On December 12, the House approved, 226-193, the AMT Relief Act (H.R. 4351), which would provide a one-year “patch” for the Alternative Minimum Tax (AMT). The one-year fix would prevent the AMT from affecting an estimated 21 million taxpayers in tax year 2007.
The Senate passed its version of the AMT “patch,” the Tax Increase Prevention Act (H.R. 3996), on December 6, after amending the original House bill, the Temporary Tax Relief Act (H.R. 3996), to strip from the bill offsets for the AMT “patch,” expansion of the refundable child tax credit, and extensions of several tax provisions set to expire at the end of the year (see The Source, 12/7/07).
Like the original House bill passed on November 9, H.R. 4351 would increase the AMT exemption amounts the amounts above which the AMT applies for tax year 2007 and expand eligibility for the refundable child tax credit (see The Source, 11/9/07). However, unlike the House version of H.R. 3996, the AMT Relief Act would not provide extensions for several tax provisions set to expire at the end of the year.