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107 STAT. 462 PUBLIC LAW 103-66—AUG. 10, 1993 "(11) 28 percent of so much of the taxable excess as exceeds $175,000. The amount determined under the preceding sentence shall be reduced by the alternative minimum tax for- eign tax credit for tne taxable year. **(ii) TAXABLE EXCESS.—For purposes of clause (i), the term 'taxable excess' means so much of the alter- native minimum taxable income for the taxable year as exceeds the exemption amount. "(iii) MARRIED INDIVIDUAL FILING SEPARATE RETURN.—In the case of a married individual filing a separate return, clause (i) shall be applied by substituting '$87,500' for '$175,000' each place it appears. For purposes of the preceding sentence, mari- tal status shall be determined under section 7703. **(B) CORPORATIONS.—In the case of a corporation, the tentative minimum tax for the taxable year is— "(i) 20 percent of so much of the alternative mini- mum taxable income for the taxable year as exceeds the exemption amoimt, reduced by "(ii) tne alternative minimum tax foreign tax credit for the taxable year." (b) INCREASE IN EXEMPTION AMOUNTS.—Paragraph (1) of section 26 use 55. 55(d) (defining exemption amount) is amended— (1) by striking ''$40,000'' in subparagraph (A) and inserting "$45,000*^, (2) by striking "$30,000" in subparagraph (B) and inserting "$33,750*, and (3) by striking "$20,000" in subparagraph (C) and inserting "$22,500*. (c) CONFORMING AMENDMENTS.— (1) The last sentence of section 55(dX3) is amended by striking "$155,000 or (ii) $20,000" and inserting "$165,000 or (ii) $22,500". (2XA) Subparagraph (A) of section 897(aX2) is amended by striking "the amount determined imder section 55(bXlXA) shall not be less than 21 percent or and inserting "the taxable excess for purposes of section 55(bXlXA) shall not be less than". (B) The heading for paragraph (2) of section 897(a) is amended by striking 21-PERCENT". 26 use 55 note. (d) EFFECTIVE DATE.—^The amendments made by this section shall apply to taxable years beginning after December 31, 1992. SEC. 13204. OVERALL LIMITATION ON ITEMIZED DEDUCTIONS FOR HIGH-INCOME TAXPAYERS MADE PERMANENT. Subsection (f) of section 68 (relating to overall limitation on itemized deductions) is hereby repealed. \ SEC. 13206. PHASEOUT OF PERSONAL EXEMPTION OF HIGH-INCOME TAXPAYERS MADE PERMANENT. Section 151(dX3) (relating to phaseout of personal exemption) is amended by striking subparagraph (E). SEC. 13206. PROVISIONS TO PREVENT CONVERSION OF ORDINARY INCOME TO CAPITAL GAIN. (a) INTEREST EMBEDDED IN FINANCIAL TRANSACTIONS.—