Page:United States Statutes at Large Volume 100 Part 2.djvu/668

 100 STAT. 1770

PUBLIC LAW 99-499—OCT. 17, 1986 on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

SEC. 516. ENVIRONMENTAL TAX.

(a) IN GENERAL.—Subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to income taxes) is amended by adding at the end thereof the following new part:

"PART VII—ENVIRONMENTAL TAX "Sec. 59A. Environmental tax. 26 USC 59A.

"SEC. 59A. ENVIRONMENTAL TAX.

Corporations.

"(a) IMPOSITION OF TAX.—In the case of a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 0.12 percent of the excess of— "(1) the modified alternative minimum taxable income of such corporation for the taxable year, over "(2) $2,000,000. "(h) MODIFIED ALTERNATIVE MINIMUM TAXABLE INCOME.—For

purposes of this section, the term 'modified alternative minimum taxable income' means alternative minimum taxable income (as defined in section 55(b)(2)) but determined without regard to— "(1) the alternative tax net operating loss deduction (as defined in section 56(d)), and "(2) the deduction allowed under section 164(a)(5). "(c) SPECIAL RULES.— "(1) SHORT TAXABLE YEARS.—The

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application of this section to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Secretary. "(2) SECTION 1 5 NOT TO APPLY.—Section 15 shall not apply to the tax imposed by this section.

"(d) APPLICATION OF TAX.—

Effective date. j= J

"(1) IN GENERAL.—The tax imposed by this section shall apply to taxable years beginning after December 31, 1986, and before January 1, 1992. "(2) EARLIER TERMINATION.—The tax imposed by this section shall not apply to taxable years— "(A) beginning during a calendar year during which no tax is imposed under section 4611(a) by reason of paragraph (2) of section 4611(e), and "(B) beginning after the calendar year which includes the termination date under paragraph (3) of section 4611(e)." (b) TECHNICAL AMENDMENTS.— (1) N o CREDITS ALLOWED AGAINST TAX.—

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(A) Paragraph (2) of section 26(b) of such Code, as amended by the Tax Reform Act of 1986, is amended by redesignating subparagraphs (B) through (J) as subparagraphs (C) through (K), respectively, and by inserting after subparagraph (A) the following new subparagraph: "(B) section 59A (relating to environmental tax),". (B) Paragraph (3) of section 936(a) of such Code, as so amended, is amended by redesignating subparagraphs (A), (B), and (C) as subparagraphs (B), (C), and (D), respectively, and by inserting before subparagraph (B) (as so redesignated) the following new subparagraph: "(A) section 59A (relating to environmental tax),".

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