Internal Revenue Code:Sec. 53. Credit for prior year minimum tax liability

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter A - Determination of Tax Liability
         PART IV - CREDITS AGAINST TAX
          Subpart G - Credit Against Regular Tax for Prior Year Minimum Tax
                Liability
         

Statute

    Sec. 53. Credit for prior year minimum tax liability
 
    (a) Allowance of credit
      There shall be allowed as a credit against the tax imposed by
    this chapter for any taxable year an amount equal to the minimum
    tax credit for such taxable year.
    (b) Minimum tax credit
      For purposes of subsection (a), the minimum tax credit for any
    taxable year is the excess (if any) of -
        (1) the adjusted net minimum tax imposed for all prior taxable
      years beginning after 1986, over
        (2) the amount allowable as a credit under subsection (a) for
      such prior taxable years.
    (c) Limitation
      The credit allowable under subsection (a) for any taxable year
    shall not exceed the excess (if any) of -
        (1) the regular tax liability of the taxpayer for such taxable
      year reduced by the sum of the credits allowable under subparts
      A, B, D, E, and F of this part, over
        (2) the tentative minimum tax for the taxable year.
    (d) Definitions
      For purposes of this section -
      (1) Net minimum tax
        (A) In general
          The term ''net minimum tax'' means the tax imposed by section
        55.
        (B) Credit not allowed for exclusion preferences
          (i) Adjusted net minimum tax
            The adjusted net minimum tax for any taxable year is -
              (I) the amount of the net minimum tax for such taxable
            year, reduced by
              (II) the amount which would be the net minimum tax for
            such taxable year if the only adjustments and items of tax
            preference taken into account were those specified in
            clause (ii).
          (ii) Specified items
            The following are specified in this clause -
              (I) the adjustments provided for in subsection (b)(1) of
            section 56, and
              (II) the items of tax preference described in paragraphs
            (1), (5), and (7) of section 57(a).
          (iii) Special rule
            The adjusted net minimum tax for the taxable year shall be
          increased by the amount of the credit not allowed under
          section 30 solely by reason of the application of
          section 30(b)(3)(B).
          (iv) Credit allowable for exclusion preferences of
              corporations
            In the case of a corporation -
              (I) the preceding provisions of this subparagraph shall
            not apply, and
              (II) the adjusted net minimum tax for any taxable year is
            the amount of the net minimum tax for such year increased
            in the manner provided in clause (iii).
      (2) Tentative minimum tax
        The term ''tentative minimum tax'' has the meaning given to
      such term by section 55(b).
    (e) Special Rule for Individuals With Long-Term Unused Credits.--
            (1) In general.--If an individual has a long-term unused 
        minimum tax credit for any taxable year beginning before January 
        1, 2013, the amount determined under subsection (c)
        for such taxable year shall not be less than the AMT refundable 
        credit amount for such taxable year.
            (2) AMT refundable credit amount.--For purposes of 
        paragraph (1)--
                    (A) In general.--The term `AMT refundable credit 
                amount' means, with respect to any taxable year, the 
                amount (not in excess of the long-term unused minimum 
                tax credit for such taxable year) equal to the greater 
                of--
                          (i) $5,000,
                          (ii) 20 percent of the long-term unused 
                      minimum tax credit for such taxable year, or
                          (iii) the amount (if any) of the AMT 
                      refundable credit amount determined under this 
                      paragraph for
                      the taxpayer's preceding taxable year (as 
                      determined before any reduction under subparagraph 
                      (B)).
                    (B) Phaseout of amt refundable credit amount.--
                          (i) In general.--In the case of an 
                      individual whose adjusted gross income for any 
                      taxable year exceeds the threshold amount (within 
                      the meaning of section 151(d)(3)(C)), the AMT 
                      refundable credit amount determined under 
                      subparagraph (A) for such taxable year shall be 
                      reduced by the applicable percentage (within the 
                      meaning of section 151(d)(3)(B)).
                          (ii) Adjusted gross income.--For purposes of 
                      clause (i), adjusted gross income shall be 
                      determined without regard to sections 911, 931, 
                      and 933.
            (3) Long-term unused minimum tax credit.--
                    (A) In general.--For purposes of this subsection, 
                the term `long-term unused minimum tax credit' means, 
                with respect to any taxable year, the portion of the 
                minimum tax credit determined under subsection (b) 
                attributable to the adjusted net minimum tax for taxable 
                years before the 3rd taxable year immediately preceding 
                such taxable year.
                    (B) First-in, first-out ordering rule.--For 
                purposes of subparagraph (A), credits shall be treated 
                as allowed under subsection (a) on a first-in, first-out 
                basis.
            (4) Credit refundable.--For purposes of this title (other 
        than this section), the credit allowed by reason of this 
        subsection shall be treated as if it were allowed under subpart 
        C.
 

