COORDINATE FARMERS AND FISHERMEN INCOME AVERAGING AND THE ALTERNATIVE MINIMUM TAX.

SEC. 314. COORDINATE FARMERS AND FISHERMEN INCOME AVERAGING AND THE ALTERNATIVE MINIMUM TAX.(a) In General.—Section 55(c) (defining regular tax) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph:“(2) Coordination with income averaging for farmers and fishermen.—Solely for purposes of this section, section 1301 (relating to averaging of farm and fishing income) shall not apply in computing the regular tax.”.(b) Allowing Income Averaging for Fishermen.—118 STAT. 1469(1) In general.—Section 1301(a) is amended by striking “farming business” and inserting “farming business or fishing business”.(2) Definition of elected farm income.—(A) In general.—Clause (i) of section 1301(b)(1)(A) is amended by inserting “or fishing business” before the semicolon.(B) Conforming amendment.—Subparagraph (B) of section 1301(b)(1) is amended by inserting “or fishing business” after “farming business” both places it occurs. (3) Definition of fishing business.—Section 1301(b) is amended by adding at the end the following new paragraph:“(4) Fishing business.—The term ‘fishing business’ means the conduct of commercial fishing as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802).”.(c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2003.