Clause (iii) of section 55(b)(1)(A) is amended by striking ‘by substituting’ and all that follows through ‘appears.’ and inserting ‘by substituting 50 percent of the dollar amount otherwise applicable under subclause (I) and subclause (II) thereof’.
(2) Paragraph (3) of section 55(d) is amended--
(A) by striking ‘or (2)’ in subparagraph (A),
(B) by striking ‘and’ at the end of subparagraph (B), and
(C) by striking subparagraph (C) and inserting the following new subparagraphs:
‘(C) 50 percent of the dollar amount applicable under subparagraph (A) in the case of a taxpayer described in subparagraph (C) or (D) of paragraph (1), and
‘(D) $150,000 in the case of a taxpayer described in paragraph (2).’.
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
SEC. 103. ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE CREDITS.
(a) In General- Subsection (a) of section 26 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.’.
(b) Conforming Amendments-
(1) ADOPTION CREDIT-
(A) Section 23(b) is amended by striking paragraph (4).
(B) Section 23(c) is amended by striking paragraphs (1) and (2) and inserting 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.’.
(2) CHILD TAX CREDIT-
(A) Section 24(b) is amended by striking paragraph (3).
(B) Section 24(d)(1) 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)’.
(3) CREDIT FOR INTEREST ON CERTAIN HOME MORTGAGES- Section 25(e)(1)(C) 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).’.
(4) Savers’ CREDIT- Section 25B is amended by striking subsection (g).
(5) RESIDENTIAL ENERGY EFFICIENT PROPERTY- Section 25D(c) 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.’.
(6) CERTAIN PLUG-IN ELECTRIC VEHICLES- Section 30(c)(2) 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.’.
(7) ALTERNATIVE MOTOR VEHICLE CREDIT- Section 30B(g)(2) 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.’.
(8) NEW QUALIFIED PLUG-IN ELECTRIC VEHICLE CREDIT- Section 30D(c)(2) 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.’.
(9) CROSS REFERENCES- Section 55(c)(3) is amended by striking ‘26(a), 30C(d)(2),’ and inserting ‘30C(d)(2)’.
(10) FOREIGN TAX CREDIT- Section 904 is amended by striking subsection (i) and by redesignating subsections (j) , (k), and (l) as subsections (i), (j), and (k), respectively.
(11) FIRST-TIME HOME BUYER CREDIT FOR THE DISTRICT OF COLUMBIA- Section 1400C(d) 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.’.
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
TITLE II--PERMANENT MIDDLE CLASS TAX RELIEF
Full Text of Legislation