The Alternative Minimum Tax for Individuals: Legislative Activity in the 110th Congress

The Alternative Minimum Tax for Individuals:
th
Legislative Activity in the 110 Congress
Steven Maguire
Specialist in Public Finance
Government and Finance Division
Jennifer Teefy
Information Research Specialist
Knowledge Services Group
Summary
The alternative minimum tax (AMT) for individuals was originally enacted to
ensure that all taxpayers, especially high-income taxpayers, pay at least a minimum
amount of federal taxes. However, the AMT is not indexed for inflation, and this factor,
combined with recent reductions in the regular income tax, has greatly expanded the
potential impact of the AMT. Temporary provisions intended to mitigate the effects of
the AMT expired at the end of 2006, and Congress worked throughout 2007 to enact an
AMT “patch.” The patch for the 2007 tax year, as provided for in the Tax Increase
Prevention Act of 2007 (P.L. 110-166), enacted on December 26, 2007, set the AMT
exemption levels for 2007 at $66,250 for joint filers and $44,350 for single filers.
The AMT exemption amounts for the 2008 tax year would have been $45,000 for
joint filers and $33,750 for single filers without a patch. On October 3, 2008, the House
approved and the President signed H.R. 1424, the Emergency Economic Stabilization
Act of 2008 (P.L. 110-343), which patched the AMT for 2008 without an offset. The
act increases the AMT exemption amount to $69,950 for joint filers and $46,200 for
individuals.
This report will be updated as legislative action warrants.
Introduction
In 1969, after a number of high-visibility television, magazine, and news stories
about a relatively small number of extremely wealthy individuals who paid virtually no
income taxes, the alternative minimum tax (AMT) for individuals was enacted to ensure

that all taxpayers pay at least a minimum amount of federal taxes.¹ It was designed so that
individuals could not take unfair advantage of the various preferences and incentives
under the regular income tax to substantially reduce their regular income tax liability
below what was considered appropriate for their income level. The AMT functions as a
parallel tax system to the regular income tax. Taxpayers calculate their regular income
tax and then calculate their AMT. If their AMT liability is larger than their regular
income tax liability, then they pay the AMT.
There is projected to be a significant increase in the number of middle- to
upper-middle-income taxpayers affected by the AMT in the near future. In 2006, about

4.2 million taxpayers were subject to the AMT. If not for the patch provided in P.L.

110-166, enacted on December 26, 2007, up to 23 million taxpayers would have been
subject to the AMT in 2007.² For the 2008 tax year, 25.7 million taxpayers would have
been affected by the AMT if not for the patch in P.L. 110-343.³
There are two main reasons for an increase in the number of taxpayers affected by
the AMT. First, the regular income tax is indexed for inflation, but the AMT is not. Over
time, this has reduced the differences between regular income tax liabilities and AMT
liabilities at any given nominal income level, differences that will continue to shrink in
the absence of AMT indexation. The second reason is that the 2001 and 2003 reductions
in the regular income tax have further narrowed the differences between regular and AMT
tax liabilities. The combination of these two factors means that, absent legislative
changes, there will be significant growth in the number of taxpayers affected by the AMT.
Since 1998, the effects of the AMT have been mitigated through temporary
provisions allowing certain personal tax credits to offset AMT liability and temporary
increases in the basic exemption for the AMT. The Tax and Trade Relief Extension Act
of 1998 allowed taxpayers to use nonrefundable personal tax credits in full against their
regular income tax even though the use of the credits might reduce a taxpayer’s regular
income tax liability below their AMT liability. ⁴
The Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16,
EGTRRA) temporarily increased the AMT exemption amounts from $45,000 to $49,000
for joint returns and from $33,750 to $35,750 for unmarried individuals with the changes
effective for tax years between 2001 and 2004.
The Job Creation and Worker Assistance Act of 2002 (P.L. 107-147) extended the
temporary provisions, first enacted in 1998 and then extended in 1999, that allowed

¹ There is also a corporate minimum tax, but it is not addressed in this report.
² U.S. Congress, Joint Committee on Taxation, Present Law and Background Relating to the
Individual Alternative Minimum Tax, JCX-38-07, June 25, 2007.
³ Joint Committee on Taxation, June 25, 2007.
⁴ For more detailed information on which taxpayers will be affected by the AMT, see CRS Report
RS22200, The Potential Distribution Effects of the Alternative Minimum Tax, by Steven Maguire;
and CRS Report RS22083, Alternative Minimum Taxpayers By State: 2005, 2006, and
Projections for 2008, by Steven Maguire.

