Source: https://uscode.house.gov/view.xhtml?path=&req=granuleid%3AUSC-prelim-title26-section26&f=&fq=&num=0&hl=false&edition=prelim
Timestamp: 2019-12-12 07:48:41
Document Index: 421014777

Matched Legal Cases: ['§ 26', '§26', '§401', '§25', '§26', '§472', '§612', '§516', '§261', '§632', '§701', '§1006', '§4005', '§5012', '§7811', '§1621', '§213', '§1602', '§2001', '§501', '§1', '§202', '§201', '§618', '§1', '§415', '§601', '§312', '§401', '§403', '§302', '§3', '§11', '§3011', '§106', '§205', '§101', '§801', '§1004', '§10909', '§101', '§202', '§104', '§221', '§102', '§14401', '§401', '§401', '§401', '§221', '§102', '§10909', '§101', '§202', '§1144', '§1142', '§1004', '§1011', '§205', '§106', '§101', '§412', '§312', '§408', '§417', '§618', '§601', '§415', '§213', '§618', '§417', '§202', '§201', '§213', '§7811', '§7821', '§1011', '§5012', '§1011', '§1007', '§701', '§701', '§701', '§701', '§632', '§261', '§701', '§701', '§14401', '§202', '§1011', '§101', '§3011', '§3', '§302', '§403', '§312', '§401', '§415', '§601', '§1', '§213', '§1602', '§1621', '§7823', '§7821', '§516', '§491', '§2']

[USC02] 26 USC 26: Limitation based on tax liability; definition of tax liability
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26 USC 26: Limitation based on tax liability; definition of tax liability Text contains those laws in effect on December 11, 2019
§26. Limitation based on tax liability; definition of tax liability
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.
The term "regular tax liability" means the tax imposed by this chapter for the taxable year.
(B) section 59A (relating to base erosion and anti-abuse tax),
[(P) Repealed. Pub. L. 115–141, div. U, title IV, §401(b)(2), Mar. 23, 2018, 132 Stat. 1201 .]
(W) section 36(f) (relating to recapture of homebuyer credit),
(X) section 457A(c)(1)(B) (relating to determinability of amounts of compensation), and
(Y) section 529A(c)(3)(A) (relating to additional tax on ABLE account distributions not used for qualified disability expenses).
For purposes of this part, the term "tentative minimum tax" means the amount determined under section 55(b)(1).
(Added §25, renumbered §26, Pub. L. 98–369, div. A, title IV, §472, title VI, §612(a), July 18, 1984, 98 Stat. 827 , 905; amended Pub. L. 99–499, title V, §516(b)(1)(A), Oct. 17, 1986, 100 Stat. 1770 ; Pub. L. 99–514, title II, §261(c), title VI, §632(c)(1), title VII, §701(c)(1), Oct. 22, 1986, 100 Stat. 2214 , 2277, 2340; Pub. L. 100–647, title I, §§1006(t)(16)(C), 1007(g)(1), 1011A(c)(10), 1012(q)(8), title IV, §4005(g)(4), title V, §5012(b)(2), Nov. 10, 1988, 102 Stat. 3425 , 3434, 3476, 3524, 3650, 3662; Pub. L. 101–239, title VII, §§7811(c)(1), (2), 7821(a)(4)(A), Dec. 19, 1989, 103 Stat. 2406 , 2407, 2424; Pub. L. 104–188, title I, §1621(b)(1), Aug. 20, 1996, 110 Stat. 1866 ; Pub. L. 105–34, title II, §213(e)(1), title XVI, §1602(a)(1), Aug. 5, 1997, 111 Stat. 817 , 1093; Pub. L. 105–277, div. J, title II, §2001(a), Oct. 21, 1998, 112 Stat. 2681–901 ; Pub. L. 106–170, title V, §501(a), Dec. 17, 1999, 113 Stat. 1918 ; Pub. L. 106–554, §1(a)(7) [title II, §202(a)(1)], Dec. 21, 2000, 114 Stat. 2763 , 2763A-628; Pub. L. 107–16, title II, §§201(b)(2)(D), 202(f)(2)(C), title VI, §618(b)(2)(C), June 7, 2001, 115 Stat. 46 , 49, 