Internal Revenue Code:Sec. 53. Credit for prior year minimum tax liability
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Contents |
Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart G - Credit Against Regular Tax for Prior Year Minimum Tax
Liability
Statute
Sec. 53. Credit for prior year minimum tax liability
(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) Special rule
The adjusted net minimum tax for the taxable year shall be
increased by the amount of the credit not allowed under
section 30 solely by reason of the application of
section 30(b)(3)(B).
(iv) 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 increased
in the manner provided in clause (iii).
(2) Tentative minimum tax
The term ''tentative minimum tax'' has the meaning given to
such term by section 55(b).
(e) Special Rule for Individuals With Long-Term Unused Credits.--
(1) In general.--If an individual has a long-term unused
minimum tax credit for any taxable year beginning before January
1, 2013, the amount determined under subsection (c)
for such taxable year shall not be less than the AMT refundable
credit amount for such taxable year.
(2) AMT refundable credit amount.--For purposes of
paragraph (1)--
(A) In general.--The term `AMT refundable credit
amount' means, with respect to any taxable year, the
amount (not in excess of the long-term unused minimum
tax credit for such taxable year) equal to the greater
of--
(i) $5,000,
(ii) 20 percent of the long-term unused
minimum tax credit for such taxable year, or
(iii) the amount (if any) of the AMT
refundable credit amount determined under this
paragraph for
the taxpayer's preceding taxable year (as
determined before any reduction under subparagraph
(B)).
(B) Phaseout of amt refundable credit amount.--
(i) In general.--In the case of an
individual whose adjusted gross income for any
taxable year exceeds the threshold amount (within
the meaning of section 151(d)(3)(C)), the AMT
refundable credit amount determined under
subparagraph (A) for such taxable year shall be
reduced by the applicable percentage (within the
meaning of section 151(d)(3)(B)).
(ii) Adjusted gross income.--For purposes of
clause (i), adjusted gross income shall be
determined without regard to sections 911, 931,
and 933.
(3) Long-term unused minimum tax credit.--
(A) In general.--For purposes of this subsection,
the term `long-term unused minimum tax credit' means,
with respect to any taxable year, the portion of the
minimum tax credit determined under subsection (b)
attributable to the adjusted net minimum tax for taxable
years before the 3rd taxable year immediately preceding
such taxable year.
(B) First-in, first-out ordering rule.--For
purposes of subparagraph (A), credits shall be treated
as allowed under subsection (a) on a first-in, first-out
basis.
(4) Credit refundable.--For purposes of this title (other
than this section), the credit allowed by reason of this
subsection shall be treated as if it were allowed under subpart
C.
Sources
(Added Pub. L. 99-514, title VII, Sec. 701(b), Oct. 22, 1986, 100
Stat. 2339; amended Pub. L. 100-647, title I, Sec. 1007(g)(4),
title VI, Sec. 6304(a), Nov. 10, 1988, 102 Stat. 3435, 3756; Pub.
L. 101-239, title VII, Sec. 7612(a)(1), (2), (b)(1), 7811(d)(2),
Dec. 19, 1989, 103 Stat. 2373, 2374, 2408; Pub. L. 102-486, title
XIX, Sec. 1913(b)(2)(C), Oct. 24, 1992, 106 Stat. 3020; Pub. L.
103-66, title XIII, Sec. 13113(b)(2), 13171(c), Aug. 10, 1993, 107
Stat. 429, 455; Pub. L. 104-188, title I, Sec. 1205(d)(5),
1704(j)(1), Aug. 20, 1996, 110 Stat. 1776, 1881.)
Miscellaneous
PRIOR PROVISIONS
A prior section 53, added Pub. L. 95-30, title II, Sec. 202(b),
May 23, 1977, 91 Stat. 146; amended Pub. L. 95-600, title III, Sec.
321(c)(2), Nov. 6, 1978, 92 Stat. 2835; Pub. L. 97-34, title II,
Sec. 207(c)(2), Aug. 13, 1981, 95 Stat. 225; Pub. L. 97-248, title
II, Sec. 201(d)(8)(A), formerly Sec. 201(c)(8)(A), and Sec.