individuals to use all personal tax credits against both their regular and AMT tax
liabilities. This change was effective through December 31, 2003.
The Jobs and Growth Tax Relief Reconciliation Act of 2003 (P.L. 108-27, JGTRRA)
increased the basic AMT exemption amount to $58,000 for joint returns and to $40,250
for unmarried taxpayers. These increases were in effect for tax years 2003 and 2004.
JGTRRA also established that the new maximum tax rate of 15% applicable to capital
gains and dividend income under the regular income tax would also apply to the taxation
of capital gains and dividend income under the AMT.
The Working Families Tax Relief Act of 2004 (P.L. 108-311, WFTRA) extended
through 2005 JGTRRA’s increase in the basic AMT exemption amounts. WFTRA also
extended the provision allowing nonrefundable personal tax credits to offset both regular
and AMT tax liability in full for taxable years 2004 and 2005.
The American Jobs Creation Act of 2004 (P.L. 108-357) made several changes to
the AMT. It coordinated farmer and fisherman income averaging with the AMT so that
the use of income averaging did not push taxpayers into the AMT. It repealed the 90%
limitation on the use of the AMT foreign tax credit. The act also allowed the credits for
alcohol used as a fuel and electricity produced by renewable resources to be used in full
against the AMT.
Legislative Action in the 109^th Congress
In May 2006, Congress approved the Tax Increase Prevention and Reconciliation Act
of 2005 (P.L. 109-222, TIPRA) that included a one-year extension (through 2006) of both
the AMT’s personal-credit and increased-exemption provisions. For 2005, the exemption
amount was $58,000 for joint returns and $40,250 for unmarried taxpayers. TIPRA
increased the 2006 AMT exemption to $62,550 for joint returns and $42,500 for
unmarried taxpayers.
In December 2006, Congress passed the Tax Relief and Health Care Act of 2006
(P.L. 109-432). This act included a provision making the AMT tax credit refundable.
Under the act, taxpayers can claim an AMT refundable credit amount that is the greater
of (1) the lesser of $5,000 or the unused minimum credit, or (2) 20% of the unused
minimum credit. The unused credit is the credit attributable to tax years prior to the
previous three years. The AMT refundable credit is reduced for taxpayers with adjusted
gross incomes in excess of certain threshold amounts. (For joint returns in 2007, the
threshold is $234,600.) This provision applies to tax years beginning before January 1,

2013.

Legislative Action in the 110^th Congress
The FY2009 budget compromise, S.Con.Res. 70, which includes an offset AMT
patch, passed the Senate on June 4, 2008, and the House on June 5, 2008. The House
approved H.R. 6275 on June 25, 2008, as reported. On September 23, 2008, the Senate
approved H.R. 6049, which includes an AMT patch without an offset and extensions of
a variety of expiring tax provisions that would be partially offset. On September 24,

2008, the House approved H.R. 7005, which would patch the AMT for 2008. On October

