Page:United States Statutes at Large Volume 98 Part 1.djvu/875

 PUBLIC LAW 98-369—JULY 18, 1984 SEC. 472. UNIFORM LIMITATION CREDITS.

ON

PERSONAL

98 STAT. 827

NONREFUNDABLE
 * s

,;? f ^

Subpart A of part IV of subchapter A of chapter 1 is amended by adding after section 24 the following new section: "SEC. 25. LIMITATION BASED ON TAX LIABILITY; DEFINITION OF TAX LIABILITY. "(a)

26 USC 25. Post, p. 905.

LIMITATION BASED ON AMOUNT OF TAX.—The aggregate

amount of credits allowed by this subpart for the taxable year shall not exceed the taxpayer's tax liability for such taxable year. "(b) TAX LIABILITY.—For purposes of this section— ^ "(1) IN GENERAL.—The term 'tax liability' means the tax imposed by this chapter for the taxable year. "(2) EXCEPTION FOR CERTAIN TAXES.—For purposes of paragraph (1), any tax imposed by any of the following provisions shall not be treated as tax imposed by this chapter: "(A) section 56 (relating to corporate minimum tax), "(B) subsection (m)(5)(B), (o)(2), or (q) of section 72 (relating to additional tax on certain distributions), "(C) section 408(f) (relating to additional tax on income from certain retirement accounts), "(D) section 531 (relating to accumulated earnings tax), • * "(E) section 541 (relating to personal holding company tax), "(F) section 1351(d)(1) (relating to recoveries of foreign expropriation losses), "(G) section 1374 (relating to tax on certain capital gains of S corporations), and "(H) section 1375 (relating to tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts).

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"(c) SIMILAR RULE FOR ALTERNATIVE MINIMUM TAX FOR TAXPAYERS OTHER THAN CORPORATIONS.— "For treatment of tax imposed by section 55 as not imposed by this chapter, see section 55(c)." SEC. 473. UNIFORM CARRYOVER PROVISIONS FOR BUSINESS-BELATED CREDITS.

Subpart D of part IV of subchapter A of chapter 1 is amended by inserting before section 40 the following new sections: "SEC. 38. GENERAL BUSINESS CREDIT. "(a) ALLOWANCE OF CREDIT.—There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of— "(1) the business credit carr3rforwards carried to such taxable year, "(2) the amount of the current year business credit, plus "(3) the business credit carrybacks carried to such taxable year. "(b) CURRENT YEAR BUSINESS CREDIT.—For purposes of this subpart, the amount of the current year business credit is the sum of the following credits determined for the taxable year: "(1) the investment credit determined under section 46(a), "(2) the targeted jobs credit determined under section 51(a), "(3) the alcohol fuels credit determined under section 40(a), plus

26 USC 38. "*' ^
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• x i ' '' '\ Post, p. 834. Post, p. 837. Ante, p. 826.

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