108; Pub. L. 107–22, §1(b)(2)(A), July 26, 2001, 115 Stat. 197 ; Pub. L. 107–147, title IV, §§415(a), 417(23)(B), title VI, §601(a), Mar. 9, 2002, 116 Stat. 54 , 57, 59; Pub. L. 108–311, title III, §312(a), title IV, §§401(a)(1), 408(a)(5)(A), Oct. 4, 2004, 118 Stat. 1181 , 1183, 1191; Pub. L. 109–135, title IV, §§403(hh)(1), 412(c), Dec. 21, 2005, 119 Stat. 2631 , 2636; Pub. L. 109–222, title III, §302(a), May 17, 2006, 120 Stat. 353 ; Pub. L. 110–166, §3(a), Dec. 26, 2007, 121 Stat. 2461 ; Pub. L. 110–172, §11(a)(3), Dec. 29, 2007, 121 Stat. 2484 ; Pub. L. 110–289, div. C, title I, §3011(b)(1), July 30, 2008, 122 Stat. 2891 ; Pub. L. 110–343, div. B, title I, §106(e)(2)(D), title II, §205(d)(1)(D), div. C, title I, §101(a), title VIII, §801(b), Oct. 3, 2008, 122 Stat. 3817 , 3839, 3863, 3931; Pub. L. 111–5, div. B, title I, §§1004(b)(3), 1011(a), 1142(b)(1)(D), 1144(b)(1)(D), Feb. 17, 2009, 123 Stat. 314 , 319, 330, 332; Pub. L. 111–148, title X, §10909(b)(2)(E), (c), Mar. 23, 2010, 124 Stat. 1023 ; Pub. L. 111–312, title I, §101(b)(1), title II, §202(a), Dec. 17, 2010, 124 Stat. 3298 , 3299; Pub. L. 112–240, title I, §104(c)(1), Jan. 2, 2013, 126 Stat. 2321 ; Pub. L. 113–295, div. A, title II, §221(a)(12)(B), div. B, title I, §102(e)(1), Dec. 19, 2014, 128 Stat. 4038 , 4062; Pub. L. 115–97, title I, §14401(c), Dec. 22, 2017, 131 Stat. 2233 ; Pub. L. 115–141, div. U, title IV, §401(b)(2), (d)(1)(D)(ii), Mar. 23, 2018, 132 Stat. 1201 , 1206.)
2018-Subsec. (a)(1). Pub. L. 115–141, §401(d)(1)(D)(ii), substituted "section 27" for "section 27(a)".
Subsec. (b)(2)(P). Pub. L. 115–141, §401(b)(2), struck out subpar. (P) which read as follows: "section 860K (relating to treatment of transfers of high-yield interests to disqualified holders),".
2017-Subsec. (b)(2)(B). Pub. L. 115–97 added subpar. (B).
2014-Subsec. (b)(2)(B). Pub. L. 113–295, §221(a)(12)(B), struck out subpar. (B) which read as follows: "section 59A (relating to environmental tax),".
Subsec. (b)(2)(Y). Pub. L. 113–295, §102(e)(1), added subpar. (Y).
2013-Subsec. (a). Pub. L. 112–240 amended subsec. (a) generally. Prior to amendment, subsec. (a) related to limitation based on amount of tax with a special rule for taxable years 2000 through 2011.
2010-Subsec. (a)(1). Pub. L. 111–148, §10909(b)(2)(E), (c), as amended by Pub. L. 111–312, §101(b)(1), temporarily struck out "23," before "24," in introductory provisions. See Effective and Termination Dates of 2010 Amendment note below.
Subsec. (a)(2). Pub. L. 111–312, §202(a), substituted "2011" for "2009" in heading and "2009, 2010, or 2011" for "or 2009" in introductory provisions.
2009-Subsec. (a)(1). Pub. L. 111–5, §1144(b)(1)(D), inserted "30B," after "30," in introductory provisions.
Pub. L. 111–5, §1142(b)(1)(D), inserted "30," after "25D," in introductory provisions.
Pub. L. 111–5, §1004(b)(3), inserted "25A(i)," after "24," in introductory provisions.
Subsec. (a)(2). Pub. L. 111–5, §1011(a), substituted "2009" for "2008" in heading and "2008, or 2009" for "or 2008" in introductory provisions.
2008-Subsec. (a)(1). Pub. L. 110–343, §205(d)(1)(D), substituted "25D, and 30D" for "and 25D" in introductory provisions.
Pub. L. 110–343, §106(e)(2)(D), substituted "25B, and 25D" for "and 25B" in introductory provisions.