Sources

    (Added Pub. L. 99-514, title VII, Sec. 701(b), Oct. 22, 1986, 100
    Stat. 2339; amended Pub. L. 100-647, title I, Sec. 1007(g)(4),
    title VI, Sec. 6304(a), Nov. 10, 1988, 102 Stat. 3435, 3756; Pub.
    L. 101-239, title VII, Sec. 7612(a)(1), (2), (b)(1), 7811(d)(2),
    Dec. 19, 1989, 103 Stat. 2373, 2374, 2408; Pub. L. 102-486, title
    XIX, Sec. 1913(b)(2)(C), Oct. 24, 1992, 106 Stat. 3020; Pub. L.
    103-66, title XIII, Sec. 13113(b)(2), 13171(c), Aug. 10, 1993, 107
    Stat. 429, 455; Pub. L. 104-188, title I, Sec. 1205(d)(5),
    1704(j)(1), Aug. 20, 1996, 110 Stat. 1776, 1881.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 53, added Pub. L. 95-30, title II, Sec. 202(b),
    May 23, 1977, 91 Stat. 146; amended Pub. L. 95-600, title III, Sec.
    321(c)(2), Nov. 6, 1978, 92 Stat. 2835; Pub. L. 97-34, title II,
    Sec. 207(c)(2), Aug. 13, 1981, 95 Stat. 225; Pub. L. 97-248, title
    II, Sec. 201(d)(8)(A), formerly Sec. 201(c)(8)(A), and Sec.
    265(b)(2)(A)(iii), Sept. 3, 1982, 96 Stat. 420, 547, renumbered
    Sec. 201(d)(8)(A), Pub. L. 97-448, title III, Sec. 306(a)(1)(A)(i),
    Jan. 12, 1983, 96 Stat. 2400; 97-354, Sec. 5(a)(12), Oct. 19, 1982,
    96 Stat. 1693; 97-448, title I, Sec. 102(d)(3), Jan. 12, 1983, 96
    Stat. 2370; Pub. L. 98-21, title I, Sec. 122(c)(1), Apr. 20, 1983,
    97 Stat. 87; Pub. L. 98-369, div.  A, title VII, Sec. 713(c)(1)(C),
    July 18, 1984, 98 Stat. 957, placed limitations on the amount of
    credit allowed by former section 44B for employment of certain new
    employees, prior to repeal by Pub. L. 98-369, div.  A, title IV,
    Sec. 474(p)(8), July 18, 1984, 98 Stat. 838, applicable to taxable
    years beginning after Dec. 31, 1983, and to carrybacks from such
    years.
                                 AMENDMENTS

2007 - PL 110-172
SEC. 2. AMENDMENT RELATED TO THE TAX RELIEF AND HEALTH CARE ACT OF 
                    2006.
    (a) Amendment Related to Section 402 of Division A of the Act.--
Subparagraph (A) of section 53(e)(2) <<NOTE: 26 USC 53.>> is amended to 
read as follows:
                    ``(A) In general.--The term `AMT refundable credit 
                amount' means, with respect to any taxable year, the 
                amount (not in excess of the long-term unused minimum 
                tax credit for such taxable year) equal to the greater 
                of--
                          ``(i) $5,000,
                          ``(ii) 20 percent of the long-term unused 
                      minimum tax credit for such taxable year, or
                          ``(iii) the amount (if any) of the AMT 
                      refundable credit amount determined under this 
                      paragraph for
                      the taxpayer's preceding taxable year (as 
                      determined before any reduction under subparagraph 
                      (B)).''.

