MODIFICATIONS TO ALTERNATIVE MINIMUM TAX RATES AND EXEMPTION AMOUNTS.

SEC. 13203. MODIFICATIONS TO ALTERNATIVE MINIMUM TAX RATES AND EXEMPTION AMOUNTS. (a) Increase in Rate.— Paragraph (1) of section 55(b) (defining tentative minimum tax) is amended to read as follows: “(1) Amount of tentative tax.— “(A) Noncorporate taxpayers.— “(i) In general.— In the case of a taxpayer other than a corporation, the tentative minimum tax for the taxable year is the stun of— “(I) 26 percent of so much of the taxable excess as does not exceed $175,000, plus 107 STAT. 462 “(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. “(ii) Taxable excess.— For purposes of clause (i), the term ‘taxable excess’ means so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount. “(iii) Married individual filing separate return.— In the case of a married individual filing a separate return, clause (i) shall be applied by substituting ‘$87,500’ for ‘$175,000’ each place it appears. For purposes of the preceding sentence, marital status shall be determined under section 7703. “(B) Corporations.— In the case of a corporation, the tentative minimum tax for the taxable year is— “(i) 20 percent of so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount, reduced by “(ii) the alternative minimum tax foreign tax credit for the taxable year.” (b) Increase in Exemption Amounts.— Paragraph (1) of section 55(d) (defining exemption amount) is amended— (1) by striking “$40,000” in subparagraph (A) and inserting “$45,000”, (2) by striking “$30,000” in subparagraph (B) and inserting “$33,750”, and (3) by striking “$20,000” in subparagraph (C) and inserting “$22,500”. (c) Conforming Amendments.— (1) The last sentence of section 55(d)(3) is amended by striking “$155,000 or (ii) $20,000” and inserting “$165,000 or (ii) $22,500”. (2) (A) Subparagraph (A) of section 897(a)(2) is amended by striking “the amount determined under section 55(b)(1)(A) shall not be less than 21 percent of” and inserting “the taxable excess for purposes of section 55(b)(1)(A) shall not be less than”. (B) The heading for paragraph (2) of section 897(a) is amended by striking “21-percent”. (d) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 1992.