Internal Revenue Code:Sec. 55. Alternative minimum tax imposed
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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 VI - ALTERNATIVE MINIMUM TAX
Statute
Sec. 55. Alternative minimum tax imposed
(a) General rule
There is hereby imposed (in addition to any other tax imposed by
this subtitle) a tax equal to the excess (if any) of -
(1) the tentative minimum tax for the taxable year, over
(2) the regular tax for the taxable year.
(b) Tentative minimum tax
For purposes of this part -
(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 amount 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
''$87,500'' for ''$175,000'' each place it appears. 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.
(2) Alternative minimum taxable income
The term ''alternative minimum taxable income'' means the
taxable income of the taxpayer for the taxable year -
(A) determined with the adjustments provided in section 56
and section 58, and
(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).
(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) 5 percent ( 0 percent in the case of taxable years
beginning after 2007)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
(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
(D) 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.
(c) Regular tax
(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), the section 936 credit allowable under section
27(b), and the Puerto Rico economic activity credit under section
30A. Such term shall not include any increase in tax under
section 45(e)(11)(C), 49(b) or 50(a) or subsection (j) or (k)
of section 42.
(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 liability.
(3) Cross references
For provisions providing that certain credits are not
allowable against the tax imposed by this section, see sections
26(a), 30(b)(3),30B(g)(2), 30C(d)(2), 30B(f)
(5), and 38(c).
(d) Exemption amount
For purposes of this section -
(1) Exemption amount for taxpayers other than corporations
In the case of a taxpayer other than a corporation, the term
''exemption amount'' means -
(A) $45,000 ($62,550 in the case of taxable years beginning
in 2006) in the case of -
(i) a joint return, or
(ii) a surviving spouse,
(B) $33,750 ($42,500 in the case of taxable years beginning
in 2006) in the case of an individual who -
(i) is not a married individual, and
(ii) is not a surviving spouse,
(C) 50 percent of the dollar amount applicable under
paragraph (1)(A) in the case of a married individual who files
a separate return, and
(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.
(2) Corporations
In the case of a corporation, the term ''exemption amount''
means $40,000.
(3) 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 -
(A) $150,000 in the case of a taxpayer described in paragraph
(1)(A) or (2),
(B) $112,500 in the case of a taxpayer described in paragraph
(1)(B), and
(C) $75,000 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).
(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)(3)(B) shall apply for purposes of the
preceding sentence.
Sources
(Added and amended 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), 1007(a), 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(b)(1), July 3, 1992, 106 Stat. 310; Pub.
L. 102-486, title XIX, Sec. 1913(b)(2)(D), Oct. 24, 1992, 106 Stat.
3020; Pub. L. 103-66, title XIII, Sec. 13203(a)-(c)(1), Aug. 10,
1993, 107 Stat. 461, 462; Pub. L. 104-188, title I, Sec.
1205(d)(6), 1401(b)(3), 1601(b)(2)(A), Aug. 20, 1996, 110 Stat.
1776, 1788, 1832; Pub. L. 105-34, title III, Sec. 311(b)(1),
(2)(A), title IV, Sec. 401(a), title XVI, Sec. 1601(f)(1)(C), Aug.
5, 1997, 111 Stat. 834, 835, 843, 1090; Pub. L. 105-206, title VI,
Sec. 6005(d)(2), 6006(a), July 22, 1998, 112 Stat. 804, 806; Pub.
L. 107-16, title VII, Sec. 701(a), (b), June 7, 2001, 115 Stat.
148.)
Amendment of Section
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
Miscellaneous
PRIOR PROVISIONS
A prior section 55, Pub. L. 95-600, title IV, Sec. 421(a), Nov.
6, 1978, 92 Stat. 2871; 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).
AMENDMENTS
2006 - P.L. 109-222
SEC. 301. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT FOR 2006.
(a) In General.--Section <<NOTE: 26 USC 55.>> 55(d)(1) (relating to
exemption amount for taxpayers other than corporations) is amended--
(1) by striking ``$58,000'' and all that follows through
``2005'' in subparagraph (A) and inserting ``$62,550 in the case
of taxable years beginning in 2006'', and
(2) by striking ``$40,250'' and all that follows through
``2005'' in subparagraph (B) and inserting ``$42,500 in the case
of taxable years beginning in 2006''.
(b) Effective Date.--The <<NOTE: 26 USC 55 note.>> amendments made
by this section shall apply to taxable years beginning after December
31, 2005.