265(b)(2)(A)(iii), Sept. 3, 1982, 96 Stat. 420, 547, renumbered
Sec. 201(d)(8)(A), Pub. L. 97-448, title III, Sec. 306(a)(1)(A)(i),
Jan. 12, 1983, 96 Stat. 2400; 97-354, Sec. 5(a)(12), Oct. 19, 1982,
96 Stat. 1693; 97-448, title I, Sec. 102(d)(3), Jan. 12, 1983, 96
Stat. 2370; Pub. L. 98-21, title I, Sec. 122(c)(1), Apr. 20, 1983,
97 Stat. 87; Pub. L. 98-369, div. A, title VII, Sec. 713(c)(1)(C),
July 18, 1984, 98 Stat. 957, placed limitations on the amount of
credit allowed by former section 44B for employment of certain new
employees, prior to repeal by Pub. L. 98-369, div. A, title IV,
Sec. 474(p)(8), July 18, 1984, 98 Stat. 838, applicable to taxable
years beginning after Dec. 31, 1983, and to carrybacks from such
years.
AMENDMENTS
2007 - PL 110-172
SEC. 2. AMENDMENT RELATED TO THE TAX RELIEF AND HEALTH CARE ACT OF
2006.
(a) Amendment Related to Section 402 of Division A of the Act.--
Subparagraph (A) of section 53(e)(2) <<NOTE: 26 USC 53.>> is amended to
read as follows:
``(A) In general.--The term `AMT refundable credit
amount' means, with respect to any taxable year, the
amount (not in excess of the long-term unused minimum
tax credit for such taxable year) equal to the greater
of--
``(i) $5,000,
``(ii) 20 percent of the long-term unused
minimum tax credit for such taxable year, or
``(iii) the amount (if any) of the AMT
refundable credit amount determined under this
paragraph for
the taxpayer's preceding taxable year (as
determined before any reduction under subparagraph
(B)).''.
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 402. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE REFUNDABLE
AFTER PERIOD OF YEARS.
(a) In General.--Section 53 (relating to credit for prior year
minimum tax liability) is amended by adding at the end the following new
subsection:
``(e) Special Rule for Individuals With Long-Term Unused Credits.--
``(1) In general.--If an individual has a long-term unused
minimum tax credit for any taxable year beginning before January
1, 2013, the amount determined under subsection (c)
for such taxable year shall not be less than the AMT refundable
credit amount for such taxable year.
``(2) AMT refundable credit amount.--For purposes of
paragraph (1)--
``(A) In general.--The term `AMT refundable credit
amount' means, with respect to any taxable year, the
amount equal to the greater of--
``(i) the lesser of--
``(I) $5,000, or
``(II) the amount of long-term
unused minimum tax credit for such
taxable year, or
``(ii) 20 percent of the amount of such
credit.
``(B) Phaseout of amt refundable credit amount.--
``(i) In general.--In the case of an
individual whose adjusted gross income for any
taxable year exceeds the threshold amount (within
the meaning of section 151(d)(3)(C)), the AMT
refundable credit amount determined under
subparagraph (A) for such taxable year shall be
reduced by the applicable percentage (within the
meaning of section 151(d)(3)(B)).
``(ii) Adjusted gross income.--For purposes of
clause (i), adjusted gross income shall be
determined without regard to sections 911, 931,
and 933.
``(3) Long-term unused minimum tax credit.--
``(A) In general.--For purposes of this subsection,
the term `long-term unused minimum tax credit' means,
with respect to any taxable year, the portion of the
minimum tax credit determined under subsection (b)
attributable to the adjusted net minimum tax for taxable
years before the 3rd taxable year immediately preceding
such taxable year.
``(B) First-in, first-out ordering rule.--For
purposes of subparagraph (A), credits shall be treated
as allowed under subsection (a) on a first-in, first-out
basis.
``(4) Credit refundable.--For purposes of this title (other
than this section), the credit allowed by reason of this
subsection shall be treated as if it were allowed under subpart
C.''.
2005 - Energy Policy Act of 2005. Section 53(d)(1)(B)(iii) is
amended by striking `under section 29' and all that follows through
`or not allowed'.
Effective Dates- the amendments made by this section shall apply
to credits determined under the Internal Revenue Code of 1986 for
taxable years ending after December 31, 2005.
