§ 53 Credit for prior year minimum tax liability

OLRC 119-134 · eCFR 2026-10-19 · 3 regs · 15 amending Acts · cited by 3 sections

Enacted 1986 · Pub. L. 99-514 Amended · 15 Acts

1986198819891992199319962004200520062007200820092014201720202022(a) Allowance of credit(b) Minimum tax credit(c) Limitation(d) Definitions(e) Application to applicable corporations
Prior provisions 1
  • A prior section 53, added Pub. L. 95–30, title II, § 202(b), May 23, 1977, 91 Stat. 146; amended Pub. L. 95–600, title III, § 321(c)(2), Nov. 6, 1978, 92 Stat. 2835; Pub. L. 97–34, title II, § 207(c)(2), Aug. 13, 1981, 95 Stat. 225; Pub. L. 97–248, title II, § 201(d)(8)(A), formerly § 201(c)(8)(A), and § 265(b)(2)(A)(iii), Sept. 3, 1982, 96 Stat. 420, 547, renumbered § 201(d)(8)(A), Pub. L. 97–448, title III, § 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; 97–354, § 5(a)(12), Oct. 19, 1982, 96 Stat. 1693; 97–448, title I, § 102(d)(3), Jan. 12, 1983, 96 Stat. 2370; Pub. L. 98–21, title I, § 122(c)(1), Apr. 20, 1983, 97 Stat. 87; Pub. L. 98–369, div. A, title VII, § 713(c)(1)(C), July 18, 1984, 98 Stat. 957, placed limitations on the amount of credit allowed by former section 44B for employment of certain new employees, prior to repeal by Pub. L. 98–369, div. A, title IV, § 474(p)(8), July 18, 1984, 98 Stat. 838, applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years.
Connections Cited by 3 · Cites 4
§ 53 Credit for prior year minimum tax liability
§ 1.53-1 Limitation based on amount of tax.§ 1.53-2 Carryback and carryover of unused credit.§ 1.53-3 Separate rule for pass-through of jobs credit.Prop. § 1.53-1 Proposed 2024 · [Removed and Reserved]Prop. § 1.53-2 Proposed 2024 · [Removed]
Amended 2008, 2014
  • 2014 Pub. L. 113-295 Pub. L. 113–295 struck out subsecs. (e) and (f) which related to special rule for individuals with long-term unused credits and treatment of certain underpayments, interest, and penalties attributable to the treatment of incentive stock options, respectively.
  • 2008 Pub. L. 110-343 Pub. L. 110–343, § 103(b), added subsec. (f).

(a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for any taxable year an amount equal to the minimum tax credit for such taxable year.

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    (b) Minimum tax credit For purposes of subsection (a), the minimum tax credit for any taxable year is the excess (if any) of—

    Cases: Schaeffler v. United States, 889 F.3d 238 (5th Cir. 2018)

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      (1) the adjusted net minimum tax imposed for all prior taxable years beginning after 1986, over

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        (2) the amount allowable as a credit under subsection (a) for such prior taxable years.

        (c) Limitation The credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of—

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          (1) the regular tax liability of the taxpayer for such taxable year reduced by the sum of the credits allowable under subparts A, B, D, E, and F of this part, over

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            (2) the tentative minimum tax for the taxable year.

            (d) Definitions For purposes of this section—

            Amended 2017, 2022
            • 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(e)(2)(B), struck out par. (3). Prior to amendment, text read as follows: “In the case of a corporation, any references in this subsection to section 55, 56, or 57 shall be treated as a reference to such section as in effect before the amendments made by Tax Cuts and Jobs Act.”
            • 2017 Pub. L. 115-97 Pub. L. 115–97, § 12002(b), added par. (3).

            (1) Net minimum tax

            (A) In general The term “net minimum tax” means the tax imposed by section 55.

