119-s796

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 796 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 796

 To amend the Internal Revenue Code of 1986 to repeal the corporate 
 alternative minimum tax.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 February 27, 2025

 Mr. Barrasso (for himself, Mr. Crapo, Mr. Lankford, Mr. Cassidy, Mr. 
 Daines, Mrs. Blackburn, Mr. Ricketts, Mr. Risch, and Ms. Lummis) 
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 repeal the corporate 
 alternative minimum tax.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Book Minimum Tax Repeal Act''.

SEC. 2. REPEAL OF CORPORATE ALTERNATIVE MINIMUM TAX.

    (a) In General.--

Section 55 of the Internal Revenue Code of 1986 is 
amended--

    (1) in subsection

    (a) --
        (A) by striking ``There'' and inserting ``In the 
 case of a taxpayer other than a corporation, there'', 
 and
        (B) by striking ``plus, in the case of an 
 applicable corporation, the tax imposed by 

section 59A'' in paragraph

    (2) , and

    (2) by striking subsection

    (b) and inserting the following:
 ``

    (b) Tentative Minimum Tax.--
 ``

    (1) Amount of tentative minimum tax.--
 ``
        (A) In general.--The tentative minimum tax for 
 the taxable year is the sum of--
 ``
            (i) 26 percent of so much of the taxable 
 excess as does not exceed $175,000, plus
 ``
            (ii) 28 percent of so much of the taxable 
 excess as exceeds $175,000.
 The amount determined under the preceding sentence 
 shall be reduced by the alternative minimum tax foreign 
 tax credit for the taxable year.
 ``
        (B) Taxable excess.--For purposes of this 
 subsection, the term `taxable excess' means so much of 
 the alternative minimum taxable income for the taxable 
 year as exceeds the exemption amount.
 ``
            (C) Married individual filing separate return.--
 In the case of a married individual filing a separate 
 return, subparagraph
        (A) shall be applied by 
 substituting 50 percent of the dollar amount otherwise 
 applicable under clause
            (i) and clause
            (ii) thereof. 
 For purposes of the preceding sentence, marital status 
 shall be determined under 

section 7703.
 ``

    (2) Alternative minimum taxable income.--The term 
 `alternative minimum taxable income' means the taxable income 
 of the taxpayer for the taxable year--
 ``
        (A) determined with the adjustments provided in 
 

section 56 and 

section 58, and
 ``
        (B) increased by the amount of the items of tax 
 preference described in 

section 57.
 If a taxpayer is subject to the regular tax, such taxpayer 
 shall be subject to the tax imposed by this section (and, if 
 the regular tax is determined by reference to an amount other 
 than taxable income, such amount shall be treated as the 
 taxable income of such taxpayer for purposes of the preceding 
 sentence).''.

    (b) Application to General Business Credit.--

Section 38
            (c) (6)
        (E) of 
the Internal Revenue Code of 1986 is amended to read as follows:
 ``
        (E) Corporations.--In the case of a corporation, 
 this subsection shall be applied by treating the 
 corporation as having a tentative minimum tax of 
 zero.''.
            (c) Conforming Amendments.--

    (1) Section 11
            (d) of the Internal Revenue Code of 1986 is 
 amended by striking ``the taxes imposed by subsection

    (a) and 
 

section 55'' and inserting ``the tax imposed by subsection

    (a) ''.

    (2) Section 12 of such Code is amended by striking 
 paragraph

    (5) .

    (3) Section 53 of such Code is amended by striking 
 subsection

    (e) .

    (4) Part VI of subchapter A of chapter 1 of such Code is 
 amended by striking 

section 56A (and the item related to such 
 section in the table of sections for such part).

    (5) Section 59 of such Code is amended by striking 
 subsections

    (k) and
            (l) .

    (6) Section 860E

    (a)

    (4) of such Code is amended by striking 
 ``

section 55

    (b)

    (1)
            (D) '' and inserting ``

section 55

    (b)

    (2) ''.

    (7) Section 882

    (a)

    (1) of such Code is amended by ``, 55,''.

    (8) Section 897

    (a)

    (2)
        (A)
            (i) of such Code is amended by 
 striking ``

section 55

    (b)

    (1)
            (D) '' and inserting ``

section 55

    (b)

    (2) ''.

    (9) Section 6425
            (c) (1)
        (A) of such Code is amended by 
 striking clause
            (ii) and by redesignating clause
            (iii) as 
 clause
            (ii) .

    (10) Section 6655

    (e)

    (2) of such Code is amended by striking 
 ``, adjusted financial statement income (as defined in 

section 56A)'' each place it appears in subparagraphs
        (A)
            (i) and
        (B)
            (i) .

    (11) Section 6655

    (g)

    (1)
        (A) of such Code is amended by 
 striking clause
            (ii) and by redesignating clauses
            (iii) and
            (iv) as clauses
            (ii) and
            (iii) , respectively.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
 <all>