Bloomberg Bloomberg
Comprehensive Tax Research. Practitioner to Practitioner. ®

Internal Revenue Code, § 55. Alternative Minimum Tax Imposed

I.R.C. § 55(a) General Rule
In the case of a taxpayer other than a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the excess (if any) of—
I.R.C. § 55(a)(1)
the tentative minimum tax for the taxable year, over
I.R.C. § 55(a)(2)
the regular tax for the taxable year.
I.R.C. § 55(b) Tentative Minimum Tax
For purposes of this part—
I.R.C. § 55(b)(1) Amount Of Tentative Tax
I.R.C. § 55(b)(1)(A) In General
The tentative minimum tax for the taxable year is the sum of—
I.R.C. § 55(b)(1)(A)(i)
26 percent of so much of the taxable excess as does not exceed $175,000, plus
I.R.C. § 55(b)(1)(A)(ii)
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.
I.R.C. § 55(b)(1)(B) Taxable Excess
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.
I.R.C. § 55(b)(1)(C) Married Individual Filing Separate Return
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.
I.R.C. § 55(b)(2) Alternative Minimum Taxable Income
The term “alternative minimum taxable income” means the taxable income of the taxpayer for the taxable year—
I.R.C. § 55(b)(2)(A)
determined with the adjustments provided in section 56 and section 58, and
I.R.C. § 55(b)(2)(B)
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).
I.R.C. § 55(b)(3) Maximum Rate Of Tax On Net Capital Gain Of Noncorporate Taxpayers
The amount determined under the first sentence of paragraph (1)(A) shall not exceed the sum of—
I.R.C. § 55(b)(3)(A)
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—
I.R.C. § 55(b)(3)(A)(i)
the net capital gain; or
I.R.C. § 55(b)(3)(A)(ii)
the sum of—
I.R.C. § 55(b)(3)(A)(ii)(I)
the adjusted net capital gain, plus
I.R.C. § 55(b)(3)(A)(ii)(II)
the unrecaptured section 1250 gain, plus
I.R.C. § 55(b)(3)(B)
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
I.R.C. § 55(b)(3)(C)
15 percent of the lesser of—
I.R.C. § 55(b)(3)(C)(i)
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
I.R.C. § 55(b)(3)(C)(ii)
the excess described in section 1(h)(1)(C)(ii), plus
I.R.C. § 55(b)(3)(D)
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
I.R.C. § 55(b)(3)(E)
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.
I.R.C. § 55(c) Regular Tax
I.R.C. § 55(c)(1) In General
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). Such term shall not include any increase in tax under section 45(e)(11)(C), 49 or 50(a) or subsection (j) or (k) of section 42.
I.R.C. § 55(c)(2) Coordination With Income Averaging For Farmers And Fishermen
Solely for purposes of this section, section 1301 (relating to averaging of farm and fishing income) shall not apply in computing the regular tax.
I.R.C. § 55(c)(3) Cross References
For provisions providing that certain credits are not allowable against the tax imposed by this section, see sections 30C(d)(2) and 38(c).
I.R.C. § 55(d) Exemption Amount
For purposes of this section—
I.R.C. § 55(d)(1) Exemption Amount For Taxpayers Other Than Corporations
In the case of a taxpayer other than a corporation, the term “exemption amount” means—
I.R.C. § 55(d)(1)(A)
$78,750 in the case of—
I.R.C. § 55(d)(1)(A)(i)
a joint return, or
I.R.C. § 55(d)(1)(A)(ii)
a surviving spouse,
I.R.C. § 55(d)(1)(B)
$50,600 in the case of an individual who—
I.R.C. § 55(d)(1)(B)(i)
is not a married individual, and
I.R.C. § 55(d)(1)(B)(ii)
is not a surviving spouse,
I.R.C. § 55(d)(1)(C)
50 percent of the dollar amount applicable under subparagraph (A) in the case of a married individual who files a separate return, and
I.R.C. § 55(d)(1)(D)
$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.
I.R.C. § 55(d)(2) Phase-Out Of Exemption Amount
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—
I.R.C. § 55(d)(2)(A)
$150,000 in the case of a taxpayer described in paragraph (1)(A),
I.R.C. § 55(d)(2)(B)
$112,500 in the case of a taxpayer described in paragraph (1)(B), and
I.R.C. § 55(d)(2)(C)
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).
I.R.C. § 55(d)(3) Inflation Adjustment
I.R.C. § 55(d)(3)(A) In General
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—
I.R.C. § 55(d)(3)(A)(i)
such dollar amount, multiplied by
I.R.C. § 55(d)(3)(A)(ii)
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.
I.R.C. § 55(d)(3)(B) Amounts Described
The amounts described in this subparagraph are—
I.R.C. § 55(d)(3)(B)(i)
each of the dollar amounts contained in subsection (b)(1)(A),
I.R.C. § 55(d)(3)(B)(ii)
each of the dollar amounts contained in subparagraphs (A), (B), and (D) of paragraph (1), and
I.R.C. § 55(d)(3)(B)(iii)
each of the dollar amounts in subparagraphs (A) and (B) of paragraph (2).
I.R.C. § 55(d)(3)(C) Rounding
Any increased amount determined under subparagraph (A) shall be rounded to the nearest multiple of $100.
I.R.C. § 55(d)(4) Special Rule For Taxable Years Beginning After 2017 And Before 2026
I.R.C. § 55(d)(4)(A) In General
In the case of any taxable year beginning after December 31, 2017, and before January 1, 2026—
I.R.C. § 55(d)(4)(A)(i)
paragraph (1) shall be applied—
I.R.C. § 55(d)(4)(A)(i)(I)
by substituting “$109,400” for “$78,750” in subparagraph (A), and
I.R.C. § 55(d)(4)(A)(i)(II)
by substituting “$70,300” for “$50,600” in subparagraph (B), and
I.R.C. § 55(d)(4)(A)(ii)
paragraph (2) shall be applied—
I.R.C. § 55(d)(4)(A)(ii)(I)
by substituting “$1,000,000” for “$150,000” in subparagraph (A),
I.R.C. § 55(d)(4)(A)(ii)(II)
by substituting “50 percent of the dollar amount applicable under subparagraph (A)” for “$112,500” in subparagraph (B), and
I.R.C. § 55(d)(4)(A)(ii)(III)
in the case of a taxpayer described in paragraph (1)(D), without regard to the substitution under subclause (I).
