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House Clears Second AMT “Patch” for President

On December 19, the House approved, 352-64, H.R. 3996, the Tax Increase Prevention Act. The Senate passed H.R. 3996 on December 6, after it amended the bill to strip several provisions from the original House-passed bill (see The Source, 12/7/07). On December 12, the House passed similar legislation, the AMT Relief Act (H.R. 4351), which would have reincorporated most of the provisions removed by the Senate (see The Source, 12/14/07), but then decided to approve the Senate version of H.R. 3996 in order to ensure final passage of an Alternative Minimum Tax (AMT) “patch.” The president is expected to sign the bill into law.

H.R. 3996 would prevent for one year the AMT from affecting an additional 21 million taxpayers in tax year 2007. However, the bill does not include offsets for the one-year “patch”; the House version had included offsets. The measure also would increase the AMT exemption amounts to $66,250 for joint returns and surviving spouses, $44,350 for single individuals, and $33,125 for spouses who file individual tax returns. The final bill does not include one-year extensions for several expiring tax provisions or an expansion of the refundable child tax credit, provisions that were part of the House version.

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