Code Section 55

Code Section	Effective Date	Name of Act	Name of Provision	10yr Revenue Estimate ($millions)
26, 55	12/31/2012	The American Taxpayer Relief Act of 2012	Permanent Alternative Minimum Tax Relief for Individuals	-1,815,600
1, 55	12/31/2012	The American Taxpayer Relief Act of 2012	Permanent Extension of 2003 Tax Relief; 20-Percent Capital Gains Rate for Certain High Income Individuals	-289,920
26, 55	*See Notes Below	The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010	Extension of Alternative Minimum Tax Relief for Nonrefundable Personal Credits and Increased Alternative Minimum Tax Exemption Amount	-136,676
26, 55	1/1/2009	The American Recovery and Reinvestment Act of 2009 (Public Law 111-5)	Extend alternative minimum tax relief for individuals	-69,759

* Notes on Effective Date

The provision is effective for taxable years beginning after 2009.

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Permanent Alternative Minimum Tax Relief for Individuals

Explanation of Provision

The basic AMT exemption amounts for taxable years beginning in 2012 are increased to (1) $78,750 in the case of married individuals filing a joint return and surviving spouses; (2) $50,600 in the case of other unmarried individuals; and (3) $39,375 in the case of married individuals filing separate returns. For taxable years beginning after 2012, the Act indexes the following dollar amounts for inflation:

(1) The dollar amounts dividing the 26- and 28-percent rates.

(2) The dollar amounts of the basic AMT exemption.

(3) The dollar amounts at which the phase-out of the basic AMT exemption amount begins.

The Act makes permanent the provision allowing the personal credits against the AMT.

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Permanent Extension of 2003 Tax Relief; 20-Percent Capital Gains Rate for Certain High Income Individuals

Explanation of Provision

Under the Act, the tax rates in effect before 2013 for adjusted net capital gain and qualified dividend income are made permanent, except that the 15-percent rate applies only to adjusted net capital gain and qualified dividend income which otherwise would be taxed at a rate below 39.6 percent under the regular tax. A 20-percent rate applies to amounts which would otherwise be taxed at a 39.6- percent rate.²⁸⁸ These rates apply for purposes of both the regular tax and the alternative minimum tax. Thus, tax rates of 0, 15, and 20 percent apply to this income. The Act does not change the tax on net investment income.

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Extension of Alternative Minimum Tax Relief for Nonrefundable Personal Credits and Increased Alternative Minimum Tax Exemption Amount

Explanation of Provision

The provision allows an individual to offset the entire regular tax liability and alternative minimum tax liability by the nonrefundable personal credits for 2010 and 2011.

The provision provides that the individual AMT exemption amount for taxable years beginning in 2010 is (1) $72,450, in the case of married individuals filing a joint return and surviving spouses; (2) $47,450 in the case of other unmarried individuals; and (3) $36,225 in the case of married individuals filing separate returns.

The provision provides that the individual AMT exemption amount for taxable years beginning in 2011 is (1) $74,450, in the case of married individuals filing a joint return and surviving spouses; (2) $48,450 in the case of other unmarried individuals; and (3) $37,225 in the case of married individuals filing separate returns.

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Extend alternative minimum tax relief for individuals

Explanation of Provision