Page:United States Statutes at Large Volume 100 Part 3.djvu/531

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2339

ing the alternative minimum taxable income of the taxpayer for the taxable year— "(1) with the adjustments of section 56, and "(2) by not taking into account any deduction to the extent such deduction is an item of tax preference under section 57(a). "(i) SPECIAL RULE FOR INTEREST TREATED AS TAX PREFERENCE.—

For purposes of this subtitle, interest shall not fail to be treated as wholly exempt from tax imposed by this title solely by reason of being included in alternative minimum taxable income." (b) CREDIT AGAINST REGULAR TAX FOR PRIOR YEAR MINIMUM TAX

LIABILITY.—Part IV of subchapter A of chapter 1 (relating to credits allowable) is amended by adding at the end thereof the following new subpart: "Subpart G—Credit Against Regular Tax for Prior Year Minimum Tax Liability "Sec. 53. Credit for prior year minimum tax liability. "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 subsections (b)(1) and (c)(3) of section 56, and "(II) the items of tax preference described in paragraphs (1), (5), and (6) of section 57(a). 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

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