Page:United States Statutes at Large Volume 94 Part 1.djvu/266

 94 STAT. 216

PUBLIC LAW 96-222—APR. 1, 1980 ing alternative minimum taxable income) is amended by adding at the end thereof the following new sentence: "For purposes of subparagraph (A), a deduction shall not be taken into account to the extent such deduction may be carried to another taxable year." (B) TREATMENT OF FOREIGN TAX CREDIT.—Paragraphs (1)

26 USC 55.

and (2) of section 55(c) (relating to credits) are amended to read as follows: "(1) CREDITS OTHER THAN FOREIGN TAX CREDIT NOT ALLOWABLE,

26 USC 31. 26 USC 33.

ETC.—For purposes of determining the amount of any credit allowable under subpart A of part IV of this subchapter (other than the foreign tax credit allowed under section 33(a))— "(A) the tax imposed by this section shall not be treated as a tax imposed by this chapter, and "(B) the amount of the foreign tax credit allowed under section 33(a) shall be determined without regard to this section. "(2) FOREIGN TAX CREDIT ALLOWED AGAINST ALTERNATIVE MINI-

26 USC 901.

MUM TAX.— "(A) DETERMINATION OF FOREIGN TAX CREDIT.—The total amount of the foreign tax credit which can be taken against the tax imposed by subsection (a) shall be determined under subpart A of part III of subchapter N (sec. 901 and following). "(B) INCREASE IN AMOUNT OF FOREIGN TAXES TAKEN INTO

26 USC 904.

26 USC 56.

ACCOUNT.—For purposes of the determination provided by subparagraph (A), the amount of taxes paid or accrued to foreign countries or possessions of the United States during the taxable year s h ^ l be increased by an amount equal to the lesser of— "(i) the foreign tax credit allowable under section 33(a) in computing the regular tax for the taxable year, or "(ii) the tax imposed by subsection (a). "(C) SECTION 904(a) LIMITATION.—For purposes of the determination provided by subparagraph (A), the limitation of section 904(a) shall be an amount equal to the same proportion of the sum of the tax imposed by subsection (a) against which such credit is taken and the regular tax (excluding the tax imposed by section 56) as— "(i) the taxpayer's alternative minimum tsixable income from sources without the United States (but not in excess of the taxpayer's entire alternative minimum taxable income), bears to "(ii) his entire alternative minimum taxable income. For such purpose, the amount of the limitation of section 904(a) shall not exceed the tax imposed by subsection (a). "(D) DEFINITION OF ALTERNATIVE MINIMUM TAXABLE INCOME FROM SOURCES WITHOUT THE UNITED STATES.—For

26 USC 55.

purposes of subparagraph (C), the term 'alternative minimum taxable income from sources without the United States' means the items of gross income from sources without the United States adjusted as provided in subparagraph (A), (B), and (C) of section 55(b)(1) (taking into account in such adjustment only items described in such subparagraphs which are properly attributable to items of gross income from sources without the United States). "(E) SPECIAL RULE FOR APPLYING SECTION 904(C).—In determining the amount of foreign taxes paid or accrued during the taxable year which may be deemed to be paid or accrued

