text: 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  hereby repealed.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.
target: Alternative Minimum Tax Repeal Act of 1995 - Amends the Internal Revenue Code to repeal the alternative minimum tax.
feat_title: Alternative Minimum Tax Repeal Act of 1995