I.R.C. § 55(d)(4)(B) Inflation Adjustment
I.R.C. § 55(d)(4)(B)(i) In General
In the case of any taxable year beginning in a calendar year after 2018, the amounts described in clause (ii) shall each be increased by an amount equal to—
I.R.C. § 55(d)(4)(B)(i)(I)
such dollar amount, multiplied by
I.R.C. § 55(d)(4)(B)(i)(II)
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 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof.
I.R.C. § 55(d)(4)(B)(ii) Amounts Described
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).
I.R.C. § 55(d)(4)(B)(iii) Rounding
Any increased amount determined under clause (i) shall be rounded to the nearest multiple of $100.
I.R.C. § 55(d)(4)(B)(iv) Coordination With Current Adjustments
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.
(Added and amended by Pub. L. 99-514, title II, Sec. 252(c), title VII, Sec. 701(a), Oct. 22, 1986, 100 Stat. 2205, 2321; Pub. L. 100-647, title I, Sec. 1002(l)(27), (28), 1007(a)(1), Nov. 10, 1988, 102 Stat. 3381, 3428; Pub. L. 101-508, title XI, Sec. 11102(a), 11813(b)(5), Nov. 5, 1990, 104 Stat. 1388-406, 1388-551; Pub. L. 102-318, title V, Sec. 521, July 3, 1992, 106 Stat. 290; Pub. L. 103-66, title XIII, Sec. 13203, Aug. 10, 1993, 107 Stat. 312; Pub. L. 104-188, title I, Aug. 20, 1996, 110 Stat. 1755; Pub. L. 104-188, title XII, XIV, Sec. 1205(d)(6), 1401(b)(3), Aug. 20, 1996, 110 Stat. 1776, 1788; Pub. L. 105-34, title III, IV, XVI, Sec. 311(b), 401(a), 1601(f)(1)(C), Aug. 5, 1997, 111 Stat. 788; Pub. L. 105-206, title VI, Sec. 6005(d)(2), 6006(a), July 22, 1998, 112 Stat. 685; Pub. L. 107-16, title VII, Sec. 701, June 7, 2001, 115 Stat. 38; Pub. L. 108-27, title I, III, Sec. 301, 106, May 28, 2003, 117 Stat. 752; Pub. L. 108-311, title I, IV, Sec. 103(a), 406(d), Oct. 4, 2004, 118 Stat. 1166; Pub. L. 108-357, title III, Sec. 314(a), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 109-58, title XIII, Sec. 1302(b), 1322(a)(3)(H), 1341(b)(3), 1342(b)(3), Aug. 8, 2005; Pub. L. 109-222, title III, Sec. 301(a), May 17, 2006, 120 Stat. 345; Pub. L. 110-166, Sec. 2(a), Dec. 26, 2007, 121 Stat. 2461; Pub. L. 110-246, title XV, Sec. 15311(b), June 18, 2008, 122 Stat. 1651; Pub. L. 110-343, div. C, title I, Sec. 102(a), Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-5, div. B, title I, Sec. 1012(a), 1142(b)(5), 1144(b)(3), Feb. 17, 2009, 123 Stat. 115; Pub. L. 111-240, title II, Sec. 2013(b), Sept. 27, 2010, 124 Stat. 2504; Pub. L. 111-312, title II, Sec. 201, Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title I, Sec. 102(b)(2), 102(c)(2), 104(a), 104(b), 104(c)(2), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title II, Sec. 202(c), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title III, Sec. 334(b); Pub. L. 115-97, title I, Sec. 11002(d)(1)(l), 12001(a), (b), 12003(a), Dec. 22, 2017, 131 Stat. 2054.)
BACKGROUND NOTES
AMENDMENTS
2017 - Subsec. (a). Pub. L. 115-97, Sec. 12001(a), amended subsec. (a) by substituting ‘‘In the case of a taxpayer other than a corporation, there” for ‘‘There’’.
Subsec. (b)(1). Pub. L. 115-97, Sec. 12001(b)(3)(A), amended par. (1). Before amendment, it read as follows:
“(1) Amount Of Tentative Tax.—
“(A) Noncorporate Taxpayers.—
“(i) In General.—In the case of a taxpayer other than a corporation, the tentative minimum tax for the taxable year is the sum of—
“(I) 26 percent of so much of the taxable excess as does not exceed $175,000, plus
“(II) 28 percent of so much of the taxable excess as exceeds $175,000.
“The amounts determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year.
“(ii) Taxable Excess.—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.
“(iii) Married Individual Filing Separate Return.—In the case of a married individual filing a separate return, clause (i) shall be applied by substituting 50 percent of the dollar amount otherwise applicable under subclause (I) and subclause (II) thereof. For purposes of the preceding sentence, marital status shall be determined under section 7703.
“(B) Corporations.—In the case of a corporation, the tentative minimum tax for the taxable year is—
“(i) 20 percent of so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount, reduced by
“(ii) the alternative minimum tax foreign tax credit for the taxable year.”
Subsec. (b)(3). Pub. L. 115-97, Sec. (b)(3)(B), amended par. (3) by substituting “paragraph (1)(A)” for ‘‘paragraph (1)(A)(i)’’.
Subsec. (c)(1). Pub. L. 115-97, Sec. 12001(b)(4), amended par. (1) by striking ‘‘, the section 936 credit allowable under section 27(b), and the Puerto Rico economic activity credit under section 30A’’.
Subsec. (d)(4)(A)(ii). Pub. L. 115-97, Sec. 11002(d)(1)(l), amended clause (ii) by substituting ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for ‘‘for ‘calendar year 1992’ in subparagraph (B)’’.
Subsec. (d)(2)-(4). Pub. L. 115-97, Sec. 12001(b)(5)(A), amended subsec. (d) by striking par. (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. Before being struck, par. (2) read as follows:
“(2) Corporations.—In the case of a corporation, the term “exemption amount” means $40,000.”
Subsec. (d)(2)(B), (C). Pub. L. 115-97, Sec. 12001(b)(5)(B), amended par. (2), as redesignated, by inserting ‘‘and’’ at the end of subparagraph (B), by striking ‘‘, and’’ at the end of subpar. (C) and inserting a period, and by striking subpar. (D). Before being struck, subpar. (D) read as follows:
“(D) $150,000 in the case of a taxpayer described in paragraph (2).”
Subsec. (d)(3)(B)(i). Pub. L. 115-97, Sec. 12001(b)(5)(C)(i), amended par. (3), as redesignated, by substituting “(b)(1)(A)” for ‘‘(b)(1)(A)(i)’’ in subpar. (B)(i).
Subsec. (d)(3)(B)(iii). Pub. L. 115-97, Sec. 12001(b)(5)(C)(ii), amended par. (3), as redesignated, by substituting “paragraph (2)” for ‘‘paragraph (3)’’ in subpar. (B)(iii).
