Page:United States Statutes at Large Volume 100 Part 3.djvu/532

 100 STAT. 2340

PUBLIC LAW 99-514—OCT. 22, 1986 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 earnings and profits method of section 56(g). "(2) TENTATIVE MINIMUM TAX.—The term 'tentative minimum tax' has the meaning given to such term by section 55(b)." (c) CREDITS NOT ALLOWABLE AGAINST MINIMUM TAX.— (1) PERSONAL CREDITS.—

(A) IN GENERAL.—Subsection (a) of section 26 (relating to limitation based on amount of tax) is amended to read as follows: "(a) LIMITATION BASED ON AMOUNT OF TAX.—The aggregate

amount of credits allowed by this subpart for the taxable year shall not exceed the excess (if any) of— "(1) the taxpayer's regular tax liability for the taxable year, over "(2) the tentative minimum tax for the taxable year (determined without regard to the alternative minimum tax foreign tax credit)." (B) REGULAR TAX LIABILITY.—Subsection (b) of section 26

(as amended by title II) is amended— (i) by striking out "this section" in the matter preceding paragraph (1) and inserting in lieu thereof "this part", (ii) by striking out "tax liability" in paragraph (1) and inserting in lieu thereof "regular tax liability", (iii) by striking out subparagraph (A) of paragraph (2) and inserting in lieu thereof the following: "(A) section 55 (relating to minimum tax),", (iv) by striking out "and" at the end of paragraph (2)(H), by striking out the period at the end of paragraph (2)(I) and inserting in lieu thereof ", and", and by adding at the end of paragraph (2) the following new subparagraph: "(J) sections 871(a) and 881 (relating to certain income of nonresident aliens and foreign corporations,", and (v) by striking out "TAX LIABILITY" in the subsection heading and inserting in lieu thereof "REGULAR TAX LIABILITY". (C) TENTATIVE MINIMUM TAX.—Subsection (c) of section 26

is amended to read as follows: "(c) TENTATIVE MINIMUM TAX.—For purposes of this part, the term 'tentative minimum tax' means the amount determined under section 55(b)(1)." (2) CREDIT FOR CLINICAL TESTING EXPENSES.—Paragraph (2) of

section 28(d) is amended to read as follows: "(2) LIMITATION BASED ON AMOUNT OF TAX.—The credit al-

lowed by this section for any taxable year shall not exceed the excess (if any) of— "(A) the regular tax (reduced by the sum of the credits allowable under subpart A and section 27), over "(B) the tentative minimum tax for the taxable year." (3) CREDIT FOR PRODUCTION OF FUEL FROM NONCONVENTIONAL

SOURCES.—Paragraph (5) of section 29(b) is amended to read as follows:

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