3, 2008, the House passed and the President signed H.R. 1424, the Emergency Economic
Stabilization Act of 2008 (P.L. 110-343), which patched the AMT for 2008 without an
offset. The act increases the AMT exemption amount to $69,950 for joint filers and
$46,200 for individuals for tax year 2008. The Joint Committee on Taxation estimated
that the one-year patch would cost $61.8 million over the 2009 to 2018 budget window.⁵
Earlier in the 110^th Congress, the U.S. Troop Readiness, Veterans’ Care, Katrina
Recovery, and Iraq Accountability Appropriations Act of 2007 (H.R. 2206) was enacted
on May 25, 2007, and allowed the tax credits for the work opportunity credit and the
credit for taxes paid with respect to employee cash tips to be used in full against both the
corporate and individual alternative minimum taxes. The Tax Increase Prevention Act
of 2007 (P.L. 110-166), enacted on December 26, 2007, set the 2007 AMT exemption
levels at $66,250 for joint filers and $44,350 for single filers and allows nonrefundable
personal credits to offset AMT liability. Table 1 presents an abbreviated chronology of
the legislative action resulting in the AMT patch (P.L. 110-166) for the 2007 tax year;
Table 2 does the same for the 2008 tax year.
Table 1. Votes on the 2007 Patch for the AMT in the 1^st Session of
the 110^th Congress
^Da^t^e^Vehicle^V^o^t^e^V^o^t^{e Descript}^io^{n a}^{nd Result}
^5/17/2007^S.C^on.R^e^s^.²¹^H^ous^e^Vote^Fis^c^a^l^{2008 B}^udg^e^t^R^e^s^o^{lution -}^C^onf^e^r^eⁿ^c^e^R^e^por^t
³⁷⁷^A^m^ong^othe^r^thing^s^{, this}^r^e^s^o^{lution c}^a^lle^{d f}^o^r^a^one^-^y^e^a^r^pa^tc^h
^fo^r^t^h^e^AM^T.
^A^dopte^d⁽^t^hus^s^e^{nt to the}^Se^na^te⁾^by^a^v^o^te^of^214-^209.
^5/17/2007^S.C^on.R^e^s²¹^Se^na^te^Vote^Fis^c^a^l^{2008 B}^udg^e^t^R^e^s^o^{lution -}^C^onf^e^r^eⁿ^c^e^R^e^por^t
¹⁷²^A^m^ong^othe^r^thing^s^{, this}^r^e^s^o^{lution c}^a^lle^{d f}^o^r^a^one^-^y^e^a^r^pa^tc^h
^fo^r^t^h^e^AM^T.
^A^dopte^d^by^a^v^o^te^of^52-^40.
^5/17/2007^H^.^R^.²²⁰⁶^Se^na^te^Vote^U^.^{S. T}^r^{oop R}^e^a^d^ine^s^s^,^Ve^te^r^a^ns^’^C^a^r^e^{, K}^a^tr^ina^R^e^c^o^v^e^r^y^{, a}ⁿ^d
^Ira^{q A}^c^c^ounta^b^ility^A^ppropria^tions^A^c^{t, 2007.}
^P^.^L^.^110-²⁸^A^m^ong^othe^r^thing^s^{, this}^le^gⁱ^s^l^a^{tion inc}^l^ude^{d a}^w^a^iv^e^r^of
^indivⁱ^dua^{l a}^{nd c}^o^r^por^a^t^e^A^M^T^lim^its^{on the}^w^o^r^k^oppor^tunity
^ta^x^c^r^e^d^{it a}^{nd c}^r^e^d^{it f}^o^{r ta}^x^e^{s pa}^{id w}^{ith re}^spe^c^t^{to e}^m^ploy^e^e
^cash^tⁱ^p^s.
^P^a^s^s^e^{d Se}^na^te^by^v^o^ic^e^v^o^te^.
^11/1/2007^H^.^{R. 3996}^Com^m^itte^e^T^e^m^pora^r^y^T^a^x^Re^lie^f^A^c^t/V^ote^{to Re}^port.
^Vot^e^T^h^e^{bill w}^{ould a}^llow^ta^x^p^a^y^e^r^s^{to a}^pply^nonre^f^unda^ble
^pe^rs^ona^{l c}^r^e^d^its^a^g^aⁱ^ns^{t the}^A^M^T^{in 2007. T}^h^e^{bill w}^{ould a}^l^s^o
^inc^r^e^a^s^e^the^A^M^T^e^x^e^m^{ption a}^m^{ount to $66,250 f}^o^r^{joint f}^ile^r^s
^a^{nd $44,350 f}^o^r^indivⁱ^dua^ls^{. T}^h^e^s^e^pr^ov^is^ions^pr^ov^ide^d^f^o^r^a
^one^-y^e^a^r^pa^tc^{h f}^o^{r the}^A^M^T^.^T^h^e^{bill a}^l^{so e}^x^te^nde^{d se}^v^e^ra^l
^e^x^piring^ta^x^prov^{isions f}^o^r^one^y^e^a^r^{. T}^h^e^{bill e}^x^pa^nde^{d the}
^e^lig^ibility^f^o^{r the}^re^f^unda^ble^c^h^{ild ta}^x^c^r^e^d^{it by}^s^e^tting^the
^thr^e^s^{hold f}^o^r^the^c^r^e^d^{it a}^t^{$8,500. T}^o^of^f^s^e^t^the^c^o^s^t^of^the
^m^e^a^s^ure^,^the^{bill inc}^l^ude^{d prov}^is^{ions inte}^nde^{d to ra}^ise^re^v^e^nue^,
^su^ch^{as t}^a^xiⁿ^g^t^h^{e carri}^edⁱⁿ^t^e^rest^o^f^p^rⁱ^v^at^{e eq}^uⁱ^t^y^m^aⁿ^a^gers,
^ven^t^u^r^{e cap}ⁱ^t^a^lⁱ^s^t^s^,^an^d^so^m^e^real^e^s^ta^te^inv^e^{stors up to 35%}
ⁱⁿ^st^ead^o^f^t^h^{e cu}^rren^t¹⁵^%^.
^R^e^por^te^{d f}^a^v^o^r^a^bly^{out of}^the^c^o^m^m^itte^e⁽^a^s^a^m^e^nde^d)^22-^13.

