§ 26. Limitation based on tax liability; definition of tax liability
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/usc/title-26/section-26A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Limitation based on amount of tax The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the sum of—
(1)the taxpayer’s regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27, and
(2)the tax imposed by section 55(a) for the taxable year.
(b)Regular tax liability For purposes of this part—
(1)In general The term “regular tax liability” means the tax imposed by this chapter for the taxable year.
(2)Exception for certain taxes For purposes of paragraph (1), any tax imposed by any of the following provisions shall not be treated as tax imposed by this chapter:
(A)section 55 (relating to minimum tax),
(B)section 59A (relating to base erosion and anti-abuse tax),
(C)subsection (m)(5)(B), (q), (t), or
(v)of section 72 (relating to additional taxes on certain distributions),
(D)section 143(m) (relating to recapture of proration of Federal subsidy from use of mortgage bonds and mortgage credit certificates),
(E)section 530(d)(4) (relating to additional tax on certain distributions from Coverdell education savings accounts),
(F)section 531 (relating to accumulated earnings tax),
(G)section 541 (relating to personal holding company tax),
(H)section 1351(d)(1) (relating to recoveries of foreign expropriation losses),
(I)section 1374 (relating to tax on certain built-in gains of S corporations),
(J)section 1375 (relating to tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts),
(K)subparagraph
(A)of section 7518(g)(6) (relating to nonqualified withdrawals from capital construction funds taxed at highest marginal rate),
(L)sections 871(a) and 881 (relating to certain income of nonresident aliens and foreign corporations),
(M)section 860E(e) (relating to taxes with respect to certain residual interests),
(N)section 884 (relating to branch profits tax),
(O)sections 453(l)(3) and 453A(c) (relating to interest on certain deferred tax liabilities),
[(P) Repealed. Pub. L. 115–141, div. U, title IV, § 401(b)(2), Mar. 23, 2018, 132 Stat. 1201.]
(Q)section 220(f)(4) (relating to additional tax on Archer MSA distributions not used for qualified medical expenses),
(R)section 138(c)(2) (relating to penalty for distributions from Medicare Advantage MSA not used for qualified medical expenses if minimum balance not maintained),
(S)sections 106(e)(3)(A)(ii), 223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II) (relating to certain failures to maintain high deductible health plan coverage),
(T)section 170(o)(3)(B) (relating to recapture of certain deductions for fractional gifts),
(U)section 223(f)(4) (relating to additional tax on health savings account distributions not used for qualified medical expenses),
(V)subsections (a)(1)(B)(i) and (b)(4)(A) of section 409A (relating to interest and additional tax with respect to certain deferred compensation),
(W)section 36(f) (relating to recapture of homebuyer credit),
(X)section 457A(c)(1)(B) (relating to determinability of amounts of compensation),
(Y)section 529A(c)(3)(A) (relating to additional tax on ABLE account distributions not used for qualified disability expenses), and
(Z)section 24(j)(2) (relating to excess advance payments).
(c)Tentative minimum tax For purposes of this part, the term “tentative minimum tax” means the amount determined under section 55(b)(1).
(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;
Pub. L. 117–2, title IX, § 9611(b)(4)(A), Mar. 11, 2021, 135 Stat. 150.)
Connections183 cite this · traces to 29
Cited by 183 sections · top 60
public-private-law
U.S. Code
- § 170Charitable, etc., contributions and gifts
- § 72Annuities; certain proceeds of endowment and life insurance contracts
- § 7701Definitions
- § 168Accelerated cost recovery system
- § 56Adjustments in computing alternative minimum taxable income
- § 9503Highway Trust Fund
- § 162Trade or business expenses
- § 4975Tax on prohibited transactions
- § 9502Airport and Airway Trust Fund
- § 24Child tax credit
- § 172Net operating loss deduction
- § 45Electricity produced from certain renewable resources, etc.
- § 55Alternative minimum tax imposed
- § 1361S corporation defined
- § 163Interest
- § 856Definition of real estate investment trust
- § 6655Failure by corporation to pay estimated income tax
- § 164Taxes
- § 6501Limitations on assessment and collection
- § 121Exclusion of gain from sale of principal residence
- § 904Limitation on credit
- § 35Health insurance costs of eligible individuals
- § 6427Fuels not used for taxable purposes
- § 6652Failure to file certain information returns, registration statements, etc.