2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 402. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE REFUNDABLE 
            AFTER PERIOD OF YEARS.
    (a) In General.--Section 53 (relating to credit for prior year 
minimum tax liability) is amended by adding at the end the following new 
subsection:
    ``(e) Special Rule for Individuals With Long-Term Unused Credits.--
            ``(1) In general.--If an individual has a long-term unused 
        minimum tax credit for any taxable year beginning before January 
        1, 2013, the amount determined under subsection (c)
        for such taxable year shall not be less than the AMT refundable 
        credit amount for such taxable year.
            ``(2) AMT refundable credit amount.--For purposes of 
        paragraph (1)--
                    ``(A) In general.--The term `AMT refundable credit 
                amount' means, with respect to any taxable year, the 
                amount equal to the greater of--
                          ``(i) the lesser of--
                                    ``(I) $5,000, or
                                    ``(II) the amount of long-term 
                                unused minimum tax credit for such 
                                taxable year, or
                          ``(ii) 20 percent of the amount of such 
                      credit.
                    ``(B) Phaseout of amt refundable credit amount.--
                          ``(i) In general.--In the case of an 
                      individual whose adjusted gross income for any 
                      taxable year exceeds the threshold amount (within 
                      the meaning of section 151(d)(3)(C)), the AMT 
                      refundable credit amount determined under 
                      subparagraph (A) for such taxable year shall be 
                      reduced by the applicable percentage (within the 
                      meaning of section 151(d)(3)(B)).
                          ``(ii) Adjusted gross income.--For purposes of 
                      clause (i), adjusted gross income shall be 
                      determined without regard to sections 911, 931, 
                      and 933.
            ``(3) Long-term unused minimum tax credit.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `long-term unused minimum tax credit' means, 
                with respect to any taxable year, the portion of the 
                minimum tax credit determined under subsection (b) 
                attributable to the adjusted net minimum tax for taxable 
                years before the 3rd taxable year immediately preceding 
                such taxable year.
                    ``(B) First-in, first-out ordering rule.--For 
                purposes of subparagraph (A), credits shall be treated 
                as allowed under subsection (a) on a first-in, first-out 
                basis.
            ``(4) Credit refundable.--For purposes of this title (other 
        than this section), the credit allowed by reason of this 
        subsection shall be treated as if it were allowed under subpart 
        C.''.
    
    2005 - Energy Policy Act of 2005.  Section 53(d)(1)(B)(iii) is 
    amended by striking `under section 29' and all that follows through 
    `or not allowed'.  
     Effective Dates- the amendments made by this section shall apply
     to credits determined under the Internal Revenue Code of 1986 for
     taxable years ending after December 31, 2005.

    2004 - Pub. L. 108-357 Sec. 421(a)(2). Section 53(d)(1)(B)(i)(II)
    is amended by striking ``and if section 59(a)(2) did not apply''

