26 U.S.C. § 55
§ 55. Alternative minimum tax imposed
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History
Changed by the 2025 tax lawAdded in 1986 by the Tax Reform Act of 1986. Last changed July 4, 2025 by the One Big Beautiful Bill Act (2025).
Every change, newest first (30)
- July 4, 2025One Big Beautiful Bill Act (2025)
- August 16, 2022Inflation Reduction Act of 2022
- December 20, 2019Further Consolidated Appropriations Act, 2020 (SECURE Act)
- December 22, 2017Tax Cuts and Jobs Act (2017)
- December 18, 2015Consolidated Appropriations Act, 2016 (PATH Act)
- December 19, 2014Tax Increase Prevention Act of 2014
- January 2, 2013American Taxpayer Relief Act of 2012
- December 17, 2010Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
- September 27, 2010Public Law 111-240
- February 17, 2009Public Law 111-5
- October 3, 2008Emergency Economic Stabilization Act of 2008
- June 18, 2008Public Law 110-246
- May 22, 2008Public Law 110-234
- December 26, 2007Public Law 110-166
- May 17, 2006Public Law 109-222
- December 21, 2005Gulf Opportunity Zone Act of 2005
- August 8, 2005Public Law 109-58
- October 22, 2004American Jobs Creation Act of 2004
- October 4, 2004Public Law 108-311
- May 28, 2003Jobs and Growth Tax Relief Reconciliation Act of 2003
- June 7, 2001Economic Growth and Tax Relief Reconciliation Act of 2001
- July 22, 1998IRS Restructuring and Reform Act of 1998
- August 5, 1997Taxpayer Relief Act of 1997
- August 20, 1996Small Business Job Protection Act of 1996
- August 10, 1993Omnibus Budget Reconciliation Act of 1993
- October 24, 1992Public Law 102-486
- July 3, 1992Public Law 102-318
- November 5, 1990Omnibus Budget Reconciliation Act of 1990
- November 10, 1988Technical and Miscellaneous Revenue Act of 1988
- October 22, 1986Tax Reform Act of 1986 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
There is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the excess (if any) of—
the tentative minimum tax for the taxable year, over
the regular tax for the taxable year plus, in the case of an applicable corporation, the tax imposed by section 59A.
For purposes of this part—
In the case of a taxpayer other than a corporation—
The tentative minimum tax for the taxable year is the sum of—
26 percent of so much of the taxable excess as does not exceed $175,000, plus
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 foreign tax credit for the taxable year.
For purposes of this subsection, the term “taxable excess” means so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount.
In the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting 50 percent of the dollar amount otherwise applicable under clause (i) and clause (ii) thereof. For purposes of the preceding sentence, marital status shall be determined under section 7703.
The term “alternative minimum taxable income” means the taxable income of the taxpayer for the taxable year—
increased by the amount of the items of tax preference described in section 57.
If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence).
In the case of an applicable corporation, the tentative minimum tax for the taxable year shall be the excess of—
15 percent of the adjusted financial statement income for the taxable year (as determined under section 56A), over
the corporate AMT foreign tax credit for the taxable year.
In the case of any corporation which is not an applicable corporation, the tentative minimum tax for the taxable year shall be zero.
The amount determined under the first sentence of paragraph (1)(A) shall not exceed the sum of—
the amount determined under such first sentence computed at the rates and in the same manner as if this paragraph had not been enacted on the taxable excess reduced by the lesser of—
the net capital gain; or
0 percent of so much of the adjusted net capital gain (or, if less, taxable excess) as does not exceed an amount equal to the excess described in section 1(h)(1)(B), plus
15 percent of the lesser of—
so much of the adjusted net capital gain (or, if less, taxable excess) as exceeds the amount on which tax is determined under subparagraph (B), or
the excess described in section 1(h)(1)(C)(ii), plus
20 percent of the adjusted net capital gain (or, if less, taxable excess) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C), plus
25 percent of the amount of taxable excess in excess of the sum of the amounts on which tax is determined under the preceding subparagraphs of this paragraph.