Subsec. (d)(4). Pub. L. 115-97, Sec. 12003(a), amended subsec (d) by adding a new par. (4).
Subsec. (e). Pub. L. 115-97, Sec. 12001(b)(6), struck subsec. (e). Before being struck, it read as follows:
“(e) Exemption For Small Corporations.—
“(1) In General.—
“(A) $7,500,000 Gross Receipts Test.—The tentative minimum tax of a corporation shall be zero for any taxable year if the corporation's average annual gross receipts for all 3-taxable-year periods ending before such taxable year does not exceed $7,500,000. For purposes of the preceding sentence, only taxable years beginning after December 31, 1993, shall be taken into account.
“(B) $5,000,000 Gross Receipts Test For First 3-Year Period.—Subparagraph (A) shall be applied by substituting “$5,000,000” for “$7,500,000” for the first 3-taxable-year period (or portion thereof) of the corporation which is taken into account under subparagraph (A).
“(C) First Taxable Year Corporation In Existence.—If such taxable year is the first taxable year that such corporation is in existence, the tentative minimum tax of such corporation for such year shall be zero.
“(D) Special Rules.—For purposes of this paragraph, the rules of paragraphs (2) and (3) of section 448(c) shall apply.
“(2) Prospective Application Of Minimum Tax If Small Corporation Ceases To Be Small.—In the case of a corporation whose tentative minimum tax is zero for any prior taxable year by reason of paragraph (1), the application of this part for taxable years beginning with the first taxable year such corporation ceases to be described in paragraph (1) shall be determined with the following modifications:
“(A) Section 56(a)(1) (relating to depreciation) and section 56(a)(5) (relating to pollution control facilities) shall apply only to property placed in service on or after the change date.
“(B) Section 56(a)(2) (relating to mining exploration and development costs) shall apply only to costs paid or incurred on or after the change date.
“(C) Section 56(a)(3) (relating to treatment of long-term contracts) shall apply only to contracts entered into on or after the change date.
“(D) Section 56(a)(4) (relating to alternative net operating loss deduction) shall apply in the same manner as if, in section 56(d)(2), the change date were substituted for “January 1, 1987” and the day before the change date were substituted for “December 31, 1986” each place it appears.
“(E) Section 56(g)(2)(B) (relating to limitation on allowance of negative adjustments based on adjusted current earnings) shall apply only to prior taxable years beginning on or after the change date.
“(F) Section 56(g)(4)(A) (relating to adjustment for depreciation to adjusted current earnings) shall not apply.
“(G) Subparagraphs (D) and (F) of section 56(g)(4) (relating to other earnings and profits adjustments and depletion) shall apply in the same manner as if the day before the change date were substituted for “December 31, 1989” each place it appears therein.
“(3) Exception.—The modifications in paragraph (2) shall not apply to—
“(A) any item acquired by the corporation in a transaction to which section 381 applies, and
“(B) any property the basis of which in the hands of the corporation is determined by reference to the basis of the property in the hands of the transferor, if such item or property was subject to any provision referred to in paragraph (2) while held by the transferor.
“(4) Change Date.—For purposes of paragraph (2), the change date is the first day of the first taxable year for which the taxpayer ceases to be described in paragraph (1).
“(5) Limitation On Use Of Credit For Prior Year Minimum Tax Liability.—In the case of a taxpayer whose tentative minimum tax for any taxable year is zero by reason of paragraph (1), section 53(c) shall be applied for such year by reducing the amount otherwise taken into account under section 53(c)(1) by 25 percent of so much of such amount as exceeds $25,000. Rules similar to the rules of section 38(c)(6)(B) shall apply for purposes of the preceding sentence.”
2015 - Subsec. (b)(4). Pub. L. 114-113, Div. Q, Sec. 334(b), amended subsec. (b) by striking par. (4). Before being struck, it read as follows:
“Maximum Rate Of Tax On Qualified Timber Gain Of Corporations.—In the case of any taxable year to which section 1201(b) applies, the amount determined under clause (i) of subparagraph (B) shall not exceed the sum of—
“(A) 20 percent of so much of the taxable excess (if any) as exceeds the qualified timber gain (or, if less, the net capital gain), plus
“(B) 15 percent of the taxable excess in excess of the amount on which a tax is determined under subparagraph (A).
“Any term used in this paragraph which is also used in section 1201 shall have the meaning given such term by such section, except to the extent such term is subject to adjustment under this part.”
2014 - Subsec. (d)(4)(B)(ii). Pub. L. 113-295, Div. A, Sec. 202(c)(1), amended clause (ii) by inserting “subparagraphs (A), (B), and (D) of” before “paragraph (1)”.
Subsec. (d)(4)(C). Pub. L. 113-295, Div. A, Sec. 202(c)(2), amended subpar. (C) by substituting “increased amount” for “increase”.
2013 - Subsec. (b)(1)(A)(iii). Pub. L. 112-240, Sec. 104(b)(2)(A), amended clause (iii) by substituting “by substituting 50 percent of the dollar amount otherwise applicable under subclause (I) and subclause (II) thereof.” for “by substituting “$87,500” for “$175,000” each place it appears.”
Subsec. (b)(3)(B). Pub. L. 112-240, Sec. 102(c)(2), amended subpar. (B) by substituting “0 percent” for “5 percent (0 percent in the case of taxable years beginning after 2007)”.
Subsec. (b)(3)(C)-(E). Pub. L. 112-240, Sec. 102(b)(2), struck subpar. (C); redesignated subpar. (D) as subpar. (E); and added new subpar. (C) and (D). Before being struck, it read as follows:
“(C) 15 percent of the adjusted net capital gain (or, if less, taxable excess) in excess of the amount on which tax is determined under subparagraph (B), plus”.
Subsec. (c)(3). Pub. L. 112-240, Sec. 104(c)(2)(J), amended par. (3) by substituting “30C(d)(2)” for “26(a), 30C(d)(2),”.
Subsec. (d)(1)(A). Pub. L. 112-240, Sec. 104(a)(1)(A). amended subpar. (A) by substituting “$78,750” for “$45,000 ($72,450 in the case of taxable years beginning in 2010 and $74,450 in the case of taxable years beginning in 2011)”.
Subsec. (d)(1)(B). Pub. L. 112-240, Sec. 104(a)(1)(B), amended subpar. (B) by substituting “$50,600” for “ $33,750 ($47,450 in the case of taxable years beginning in 2010 and $48,450 in the case of taxable years beginning in 2011)”.
Subsec. (d)(1)(C). Pub. L. 112-240, Sec. 104(a)(1)(C), amended subpar. (C) by substituting “subparagraph (A)” for “paragraph (1)(A)”.