Subsec. (a)(2). Pub. L. 110–343, §101(a), substituted "2008" for "2007" in heading and "2007, or 2008" for "or 2007" in introductory provisions.
2007-Subsec. (a)(2). Pub. L. 110–166 substituted "2007" for "2006" in heading and "2006, or 2007" for "or 2006" in introductory provisions.
2006-Subsec. (a)(2). Pub. L. 109–222 substituted "2006" for "2005" in heading and "2005, or 2006" for "or 2005" in introductory provisions.
2005-Subsec. (b)(2)(E). Pub. L. 109–135, §412(c), substituted "section 530(d)(4)" for "section 530(d)(3)".
2004-Subsec. (a)(2). Pub. L. 108–311, §312(a), substituted "rule for taxable years 2000 through 2005" for "rule for 2000, 2001, 2002, and 2003" in heading and "2003, 2004, or 2005" for "or 2003" in text.
Subsec. (b)(2)(R). Pub. L. 108–311, §408(a)(5)(A), substituted "Medicare Advantage MSA" for "Medicare+Choice MSA".
2002-Subsec. (a)(1). Pub. L. 107–147, §417(23)(B), amended directory language of Pub. L. 107–16, §618(b)(2)(C). See 2001 Amendment note below.
Subsec. (a)(2). Pub. L. 107–147, §601(a), substituted "rule for 2000, 2001, 2002, and 2003" for "rule for 2000 and 2001" in heading and "during 2000, 2001, 2002, or 2003," for "during 2000 or 2001," in introductory provisions.
Subsec. (b)(2)(P), (Q). Pub. L. 107–147, §415(a), which directed striking "and" at end of subpar. (P) and substituting ", and" for the period at the end of subpar. (Q), was executed to subpars. (P) and (Q) as redesignated by Pub. L. 105–34, §213(e)(1), to reflect the probable intent of Congress. See 1997 Amendment notes below.
2001-Subsec. (a)(1). Pub. L. 107–16, §618(b)(2)(C), as amended by Pub. L. 107–147, §417(23)(B), substituted ", 24, and 25B" for "and 24" in introductory provisions.
Pub. L. 107–16, §202(f)(2)(C), substituted "sections 23 and 24" for "section 24" in introductory provisions.
Pub. L. 107–16, §201(b)(2)(D), inserted "(other than section 24)" after "this subpart" in introductory provisions.
Subsec. (b)(2)(E). Pub. L. 107–22 substituted "Coverdell education savings" for "education individual retirement".
2000-Subsec. (b)(2)(Q). Pub. L. 106–554 substituted "Archer MSA" for "medical savings account".
1999-Subsec. (a). Pub. L. 106–170 reenacted subsec. heading without change and amended text generally. Prior to amendment, text read as follows: "The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the excess (if any) of-
"(1) the taxpayer's regular tax liability for the taxable year, over
"(2) the tentative minimum tax for the taxable year (determined without regard to the alternative minimum tax foreign tax credit).
For purposes of paragraph (2), the taxpayer's tentative minimum tax for any taxable year beginning during 1998 shall be treated as being zero."
1998-Subsec. (a). Pub. L. 105–277 inserted concluding provisions.
1997-Subsec. (b)(2)(E) to (O). Pub. L. 105–34, §213(e)(1), added subpar. (E) and redesignated former subpars. (E) to (N) as (F) to (O), respectively. Former subpar. (O) redesignated (P).
1996-Subsec. (b)(2)(O). Pub. L. 104–188 added subpar. (O).
1989-Subsec. (b)(2)(C), (D). Pub. L. 101–239, §7811(c)(1), amended subpars. (C) and (D) generally. Prior to amendment, subpars. (C) and (D) read as follows:
"(C) subsection (m)(5)(B) (q), or (v) of section 72 (relating to additional tax on certain distributions),
"(D) section 72(t) (relating to 10-percent additional tax on early distributions from qualified retirement plans),".
"(L) section 860E(e) (relating to taxes with respect to certain residual interests), and
"(L) section 884 (relating to branch profits tax), and
"(M) section 143(m) (relating to recapture of portion of federal subsidy from use of mortgage bonds and mortgage credit certificates)."