⁵ U.S. Congress, Joint Committee on Taxation, Estimated Budget Effects of the Tax Provisions
Contained in an Amendment in the Nature of a Substitute to H.R. 1424, JCX-78-08, Oct. 1, 2008.

^Da^t^e^Vehicle^V^o^t^e^V^o^t^{e Descript}^io^{n a}^{nd Result}
^11/9/2007^H^.^R^.³⁹⁹⁶^H^ous^e^Vote^A^lte^rna^tiv^e^Minim^u^m^T^a^x^A^d^justm^e^{nt — P}^a^ssa^g^e^.
¹⁰⁸¹^T^h^e^{bill prov}^ide^d^a^one^-y^e^a^r^pa^tc^{h f}^o^{r the}^A^M^T^.^{It a}^l^so
^e^x^te^nde^{d s}^e^v^e^r^a^{l e}^x^pirⁱ^ng^ta^x^pr^ov^is^ions^f^o^r^one^y^e^a^r^{. T}^h^e^bill
^e^x^pa^nde^{d the}^e^lig^ibility^f^o^{r the}^re^f^unda^ble^c^h^{ild ta}^x^c^r^e^d^{it by}
^s^e^tting^the^thre^s^{hold f}^o^{r the}^c^r^e^d^{it a}^t^{$8,500. T}^o^of^f^s^e^t^the^c^o^s^t
^of^the^m^e^a^s^ure^,^the^{bill inc}^l^ude^{d prov}^{isions in}^te^nde^{d to ra}^ise
^reven^u^e^,^su^ch^{as t}^a^xiⁿ^g^t^h^{e carri}^edⁱⁿ^t^e^rest^o^f^p^rⁱ^v^at^{e eq}^uⁱ^t^y
^m^a^na^g^e^r^s^{, v}^e^ntur^e^c^a^p^ita^lis^ts^{, a}^nd^som^e^re^a^l^e^s^ta^te^inv^e^{stors up}
^{to 35%}^ins^t^e^a^d^of^the^c^u^r^r^e^{nt 15%}^.
^P^a^s^s^e^{d 216-}^193.
^12/6/2007^H^.^R^.³⁹⁹⁶^Se^na^te^Vote^A^lte^rna^tiv^e^Minim^u^m^T^a^x^A^d^justm^e^{nt — Cloture}^.
⁴¹⁴^{Motion to inv}^o^k^e^c^l^oture^{(thus lim}^iting^de^ba^te^{) on the}^Re^id,
^D-Nev.^,^m^o^tⁱ^oⁿ^t^o^p^r^o^ceed^wⁱ^t^h^{a vo}^t^e^oⁿ^H.^R.^{3996 a}^s^pa^s^s^e^d
^by^the^H^ous^e^.
^{Motion r}^e^je^c^t^e^d^46-^48.
^12/6/2007^H^.^R^.³⁹⁹⁶^Se^na^te^V^o^te^A^lte^rna^tiv^e^Minim^u^m^T^a^x^A^d^justm^e^{nt — P}^a^ssa^g^e^.
⁴¹⁵^P^a^s^s^a^g^e^of^a^one^-^y^e^a^r^A^M^T^pa^tc^{h. B}^e^f^o^r^e^pa^s^s^a^g^e^{, the}^Se^na^te
^S.A^m^{dt. 3804}^a^dopte^d^by^v^o^ic^e^v^o^te^the^Ba^uc^us^{, D}^-^{Mont., s}^ubs^titute
^a^m^e^ndm^eⁿ^{t no. 3804 tha}^t^dr^oppe^{d the}^ta^x^of^f^s^e^t^s^a^{nd othe}^r
^non-A^M^T^ta^x^re^duc^{tion e}^x^te^nde^rs^c^ontaⁱ^ne^{d in the}^H^ous^e^bill.
^P^a^s^s^e^{d 88-}^5.
^12/12/2007^H^.^R^.⁴³⁵¹^H^ous^e^Vote^A^lte^rna^tiv^e^Minim^u^m^T^a^x^A^d^justm^e^{nt — P}^a^ssa^g^e^.