Subsec. (d)(3)(A). Pub. L. 112-240, Sec. 104(b)(2)(B)(i), amended subpar. (A) by striking “or (2)” before the comma at the end.
Subsec. (d)(3)(B), Pub. L. 112-240, Sec. 104(b)(2)(B)(ii), amended subpar. (B) by striking “and” after the comma at the end.
Subsec. (d)(3)(C)-(D). Pub. L. 112-240, Sec. 104(b)(2)(B)(iii), struck subpar. (C) and added new subpar. (C) and (D). Before being struck, subpar. (C) read as follows:
“(C) $75,000 in the case of a taxpayer described in subparagraph (C) or (D) of paragraph (1).”
Subsec. (d)(4). Pub. L. 112-240, Sec. 104(b)(1), amended subsec. (b) by adding par. (4)
2010 - Subsec. (d)(1)(A). Pub. L. 111-312, Sec. 201(a)(1), amended subpar. (A) by substituting “$72,450 in the case of taxable years beginning in 2010 and $74,450 in the case of taxable years beginning in 2011” for “$70,950 in the case of taxable years beginning in 2009”.
Subsec. (d)(1)(B). Pub. L. 111-312, Sec. 201(a)(2), amended subpar. (A) by substituting “$47,450 in the case of taxable years beginning in 2010 and $48,450 in the case of taxable years beginning in 2011” for “$46,700 in the case of taxable years beginning in 2009”.
Subsec. (e)(5). Pub. L. 111-240, Sec. 2013(b), amended par. (5) by substituting “38(c)(6)(B)” for “38(c)(3)(B)”.
2009 - Subsec. (c)(3). Pub. L. 111-5, Div. B, Sec. 1142(b)(5), amended par. (3) by striking “section 30(b)(3),”.
Subsec. (c)(3). Pub. L. 111-5, Div. B, Sec. 1144(b)(3), amended par. (3) by striking “section 30B(g)(2),”.
Subsec. (d)(1)(A). Pub. L. 111-5, Div. B, Sec. 1012(a)(1), amended subpar. (A) by substituting “($70,950 in the case of taxable years beginning in 2009)” for “($69,950 in the case of taxable years beginning in 2008)”.
Subsec. (d)(1)(B). Pub. L. 111-5, Div. B, Sec. 1012(a)(2), amended subpar. (B) by substituting “($46,700 in the case of taxable years beginning in 2009)” for “($46,200 in the case of taxable years beginning in 2008)”.
2008 - Subsec. (d)(1)(A). Pub. L. 110-343, Div. C, Sec. 102(a)(1), amended subpar. (A) by substituting “($69,950 in the case of taxable years beginning in 2008)” for “($66,250 in the case of taxable years beginning in 2007)”.
Subsec. (d)(1)(B). Pub. L. 110-343, Div. C, Sec. 102(a)(2), amended subpar. (A) by substituting “($46,200 in the case of taxable years beginning in 2008)” for “($44,350 in the case of taxable years beginning in 2007)”.
Subsec. (b)(4). Pub. L. 110-246, Sec. 15311(b), amended subsec. (b) by adding par. (4).
2007 - Subsec. (d)(1)(A). Pub. L. 110-166, Sec. 2(a)(1), amended subpar. (A) by substituting “($66,250 in the case of taxable years beginning in 2007)” for “($62,550 in the case of taxable years beginning in 2006)”.
Subsec. (d)(1)(B). Pub. L. 110-166, Sec. 2(a)(2), amended subpar. (B) by substituting “($44,350 in the case of taxable years beginning in 2007)” for “($42,500 in the case of taxable years beginning in 2006)”.
2006 - Subsec. (d)(1)(A). Pub. L. 109-222, Sec. 301(a)(1), amended subpar. (A) by substituting “$62,550 in the case of taxable years beginning in 2006” for “$58,000 in the case of taxable years beginning in 2003, 2004, and 2005”.
Subsec. (d)(1)(B). Pub. L. 109-222, Sec. 301(a)(2), amended subpar. (B) by substituting “42,500 in the case of taxable years beginning in 2006” for “$40,250 in the case of taxable years beginning in 2003, 2004, and 2005”.
2005 - Subsec. (c)(1). Pub. L. 109-58, Sec. 1302(b), amended par. (1) by inserting “45(e)(11)(C),” after “section”.
Subsec. (c)(2)[3]. Pub. L. 109-58, Sec. 1341(b)(3), amended par. (2)[3] by inserting “30B(g)(2),” after “30(b)(2),”. Note that it appears that the amendment should have been made to Sec. 55(c)(3) and the insertion be made after “30(b)(3)”.
Subsec. (c)(2)[3]. Pub. L. 109-58, Sec. 1342(b)(3), amended par. (2)[3] by inserting “30C(d)(2),” after “30B(g)(2),”. Note that it appears that the amendment should have been made to Sec. 55(c)(3).
Subsec. (c)(3). Pub. L. 109-58, Sec. 1322(a)(3)(H), amended par. (3) by striking “29(b)(6),”.
2004 - Subsec. (c). Pub. L. 108-357, Sec. 314(a), amended subsec. (c) by redesignating par. (2) as par. (3) and by adding par. (2).
Subsec. (b)(3)(B). Pub. L. 108-311, Sec. 406(d), amended subpar. (B) by substituting “an amount equal to the excess described in” for “the amount on which a tax is determined under”.
Subsec. (d)(1). Pub. L. 108-311, Sec. 103(a), amended subpar. (A) and (B) by substituting “2003, 2004, and 2005" for “2003 and 2004” each place it appeared.
2003 - Subsec. (b)(3)(B). Pub. L. 108-27, Sec. 301(a)(1), amended subpar. (B) by substituting “5 percent (0 percent in the case of taxable years beginning after 2007)” for “10 percent”.
Subsec. (b)(3)(C). Pub. L. 108-27, Sec. 301(a)(2), amended subpar. (C) by substituting “15 percent” for “20 percent”.
Subsec. (b)(3). Pub. L. 108-27, Sec. 301(b)(2), amended par. (3) by striking “In the case of taxable years beginning after December 31, 2000, rules similar to the rules of section 1(h)(2) shall apply for purposes of subparagraphs (B) and (C).” in the material following subpar. (D).
Subsec. (d)(1)(A). Pub. L. 108-27, Sec. 106(a)(1), amended subpar. (A) by substituting “$58,000 in the case of taxable years beginning in 2003 and 2004” for “$49,000 in the case of taxable years beginning in 2001, 2002, 2003, and 2004”.
