102 STAT. 3434
26 USC 59 note.
PUBLIC LAW 100-647—NOV. 10, 1988 ary 1, 1987, and ends on or after August 1, 1986, the item of tax preference determined under section 57(a) of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986) with respect to such property shall be the excess of— (i) the amount allowable as a deduction for depreciation or amortization for such taxable year, over (ii) the amount which would be determined for such taxable year under the rules of paragraph (1) or (5) (whichever is appropriate) of section 56(a) of the Internal Revenue Code of 1954 (as amended by the Tax Reform Act of 1986). (B) This paragraph shall apply to any property— (i) which is described in paragraph (4) or (12) of section 57(a) of the Internal Revenue Code of 1954 (as so in effect), and (ii) to which paragraph (1) or (5) of section 56(a) of the Internal Revenue Code of 1986 would apply if the taxable year referred to in subparagraph (A) began after December 31, 1986. (5) In determining the amount of the alternative minimum tax foreign tax credit under section 59 of the 1986 (Dode, there shall not be taken into account any taxes paid or accrued in a taxable year beginning after December 31, 1986, which are treated under section 904(c) of the 1986 Code as paid or accrued in a taxable year beginning on or before December 31, 1986.
(g) MISCELLANEOUS AMENDMENTS.—
(1) Subparagraph (K) of section 26(b)(2) of the 1986 Code is amended by striking out the comma at the end thereof and inserting in lieu thereof ").". (2)(A) So much of section 38(c) as precedes paragraph (4) thereof is amended to read as follows: "(c) LIMITATION BASED ON AMOUNT OF TAX.—
"(1) IN GENERAL.—The credit allowed under subsection (a) for any taxable year shall not exceed the excess (if any) of the taxpayer's net income tax over the greater of— "(A) the tentative minimum tax for the taxable year, or "(B) 25 percent of so much of the taxpayer's net regular tax liability as exceeds $25,000. For purposes of the preceding sentence, the term 'net income tax' means the sum of the regular tax liability and the tax imposed by section 55, reduced by the credits allowable under subparts A and B of this part, and 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. "(2) REGULAR INVESTMENT TAX CREDIT MAY OFFSET 25 PERCENT OF MINIMUM TAX.—
"(A) IN GENERAL.—In the case of a C corporation, the amount determined under paragraph (I)(A) shall be reduced by the lesser of— "(i) the portion of the regular investment tax credit not used against the normal limitation, or "(ii) 25 percent of the taxpayer's tentative minimum tax for the taxable year. "(B) PORTION OF REGULAR INVESTMENT TAX CREDIT NOT
USED AGAINST NORMAL UMiT.—For purposes of Subparagraph (A), the portion of the regular investment tax credit
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