2004 - Pub. L. 108-357 Sec. 421(a)(2). Section 53(d)(1)(B)(i)(II)
is amended by striking ``and if section 59(a)(2) did not apply''
1996 - Subsec. (d)(1)(B)(iii). Pub. L. 104-188, Sec.
1205(d)(5)(A), which directed that cl. (iii) be amended by striking
out ''or not allowed under section 28 solely by reason of the
application of section 28(d)(2)(B),'' was executed by striking out
''not allowed under section 28 solely by reason of the application
of section 28(d)(2)(B),'' after ''29(b)(6)(B),'', to reflect the
probable intent of Congress.
Subsec. (d)(1)(B)(iv)(II). Pub. L. 104-188, Sec. 1704(j)(1),
amended subcl. (II) generally. Prior to amendment, subcl. (II)
read as follows: ''the adjusted net minimum tax for any taxable
year is the amount of the net minimum tax for such year increased
by the amount of any credit not allowed under section 29 solely by
reason of the application of section 29(b)(5)(B) or not allowed
under section 28 solely by reason of the application of section
28(d)(2)(B).''
Pub. L. 104-188, Sec. 1205(d)(5)(B), which directed that subcl.
(II) be amended by striking out ''or not allowed under section 28
solely by reason of the application of section 28(d)(2)(B)'', could
not be executed because the phrase sought to be struck out did not
appear in text subsequent to the general amendment of subcl. (II)
by Pub. L. 104-188, Sec. 1704(j)(1), see above, which, pursuant to
section 1701 of Pub. L. 104-188, set out as a note under section 1
of this title, is treated as having been enacted before section
1205(d)(5)(B) of Pub. L. 104-188.
1993 - Subsec. (d)(1)(B)(ii)(II). Pub. L. 103-66, Sec. 13171(c),
substituted ''(5), and (7)'' for ''(5), (6), and (8)''.
Pub. L. 103-66, Sec. 13113(b)(2), substituted ''(6), and (8)''
for ''and (6)''.
1992 - Subsec. (d)(1)(B)(iii). Pub. L. 102-486, Sec.
1913(b)(2)(C)(i), substituted ''section 29(b)(6)(B),'' for
''section 29(b)(5)(B) or''.
Pub. L. 102-486, Sec. 1913(b)(2)(C)(ii), inserted before period
at end '', or not allowed under section 30 solely by reason of the
application of section 30(b)(3)(B)''.
1989 - Subsec. (d)(1)(B)(i)(II). Pub. L. 101-239, Sec.
7811(d)(2), inserted before period at end ''and if section 59(a)(2)
did not apply''.
Subsec. (d)(1)(B)(ii). Pub. L. 101-239, Sec. 7612(a)(2),
substituted ''subsection (b)(1)'' for ''subsections (b)(1) and
(c)(3)'' in subcl. (I) and struck out at end ''In the case of
taxable years beginning after 1989, the adjustments provided in
section 56(g) shall be treated as specified in this clause to the
extent attributable to items which are excluded from gross income
for any taxable year for purposes of the regular tax, or are not
deductible for any taxable year under the adjusted current earnings
method of section 56(g).''
Subsec. (d)(1)(B)(iii). Pub. L. 101-239, Sec. 7612(b)(1), which
directed amendment of cl. (iii) by inserting ''or not allowed under
section 28 solely by reason of the application of section
28(d)(2)(B)'' after ''section 29(d)(5)(B)'', was executed by making
the insertion after ''section 29(b)(5)(B)'', as the probable intent
of Congress.
Subsec. (d)(1)(B)(iv). Pub. L. 101-239, Sec. 7612(b)(1), which
directed amendment of cl. (iv) by inserting ''or not allowed under
section 28 solely by reason of the application of section
28(d)(2)(B)'' after ''section 29(d)(5)(B)'', was executed by making
the insertion after ''section 29(b)(5)(B)'' in subcl. (II), as the
probable intent of Congress.
Pub. L. 101-239, Sec. 7612(a)(1), added cl. (iv).
1988 - Subsec. (d)(1)(B)(ii). Pub. L. 100-647, Sec. 1007(g)(4),
substituted ''current earnings'' for ''earnings and profits'' in
last sentence.
