Extension of Increased Alternative Minimum Tax Exemption Amounts and Modification of Phaseout Thresholds
Section 70107 · Sec. 70107 ·
What this chapter is about
This part takes the end date off the larger minimum tax exemption. It resets which base year each figure is measured from. It also doubles one phaseout rate from 25 percent to 50 percent. The changes start with tax years after December 31, 2025.
“Section 55(d)(4) is amended-- (1) in subparagraph (A), by striking ", and before January 1, 2026", and”
The section strikes the words and before January 1, 2026 from subparagraph (A) of section 55(d)(4) of the Internal Revenue Code of 1986, and strikes and Before 2026 from the heading.
What the document actually says
“Section 55(d)(4) is amended-- (1) in subparagraph (A), by striking ", and before January 1, 2026", and”
That sentence, in plain words
Words setting an end date are taken out. Those words were and before January 1, 2026.
What this is about
The heading is trimmed to match. It no longer names an end year. So the bigger exemption carries on.
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The document says “is amended”Who acts: Secretary of the TreasuryHow: statuteSec. 70107 in the PDF
What the document says
“by striking "2018" and inserting "2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))", and”
The section rewrites the inflation adjustment in section 55(d)(4)(B) of the Internal Revenue Code of 1986 so that the $1,000,000 amount in subparagraph (A)(ii)(I) starts from 2026 rather than 2018, and so that calendar year 2017 is substituted for the $109,400 and $70,300 amounts in subparagraph (A)(i) while calendar year 2025 is substituted for the $1,000,000 amount.
What the document actually says
“by striking "2018" and inserting "2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))", and”
That sentence, in plain words
The year 2018 is taken out. Longer wording is put in. It keeps 2018 for most figures but uses 2026 for one.
What this is about
That one figure is the $1 million amount. Two smaller figures keep an older base year. The change sets a different start point for each.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “is amended”Who acts: Secretary of the TreasuryHow: statuteSec. 70107 in the PDF
What the document says
“by substituting `50 percent' for `25 percent', and”
The section adds a new subclause (IV) to section 55(d)(4)(A)(ii) of the Internal Revenue Code of 1986 substituting 50 percent for 25 percent, and strikes the word and at the end of subclause (II).
What the document actually says
“by substituting `50 percent' for `25 percent', and”
That sentence, in plain words
A rate of 50 percent takes the place of one at 25 percent.
What this is about
The rate governs how fast the exemption fades. A higher rate means it fades faster. What it fades against is not recorded here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70107 in the PDF
What the document says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
The section applies its amendments to taxable years beginning after December 31, 2025.
What the document actually says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
That sentence, in plain words
The changes start with tax years that begin after December 31, 2025.
What this is about
Earlier tax years are not touched. The old rules still hold for them. The date is fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: strike the end date and reword the heading, rewrite the inflation adjustment so each figure has its own base year, change the phaseout percentage, and fix the effective date.
Nothing in the section is left out. It has four subsections and each is recorded.
The section works by amending section 55(d)(4) of the Internal Revenue Code of 1986, which is not indexed here, so how the alternative minimum tax exemption is otherwise worked out cannot be checked against anything on this site.