Subsec. (d)(1)(B). Pub. L. 108-27, Sec. 106(a)(2), amended subpar. (B) by substituting “$40,250 in the case of taxable years beginning in 2003 and 2004” for “$35,750 in the case of taxable years beginning in 2001, 2002, 2003, and 2004”.
2001 - Subsec. (d)(1)(A). Pub. L. 107-16, Sec. 701(a)(1), amended subpar. (A) by substituting “$45,000 ($49,000 in the case of taxable years beginning in 2001, 2002, 2003, and 2004)” for “$45,000”.
Subsec. (d)(1)(B). Pub. L. 107-16, Sec. 701(a)(2), amended subpar. (B) by substituting “$33,750 ($35,750 in the case of taxable years beginning in 2001, 2002, 2003, and 2004)” for “$33,750”.
Subsec. (d)(1)(B). Pub. L. 107-16, Sec. 701(b)(1), amended subpar. (B) by striking “and” at the end.
Subsec. (d)(1)(C)-(D). Pub. L. 107-16, Sec. 701(b)(1), struck subpar. (C) and added new subpar. (C) and (D). Before being struck, subpar. (C) read as follows:
“(C) $22,500 in the case of--
“(i) a married individual who files a separate return, or
“(ii) an estate or trust.”
Subsec. (d)(3). Pub. L. 107-16, Sec. 701(b)(3), amended the last sentence of par. (3) by substituting “paragraph (1)(C)" for “paragraph (1)(C)(i)” and by substituting “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)” for “$165,000 or (ii) $22,500”.
Subsec. (d)(3)(C). Pub. L. 107-16, Sec. 701(b)(2), amended subpar. (C) by substituting “subparagraph (C) or (D) or paragraph (1)” for “paragraph (1)(C)”.
1998 - Subsec. (b)(3). Pub. L. 105-206, Sec. 6005(d)(2), amended par. (3). Prior to amendment it read as follows:
“(3) Maximum rate of tax on net capital gain of noncorporate taxpayers.--
The amount determined under the first sentence of paragraph (1)(A)(i) shall not exceed the sum of--
“(A) 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--
“(i) the net capital gain, or
“(ii) the sum of--
“(I) the adjusted net capital gain, plus
“(II) the unrecaptured section 1250 gain, plus
“(B) 25 percent of the lesser of--
“(i) the unrecaptured section 1250 gain, or
“(ii) the amount of taxable excess in excess of the sum of--
“(I) the adjusted net capital gain, plus
“(II) the amount on which a tax is determined under subparagraph (A), plus
“(C) 10 percent of so much of the taxpayer's adjusted net capital gain (or, if less, taxable excess) as does not exceed the amount on which a tax is determined under section 1(h)(1)(D), plus
“(D) 20 percent of the taxpayer's adjusted net capital gain (or, if less, taxable excess) in excess of the amount on which tax is determined under subparagraph (C).
In the case of taxable years beginning after December 31, 2000, rules similar to the rules of section 1(h)(2) shall apply for purposes of subparagraphs (C) and (D). 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).”
Subsec. (e)(1). Pub. L. 105-206, Sec. 6006(a), amended par. (1). Prior to amendment it read as follows:
“(1) In general.-- The tentative minimum tax of a corporation shall be zero for any taxable year if--
“(A) such corporation met the $5,000,000 gross receipts test of section 448(c) for its first taxable year beginning after December 31, 1996, and
“(B) such corporation would meet such test for the taxable year and all prior taxable years beginning after such first taxable year if such test were applied by substituting ‘$7,500,000’ for ‘$5,000,000’.”
1997 - Subsec. (b)(1)(A)(ii). Pub. L. 105-34, Sec. 311(b)(2)(A), amended clause (ii) by substituting “this subsection” for “clause (i)”.
Subsec. (b)(3). Pub. L. 105-34, Sec. 311(b)(1), added new par. (3).
Subsec. (c)(1). Pub. L. 105-34, Sec. 1601(f)(1)(C), substituted “Puerto Rico” for “Puerto Rican”.
Subsec. (e). Pub. L. 105-34, Sec. 401(a), added subsec. (e).
1996 - Subsec. (c). Pub. L. 104-188, Sec. 1601(b)(2)(A), amended subsec. (c). Before amendment, subsec. (c) read as follows: “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) and the section 936 credit allowable under section 27(b). Such term shall not include any tax imposed by section 402(d) and shall not include any increase in tax under section 49 or 50(a) or subsection (j) or (k) of section 42.” Sec. 1401(b)(3), struck “shall not include any tax imposed by section 401(d) and” in subsec. (c)(1). Sec. 1205(d)(6), struck “28(d)(2)” in subsec. (c)(2).
Sec. 1205(d)(6) of Pub. L. 104-188, struck out “28(d)(2)” after “26(a),"in Code Sec. 55(c)(2).
Sec. 1401(b)(3) of Pub. L. 104-188, struck out “shall not include any tax imposed by section 402(d) and" after “Such terms”.
1993 - Subsec. (b)(1). Pub. L. 103-66, Sec. 13203(a), amended paragraph (1) of section 55(b), which prior to amendment read as follows:
‘(1) In general
‘The tentative minimum tax for the taxable year is--
‘(A) 20 percent (24 percent in the case of a taxpayer other than a corporation) of so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount, reduced by
‘(B) the alternative minimum tax foreign tax credit for the taxable year.’
Subsec. (d)(1). Pub. L. 103-66, Sec. 13203(b) amended paragraph (1) by striking “$40,000” in subparagraph (A) and inserting “$45,000”, by striking “$30,000” in subparagraph (B) and inserting “$33,750”, and by striking “$20,000” in subparagraph (C) and inserting “$22,500”.
Subsec. (d)(3). Pub. L. 103-66, Sec. 13203(c)(1) amended the last sentence of paragraph (3) by striking “$155,000 or (ii) $20,000" and inserting “$165,000 or (ii) $22,500”.
1992 - Subsec. (c)(2). Pub. L. 102-486, Section 1913(b)(2) amended paragraph (2) by striking “29(b)(5),” and inserting “29(b)(6), 30(b)(3),”.
1992 - Subsec. (c)(1). Pub. L. 102-318, Sec. 521(b)(1) amended paragraph (1) by striking “section 402(e)“ and inserting “section 402(d)“.
1990 - Subsec. (b)(1)(A). Pub. L. 101-508, Sec. 11102(a), substituted ‘24 percent’ for ‘21 percent’.
Subsec. (c)(1). Pub. L. 101-508, Sec. 11813(b)(5), substituted ‘section 49(b) or 50(a)' for ‘section 47‘.
