26 U.S.C. § 26
Limitation based on tax liability; definition of tax liability
# (a) Limitation based on amount of tax
The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the sum of— (1) the taxpayer’s regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27, and (2) the tax imposed by section 55(a) for the taxable year.
# (b) Regular tax liability
For purposes of this part— (1) In general The term “regular tax liability” means the tax imposed by this chapter for the taxable year. (2) Exception for certain taxes For purposes of paragraph (1), any tax imposed by any of the following provisions shall not be treated as tax imposed by this chapter: (A) section 55 (relating to minimum tax), (B) section 59A (relating to base erosion and anti-abuse tax), (C) subsection (m)(5)(B), (q), (t), or (v) of section 72 (relating to additional taxes on certain distributions), (D) section 143(m) (relating to recapture of proration of Federal subsidy from use of mortgage bonds and mortgage credit certificates), (E) section 530(d)(4) (relating to additional tax on certain distributions from Coverdell education savings accounts), (F) section 531 (relating to accumulated earnings tax), (G) section 541 (relating to personal holding company tax), (H) section 1351(d)(1) (relating to recoveries of foreign expropriation losses), (I) section 1374 (relating to tax on certain built-in gains of S corporations), (J) section 1375 (relating to tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts), (K) subparagraph (A) of section 7518(g)(6) (relating to nonqualified withdrawals from capital construction funds taxed at highest marginal rate), (L) sections 871(a) and 881 (relating to certain income of nonresident aliens and foreign corporations), (M) section 860E(e) (relating to taxes with respect to certain residual interests), (N) section 884 (relating to branch profits tax), (O) sections 453(l )(3) and 453A(c) (relating to interest on certain deferred tax liabilities), [(P) Repealed. Pub. L. 115–141, div. U, title IV, § 401(b)(2) , Mar. 23, 2018 , 132 Stat. 1201 .] (Q) section 220(f)(4) (relating to additional tax on Archer MSA distributions not used for qualified medical expenses), (R) section 138(c)(2) (relating to penalty for distributions from Medicare Advantage MSA not used for qualified medical expenses if minimum balance not maintained), (S) sections 106(e)(3)(A)(ii), 223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II) (relating to certain failures to maintain high deductible health plan coverage), (T) section 170(o )(3)(B) (relating to recapture of certain deductions for fractional gifts), (U) section 223(f)(4) (relating to additional tax on health savings account distributions not used for qualified medical expenses), (V) subsections (a)(1)(B)(i) and (b)(4)(A) of section 409A (relating to interest and additional tax with respect to certain deferred compensation), (W) section 36(f) (relating to recapture of homebuyer credit), (X) section 457A(c)(1)(B) (relating to determinability of amounts of compensation), (Y) section 529A(c)(3)(A) (relating to additional tax on ABLE account distributions not used for qualified disability expenses), and (Z) section 24(j)(2) (relating to excess advance payments).
# (c) Tentative minimum tax
For purposes of this part, the term “tentative minimum tax” means the amount determined under section 55(b)(1).
Source: view the official text
Cited by 35
- 26 CFR § 1.1502-3 — Consolidated tax credits.
- 26 CFR § 1.1502-4 — Consolidated foreign tax credit.
- 26 CFR § 1.1502-55 — Computation of alternative minimum tax of consolidated groups.
- 26 CFR § 1.163-6T — Reduction of deduction where section 25 credit taken (temporary).
- 26 CFR § 1.21-2 — Limitations on amount creditable.
- 26 CFR § 1.25-2T — Amount of credit (Temporary).
- 26 CFR § 1.25A-1 — Calculation of education tax credit and general eligibility requirements.
- 26 CFR § 1.25E-3 — Transfer of credit.
- 26 CFR § 1.28-1 — Credit for clinical testing expenses for certain drugs for rare diseases or conditions.
- 26 CFR § 1.30D-1 — Credit for new clean vehicles.
- 26 CFR § 1.30D-5 — Transfer of credit.
- 26 CFR § 1.383-1 — Special limitations on certain capital losses and excess credits.
Show 23 more
- 26 CFR § 1.469-1T — General rules (temporary).
- 26 CFR § 1.469-3T — Passive activity credit (temporary).
- 26 CFR § 1.59A-1 — Base erosion and anti-abuse tax.
- 26 CFR § 1.6662-3 — Negligence or disregard of rules or regulations.
- 26 CFR § 1.901-1 — Allowance of credit for foreign income taxes.
- 26 CFR § 1.9200-1 — Deduction for motor carrier operating authority.
- 26 CFR § 1.965-7 — Elections, payment, and other special rules.
- 26 CFR § 301.6362-7 — Additional requirements.
- 26 CFR § 53.4968-2 — Net investment income.
- 26 CFR § 601.105 — Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.
- 26 U.S.C. § 163 — Interest
- 26 U.S.C. § 23 — Adoption expenses
- 26 U.S.C. § 24 — Child tax credit
- 26 U.S.C. § 25 — Interest on certain home mortgages
- 26 U.S.C. § 25A — American Opportunity and Lifetime Learning credits
- 26 U.S.C. § 25D — Residential clean energy credit
- 26 U.S.C. § 25F — Qualified elementary and secondary education scholarships
- 26 U.S.C. § 30C — Alternative fuel vehicle refueling property credit
- 26 U.S.C. § 469 — Passive activity losses and credits limited
- 26 U.S.C. § 55 — Alternative minimum tax imposed
- 26 U.S.C. § 59A — Tax on base erosion payments of taxpayers with substantial gross receipts
- 26 U.S.C. § 901 — Taxes of foreign countries and of possessions of United States
- 26 U.S.C. § 9802 — Prohibiting discrimination against individual participants and beneficiaries based on health status
Nearby sections (25 sections)
- 15 · Effect of changes
- 21 · Expenses for household and dependent care services necessary for…
- 22 · Credit for the elderly and the permanently and totally disabled
- 23 · Adoption expenses
- 24 · Child tax credit
- 25 · Interest on certain home mortgages
- 25A · American Opportunity and Lifetime Learning credits
- 25B · Elective deferrals and IRA contributions by certain individuals
- 25C · Energy efficient home improvement credit
- 25D · Residential clean energy credit
- 25E · Previously-owned clean vehicles
- 25F · Qualified elementary and secondary education scholarships
- 26 · Limitation based on tax liability; definition of tax liability
- 27 · Taxes of foreign countries and possessions of the United States
- 28 · Renumbered § 45C
- 29 · Renumbered § 45K
- 30 · Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(2)(A), Dec.…
- 30A · Repealed. Pub. L. 115–141, div. U, title IV, § 401(d)(1)(B), Mar.…
- 30B · Alternative motor vehicle credit
- 30C · Alternative fuel vehicle refueling property credit
- 30D · Clean vehicle credit
- 31 · Tax withheld on wages
- 32 · Earned income
- 33 · Tax withheld at source on nonresident aliens and foreign…
- 34 · Certain uses of gasoline and special fuels