      1996 - Subsec. (d)(1)(B)(iii). Pub. L. 104-188, Sec.
    1205(d)(5)(A), which directed that cl. (iii) be amended by striking
    out ''or not allowed under section 28 solely by reason of the
    application of section 28(d)(2)(B),'' was executed by striking out
    ''not allowed under section 28 solely by reason of the application
    of section 28(d)(2)(B),'' after ''29(b)(6)(B),'', to reflect the
    probable intent of Congress.
      Subsec. (d)(1)(B)(iv)(II). Pub. L. 104-188, Sec. 1704(j)(1),
    amended subcl. (II) generally.  Prior to amendment, subcl. (II)
    read as follows: ''the adjusted net minimum tax for any taxable
    year is the amount of the net minimum tax for such year increased
    by the amount of any credit not allowed under section 29 solely by
    reason of the application of section 29(b)(5)(B) or not allowed
    under section 28 solely by reason of the application of section
    28(d)(2)(B).''
      Pub. L. 104-188, Sec. 1205(d)(5)(B), which directed that subcl.
    (II) be amended by striking out ''or not allowed under section 28
    solely by reason of the application of section 28(d)(2)(B)'', could
    not be executed because the phrase sought to be struck out did not
    appear in text subsequent to the general amendment of subcl. (II)
    by Pub. L. 104-188, Sec. 1704(j)(1), see above, which, pursuant to
    section 1701 of Pub. L. 104-188, set out as a note under section 1
    of this title, is treated as having been enacted before section
    1205(d)(5)(B) of Pub. L. 104-188.
      1993 - Subsec. (d)(1)(B)(ii)(II). Pub. L. 103-66, Sec. 13171(c),
    substituted ''(5), and (7)'' for ''(5), (6), and (8)''.
      Pub. L. 103-66, Sec. 13113(b)(2), substituted ''(6), and (8)''
    for ''and (6)''.
      1992 - Subsec. (d)(1)(B)(iii). Pub. L. 102-486, Sec.
    1913(b)(2)(C)(i), substituted ''section 29(b)(6)(B),'' for
    ''section 29(b)(5)(B) or''.
      Pub. L. 102-486, Sec. 1913(b)(2)(C)(ii), inserted before period
    at end '', or not allowed under section 30 solely by reason of the
    application of section 30(b)(3)(B)''.
      1989 - Subsec. (d)(1)(B)(i)(II). Pub. L. 101-239, Sec.
    7811(d)(2), inserted before period at end ''and if section 59(a)(2)
    did not apply''.
      Subsec. (d)(1)(B)(ii). Pub. L. 101-239, Sec. 7612(a)(2),
    substituted ''subsection (b)(1)'' for ''subsections (b)(1) and
    (c)(3)'' in subcl. (I) and struck out at end ''In the case of
    taxable years beginning after 1989, the adjustments provided in
    section 56(g) shall be treated as specified in this clause to the
    extent attributable to items which are excluded from gross income
    for any taxable year for purposes of the regular tax, or are not
    deductible for any taxable year under the adjusted current earnings
    method of section 56(g).''
      Subsec. (d)(1)(B)(iii). Pub. L. 101-239, Sec. 7612(b)(1), which
    directed amendment of cl. (iii) by inserting ''or not allowed under
    section 28 solely by reason of the application of section
    28(d)(2)(B)'' after ''section 29(d)(5)(B)'', was executed by making
    the insertion after ''section 29(b)(5)(B)'', as the probable intent
    of Congress.
      Subsec. (d)(1)(B)(iv). Pub. L. 101-239, Sec. 7612(b)(1), which
    directed amendment of cl. (iv) by inserting ''or not allowed under
    section 28 solely by reason of the application of section
    28(d)(2)(B)'' after ''section 29(d)(5)(B)'', was executed by making
    the insertion after ''section 29(b)(5)(B)'' in subcl. (II), as the
    probable intent of Congress.
      Pub. L. 101-239, Sec. 7612(a)(1), added cl. (iv).
      1988 - Subsec. (d)(1)(B)(ii). Pub. L. 100-647, Sec. 1007(g)(4),
    substituted ''current earnings'' for ''earnings and profits'' in
    last sentence.
      Subsec. (d)(1)(B)(iii). Pub. L. 100-647, Sec. 6304(a), added cl.
    (iii).

                      EFFECTIVE DATE OF 2007 AMENDMENT
2007 - PL 110-172
SEC. 2. AMENDMENT RELATED TO THE TAX RELIEF AND HEALTH CARE ACT OF 
                    2006.
    (b) Effective <<NOTE: 26 USC 53 note.>> Date.--The amendment made by 
this section shall take effect as if included in the provision of the 
Tax Relief and Health Care Act of 2006 to which it relates.