¹¹⁵³^P^a^ssa^g^e^of^the^{bill tha}^t^w^{ould prov}^ide^a^one^-y^e^a^r^pa^tc^{h f}^o^{r the}
^A^M^T^{in 2007. In a}^{ddition, the}^{bill w}^{ould e}^x^pa^{nd the}^e^lig^ibility
^{in 2008 f}^o^{r the}^re^f^unda^ble^c^h^{ild ta}^x^c^r^e^d^{it by}^s^e^tting^the
^thr^e^s^{hold f}^o^r^the^c^r^e^d^{it a}^t^{$8,500. T}^h^e^othe^r^ta^x^c^u^ts^inc^l^ude^d
^{in the}^orig^ina^l^{bill pa}^sse^{d by}^the^House^{on Nov}^.^{9 w}^e^re
^droppe^{d f}^r^om^this^{bill. T}^o^of^f^s^e^t^the^c^o^s^t^s^of^the^A^M^T^pa^tc^h,
^the^{bill w}^{ould lim}^{it a}^num^be^{r of}^ta^x^bre^a^k^{s, inc}^l^uding^the
^a^b^ility^of^ta^x^p^a^y^e^r^{s to use}^of^f^s^hore^a^rra^ng^e^m^eⁿ^{ts f}^o^{r de}^f^e^rre^d
^c^o^m^p^eⁿ^s^a^{tion by}^inc^l^uding^{it in g}^r^os^s^inc^o^m^e^a^{nd ta}^xⁱ^ng^{it on a}
^c^u^r^r^e^{nt ba}^sⁱ^s^.
^P^a^s^s^e^{d 226-}^193.
^12/19/2007^H^.^R^.³⁹⁹⁶^H^ous^e^Vote^A^lte^rna^tiv^e^Minim^u^m^T^a^x^A^d^justm^e^{nt — P}^a^ssa^g^e^.
¹¹⁸³^R^a^ng^e^l^{, D}^-^N^.^Y^{., m}^o^{tion to s}^u^s^p^e^{nd the}^r^u^le^s^a^{nd c}^onc^ur^w^ith
^Eⁿ^act^ed^P^.^L^.^110-¹⁶⁶^the^Se^na^te^a^m^e^ndm^eⁿ^{t (S.A}^m^d^{t. 3804) to the}^{bill tha}^t^w^ould
^12/26/2007^pr^ov^ide^a^one^-^y^e^a^r^pa^tc^{h f}^o^r^the^A^M^T^{in 2007 w}^{ithout of}^f^s^e^t^s^.
^T^h^e^{bill a}^llow^s^ta^x^p^a^y^e^r^s^{to a}^pply^nonre^f^unda^ble^pe^rs^ona^l
^c^r^e^d^its^a^g^aⁱ^ns^{t the}^A^M^T^{in 2007. T}^h^e^{bill inc}^r^e^a^s^e^s^the^A^M^T
^e^x^e^m^{ption a}^m^{ount to $66,250 f}^o^r^{joint f}^ile^r^s^a^{nd $44,350 f}^o^r
^indivⁱ^dua^ls^.
^{Motion a}^g^r^e^e^d^{to, 352-}^64.
Table 2. Votes on the 2008 Patch for the AMT in the 2^nd Session of
the 110^th Congress
^D^a^t^e^V^e^hi^c^l^e^V^ot^e^V^ot^e^D^e^s^c^rⁱ^ptⁱ^o^{n and R}^e^s^u^l^t
^3/13/2008^H^.^C^on.R^e^s^.³¹²^H^ous^e^Vote^Fis^c^a^l^{2009 B}^udg^e^t^R^e^s^o^lution
⁽^H^ous^e^FY²⁰⁰⁹¹⁴¹^A^m^ong^othe^{r thing}^s^{, this re}^{solution c}^a^{lls f}^o^{r a}^one^-y^e^a^r
^B^udg^e^t^pa^tc^{h f}^o^r^the^A^M^T^,^w^h^ic^{h m}^u^s^t^be^of^f^s^e^t^.
^Re^solution)^P^a^s^s^e^{d 212-}^207.