            (B) Credit not allowed for exclusion preferences

            Amended 1989, 1996, 2009
            • 2009 Pub. L. 111-5 Pub. L. 111–5, § 1142(b)(4)(A), redesignated cl. (iv) as (iii).
            • 1996 Pub. L. 104-188 Pub. L. 104–188, § 1704(j)(1), amended subcl. (II) generally. Prior to amendment, subcl. (II) read as follows: “the adjusted net minimum tax for any taxable year is the amount of the net minimum tax for such year increased by the amount of any credit not allowed under section 29 solely by reason of the application of section 29(b)(5)(B) or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B).”
            • 1996 Pub. L. 104-188 Pub. L. 104–188, § 1205(d)(5)(B), which directed that subcl. (II) be amended by striking out “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B)”, could not be executed because the phrase sought to be struck out did not appear in text subsequent to the general amendment of subcl. (II) by Pub. L. 104–188, § 1704(j)(1), see above, which, pursuant to section 1701 of Pub. L. 104–188, set out as a note under section 1 of this title, is treated as having been enacted before section 1205(d)(5)(B) of Pub. L. 104–188.
            • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7612(b)(1), which directed amendment of cl. (iv) by inserting “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B)” after “section 29(d)(5)(B)”, was executed by making the insertion after “section 29(b)(5)(B)” in subcl. (II), as the probable intent of Congress.
            • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7612(a)(1), added cl. (iv).

            (i) Adjusted net minimum tax The adjusted net minimum tax for any taxable year is—

            (I) the amount of the net minimum tax for such taxable year, reduced by

            (II) the amount which would be the net minimum tax for such taxable year if the only adjustments and items of tax preference taken into account were those specified in clause (ii).

            Amended 1989, 2004
            • 2004 Pub. L. 108-357 Pub. L. 108–357 struck out “and if section 59(a)(2) did not apply” before period at end.
            • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(d)(2), inserted before period at end “and if section 59(a)(2) did not apply”.

            (ii) Specified items The following are specified in this clause—

            Amended 1988, 1989
            • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7612(a)(2), substituted “subsection (b)(1)” for “subsections (b)(1) and (c)(3)” in subcl. (I) and struck out at end “In the case of taxable years beginning after 1989, the adjustments provided in section 56(g) shall be treated as specified in this clause to the extent attributable to items which are excluded from gross income for any taxable year for purposes of the regular tax, or are not deductible for any taxable year under the adjusted current earnings method of section 56(g).”
            • 1988 Pub. L. 100-647 Pub. L. 100–647, § 1007(g)(4), substituted “current earnings” for “earnings and profits” in last sentence.
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              (I) the adjustments provided for in subsection (b)(1) of section 56, and

              (II) the items of tax preference described in paragraphs (1), (5), and (7) of section 57(a).

              Amended 1993
              • 1993 Pub. L. 103-66 Pub. L. 103–66, § 13171(c), substituted “(5), and (7)” for “(5), (6), and (8)”.
              • 1993 Pub. L. 103-66 Pub. L. 103–66, § 13113(b)(2), substituted “(6), and (8)” for “and (6)”.

              (iii) Credit allowable for exclusion preferences of corporations In the case of a corporation—