Subsec. (d)(1)(B)(iii). Pub. L. 100-647, Sec. 6304(a), added cl.
(iii).
EFFECTIVE DATE OF 2007 AMENDMENT
2007 - PL 110-172
SEC. 2. AMENDMENT RELATED TO THE TAX RELIEF AND HEALTH CARE ACT OF
2006.
(b) Effective <<NOTE: 26 USC 53 note.>> Date.--The amendment made by
this section shall take effect as if included in the provision of the
Tax Relief and Health Care Act of 2006 to which it relates.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 402(c) <<NOTE: 26 USC 53 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after the date of
the enactment of this Act.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 1205(d)(5) of Pub. L. 104-188 applicable to
amounts paid or incurred in taxable years ending after June 30,
1996, see section 1205(e) of Pub. L. 104-188, set out as a note
under section 29 of this title.
Section 1704(j)(1) of Pub. L. 104-188 provided that the amendment
made by that section is effective with respect to taxable years
beginning after Dec. 31, 1990.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13113(e) of Pub. L. 103-66 provided that: ''The
amendments made by this section (enacting section 1202 of this
title and amending this section and sections 57, 172, 642, 643,
691, 871, and 6652 of this title) shall apply to stock issued after
the date of the enactment of this Act (Aug. 10, 1993).''
Section 13171(d) of Pub. L. 103-66 provided that: ''The
amendments made by this section (amending this section and sections
56 and 57 of this title) shall apply to contributions made after
June 30, 1992, except that in the case of any contribution of
capital gain property which is not tangible personal property, such
amendments shall apply only if the contribution is made after
December 31, 1992.''
EFFECTIVE DATE OF 1992 AMENDMENT
Section 1702(e)(5) of Pub. L. 104-188 provided that: ''The
amendment made by section 1913(b)(2)(C)(i) of the Energy Policy Act
of 1992 (Pub. L. 102-486) shall apply to taxable years beginning
after December 31, 1990.''
Amendment by section 1913(b)(2)(C)(ii) of Pub. L. 102-486
applicable to property placed in service after June 30, 1993, see
section 1913(c) of Pub. L. 102-486, set out as an Effective Date
note under section 30 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7612(a)(3) of Pub. L. 101-239 provided that: ''The
amendments made by this subsection (amending this section) shall
apply for purposes of determining the adjusted net minimum tax for
taxable years beginning after December 31, 1989.''
Section 7612(b)(2) of Pub. L. 101-239 provided that: ''The
amendment made by paragraph (1) (amending this section) shall apply
for purposes of determining the amount of the minimum tax credit
for taxable years beginning after December 31, 1989; except that,
for such purposes, section 53(b)(1) of the Internal Revenue Code of
1986 shall be applied as if such amendment had been in effect for
all prior taxable years.''
Amendment by section 7811(d)(2) of Pub. L. 101-239 effective,
except as otherwise provided, as if included in the provision of
the Technical and Miscellaneous Revenue Act of 1988, Pub. L.
100-647, to which such amendment relates, see section 7817 of Pub.
L. 101-239, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1007(g)(4) of Pub. L. 100-647 effective,
except as otherwise provided, as if included in the provision of
the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
relates, see section 1019(a) of Pub. L. 100-647, set out as a note
under section 1 of this title.
Section 6304(b) of Pub. L. 100-647 provided that: ''The amendment
made by this section (amending this section) shall take effect as
if included in the amendments made by section 701 of the Tax Reform
Act of 1986 (Pub. L. 99-514).''
EFFECTIVE DATE
Section applicable to taxable years beginning after Dec. 31,
1986, with certain exceptions and qualifications, see section
701(f) of Pub. L. 99-514, set out as an Effective Date of 1986
Amendment note under section 55 of this title.
APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by section 701(b) of Pub. L.
99-514 (enacting this section) notwithstanding any treaty
obligation of the United States in effect on Oct. 22, 1986, with
provision that for such purposes any amendment by title I of Pub.
L. 100-647 be treated as if it had been included in the provision
of Pub. L. 99-514 to which such amendment relates, see section
1012(aa)(2), (4) of Pub. L. 100-647, set out as a note under
section 861 of this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 55, 108, 381, 383, 772,
1374 of this title.
