Today, the House passed Alternative Minimum Tax Relief (HR 7005), to provide critical tax relief to 25 million middle-class families by protecting them from the Alternative Minimum Tax. The bill will provide $62 billion in Alternative Minimum Tax (AMT) relief to ease the strain of rising gas and food prices, and is a critical part of our plan to strengthen the American economy. Though the AMT was put in place to ensure that the wealthiest families did not escape paying taxes altogether, it has grown to be such a problem that it now threatens teachers and firefighters — a far cry from its original intent.

The legislation:

Protects more than 25 million middle-class families from being hit by the AMT. The bill would extend for one year AMT relief for nonrefundable personal credits and increases the AMT exemption amount to $69,950 for joint filers and $46,200 for individuals.

Includes relief for AMT taxpayers who have exercised incentive stock options. In the past, taxpayers that exercised incentive stock options were unintentionally required by the AMT to pay tax on gains that never materialized. This provision will protect these taxpayers from this unintended tax.

Speaker Pelosi on passage:

Today, the Congress is providing critical tax relief to 25 million middle-class families. As many Americans worry about losing their homes and jobs, and all Americans worry about losing their standard of living, the House is passing relief to ease the strain on middle-income families and strengthen the economy.

I am, however, disappointed that stubborn fiscal irresponsibility on the part of the President and Republicans in Congress has resulted in AMT legislation that does not meet the rigors of pay-as-you-go spending. To protect middle-income families from an impending tax increase, we have been forced to drop some responsible spending offsets. Republican misplaced priorities are again burdening future generations with debt.

Democrats will continue our efforts to help Americans on Main Street by putting middle class families first. Republicans must join us to ensure that this essential legislation is enacted into law without further delay.