                      EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 402(c) <<NOTE: 26 USC 53 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after the date of 
the enactment of this Act.

                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 1205(d)(5) of Pub. L. 104-188 applicable to
    amounts paid or incurred in taxable years ending after June 30,
    1996, see section 1205(e) of Pub. L. 104-188, set out as a note
    under section 29 of this title.
      Section 1704(j)(1) of Pub. L. 104-188 provided that the amendment
    made by that section is effective with respect to taxable years
    beginning after Dec. 31, 1990.
                      EFFECTIVE DATE OF 1993 AMENDMENT
      Section 13113(e) of Pub. L. 103-66 provided that: ''The
    amendments made by this section (enacting section 1202 of this
    title and amending this section and sections 57, 172, 642, 643,
    691, 871, and 6652 of this title) shall apply to stock issued after
    the date of the enactment of this Act (Aug. 10, 1993).''
      Section 13171(d) of Pub. L. 103-66 provided that: ''The
    amendments made by this section (amending this section and sections
    56 and 57 of this title) shall apply to contributions made after
    June 30, 1992, except that in the case of any contribution of
    capital gain property which is not tangible personal property, such
    amendments shall apply only if the contribution is made after
    December 31, 1992.''
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section 1702(e)(5) of Pub. L. 104-188 provided that: ''The
    amendment made by section 1913(b)(2)(C)(i) of the Energy Policy Act
    of 1992 (Pub. L. 102-486) shall apply to taxable years beginning
    after December 31, 1990.''
      Amendment by section 1913(b)(2)(C)(ii) of Pub. L. 102-486
    applicable to property placed in service after June 30, 1993, see
    section 1913(c) of Pub. L. 102-486, set out as an Effective Date
    note under section 30 of this title.
                      EFFECTIVE DATE OF 1989 AMENDMENT
      Section 7612(a)(3) of Pub. L. 101-239 provided that: ''The
    amendments made by this subsection (amending this section) shall
    apply for purposes of determining the adjusted net minimum tax for
    taxable years beginning after December 31, 1989.''
      Section 7612(b)(2) of Pub. L. 101-239 provided that: ''The
    amendment made by paragraph (1) (amending this section) shall apply
    for purposes of determining the amount of the minimum tax credit
    for taxable years beginning after December 31, 1989; except that,
    for such purposes, section 53(b)(1) of the Internal Revenue Code of
    1986 shall be applied as if such amendment had been in effect for
    all prior taxable years.''
      Amendment by section 7811(d)(2) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Technical and Miscellaneous Revenue Act of 1988, Pub. L.
    100-647, to which such amendment relates, see section 7817 of Pub.
    L. 101-239, set out as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by section 1007(g)(4) of Pub. L. 100-647 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 1019(a) of Pub. L. 100-647, set out as a note
    under section 1 of this title.
      Section 6304(b) of Pub. L. 100-647 provided that: ''The amendment
    made by this section (amending this section) shall take effect as
    if included in the amendments made by section 701 of the Tax Reform
    Act of 1986 (Pub. L. 99-514).''
                               EFFECTIVE DATE
      Section applicable to taxable years beginning after Dec. 31,
    1986, with certain exceptions and qualifications, see section
    701(f) of Pub. L. 99-514, set out as an Effective Date of 1986
    Amendment note under section 55 of this title.
     APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
                   TO TREATY OBLIGATIONS OF UNITED STATES
      For applicability of amendment by section 701(b) of Pub. L.
    99-514 (enacting this section) notwithstanding any treaty
    obligation of the United States in effect on Oct. 22, 1986, with
    provision that for such purposes any amendment by title I of Pub.
    L. 100-647 be treated as if it had been included in the provision
    of Pub. L. 99-514 to which such amendment relates, see section
    1012(aa)(2), (4) of Pub. L. 100-647, set out as a note under
    section 861 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 55, 108, 381, 383, 772,
    1374 of this title.
 

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