# 26 U.S.C. § 26: Limitation based on tax liability; definition of tax liability Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 26(a)(1). ## § 26(a) Limitation based on amount of tax The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the sum of— **§ 26(a)(1)** the taxpayer’s regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27, and **§ 26(a)(2)** the tax imposed by section 55(a) for the taxable year. ## § 26(b) Regular tax liability For purposes of this part— **§ 26(b)(1) In general.** The term “regular tax liability” means the tax imposed by this chapter for the taxable year. **§ 26(b)(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: **§ 26(b)(2)(A)** section 55 (relating to minimum tax), **§ 26(b)(2)(B)** section 59A (relating to base erosion and anti-abuse tax), **§ 26(b)(2)(C)** subsection (m)(5)(B), (q), (t), or (v) of section 72 (relating to additional taxes on certain distributions), **§ 26(b)(2)(D)** section 143(m) (relating to recapture of proration of Federal subsidy from use of mortgage bonds and mortgage credit certificates), **§ 26(b)(2)(E)** section 530(d)(4) (relating to additional tax on certain distributions from Coverdell education savings accounts), **§ 26(b)(2)(F)** section 531 (relating to accumulated earnings tax), **§ 26(b)(2)(G)** section 541 (relating to personal holding company tax), **§ 26(b)(2)(H)** section 1351(d)(1) (relating to recoveries of foreign expropriation losses), **§ 26(b)(2)(I)** section 1374 (relating to tax on certain built-in gains of S corporations), **§ 26(b)(2)(J)** section 1375 (relating to tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts), **§ 26(b)(2)(K)** subparagraph (A) of section 7518(g)(6) (relating to nonqualified withdrawals from capital construction funds taxed at highest marginal rate), **§ 26(b)(2)(L)** sections 871(a) and 881 (relating to certain income of nonresident aliens and foreign corporations), **§ 26(b)(2)(M)** section 860E(e) (relating to taxes with respect to certain residual interests), **§ 26(b)(2)(N)** section 884 (relating to branch profits tax), **§ 26(b)(2)(O)** sections 453(l)(3) and 453A(c) (relating to interest on certain deferred tax liabilities), **§ 26(b)(2)(P)** Repealed. Pub. L. 115–141, div. U, title IV, § 401(b)(2), Mar. 23, 2018, 132 Stat. 1201.] **§ 26(b)(2)(Q)** section 220(f)(4) (relating to additional tax on Archer MSA distributions not used for qualified medical expenses), **§ 26(b)(2)(R)** section 138(c)(2) (relating to penalty for distributions from Medicare Advantage MSA not used for qualified medical expenses if minimum balance not maintained), **§ 26(b)(2)(S)** sections 106(e)(3)(A)(ii), 223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II) (relating to certain failures to maintain high deductible health plan coverage), **§ 26(b)(2)(T)** section 170(o)(3)(B) (relating to recapture of certain deductions for fractional gifts), **§ 26(b)(2)(U)** section 223(f)(4) (relating to additional tax on health savings account distributions not used for qualified medical expenses), **§ 26(b)(2)(V)** subsections (a)(1)(B)(i) and (b)(4)(A) of section 409A (relating to interest and additional tax with respect to certain deferred compensation), **§ 26(b)(2)(W)** section 36(f) (relating to recapture of homebuyer credit), **§ 26(b)(2)(X)** section 457A(c)(1)(B) (relating to determinability of amounts of compensation), **§ 26(b)(2)(Y)** section 529A(c)(3)(A) (relating to additional tax on ABLE account distributions not used for qualified disability expenses), and **§ 26(b)(2)(Z)** section 24(j)(2) (relating to excess advance payments). ## § 26(c) Tentative minimum tax For purposes of this part, the