Section 5 is added to read:
"SEC. 5. ALTERNATE MINIMUM TAX. In the case of a taxpayer other than a corporation, if an amount equal to 4% for tax year 2001 and 4% for tax years thereafter of the adjusted gross income exceeds the regular tax for the taxable year then there is imposed a tax equal to such excess. For the purpose of this section the term "regular tax" means the tax imposed by sections 1 and 3 for the taxable year reduced by the credits allowable under subpart A of Part IV of this subchapter other than that allowed by section 31. This alternate minimum tax does not apply to a handicapped taxpayer who earns $1,000 or less, or to the first $5,000 earned by a taxpayer age 65 or over during the taxable year. The term handicapped taxpayer means an individual with a mental disability resulting in subaverage intellectual functioning or impaired social competence, or with a physical disability, infirmity, malformation, or disfigurement which is caused by bodily injury, birth defect, or illness, including epilepsy. It shall include without limitation any degree of paralysis; amputation; lack of physical coordination; blindness or visual impediment; deafness or hearing impediment; muteness or speech impediment; or physical reliance on a guide dog for the blind, a wheelchair, or any other remedial appliance or device.History:1977, PL 15-52 § 3;amd 1980, PL 16-87 § 2; PL 18-25 § amd 1985, PL 19-33 § 1;amd 2001, PL 27-13.
Amendments: 1980 changed section 6 to section 5 and amended section generally.
1984 Added to Section 5 to exempt certain handicapped taxpayers from tax.
1985 Added “or to the first $5,000 earned by a taxpayer age 65 or over”.
2001 Changed 2% alternate minimum tax to 4% for tax year 2001 and tax years thereafter.