Subsec. (b)(2)(N). Pub. L. 101–239, §7821(a)(4)(A), which directed amendment of subsec. (b)(2) of this section "as amended by section 11811" by adding subpar. (N), was executed as if it directed amendment of subsec. (b)(2) of this section "as amended by section 7811", to reflect the probable intent of Congress and the renumbering of section 11811 of H.R. 3299 as section 7811 prior to the enactment of H.R. 3299 into law as Pub. L. 101–239.
1988-Subsec. (b)(2)(C). Pub. L. 100–647, §1011A(c)(10)(A), struck out ", (o)(2)," after "subsection (m)(5)(B)".
Pub. L. 100–647, §5012(b)(2), substituted "(q), or (v)" for "or (q)".
Subsec. (b)(2)(D). Pub. L. 100–647, §1011A(c)(10)(B), substituted "72(t) (relating to 10-percent additional tax on early distributions from qualified retirement plans)" for "408(f) (relating to additional tax on income from certain retirement accounts)".
Subsec. (b)(2)(K). Pub. L. 100–647, §1007(g)(1), substituted "corporations)." for "corporations,".
1986-Subsec. (a). Pub. L. 99–514, §701(c)(1)(A), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the taxpayer's tax liability for such taxable year."
Subsec. (b). Pub. L. 99–514, §701(c)(1)(B)(i), (v), substituted "Regular tax liability" for "Tax liability" in heading and "this part" for "this section" in introductory provisions.
Subsec. (b)(1). Pub. L. 99–514, §701(c)(1)(B)(ii), substituted "regular tax liability" for "tax liability".
Pub. L. 99–514, §701(c)(1)(B)(iii), substituted "section 55 (relating to minimum tax)" for "section 56 (relating to corporate minimum tax)" in subpar. (A).
Pub. L. 99–514, §632(c)(1), substituted "certain built-in gains" for "certain capital gains" in subpar. (G).
Pub. L. 99–514, §261(c), added subpar. (I).
Pub. L. 99–514, §701(c)(1)(B)(iv), added subpar. (J).
Subsec. (c). Pub. L. 99–514, §701(c)(1)(C), amended subsec. (c) generally, substituting provisions relating to tentative minimum tax for provisions referring to section 55(c) of this title for similar rule for alternative minimum tax for taxpayers other than corporations.
Pub. L. 115–97, title I, §14401(e), Dec. 22, 2017, 131 Stat. 2234 , provided that: "The amendments made by this section [enacting section 59A of this title and amending this section and sections 882, 6038A, 6425, and 6655 of this title] shall apply to base erosion payments (as defined in section 59A(d) of the Internal Revenue Code of 1986 [26 U.S.C. 59A(d)], as added by this section) paid or accrued in taxable years beginning after December 31, 2017."
Amendment by section 221(a)(12)(B) of Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of div. A of Pub. L. 113–295, set out as a note under section 1 of this title.
Amendment by section 102(e)(1) of Pub. L. 113–295 applicable to taxable years beginning after Dec. 31, 2014, see section 102(f)(1) of div. B of Pub. L. 113–295, set out as a note under section 552a of Title 5, Government Organization and Employees.
Pub. L. 111–312, title II, §202(b), Dec. 17, 2010, 124 Stat. 3299 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2009."
Pub. L. 111–5, div. B, title I, §1011(b), Feb. 17, 2009, 123 Stat. 319 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2008."
Pub. L. 110–343, div. C, title I, §101(b), Oct. 3, 2008, 122 Stat. 3863 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2007."
Pub. L. 110–289, div. C, title I, §3011(c), July 30, 2008, 122 Stat. 2891 , provided that: "The amendments made by this section [enacting section 36 of this title, amending this section and section 6211 of this title and section 1324 of Title 31, Money and Finance, and renumbering former section 36 of this title as section 37 of this title] shall apply to residences purchased on or after April 9, 2008, in taxable years ending on or after such date."
Pub. L. 110–166, §3(b), Dec. 26, 2007, 121 Stat. 2461 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2006."
Pub. L. 109–222, title III, §302(b), May 17, 2006, 120 Stat. 353 , provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2005."
Pub. L. 109–135, title IV, §403(nn), Dec. 21, 2005, 119 Stat. 2632 , provided that: "The amendments made by this section [see Tables for classification] shall take effect as if included in the provisions of the American Jobs Creation Act of 2004 [Pub. L. 108–357] to which they relate."