- § 1324Refund of internal revenue collections
- § 529Qualified tuition programs
- § 864Definitions and special rules
- § 274Disallowance of certain entertainment, etc., expenses
- § 382Limitation on net operating loss carryforwards and certain built-in losses following ownership change
- § 954Foreign base company income
- § 1092Straddles
- § 897Disposition of investment in United States real property
- § 2501Imposition of tax
- § 901Taxes of foreign countries and of possessions of United States
- § 220Archer MSAs
- § 857Taxation of real estate investment trusts and their beneficiaries
- § 9508Leaking Underground Storage Tank Trust Fund
- § 6211Definition of a deficiency
- § 6724Waiver; definitions and special rules
- § 25Interest on certain home mortgages
- § 351Transfer to corporation controlled by transferor
- § 6662Imposition of accuracy-related penalty on underpayments
- § 1202Partial exclusion for gain from certain small business stock
- § 1245Gain from dispositions of certain depreciable property
- § 4973Tax on excess contributions to certain tax-favored accounts and annuities
- § 275Certain taxes
- § 181Treatment of certain qualified productions
- § 1561Limitation on accumulated earnings credit in the case of certain controlled corporations
- § 530Coverdell education savings accounts
- § 7874Rules relating to expatriated entities and their foreign parents
- § 882Tax on income of foreign corporations connected with United States business
- § 1503Computation and payment of tax
- § 535Accumulated taxable income
- § 362Basis to corporations
- § 877Expatriation to avoid tax
- § 36First-time homebuyer credit
- § 194Treatment of reforestation expenditures
- § 532Corporations subject to accumulated earnings tax
Traces to 29 documents
public-private-law
U.S. Code
- Alternative minimum tax imposed§ 55
- Child tax credit§ 24
- Tax on base erosion payments of taxpayers with substantial gross receipts§ 59A
- Tax imposed§ 1
- Records maintained on individuals§ 552a
- Adoption expenses§ 23
- Nonqualified deferred compensation from certain tax indifferent parties§ 457A
- First-time homebuyer credit§ 36
- Definition of a deficiency§ 6211
- Refund of internal revenue collections§ 1324
- Overpayments of tax§ 37
- Limitation on credit§ 904
- Health insurance costs of eligible individuals§ 35
- Coverdell education savings accounts§ 530
- Notice of large gifts received from foreign persons§ 6039F
- Information on individuals losing United States citizenship§ 6039G
- Certain amounts paid in connection with insurance contracts§ 264
- Treatment of income in excess of daily accruals on residual interests§ 860E
- Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond§ 143
- Modified endowment contract defined§ 7702A
- Tax incentives relating to merchant marine capital construction funds§ 7518
- Gain or loss recognized on property distributed in complete liquidation§ 336
- Taxability of corporation on distribution§ 311
- Expenses for household and dependent care services necessary for gainful employment§ 21
- Income from sources within the United States§ 861
187 references not yet in our index
- 132 Stat. 1201
- Pub. L. 98–369, div. A, title IV, § 472
- 98 Stat. 827
- Pub. L. 99–499, title V, § 516(b)(1)(A)
- 100 Stat. 1770
- Pub. L. 99–514, title II, § 261(c)
- 100 Stat. 2214
- Pub. L. 100–647, title I
- 102 Stat. 3425
- Pub. L. 101–239, title VII
- 103 Stat. 2406
- Pub. L. 104–188, title I, § 1621(b)(1)
- 110 Stat. 1866
- Pub. L. 105–34, title II, § 213(e)(1)
- 111 Stat. 817
- Pub. L. 105–277, div. J, title II, § 2001(a)
- 112 Stat. 2681–901
- Pub. L. 106–170, title V, § 501(a)
- 113 Stat. 1918
- Pub. L. 106–554, § 1(a)(7) [title II, § 202(a)(1)]
- 114 Stat. 2763
- Pub. L. 107–16, title II
- 115 Stat. 46
- Pub. L. 107–22, § 1(b)(2)(A)
- 115 Stat. 197
- Pub. L. 107–147, title IV
- 116 Stat. 54
- Pub. L. 108–311, title III, § 312(a)
- 118 Stat. 1181
- Pub. L. 109–135, title IV
- 119 Stat. 2631
- Pub. L. 109–222, title III, § 302(a)
- 120 Stat. 353
- Pub. L. 110–166, § 3(a)
- 121 Stat. 2461
- Pub. L. 110–172, § 11(a)(3)
- 121 Stat. 2484
- Pub. L. 110–289, div. C, title I, § 3011(b)(1)
- 122 Stat. 2891
- Pub. L. 110–343, div. B, title I, § 106(e)(2)(D)
+ 147 more
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§ 26
Limitation based on tax liability; definition of tax liability
U.S.C.×112
Stat.×67
Pub. L.×2
C.F.R.×1
Stat. Comp.×1
Stat.132 Stat. 1201
Pub. L.Pub. L. 98–369, div. A, title IV, § 472
Stat.98 Stat. 827
Cites 216 · showing 12Cited by 183 across 5 sources