^D^a^t^e^V^e^hi^c^l^e^V^ot^e^V^ot^e^D^e^s^c^rⁱ^ptⁱ^o^{n and R}^e^s^u^l^t
^3/14/2008^S.C^on.R^e^s^.⁷⁰^Se^na^te^V^o^te^Fis^c^a^l^{2009 B}^udg^e^t^R^e^s^o^lution
⁽^S^eⁿ^a^t^e^FY²⁰⁰⁹⁸⁵^A^m^ong^othe^{r thing}^s^{, this re}^{solution c}^a^{lls f}^o^{r a}^one^-y^e^a^r
^B^udg^e^t^pa^tc^{h f}^o^r^the^A^M^T^,^w^h^ic^{h is}^{not of}^f^s^e^t^.
^Re^solution)^P^a^s^s^e^{d 51-}^44.
^6/04/2008^S.C^on.R^e^s^.⁷⁰^Se^na^te^V^o^te^A^m^ong^othe^{r thing}^s^{, this re}^{solution c}^a^{lls f}^o^{r a}^one^-y^e^a^r
^an^d⁽^t^he^fⁱ^na^{l v}^e^r^s^ion¹⁴²^pa^tc^{h f}^o^r^the^A^M^T^,^w^h^ic^{h m}^u^s^t^be^of^f^s^e^t^.
^6/05/2008^of^FY²⁰⁰⁹^H^ous^e^Vote^P^a^s^s^e^{d Se}^na^te^48-^{45; P}^a^s^s^e^{d H}^ous^e^214-^210.
^budg^e^t³⁸²
^agreem^en^t⁾
^6/10/2008^H^.^R^.⁶⁰⁴⁹^Se^na^te^Vote^T^h^e^Se^{n. Ba}^uc^{us substitute}^v^e^rs^{ion of}^the^le^gⁱ^sla^{tion w}^ould
^{147 on}^pa^tc^{h the}^A^M^T^f^o^r^{2008 a}^{nd e}^x^te^{nd s}^e^v^e^r^a^{l ta}^x^pr^ov^is^ions
^C^l^otur^e^f^o^r^one^y^e^a^r^{. T}^h^e^ta^x^e^x^te^nde^r^s^w^{ould be}^of^f^s^e^{t; the}^A^M^T
^Rej^ect^ed^pa^tc^{h w}^{ould not be}^of^f^s^e^t^{. C}^l^otur^e^v^o^te^{on m}^o^{tion to}
^p^r^o^ceed^t^o^H.^R.^{6049 r}^e^je^c^t^e^d^50-^44.
^6/17/2008^H^.^R^.⁶⁰⁴⁹^Se^na^te^Vote^T^h^e^Se^{n. Ba}^uc^{us substitute}^v^e^rs^{ion of}^the^le^gⁱ^sla^{tion w}^ould
^{150 on}^pa^tc^{h the}^A^M^T^f^o^r^{2008 a}^{nd e}^x^te^{nd s}^e^v^e^r^a^{l ta}^x^pr^ov^is^ions
^C^l^otur^e^f^o^r^one^y^e^a^r^{. T}^h^e^ta^x^e^x^te^nde^r^s^w^{ould be}^of^f^s^e^{t; the}^A^M^T
^Rej^ect^ed^pa^tc^{h w}^{ould not be}^of^f^s^e^t^{. C}^l^otur^e^v^o^te^{on m}^o^{tion to}
^p^r^o^ceed^t^o^H.^R.^{6049 r}^e^je^c^t^e^d^52-^44.
^6/18/2008^H^.^{R. 6275}^Com^m^itte^e^Re^{p. Cha}^r^le^s^Ra^ng^e^l^’s^{bill w}^{ould a}^llow^nonre^f^unda^ble