1988 - Subsec. (b)(2). Pub. L. 100-647, Sec. 1007(a)(2), inserted at end ‘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).’
Subsec. (c)(1). Pub. L. 100-647, Sec. 1007(a)(1), inserted ‘and the section 936 credit allowable under section 27(b)‘ before period at end of first sentence.
Pub. L. 100-647, Sec. 1002(l)(27), substituted ‘subsection (j) or (k) of section 42‘ for ‘section 42(j)‘.
Pub. L. 100-647, Sec. 1002(1)(28), struck out “section 42(j)“ and inserted “subsection (j) or (k) of section 42“.
Pub. L. 100-647, sec. 1007(a)(1), Inserted “and the section 936 credit allowable under section 27(b)“ before the period at the end of the first sentence in (c)(1).
Subsec. (d)(3). Pub. L. 100-647, Sec. 1007(a)(3), inserted at end ‘In the case of a taxpayer described in paragraph (1)(C)(i), 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 $155,000, or (ii) $20,000.’
1986 - Subsec. (c)(1). Pub. L. 99-514, Sec. 252(c), inserted ‘or section 42(j)‘.
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendment by Pub. L. 115-97, Sec. 11002(d)(1)(l) , effective for taxable years beginning after December 31, 2017.
Amendments by Pub. L. 115-97, Sec. 12001, effective for taxable years beginning after December 31, 2017.
Amendments by Pub. L. 115-97, Sec. 12003, effective for taxable years beginning after December 31, 2017.
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Pub. L. 114-113, Div. Q, Sec. 334(b), effective for taxable years beginning after December 31, 2015.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Pub. L. 113-295, Div. A, Sec. 202(c), effective as if included in the provisions of the American Tax Relief Act of 2012 [Pub. L. 112-240, Sec. 104] to which they relate [Effective for taxable years beginning after December 31, 2011.
EFFECTIVE DATE OF 2013 AMENDMENTS
Amendments by Sec. 102 of Pub. L. 112-240 effective for taxable years beginning after December 31, 2012.
Amendments by Sec. 104 of Pub. L. 112-240 effective for taxable years beginning after December 31, 2011.
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendments by Sec. 201(a) of Pub. L. 111-312 effective for taxable years beginning after December 31, 2009.
Amendment by Sec. 2013(b) of Pub. L. 111-240 effective on the date of the enactment of this Act [Enacted: Sept. 27, 2010].
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Div. B, Sec. 1012(a) of Pub. L. 111-5 effective for taxable years beginning after December 31, 2008.
Amendment by Div. B, Sec. 1142(b)(5) of Pub. L. 111-5 effective for vechicles acquired after the date of the enactment of this Act [Enacted: Feb. 17, 2009].
Amendments by Div. B, Sec. 1144(b)(3) of Pub. L. 111-5 effective for taxable years beginning after December 31, 2008.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Div. C, Sec. 102(a) of Pub. L. 110-343 effective for taxable years beginning after December 31, 2007.
Amendment by Sec. 15311(b) of Pub. L. 110-246 effective for taxable years ending after the date of enactment of this Act [Effective date: May 22, 2008]. Note that the original provisions of Pub. L. 110-246 were enacted as Pub. L. 110-234 on May 22, 2008, but were repealed by Pub. L. 110-246, Sec. 4, effective May 22, 2008. Sec. 4 of Pub. L. 110-246 provided that:
“Sec. 4. Repeal of Duplicative Enactment.
“(a) In General.—The Act entitled ‘An Act to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes’ (H.R. 2419 of the 110th Congress), and the amendments made by that Act, are repealed, effective on the date of the enactment of that Act.
“(b) Effective Date.—Except as otherwise provided in this Act, this Act and the amendments made by this Act shall take effect on the earlier of—
“(1) the date of enactment of this Act [Enacted: June 18, 2008]; or
“(2) the date of the enactment of the Act entitled ‘An Act to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes’ (H.R. 2419 of the 110th Congress) [Enacted: May 22, 2008].”
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Sec. 2(a) of Pub. L. 110-166 effective for taxable years beginning after December 31, 2006.
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by Sec. 301(a) of Pub. L. 109-222 effective for taxable years beginning after December 31, 2005.
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendment by Sec. 1302(b)of Pub. L. 109-58 effective for taxable years of cooperative organizations ending after the date of the enactment of this Act [Enacted: Aug. 8, 2005].
Amendment by Sec. 1322(a)(3)(H) of Pub. L. 109-58 effective for credits determined under the Internal Revenue Code of 1986 for taxable years ending after December 31, 2005.
Amendments by Sec. 1341(b)(3) and 1342(b)(3) of Pub. L. 109-58 effective for property placed in service after December 31, 2005 in taxable years ending after such date.
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendments by Sec. 314(a) of Pub. L. 108-357 effective for table years beginning after December 31, 2003.
Amendments by Sec. 103(a) of Pub. L. 108-311 effective for taxable years beginning after December 31, 2004. Section 105 of Pub. L. 108-311 provided that:
“SEC. 105. APPLICATION OF EGTRRA SUNSET TO THIS TITLE.
“Each amendment made by this title shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16] to the same extent and in the same manner as the provision of such Act to which such amendment relates.” Note that Pub. L. 112-240, Sec. 101(a)(1), struck Pub. L. 107-16, title IX, effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012.
Amendment by Sec. 406(d) of Pub. L. 108-311 effective as if included in the provision of [Sec. 311] the Taxpayer Relief Act of 1997 to which it relates [taxable years ending after May 6, 1997].
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendments by Sec. 106 of Pub. L. 108-27 effective for taxable years beginning after December 31, 2002. Sec. 107 of Pub. L. 108-27 provided that: “Each amendment made by this title shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16] to the same effect and in the same manner as the provision of such Act to which such amendment relates.” Note that Pub. L. 112-240, Sec. 101(a)(1), struck Pub. L. 107-16, title IX, effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012.
Amendments by Sec. 301 of Pub. L. 108-27 effective for taxable years ending on or after May 6, 2003. Sec. 303 (Sunset of Title) of Pub. L. 108-27, as amended by Sec. 102 of Pub. L. 109-222, and Sec. 102 of Pub. L. 111-312 and struck by Pub. L. 112-240, Sec. 102(a) (effective for taxable years beginning after Dec. 31, 2012), provided that: “All provisions of, and amendments made by, this title shall not apply to taxable years beginning after December 31, 2012, and the Internal Revenue Code of 1986 shall be applied and administered to such years as if such provisions and amendments had never been enacted.”
