# 26 U.S.C. § 53: Credit for prior year minimum tax liability Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 53(a)(1). ## § 53(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. ## § 53(b) Minimum tax credit For purposes of subsection (a), the minimum tax credit for any taxable year is the excess (if any) of— **§ 53(b)(1)** the adjusted net minimum tax imposed for all prior taxable years beginning after 1986, over **§ 53(b)(2)** the amount allowable as a credit under subsection (a) for such prior taxable years. ## § 53(c) Limitation The credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of— **§ 53(c)(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 **§ 53(c)(2)** the tentative minimum tax for the taxable year. ## § 53(d) Definitions For purposes of this section— **§ 53(d)(1) Net minimum tax.** **§ 53(d)(1)(A) In general.** The term “net minimum tax” means the tax imposed by section 55. **§ 53(d)(1)(B) Credit not allowed for exclusion preferences.** **§ 53(d)(1)(B)(i) Adjusted net minimum tax.** The adjusted net minimum tax for any taxable year is— **§ 53(d)(1)(B)(i)(I)** the amount of the net minimum tax for such taxable year, reduced by **§ 53(d)(1)(B)(i)(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). **§ 53(d)(1)(B)(ii) Specified items.** The following are specified in this clause— **§ 53(d)(1)(B)(ii)(I)** the adjustments provided for in subsection (b)(1) of section 56, and **§ 53(d)(1)(B)(ii)(II)** the items of tax preference described in paragraphs (1), (5), and (7) of section 57(a). **§ 53(d)(1)(B)(iii) Credit allowable for exclusion preferences of corporations.** In the case of a corporation— **§ 53(d)(1)(B)(iii)(I)** the preceding provisions of this subparagraph shall not apply, and **§ 53(d)(1)(B)(iii)(II)** the adjusted net minimum tax for any taxable year is the amount of the net minimum tax for such year. **§ 53(d)(2) Tentative minimum tax.** The term “tentative minimum tax” has the meaning given to such term by section 55(b). ## § 53(e) Application to applicable corporations In the case of a corporation— **§ 53(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 **§ 53(e)(2)** the amount determined under subsection (c)(1) shall be increased by the amount of tax imposed under section 59A for the taxable year. ## Regulations - [Treas. Reg. § 1.53-1](/26/reg/1.53-1.md): Limitation based on amount of tax. (interprets § 53) - [Treas. Reg. § 1.53-2](/26/reg/1.53-2.md): Carryback and carryover of unused credit. (interprets § 53) - [Treas. Reg. § 1.53-3](/26/reg/1.53-3.md): Separate rule for pass-through of jobs credit. (interprets § 53) ## Leading cases - [Schaeffler v. United States, 889 F.3d 238 (5th Cir. 2018)](https://www.courtlistener.com/opinion/4495107/georg-schaeffler-v-united-states/) ## Proposed regulations (not in force) - [Prop. Treas. Reg. § 1.53-1](/26/prop/1.53-1_2024-20089.md): [Removed and Reserved] (REG-112129-23, proposed 2024-09-13) - [Prop. Treas. Reg. § 1.53-2](/26/prop/1.53-2_2024-20089.md): [Removed] (REG-112129-23, proposed 2024-09-13) ## Connections Cites: § 55 Alternative minimum tax imposed; § 56 Adjustments in computing alternative minimum taxable income; § 57 Items of tax preference; § 59A Tax on base erosion payments of taxpayers with substantial gross receipts Cited by: § 108 Income from discharge of indebtedness; § 381 Carryovers in certain corporate acquisitions; § 383 Special limitations on certain excess credits, etc. ## Prior provisions - 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. ## Amendments - 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2339 - 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3435 - 1989-12-19: [Pub. L. 101-239](/26/act/101-239.md), 103 Stat. 2373 - 1992-10-24: [Pub. L. 102-486](/26/act/102-486.md), 106 Stat. 3020 - 1993-08-10: [Pub. L. 103-66](/26/act/103-66.md), 107 Stat. 429 - 1996-08-20: [Pub. L. 104-188](/26/act/104-188.md), 110 Stat. 1776 - 2004-10-22: [Pub. L. 108-357](/26/act/108-357.md), 118 Stat. 1514 - 2005-08-08: [Pub. L. 109-58](/26/act/109-58.md), 119 Stat. 1012 - 2006-12-20: [Pub. L. 109-432](/26/act/109-432.md), 120 Stat. 2953 - 2007-12-29: [Pub. L. 110-172](/26/act/110-172.md), 121 Stat. 2473 - 2008-10-03: [Pub. L. 110-343](/26/act/110-343.md), 122 Stat. 3863 - 2009-02-17: [Pub. L. 111-5](/26/act/111-5.md), 123 Stat. 331 - 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. 2092 - 2020-03-27: [Pub. L. 116-136](/26/act/116-136.md), 134 Stat. 357 - 2022-08-16: [Pub. L. 117-169](/26/act/117-169.md), 136 Stat. 1828