^Vot^e^pe^rsona^{l ta}^x^c^r^e^d^{its to of}^f^s^e^t^A^M^T^ta^x^lia^bility^a^{nd w}^ould
^inc^r^e^a^s^e^the^A^M^T^e^x^e^m^{ption a}^m^ounts^{to $69,950 f}^o^r^joint
^r^e^turⁿ^s^a^{nd $46,200 f}^o^r^sⁱ^ng^le^r^e^turⁿ^s^.^T^h^e^pa^tc^{h is}^of^f^s^e^t^.
^T^h^e^s^e^c^h^aⁿ^g^e^s^w^{ould be}^e^f^f^e^c^tiv^e^f^o^r^one^y^e^a^r^{, 2008.}
^6/25/2008^H^.^R^.⁶²⁷⁵^H^ous^e^Vote^Re^{p. Cha}^r^le^{s Ra}^ng^e^l^{’s bill prov}^iding^f^o^{r a}ⁿ^of^f^s^e^t^A^M^T
⁴⁵⁵^pa^tc^{h w}^a^s^a^ppr^ov^e^d^233-^189.
^9/23/2008^H^.^R^.⁶⁰⁴⁹^Se^na^te^Vote^T^h^e^le^gⁱ^s^l^a^{tion w}^{ould pa}^tc^{h the}^A^M^T^f^o^r^{2008 a}^{nd e}^x^te^nd
²⁰⁵^s^e^v^e^r^a^{l ta}^x^pr^ov^is^ions^f^o^r^one^y^e^a^r^{. T}^h^e^ta^x^e^x^te^nde^r^s^w^ould
^be^pa^r^tia^lly^of^f^s^e^{t; the}^A^M^T^pa^tc^{h w}^{ould not be}^of^f^s^e^t^{. H}^.^R^.
^{6049 w}^a^s^a^ppr^ov^e^d^93-^2.
^9/24/2008^H^.^R^.⁷⁰⁰⁵^H^ous^e^Vote^T^h^e^le^gⁱ^s^l^a^{tion w}^{ould pa}^tc^{h the}^A^M^T^f^o^r^{2008 a}^{nd is}^not
⁶³⁴^of^f^s^e^t^{. H}^.^R^.^{7005 w}^a^s^a^ppr^ov^e^d^393-^30.
^10/1/2008^H^.^R^.¹⁴²⁴^Se^na^te^Vote^T^h^e^le^gⁱ^s^l^a^{tion w}^{ould pa}^tc^{h the}^A^M^T^f^o^r^{2008 a}^{nd e}^x^te^nd
²¹³^s^e^v^e^r^a^{l ta}^x^pr^ov^is^ions^w^{ithout a}ⁿ^of^f^s^e^t^{. H}^.^R^.^{1424 w}^a^s
^a^ppr^ov^e^d^74-^25.
^10/3/2008^H^.^R^.¹⁴²⁴^H^ous^e^Vote^T^h^e^le^gⁱ^s^l^a^{tion w}^{ould pa}^tc^{h the}^A^M^T^f^o^r^{2008 a}^{nd e}^x^te^nd
^Eⁿ^act^ed⁶⁸¹^s^e^v^e^ra^{l ta}^x^prov^is^ions^w^{ithout a}ⁿ^of^f^s^e^t^{. T}^h^e^{bill a}^llow^s
^10/3/2008^P^.^L^.^110-³⁴³^ta^x^p^a^y^e^r^s^{to a}^pply^nonr^e^f^unda^ble^pe^r^s^ona^{l c}^r^e^d^its^a^g^aⁱ^ns^{t the}
^A^M^T^{in 2008. T}^h^e^{bill inc}^r^e^a^s^e^s^the^A^M^T^e^x^e^m^ption
^a^m^{ount to $69,950 f}^o^r^{joint f}^ile^r^s^a^{nd $46,200 f}^o^r
^indivⁱ^dua^ls^{. H}^.^R^.^{1424 w}^a^s^a^ppr^ov^e^d^263-^171.