S. 796

119 S796 IS: Book Minimum Tax Repeal Act
 U.S. Senate
 2025-02-27
 text/xml
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 II  119th CONGRESS  1st Session  S. 796  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.
1.
Short title
This Act may be cited as the   Book Minimum Tax Repeal Act  .
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.