              Amended 1988, 1989, 1992, 1996, 2005, 2009
              • 2009 Pub. L. 111-5 Pub. L. 111–5, § 1142(b)(4)(A), redesignated cl. (iv) as (iii) and struck out former cl. (iii). Prior to amendment, text read as follows: “The adjusted net minimum tax for the taxable year shall be increased by the amount of the credit not allowed under section 30 solely by reason of the application of section 30(b)(3)(B).”
              • 2005 Pub. L. 109-58 Pub. L. 109–58 struck out “under section 29 (relating to credit for producing fuel from a nonconventional source) solely by reason of the application of section 29(b)(6)(B), or not allowed” before “under section 30”.
              • 1996 Pub. L. 104-188 Pub. L. 104–188, § 1205(d)(5)(A), which directed that cl. (iii) be amended by striking out “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B),” was executed by striking out “not allowed under section 28 solely by reason of the application of section 28(d)(2)(B),” after “29(b)(6)(B),”, to reflect the probable intent of Congress.
              • 1992 Pub. L. 102-486 Pub. L. 102–486, § 1913(b)(2)(C)(i), substituted “section 29(b)(6)(B),” for “section 29(b)(5)(B) or”.
              • 1992 Pub. L. 102-486 Pub. L. 102–486, § 1913(b)(2)(C)(ii), inserted before period at end “, or not allowed under section 30 solely by reason of the application of section 30(b)(3)(B)”.
              • 1989 Pub. L. 101-239 Pub. L. 101–239, § 7612(b)(1), which directed amendment of cl. (iii) by inserting “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B)” after “section 29(d)(5)(B)”, was executed by making the insertion after “section 29(b)(5)(B)”, as the probable intent of Congress.
              • 1988 Pub. L. 100-647 Pub. L. 100–647, § 6304(a), added cl. (iii).
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                (I) the preceding provisions of this subparagraph shall not apply, and

                (II) the adjusted net minimum tax for any taxable year is the amount of the net minimum tax for such year.

                Amended 2009
                • 2009 Pub. L. 111-5 Pub. L. 111–5, § 1142(b)(4)(B), struck out “increased in the manner provided in clause (iii)” before period.

                (2) Tentative minimum tax The term “tentative minimum tax” has the meaning given to such term by section 55(b).

                Amended 2017, 2022
                • 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(e)(2)(A), struck out “, except that in the case of a corporation, the tentative minimum tax shall be treated as zero” after “section 55(b)”.
                • 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(2), inserted “, except that in the case of a corporation, the tentative minimum tax shall be treated as zero” before period at end.

                (e) Application to applicable corporations In the case of a corporation—

                Amended 2006, 2014, 2017, 2020, 2022
                • 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(e)(1), amended subsec. (e) generally. Prior to amendment, subsec. (e) related to portion of credit treated as refundable.
                • 2020 Pub. L. 116-136 Pub. L. 116–136, § 2305(b)(1), added par. (5).
                • 2017 Pub. L. 115-97 Pub. L. 115–97, § 12002(a), added subsec. (e).
                • 2014 Pub. L. 113-295 Pub. L. 113–295 struck out subsecs. (e) and (f) which related to special rule for individuals with long-term unused credits and treatment of certain underpayments, interest, and penalties attributable to the treatment of incentive stock options, respectively.
                • 2006 Pub. L. 109-432 Pub. L. 109–432 added subsec. (e).

                (1) subsection (b)(1) shall be applied by substituting “the net minimum tax for all prior taxable years beginning after 2022” for “the adjusted net minimum tax imposed for all prior taxable years beginning after 1986”, and

                Amended 2020
                • 2020 Pub. L. 116-136 Pub. L. 116–136, § 2305(a)(1), substituted “2018 or 2019” for “2018, 2019, 2020, or 2021”.

                (2) the amount determined under subsection (c)(1) shall be increased by the amount of tax imposed under section 59A for the taxable year.

                Amended 2007, 2008, 2020
                • 2020 Pub. L. 116-136 Pub. L. 116–136, § 2305(a)(2), substituted “2019” for “2021” in introductory provisions.
                • 2008 Pub. L. 110-343 Pub. L. 110–343, § 103(a), reenacted heading without change and amended text generally. Prior to amendment, par. (2) defined “AMT refundable credit amount” and provided for phaseout of AMT refundable credit amount based on adjusted gross income.
                • 2007 Pub. L. 110-172 Pub. L. 110–172 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘AMT refundable credit amount’ means, with respect to any taxable year, the amount equal to the greater of—

                  “(i) the lesser of—

                  “(I) $5,000, or

                  “(II) the amount of long-term unused minimum tax credit for such taxable year, or

                  “(ii) 20 percent of the amount of such credit.”