Terms used in this paragraph which are also used in section 1(h) shall have the respective meanings given such terms by section 1(h) but computed with the adjustments under this part.
For purposes of this section, the term “regular tax” means the regular tax liability for the taxable year (as defined in section 26(b)) reduced by the foreign tax credit allowable under section 27(a).1 Such term shall not include any increase in tax under section 45(e)(11)(C), 49(b) or 50(a) or subsection (j) or (k) of section 42.
Solely for purposes of this section, section 1301 (relating to averaging of farm and fishing income) shall not apply in computing the regular tax liability.
For provisions providing that certain credits are not allowable against the tax imposed by this section, see sections 30C(d)(2) and 38(c).
For purposes of this section—
In the case of a taxpayer other than a corporation, the term “exemption amount” means—
$78,750 in the case of—
a joint return, or
a surviving spouse,
$50,600 in the case of an individual who—
is not a married individual, and
is not a surviving spouse,
50 percent of the dollar amount applicable under subparagraph (A) in the case of a married individual who files a separate return, and
$22,500 in the case of an estate or trust.
For purposes of this paragraph, the term “surviving spouse” has the meaning given to such term by section 2(a), and marital status shall be determined under section 7703.
The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount equal to 25 percent of the amount by which the alternative minimum taxable income of the taxpayer exceeds—
$150,000 in the case of a taxpayer described in paragraph (1)(A),
$112,500 in the case of a taxpayer described in paragraph (1)(B), and
50 percent of the dollar amount applicable under subparagraph (A) in the case of a taxpayer described in subparagraph (C) or (D) of paragraph (1).
In the case of a taxpayer described in paragraph (1)(C), alternative minimum taxable income shall be increased by the lesser of (i) 25 percent of the excess of alternative minimum taxable income (determined without regard to this sentence) over the minimum amount of such income (as so determined) for which the exemption amount under paragraph (1)(C) is zero, or (ii) such exemption amount (determined without regard to this paragraph).
In the case of any taxable year beginning in a calendar year after 2012, the amounts described in subparagraph (B) shall each be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2011” for “calendar year 2016” in subparagraph (A)(ii) thereof.
The amounts described in this subparagraph are—
each of the dollar amounts contained in subsection (b)(1)(A),
each of the dollar amounts contained in subparagraphs (A), (B), and (D) of paragraph (1), and
each of the dollar amounts in subparagraphs (A) and (B) of paragraph (2).
Any increased amount determined under subparagraph (A) shall be rounded to the nearest multiple of $100.
In the case of any taxable year beginning after December 31, 2017—
paragraph (1) shall be applied—
by substituting “$109,400” for “$78,750” in subparagraph (A), and
by substituting “$70,300” for “$50,600” in subparagraph (B),
paragraph (2) shall be applied—
by substituting “$1,000,000” for “$150,000” in subparagraph (A),
by substituting “50 percent of the dollar amount applicable under subparagraph (A)” for “$112,500” in subparagraph (B),
in the case of a taxpayer described in paragraph (1)(D), without regard to the substitution under subclause (I), and
by substituting “50 percent” for “25 percent”, and
subsection (j) of section 59 shall not apply.
In the case of any taxable year beginning in a calendar year after 2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I)), the amounts described in clause (ii) shall each be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting for “calendar year 2016” in subparagraph (A)(ii) thereof—
The amounts described in this clause are the $109,400 amount in subparagraph (A)(i)(I), the $70,300 amount in subparagraph (A)(i)(II), and the $1,000,000 amount in subparagraph (A)(ii)(I).
Any increased amount determined under clause (i) shall be rounded to the nearest multiple of $100.
In the case of any taxable year to which subparagraph (A) applies, no adjustment shall be made under paragraph (3) to any of the numbers which are substituted under subparagraph (A) and adjusted under this subparagraph.