term “tentative minimum tax” means the amount determined under section 55(b)(1). ## Connections Cites: § 24 Child tax credit; § 27 Taxes of foreign countries and possessions of the United States; § 36 First-time homebuyer credit; § 55 Alternative minimum tax imposed; § 59A Tax on base erosion payments of taxpayers with substantial gross receipts; § 72 Annuities; certain proceeds of endowment and life insurance contracts; § 138 Medicare Advantage MSA; § 143 Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond; § 220 Archer MSAs; § 223 Health savings accounts; § 409A Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans; § 457A Nonqualified deferred compensation from certain tax indifferent parties; § 529A Qualified ABLE programs; § 530 Coverdell education savings accounts; § 531 Imposition of accumulated earnings tax; § 541 Imposition of personal holding company tax; § 860E Treatment of income in excess of daily accruals on residual interests; § 884 Branch profits tax; § 1351 Treatment of recoveries of foreign expropriation losses; § 1374 Tax imposed on certain built-in gains; § 1375 Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts; § 7518 Tax incentives relating to merchant marine capital construction funds Cited by: § 23 Adoption expenses; § 24 Child tax credit; § 25 Interest on certain home mortgages; § 25A American Opportunity and Lifetime Learning credits; § 25D Residential clean energy credit; § 25F Qualified elementary and secondary education scholarships; § 30C Alternative fuel vehicle refueling property credit; § 55 Alternative minimum tax imposed; § 59A Tax on base erosion payments of taxpayers with substantial gross receipts; § 163 Interest; § 469 Passive activity losses and credits limited; § 901 Taxes of foreign countries and of possessions of United States ## Amendments - 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 827 - 1986-10-17: [Pub. L. 99-499](/26/act/99-499.md), 100 Stat. 1770 - 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2214 - 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3425 - 1989-12-19: [Pub. L. 101-239](/26/act/101-239.md), 103 Stat. 2406 - 1996-08-20: [Pub. L. 104-188](/26/act/104-188.md), 110 Stat. 1866 - 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 817 - 1998-10-21: [Pub. L. 105-277](/26/act/105-277.md), 112 Stat. 2681 - 1999-12-17: [Pub. L. 106-170](/26/act/106-170.md), 113 Stat. 1918 - 2000-12-21: [Pub. L. 106-554](/26/act/106-554.md), 114 Stat. 2763 - 2001-06-07: [Pub. L. 107-16](/26/act/107-16.md), 115 Stat. 46 - 2001-07-26: [Pub. L. 107-22](/26/act/107-22.md), 115 Stat. 197 - 2002-03-09: [Pub. L. 107-147](/26/act/107-147.md), 116 Stat. 54 - 2004-10-04: [Pub. L. 108-311](/26/act/108-311.md), 118 Stat. 1181 - 2005-12-21: [Pub. L. 109-135](/26/act/109-135.md), 119 Stat. 2631 - 2006-05-17: [Pub. L. 109-222](/26/act/109-222.md), 120 Stat. 353 - 2007-12-26: [Pub. L. 110-166](/26/act/110-166.md), 121 Stat. 2461 - 2007-12-29: [Pub. L. 110-172](/26/act/110-172.md), 121 Stat. 2484 - 2008-07-30: [Pub. L. 110-289](/26/act/110-289.md), 122 Stat. 2891 - 2008-10-03: [Pub. L. 110-343](/26/act/110-343.md), 122 Stat. 3817 - 2009-02-17: [Pub. L. 111-5](/26/act/111-5.md), 123 Stat. 314 - 2010-03-23: [Pub. L. 111-148](/26/act/111-148.md), 124 Stat. 1023 - 2010-12-17: [Pub. L. 111-312](/26/act/111-312.md), 124 Stat. 3298 - 2013-01-02: [Pub. L. 112-240](/26/act/112-240.md), 126 Stat. 2321 - 2014-12-19: [Pub. L. 113-295](/26/act/113-295.md), 128 Stat. 4038 - 2017-12-22: [Pub. L. 115-97](/26/act/115-97.md), 131 Stat. 2233 - 2018-03-23: [Pub. L. 115-141](/26/act/115-141.md), 132 Stat. 1201 - 2021-03-11: [Pub. L. 117-2](/26/act/117-2.md), 135 Stat. 150