2005 - Energy Policy Act of 2005, PL109-058,(H) Section 55(c)(3) is
amended by striking `29(b)(6),'.
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.
2005 - Energy Policy Act of 2005, PL109-058, amends Sec. 55(c)(1) by inserting
a reference to Sec. 45(e)(11)(C) in the last sentence. Effective Date-
This amendment made by this section shall apply to taxable years of
cooperative organizations ending after the date of the enactment of
this Act. Sec. 1341(b)(3)amended Sec.55(c)(2) by inserting
30B(g)(2) after 30(b)(2). Sec. 1342(b)(3) amended Sec.55(c)(2)
by inserting 30C(d)(2), after 30B(g)(2). .Amendments made by
these section's 1341 and 1342 shall apply to property placed
in service after December 31, 2005, in taxable years ending
after such date.
2005 - S.A.F.E. Transportation Act of 2005. Section 55(c)(2) is amended
by inserting `30B(d),' after `30(b)(3),'.
Effective Date- The amendments made by this section shall apply to
property placed in service after the date of the enactment of this Act,
in taxable years ending after such date.
2004 - Subsec.314(a),Pub.L.108-357, amended Sec.55(c)(3) by
redesignating paragraph (2) as paragraph (3) and by inserting
after paragraph (1) the new paragraph (2).
2004 - Subsec.406(d),Pub.L.108-311, amended Sec.55(b)(3)(B)by
striking ``the amount on which a tax is determined under'' and
inserting ``an amount equal to the excess described in''.
2004 - Pub. L. 108-311 Sec. 103 amends Subsec. (d)(1)(A) &(B)
by adding the year 2005.
2003 - Subsec. 301(b)(2), Pub. L. 108-27 amended Sec 55(b)(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).''.
2003 - Subsec. 301(a)(1), Pub L. 108-27, amends Sec 55(b)(3)(B)
as follows: striking ``10 percent'' and inserting ``5 percent (0
percent in the case of taxable years beginning after 2007)''
Sec. 55(b)(3)(C) is also amended to change 20% to 15%.
2003 - Subsec. (d)(1)(A)&(B). Pub. L. 108-027 amends the
"exemption amount" contained in sub paragraphs (A) & (B).
Amendment shall apply to taxable years beginning after December 31, 2002.
2001 - Subsec. (d)(1)(A). Pub. L. 107-16, Sec. 701(a)(1), 901,
temporarily substituted ''$45,000 ($49,000 in the case of taxable
years beginning in 2001, 2002, 2003, and 2004)'' for ''$45,000'' in
introductory provisions. See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (d)(1)(B). Pub. L. 107-16, Sec. 701(b)(1), 901,
temporarily struck out ''and'' at end. See Effective and
Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Sec. 701(a)(2), 901, temporarily substituted
''$33,750 ($35,750 in the case of taxable years beginning in 2001,
2002, 2003, and 2004)'' for ''$33,750'' in introductory
provisions. See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (d)(1)(C), (D). Pub. L. 107-16, Sec. 701(b)(1), 901,
temporarily added subpars. (C) and (D) and struck out former
subpar. (C) which read as follows: ''$22,500 in the case of -
''(i) a married individual who files a separate return, or
''(ii) an estate or trust.''
See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (d)(3). Pub. L. 107-16, Sec. 701(b)(3), 901, in
concluding provisions, temporarily substituted ''paragraph (1)(C)''
for ''paragraph (1)(C)(i)'' and ''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''. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (d)(3)(C). Pub. L. 107-16, Sec. 701(b)(2), 901,
temporarily substituted ''subparagraph (C) or (D) of paragraph
(1)'' for ''paragraph (1)(C)''. See Effective and Termination Dates
of 2001 Amendment note below.
1998 - Subsec. (b)(3). Pub. L. 105-206, Sec. 6005(d)(2),
reenacted par. heading without change and amended text of par. (3)
generally. Prior to amendment, text read as follows: ''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), reenacted par.
heading without change and amended text of par. (1) generally.
Prior to amendment, text read as follows: ''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),
substituted ''this subsection'' for ''clause (i)''.
Subsec. (b)(3). Pub. L. 105-34, Sec. 311(b)(1), added 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)(1). Pub. L. 104-188, Sec. 1601(b)(2)(A),
substituted '', the section 936 credit allowable under section
27(b), and the Puerto Rican economic activity credit under section
30A'' for ''and the section 936 credit allowable under section
27(b)''.