EFFECTIVE DATE OF 2001 AMENDMENTS
Amendments by Sec. 701 of Pub. L. 107-16 effective for taxable years beginning after December 31, 2000.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, Sec. 101(a), and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.—All provisions of, and amendments made by, this Act shall not apply—
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.—The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.—Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
Note: Pub. L. 111-312, Sec. 201(c) provided:
“REPEAL OF EGTRRA SUNSET.—Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall not apply to title VII of such Act (relating to alternative minimum tax).”
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Sec. 6005(d)(2) of Pub. L. 105-206 effective as if included in the provisions of the Taxpayer Relief Act of 1997 to which it relates [Effective Date of Pub. L. 105-34, Sec. 311: Taxable years ending after May 6, 1997, but see special rule set out in section 1].
Amendment by Sec. 6006(a) of Pub. L. 105-206 effective as if included in the provisions of the Taxpayer Relief Act of 1997 to which it relates [Effective Date of Pub. L. 105-34, Sec. 401: Taxable years beginning after December 31, 1997].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 311(b) of Pub. L. 105-34 effective for taxable years ending after May 6, 1997. For special rules, see Section 311(e) set out in section 1.
Amendment by Sec. 401(a) of Pub. L. 105-34 effective for taxable years beginning after December 31, 1997.
Amendment by Sec. 1601(f)(1)(C) of Pub. L. 105-34 effective as if included in the provisions of the Small Business Job Protection Act of 1996 to which it relates.
EFFECTIVE DATE OF 1996 AMENDMENT
Sec. 1601(c) of Pub. L. 104-188, provided that: “
(1) In general.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1995.
(2) Special rule for qualified possession source investment income.—The amendments made by this section shall not apply to qualified possession source investment income received or accrued before July 1, 1996, without regard to the taxable year in which received or accrued.
(3) Special transition rule for payment of estimated tax installment.—In determining the amount of any installment due under section 6655 of the Internal Revenue Code of 1986 after the date of the enactment of this Act [Aug. 20, 1996] and before October 1, 1996, only 1/2 of any increase in tax (for the taxable year for which such installment is made) by reason of the amendments made by subsections (a) and (b) shall be taken into account. Any reduction in such installment by reason of the preceding sentence shall be recaptured by increasing the next required installment for such year by the amount of such reduction.”
Sec. 1401(c) of Pub. L. 104-188, provided that:
“(1) In general.—The amendments made by this section shall apply to taxable years beginning after December 31, 1999.
(2) Retention of certain transition rules.—The amendments made by this section shall not apply to any distribution for which the taxpayer is eligible to elect the benefits of section 1122(h)(3) or (h)(5) of the Tax Reform Act of 1986. Notwithstanding the preceding sentence, individuals who elect such benefits after December 31, 1999, shall not be eligible for 5-year averaging under section 402(d) of the Internal Revenue Code of 1986 (as in effect immediately before such amendments).”
Sec. 1205(e) of Pub. L. 104-188, provided that: “The amendments made by this section shall apply to amounts paid or incurred in taxable years ending after June 30, 1996.”
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Sec. 13203 of Pub. L. 103-66, applicable to taxable years beginning after December 31, 1992.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Sec. 521 of Pub. L. 102-318, applicable to distributions after December 31, 1992.
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11102(b) of Pub. L. 101-508 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to taxable years beginning after December 31, 1990.’
Amendment by section 11813(b)(5) of Pub. L. 101-508 applicable to property placed in service after Dec. 31, 1990, but not applicable to any transition property (as defined in section 49(e) of this title), any property with respect to which qualified progress expenditures were previously taken into account under section 46(d) of this title, and any property described in section 46(b)(2)(C) of this title, as such sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 101-508, set out as a note under section 29 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1002(l)(27) 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 1007(a)(3) of Pub. L. 100-647 provided that the amendment made by that section is effective with respect to taxable years ending after Nov. 10, 1988.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to buildings placed in service after Dec. 31, 1986, in taxable years ending after such date, see section 252(e) of Pub. L. 99-514, set out as an Effective Date note under section 42 of this title.
EFFECTIVE DATE
Section 701(f) of Pub. L. 99-514, as amended by Pub. L. 100-647, title I, Sec. 1007(f)(2), (3), Nov. 10, 1988, 102 Stat. 3433, provided that:
‘(1) In general. - Except as otherwise provided in this subsection, the amendments made by this section (enacting this section and sections 53 and 56 to 59 of this title and amending sections 5, 12, 26, 28, 29, 38, 48, 173, 174, 263, 381, 443, 703, 882, 897, 904, 936, 1016, 1363, 1366, 1561, 6154, 6425, and 6655 of this title) shall apply to taxable years beginning after December 31, 1986.
‘(2) Adjustment of net operating loss. —
‘(A) Individuals.— In the case of a net operating loss of an individual for a taxable year beginning after December 31, 1982, and before January 1, 1987, for purposes of determining the amount of such loss which may be carried to a taxable year beginning after December 31, 1986, for purposes of the minimum tax, such loss shall be adjusted in the manner provided in section 55(d)(2) of the Internal Revenue Code of 1954 (now 1986) as in effect on the day before the date of the enactment of this Act (Oct. 22, 1986).
‘(B) Corporations. — If the minimum tax of a corporation was deferred under section 56(b) of the Internal Revenue Code of 1954 (now 1986) (as in effect on the day before the date of the enactment of this Act (Oct. 22, 1986)) for any taxable year beginning before January 1, 1987, and the amount of such tax has not been paid for any taxable year beginning before January 1, 1987, the amount of the net operating loss carryovers of such corporation which may be carried to taxable years beginning after December 31, 1986, for purposes of the minimum tax shall be reduced by the amount of tax preferences a tax on which was so deferred.
‘(3) Installment sales. — Section 56(a)(6) of the Internal Revenue Code of 1986 (as amended by this section) shall not apply to any disposition to which the amendments made by section 811 of this Act (enacting section 453C of this title) (relating to allocation of dealer's indebtedness to installment obligations) do not apply by reason of section 811(c)(2) of this Act (enacting provisions set out as a note under section 453C of this title).
‘(4) Exception for charitable contributions before August 16, 1986. — Section 57(a)(6) of the Internal Revenue Code of 1986 (as amended by this section) shall not apply to any deduction attributable to contributions made before August 16, 1986.
‘(5) Book income. —
‘(A) In general. — In the case of a corporation to which this paragraph applies, the amount of any increase for any taxable year under section 56(c)(1)(A) of the Internal Revenue Code of 1986 (as added by this section) shall be reduced (but not below zero) by the excess (if any) of -
‘(i) 50 percent of the excess of taxable income for the 5-taxable year period ending with the taxable year preceding the 1st taxable year to which such section applies over the adjusted net book income for such period, over
‘(ii) the aggregate amounts taken into account under this paragraph for preceding taxable years.
