Section 1 Short title
This Act may be cited as the “Tax Credit Restoration Act of 2021”.
Tax Credit Restoration Act of 2021
A BILL
To amend the Internal Revenue Code of 1986 to better coordinate the base erosion and anti-abuse tax with certain credits.
Sec. 2 Coordination of base erosion and anti-abuse tax with certain credits
Base erosion minimum tax amount determined without regard to credits—
In general— Section 59A(b)(1)(B) of the Internal Revenue Code of 1986 is amended to read as follows:
“(B) an amount equal to the regular tax liability (as defined in section 26(b)) of the taxpayer for the taxable year.”
Conforming amendments—
Section 59A(b)(2) of such Code is amended by striking “shall be applied” and all that follows and inserting “shall be applied by substituting “12.5 percent” for “10 percent” in subparagraph (A) thereof.”.
Section 59A(b)(3)(A) of such Code is amended by striking “(2)(A)” and inserting “(2)”.
Section 59A(b) of such Code is amended by striking paragraph (4).
Allowance of general business credit against base erosion and anti-Abuse tax— Section 38(c)(1) of such Code is amended by striking “the tax imposed by section 55” and inserting “the taxes imposed by sections 55 and 59A”.
Effective date— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.