Pub. L. 104-188, Sec. 1401(b)(3), struck out ''shall not include
any tax imposed by section 402(d) and'' before ''shall not include
any increase in tax under section 49(b)''.
Subsec. (c)(2). Pub. L. 104-188, Sec. 1205(d)(6), struck out
''28(d)(2),'' after ''26(a),''.
1993 - Subsec. (b)(1). Pub. L. 103-66, Sec. 13203(a), amended
heading and text of par. (1) generally. Prior to amendment, text
read as follows: ''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), substituted
''$45,000'' for ''$40,000'' in subpar. (A), ''$33,750'' for
''$30,000'' in subpar. (B), and ''$22,500'' for ''$20,000'' in
subpar. (C).
Subsec. (d)(3). Pub. L. 103-66, Sec. 13203(c)(1), substituted
''$165,000 or (ii) $22,500'' for ''$155,000 or (ii) $20,000'' in
last sentence.
1992 - Subsec. (c)(1). Pub. L. 102-318 substituted ''402(d)'' for
''402(e)''.
Subsec. (c)(2). Pub. L. 102-486 substituted ''29(b)(6),
30(b)(3),'' for ''29(b)(5),''.
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)''.
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 2006 AMENDMENT
2006 - P.L. 109-222
SEC. 301. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT FOR 2006.
(b) Effective Date.--The <<NOTE: 26 USC 55 note.>> amendments made
by this section shall apply to taxable years beginning after December
31, 2005.
EFFECTIVE DATE OF 2004 AMENDMENTS
PL108-357, Sec.314. Effective Date.--The <<NOTE: 26 USC 55 note.>>
amendments made by this section shall apply to taxable years
beginning after December 31, 2003.
PL108-311,Sec.406, amendment Effective Date.--The amendments made
by this section shall take effect as if included in the provisions
of the Taxpayer Relief Act of 1997 to which they relate.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title VII, Sec. 701(c), June 7, 2001, 115 Stat.
148, provided that: ''The amendments made by this section (amending
this section) shall apply to taxable years beginning after December
31, 2000.''
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by section 311(b)(1), (2)(A) of Pub. L. 105-34
applicable to taxable years ending after May 6, 1997, see section
311(d) of Pub. L. 105-34, set out as a note under section 1 of this
title.
Section 401(b) of Pub. L. 105-34 provided that: ''The amendment
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1997.''
Amendment by section 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, Pub. L. 104-188, to which it relates, see section
1601(j) of Pub. L. 105-34, set out as a note under section 23 of
this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 1205(d)(6) 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.
Amendment by section 1401(b)(3) of Pub. L. 104-188 applicable to
taxable years beginning after Dec. 31, 1999, with retention of
certain transition rules, see section 1401(c) of Pub. L. 104-188,
set out as a note under section 402 of this title.
Amendment by section 1601(b)(2)(A) of Pub. L. 104-188 applicable
to taxable years beginning after Dec. 31, 1995, except as otherwise
provided, see section 1601(c) of Pub. L. 104-188, set out as an
Effective Date note under section 30A of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13203(d) of Pub. L. 103-66 provided that: ''The
amendments made by this section (amending this section and section
897 of this title) shall apply to taxable years beginning after
December 31, 1992.''
EFFECTIVE DATE OF 1992 AMENDMENTS
Amendment by 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.
Amendment by Pub. L. 102-318 applicable to distributions after
Dec. 31, 1992, see section 521(e) of Pub. L. 102-318, set out as a
note under section 402 of this title.
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 Code of 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.''
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998
For provisions directing that if any amendments made by subtitle
D (Sec. 1401-1465) of title I of Pub. L. 104-188 require an
amendment to any plan or annuity contract, such amendment shall not
be required to be made before the first day of the first plan year
beginning on or after Jan. 1, 1998, see section 1465 of Pub. L.
104-188, set out as a note under section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994
For provisions directing that if any amendments made by subtitle
B (Sec. 521-523) of title V of Pub. L. 102-318 require an amendment
to any plan, such plan amendment shall not be required to be made
before the first plan year beginning on or after Jan. 1, 1994, see
section 523 of Pub. L. 102-318, set out as a note under section 401
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(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).'')
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2, 5, 11, 12, 23, 24,
25B, 26, 38, 45A, 45D, 53, 59, 59A, 168, 443, 641, 666, 815, 847,
860E, 860J, 871, 877, 882, 897, 962, 1260, 1397E, 1400I, 1561,
6015, 6425, 6428, 6655, 6662 of this title.
