PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2341
"(5) APPLICATION WITH OTHER CREDITS.—The credit allowed by
subsection (a) for any taxable year shall not exceed the excess (if any) of— "(A) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and sections 27 and 28, over "(B) the tentative minimum tax for the taxable year." (4) GENERAL BUSINESS CREDIT.—Subsection (c) of section 38 (relating to limitation based on amount of tax), as amended by section 631(a), is amended by redesignating paragraph (3) as paragraph (4), and by striking out paragraphs (1) and (2) and inserting in lieu thereof the following: "(1) IN GENERAL.—The credit allowed under subsection (a) for any taxable year shall not exceed the lesser of— "(A) the allowable portion of the taxpayer's net regular tax liability for the taxable year, or "(B) the excess (if any) of the taxpayer's net regular tax liability for the taxable year over the tentative minimum tax for the taxable year. "(2) ALLOWABLE PORTION OF NET REGULAR TAX LIABILITY.—For
purposes of this subsection, the allowable portion of the taxpayer's net regular tax liability for the taxable year is the sum of"(A) so much of the taxpayer's net regular tax liability for the taxable year as does not exceed $25,000, plus "(B) 75 percent of so much of the taxpayer's net regular tax liability for the taxable year as exceeds $25,000. For purposes of the preceding sentence, the term 'net regular tax liability' means the regular tax liability reduced by the sum of the credits allowable under subparts A and B of this part. "(3) REGULAR INVESTMENT TAX CREDIT MAY OFFSET 25 PERCENT
OF MINIMUM TAX.—In the case of any C corporation, to the extent the credit under subsection (a) is attributable to the application of the regular percentage under section 46, the limitation of paragraph (1) shall be the greater of— "(A) the lesser of— "(i) the allowable portion of the taxpayer's net regular tax liability for the taxable year, or "(ii) the excess (if any) of the taxpayer's net regular tax liability for the taxable year over 75 percent of the tentative minimum tax for the taxable year, or "(B) 25 percent of the taxpayer's tentative minimum tax for the year." In no event shall this paragraph permit the allowance of a credit which (in combination with the alternative tax net operating loss deduction and the alternative minimum tax foreign tax credit) would reduce the tax payable under section 55 below an amount equal to 10 percent of the amount which would be determined under section 55(b) without regard to the alternative tax net operating loss deduction and the alternative minimum tax foreign tax credit." (d) ESTIMATED TAX PROVISIONS TO APPLY TO CORPORATE MINIMUM TAX.—
(1) Paragraph (1) of section 6154(c) is amended to read as follows: "(1) The amount which the corporation estimates as the sum of—
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