26Title 26The US tax code, read & explained

26 U.S.C. § 53

§ 53. Credit for prior year minimum tax liability

425 words · amended 15 times · cited by 5 other sections

Compare on Cornell LII Official XML (House)

No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Added in 1986 by the Tax Reform Act of 1986. Last changed August 16, 2022 by the Inflation Reduction Act of 2022.

Every change, newest first (16)
  1. August 16, 2022Inflation Reduction Act of 2022
  2. March 27, 2020CARES Act (2020)
  3. December 22, 2017Tax Cuts and Jobs Act (2017)
  4. December 19, 2014Tax Increase Prevention Act of 2014
  5. February 17, 2009Public Law 111-5
  6. October 3, 2008Emergency Economic Stabilization Act of 2008
  7. December 29, 2007Public Law 110-172
  8. December 20, 2006Public Law 109-432
  9. August 8, 2005Public Law 109-58
  10. October 22, 2004American Jobs Creation Act of 2004
  11. August 20, 1996Small Business Job Protection Act of 1996
  12. August 10, 1993Omnibus Budget Reconciliation Act of 1993
  13. October 24, 1992Public Law 102-486
  14. December 19, 1989Omnibus Budget Reconciliation Act of 1989
  15. November 10, 1988Technical and Miscellaneous Revenue Act of 1988
  16. October 22, 1986Tax Reform Act of 1986 · added this section

The law as written

Current through Public Law 119-102. Amendment notes omitted.

(a) Allowance of credit

There shall be allowed as a credit against the tax imposed by this chapter for any taxable year an amount equal to the minimum tax credit for such taxable year.

(b) Minimum tax credit

For purposes of subsection (a), the minimum tax credit for any taxable year is the excess (if any) of—

(1)

the adjusted net minimum tax imposed for all prior taxable years beginning after 1986, over

(2)

the amount allowable as a credit under subsection (a) for such prior taxable years.

(c) Limitation

The credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of—

(1)

the regular tax liability of the taxpayer for such taxable year reduced by the sum of the credits allowable under subparts A, B, D, E, and F of this part, over

(2)

the tentative minimum tax for the taxable year.

(d) Definitions

For purposes of this section—

(1) Net minimum tax
(A) In general

The term “net minimum tax” means the tax imposed by section 55.

(B) Credit not allowed for exclusion preferences
(i) Adjusted net minimum tax

The adjusted net minimum tax for any taxable year is—

(I)

the amount of the net minimum tax for such taxable year, reduced by

(II)

the amount which would be the net minimum tax for such taxable year if the only adjustments and items of tax preference taken into account were those specified in clause (ii).

(ii) Specified items

The following are specified in this clause—

(I)

the adjustments provided for in subsection (b)(1) of section 56, and

(II)

the items of tax preference described in paragraphs (1), (5), and (7) of section 57(a).

(iii) Credit allowable for exclusion preferences of corporations

In the case of a corporation—

(I)

the preceding provisions of this subparagraph shall not apply, and

(II)

the adjusted net minimum tax for any taxable year is the amount of the net minimum tax for such year.

(2) Tentative minimum tax

The term “tentative minimum tax” has the meaning given to such term by section 55(b).

(e) Application to applicable corporations

In the case of a corporation—

(1)

subsection (b)(1) shall be applied by substituting “the net minimum tax for all prior taxable years beginning after 2022” for “the adjusted net minimum tax imposed for all prior taxable years beginning after 1986”, and

(2)

the amount determined under subsection (c)(1) shall be increased by the amount of tax imposed under section 59A for the taxable year.