The Tax Increase Prevention and Reconciliation Act of 2005 (or TIPRA, , ) is an American law, which was enacted on May 17, 2006. This bill prevents several tax provisions from sunsetting in the near future. The two most notable pieces of the bill are the extension of the reduced tax rates on capital gains and dividends and extension of the alternative minimum tax (AMT) tax reduction. Legislative history The U.S. House of Representatives approved the bill as , 244–185, and the U.S. Senate approved it 54-44, largely along party lines, with most Republicans supporting and most Democrats opposing. Excerpts from Detailed Summary of Conference Report Two-Year Extension of Reduced Rates on Capital Gains and Dividends Under current law, long-term capital gains and dividend income are taxed at a maximum rate of 15 percent through 2008. For taxpayers in the 10 and 15 percent tax brackets, the tax rate is 5 percent through 2007 and zero in 2008. The Conference Report extends the rates effective in 2008 through 2010. Without action, these rates would have increased after 2008. Alternative Minimum Tax Relief Increase in AMT Exemption Levels The provision extends the Alternative Minimum Tax (AMT) exemption levels through the end of 2006 at a higher level than in 2005. The new exemption levels for 2006 are $62,550 for joint filers, $42,500 for single filers and $31,275 for separate filers. AMT Relief for Non-Refundable Personal Tax Credits The tax code includes many non-refundable personal tax credits, such as the dependent care credit and the credit for the elderly and disabled, among others. Claiming these credits may push an individual in the AMT. The provision extends current law which allows most non-refundable personal tax credits to be claimed against the AMT so that families continue to receive the full benefit of these tax credits. Extension and Modification of Certain Provisions Two-Year Extension of Enhanced Section 179 Expensing for Small Business Under current law, small businesses may expense up to $100,000 of investments in depreciable assets. The deduction phases out dollar-for dollar to the extent the business's annual investments exceed $400,000. Without action, the expensing limit would have declined to $25,000 and the phase-out threshold would decline to $200,000 after 2007. Subpart F Subpart F of the tax code taxes U.S. shareholders of foreign companies (controlled foreign corporations or CFCs) as if certain types of income of the foreign company was paid as