Pub. L. 108–311, title III, §312(c), Oct. 4, 2004, 118 Stat. 1181 , provided that: "The amendments made by this section [amending this section and section 904 of this title] shall apply to taxable years beginning after December 31, 2003."
Pub. L. 108–311, title IV, §401(b), Oct. 4, 2004, 118 Stat. 1183 , provided that: "The amendments made by subsection (a) [amending this section and section 35 of this title] shall take effect as if included in section 1201 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 [Pub. L. 108–173]."
Pub. L. 107–147, title IV, §415(b), Mar. 9, 2002, 116 Stat. 54 , provided that: "The amendment made by this section [amending this section] shall take effect as if included in section 4006 of the Balanced Budget Act of 1997 [Pub. L. 105–33]."
Pub. L. 107–147, title VI, §601(c), Mar. 9, 2002, 116 Stat. 59 , provided that: "The amendments made by this section [amending this section and section 904 of this title] shall apply to taxable years beginning after December 31, 2001."
Pub. L. 107–22, §1(c), July 26, 2001, 115 Stat. 197 , provided that: "The amendments made by this section [amending this section and sections 72, 135, 529, 530, 4973, 4975, and 6693 of this title] shall take effect on the date of the enactment of this Act [July 26, 2001]."
Pub. L. 105–34, title II, §213(f), Aug. 5, 1997, 111 Stat. 817 , provided that: "The amendments made by this section [enacting section 530 of this title and amending this section and sections 135, 4973, 4975, and 6693 of this title] shall apply to taxable years beginning after December 31, 1997."
Pub. L. 105–34, title XVI, §1602(i), Aug. 5, 1997, 111 Stat. 1096 , provided that: "The amendments made by this section [amending this section and sections 162, 220, 264, 877, 2107, 2501, 4975, 6050Q, 6652, 6693, 6724, and 7702B of this title, renumbering section 6039F of this title as section 6039G of this title, and amending provisions set out as a note under section 264 of this title] shall take effect as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996 [Pub. L. 104–191] to which such amendments relate."
Pub. L. 104–188, title I, §1621(d), Aug. 20, 1996, 110 Stat. 1867 , provided that: "The amendments made by this section [enacting sections 860H to 860L of this title and amending this section and sections 56, 382, 582, 856, 860G, 1202, and 7701 of this title] shall take effect on September 1, 1997."
Pub. L. 101–239, title VII, §7823, Dec. 19, 1989, 103 Stat. 2425 , provided that: "Except as otherwise provided in this part [part II (§§7821–7823) of subtitle H of title VII of Pub. L. 101–239, amending this section and sections 453A, 842, 1503, 6427, 6655, 6863, 7519, 7611, 9502, 9503, and 9508 of this title and enacting provisions set out as notes under sections 56 and 7519 of this title], any amendment made by this part shall take effect as if included in the provision of the 1987 Act [Pub. L. 100–203, title X] to which such amendment relates."
Amendment by sections 1007(g)(1), 1011A(c)(10), and 1012(q)(8) 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.
Amendment by section 261(c) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 261(g) of Pub. L. 99–514, set out as an Effective Date note under section 7518 of this title.
Amendment by section 632(c)(1) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, but only in cases where the return for the taxable year is filed pursuant to an S election made after Dec. 31, 1986, see section 633(b) of Pub. L. 99–514, as amended, set out as an Effective Date note under section 336 of this title.
Amendment by section 632(c)(1) of Pub. L. 99–514 not applicable in the case of certain transactions, see section 54(d)(3)(D) of Pub. L. 98–369, as amended, set out as an Effective Date of 1984 Amendment note under section 311 of this title.
Amendment by section 701(c)(1) of Pub. L. 99–514 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 note under section 55 of this title.
Pub. L. 99–499, title V, §516(c), Oct. 17, 1986, 100 Stat. 1772 , provided that: "The amendments made by this section [enacting section 59A of this title and amending this section and sections 164, 275, 936, 1561, 6154, 6425, and 6655 of this title] shall apply to taxable years beginning after December 31, 1986."
For applicability of amendment by section 701(c)(1) of Pub. L. 99–514 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.
Pub. L. 98–369, div. A, title IV, §491(f)(5), July 18, 1984, 98 Stat. 853 , as amended by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 , provided that: "For purposes of section 26(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by this Act), any tax imposed by section 409(c) of such Code (as in effect before its repeal by this section) shall be treated as a tax imposed by section 408(f) of such Code."