‘(B) Taxpayer to whom paragraph applies. – This paragraph applies to a taxpayer which was incorporated in Delaware on May 31, 1912.
‘(C) Terms. — Any term used in this paragraph which is used in section 56 of such Code (as so added) shall have the same meaning as when used in such section.
‘(6) Certain public utility. —
‘(A) In the case of investment tax credits described in subparagraph (B) or (C), subsection 38(c)(3)(A)(ii) of the Internal Revenue Code of 1986 shall be applied by substituting ‘25 percent’ for ‘75 percent’, and section 38(c)(3)(B) of the Internal Revenue Code of 1986 shall be applied by substituting ‘75 percent’ for ‘25 percent’.
‘(B) If, on September 25, 1985, a regulated electric utility owned an undivided interest, within the range of 1,111 and 1,149, in the ‘maximum dependable capacity, net, megawatts electric’ of an electric generating unit located in Illinois or Mississippi for which a binding written contract was in effect on December 31, 1980, then any investment tax credit with respect to such unit shall be described in this subparagraph. The aggregate amount of investment tax credits with respect to the unit in Mississippi allowed solely by reason of being described in this subparagraph shall not exceed $141,000,000.
‘(C) If, on September 25, 1985, a regulated electric utility owned an undivided interest, within the range of 1,104 and 1,111, in the ‘maximum dependable capacity, net, megawatts electric’ of an electric generating unit located in Louisiana for which a binding written contract was in effect on December 31, 1980, then any investment tax credit of such electric utility shall be described in this subparagraph. The aggregate amount of investment tax credits allowed solely by reason of being described by this subparagraph shall not exceed $20,000,000.
‘(7) Agreement vessel depreciation adjustment. -
‘(A) For purposes of part VI of subchapter A of chapter 1 of the Internal Revenue Code of 1986, in the case of a qualified taxpayer, alternative minimum taxable income for the taxable year shall be reduced by an amount equal to the agreement vessel depreciation adjustment.
‘(B) For purposes of this paragraph, the agreement vessel depreciation adjustment shall be an amount equal to the depreciation deduction that would have been allowable for such year under section 167 of such Code with respect to agreement vessels placed in service before January 1, 1987, if the basis of such vessels had not been reduced under section 607 of the Merchant Marine Act of 1936 (46 App. U.S.C. 1177), as amended, and if depreciation with respect to such vessel had been computed using the 25-year straight-line method. The aggregate amount by which basis of a qualified taxpayer is treated as not reduced by reason of this subparagraph shall not exceed $100,000,000.
‘(C) For purposes of this paragraph, the term ‘qualified taxpayer’ means a parent corporation incorporated in the State of Delaware on December 1, 1972, and engaged in water transportation, and includes any other corporation which is a member of the affiliated group of which the parent corporation is the common parent. No taxpayer shall be treated as a qualified corporation for any taxable year beginning after December 31, 1991.'
SAVINGS PROVISION
For provisions that nothing in amendment by section 11813(b)(5) of Pub. L. 101-508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101-508, set out as a note under section 29 of this title.
TRANSITIONAL PROVISIONS
Section 1007(f)(1) of Pub. L. 100-647 provided that: ‘In the case of the taxable year of an estate or trust which begins before January 1, 1987, and ends on or after such date, the items of tax preference apportioned to any beneficiary of such estate or trust under section 58(c) of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986 (Oct. 22, 1986)) shall be taken into account for purposes of determining the amount of the tax imposed by section 55 of the Internal Revenue Codeof 1986 (as amended by the Tax Reform Act of 1986 (Pub. L. 99-514)) on such beneficiary for such beneficiary's taxable year in which such taxable year of the estate or trust ends.'
APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by section 701(a) 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.
HIGH INCOME TAXPAYER REPORT
Section 2123 of Pub. L. 94-455, as amended by Pub. L. 98-369, div. A, title IV, Sec. 441(b)(1), July 18, 1984, 98 Stat. 815, provided that: ‘The Secretary of the Treasury shall publish annually information on the amount of tax paid by individual taxpayers with high total incomes. Total income for this purpose is to be calculated and set forth by adding to adjusted gross income any items of tax preference excluded from, or deducted in arriving at, adjusted gross income, and by subtracting any investment expenses incurred in the production of such income to the extent of the investment income. These data are to include the number of such individuals with total income over $200,000 who owe no Federal income tax (after credits) and the deductions, exclusions, or credits used by them to avoid tax.’
(Section 441(b)(2) of Pub. L. 98-369 provided that: ‘The amendment made by paragraph (1) (amending section 2123 of Pub. L. 94-455, set out above) shall apply to information published after the date of the enactment of this Act (July 18, 1984).')
PRIOR PROVISIONS
A prior section 55, Pub. L. 95-600, title IV, Sec. 421(a), Nov. 6, 1978, 92 Stat. 2871, and amended Pub. L. 96-222, title I, Sec. 104(a)(4)(A)-(D), (G), (H)(i), (ii), (viii), Apr. 1, 1980, 94 Stat. 215-218; Pub. L. 96-223, title II, Sec. 232(b)(2)(A), (c)(2), Apr. 2, 1980, 94 Stat. 276, 277; Pub. L. 96-603, Sec. 4(a), (b), Dec. 28, 1980, 94 Stat. 3513, 3514; Pub. L. 97-34, title I, Sec. 101(d)(1), title II, Sec. 221(b)(1)(A), title III, Sec. 331(d)(1)(A), Aug. 13, 1981, 95 Stat. 183, 246, 294; Pub. L. 97-248, title II, Sec. 201(a), Sept. 3, 1982, 96 Stat. 411; Pub. L. 97-354, Sec. 5(a)(13), Oct. 19, 1982, 96 Stat. 1693; Pub. L. 97-448, title I, Sec. 103(g)(2)(E), title III, Sec. 305(c), 306(a)(1)(B), (C), Jan. 12, 1983, 96 Stat. 2379, 2399, 2400; Pub. L. 98-369, div. A, title IV, Sec. 474(q), 491(d)(1), title VI, Sec. 612(e)(3), title VII, Sec. 711(a)(1), (4), (5), July 18, 1984, 98 Stat. 838, 849, 912, 942, 943; Pub. L. 99-514, title XVIII, Sec. 1847(a), Oct. 22, 1986, 100 Stat. 2856, related to alternative minimum tax for taxpayers other than corporations, prior to the general revision of this part by Pub. L. 99-514, Sec. 701(a).