# 26 U.S.C. § 55: Alternative minimum tax imposed

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s55>. Cite pinpoints as 26 U.S.C. § 55(a)(1).

## § 55(a) General rule

There is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the excess (if any) of—

**§ 55(a)(1)** the tentative minimum tax for the taxable year, over

**§ 55(a)(2)** the regular tax for the taxable year plus, in the case of an applicable corporation, the tax imposed by section 59A.

## § 55(b) Tentative minimum tax

For purposes of this part—

**§ 55(b)(1) Noncorporate taxpayers.** In the case of a taxpayer other than a corporation—

**§ 55(b)(1)(A) In general.** The tentative minimum tax for the taxable year is the sum of—

**§ 55(b)(1)(A)(i)** 26 percent of so much of the taxable excess as does not exceed $175,000, plus

**§ 55(b)(1)(A)(ii)** 28 percent of so much of the taxable excess as exceeds $175,000.

The amount determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year.

**§ 55(b)(1)(B) Taxable excess.** For purposes of this subsection, the term “taxable excess” means so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount.

**§ 55(b)(1)(C) Married individual filing separate return.** In the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting 50 percent of the dollar amount otherwise applicable under clause (i) and clause (ii) thereof. For purposes of the preceding sentence, marital status shall be determined under section 7703.

**§ 55(b)(1)(D) Alternative minimum taxable income.** The term “alternative minimum taxable income” means the taxable income of the taxpayer for the taxable year—

**§ 55(b)(1)(D)(i)** determined with the adjustments provided in section 56 and section 58, and

**§ 55(b)(1)(D)(ii)** increased by the amount of the items of tax preference described in section 57.

If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence).

**§ 55(b)(2) Corporations.**

**§ 55(b)(2)(A) Applicable corporations.** In the case of an applicable corporation, the tentative minimum tax for the taxable year shall be the excess of—

**§ 55(b)(2)(A)(i)** 15 percent of the adjusted financial statement income for the taxable year (as determined under section 56A), over

**§ 55(b)(2)(A)(ii)** the corporate AMT foreign tax credit for the taxable year.

**§ 55(b)(2)(B) Other corporations.** In the case of any corporation which is not an applicable corporation, the tentative minimum tax for the taxable year shall be zero.

**§ 55(b)(3) Maximum rate of tax on net capital gain of noncorporate taxpayers.** The amount determined under the first sentence of paragraph (1)(A) shall not exceed the sum of—

**§ 55(b)(3)(A)** the amount determined under such first sentence computed at the rates and in the same manner as if this paragraph had not been enacted on the taxable excess reduced by the lesser of—

**§ 55(b)(3)(A)(i)** the net capital gain; or

**§ 55(b)(3)(A)(ii)** the sum of—

**§ 55(b)(3)(A)(ii)(I)** the adjusted net capital gain, plus

**§ 55(b)(3)(A)(ii)(II)** the unrecaptured section 1250 gain, plus

**§ 55(b)(3)(B)** 0 percent of so much of the adjusted net capital gain (or, if less, taxable excess) as does not exceed an amount equal to the excess described in section 1(h)(1)(B), plus

**§ 55(b)(3)(C)** 15 percent of the lesser of—

**§ 55(b)(3)(C)(i)** so much of the adjusted net capital gain (or, if less, taxable excess) as exceeds the amount on which tax is determined under subparagraph (B), or

**§ 55(b)(3)(C)(ii)** the excess described in section 1(h)(1)(C)(ii), plus

**§ 55(b)(3)(D)** 20 percent of the adjusted net capital gain (or, if less, taxable excess) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C), plus

**§ 55(b)(3)(E)** 25 percent of the amount of taxable excess in excess of the sum of the amounts on which tax is determined under the preceding subparagraphs of this paragraph.

Terms used in this paragraph which are also used in section 1(h) shall have the respective meanings given such terms by section 1(h) but computed with the adjustments under this part.

## § 55(c) Regular tax

**§ 55(c)(1) In general.** For purposes of this section, the term “regular tax” means the regular tax liability for the taxable year (as defined in section 26(b)) reduced by the foreign tax credit allowable under section 27(a). [OLRC note: See References in Text note below.] Such term shall not include any increase in tax under section 45(e)(11)(C), 49(b) or 50(a) or subsection (j) or (k) of section 42.

**§ 55(c)(2) Coordination with income averaging for farmers and fishermen.** Solely for purposes of this section, section 1301 (relating to averaging of farm and fishing income) shall not apply in computing the regular tax liability.

**§ 55(c)(3) Cross references.** For provisions providing that certain credits are not allowable against the tax imposed by this section, see sections 30C(d)(2) and 38(c).

## § 55(d) Exemption amount

For purposes of this section—

**§ 55(d)(1) Exemption amount for taxpayers other than corporations.** In the case of a taxpayer other than a corporation, the term “exemption amount” means—

**§ 55(d)(1)(A)** $78,750 in the case of—

**§ 55(d)(1)(A)(i)** a joint return, or

**§ 55(d)(1)(A)(ii)** a surviving spouse,

**§ 55(d)(1)(B)** $50,600 in the case of an individual who—

**§ 55(d)(1)(B)(i)** is not a married individual, and

**§ 55(d)(1)(B)(ii)** is not a surviving spouse,

**§ 55(d)(1)(C)** 50 percent of the dollar amount applicable under subparagraph (A) in the case of a married individual who files a separate return, and

**§ 55(d)(1)(D)** $22,500 in the case of an estate or trust.

For purposes of this paragraph, the term “surviving spouse” has the meaning given to such term by section 2(a), and marital status shall be determined under section 7703.

**§ 55(d)(2) Phase-out of exemption amount.** The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount equal to 25 percent of the amount by which the alternative minimum taxable income of the taxpayer exceeds—

**§ 55(d)(2)(A)** $150,000 in the case of a taxpayer described in paragraph (1)(A),

**§ 55(d)(2)(B)** $112,500 in the case of a taxpayer described in paragraph (1)(B), and

**§ 55(d)(2)(C)** 50 percent of the dollar amount applicable under subparagraph (A) in the case of a taxpayer described in subparagraph (C) or (D) of paragraph (1).

In the case of a taxpayer described in paragraph (1)(C), alternative minimum taxable income shall be increased by the lesser of (i) 25 percent of the excess of alternative minimum taxable income (determined without regard to this sentence) over the minimum amount of such income (as so determined) for which the exemption amount under paragraph (1)(C) is zero, or (ii) such exemption amount (determined without regard to this paragraph).

**§ 55(d)(3) Inflation adjustment.**

**§ 55(d)(3)(A) In general.** In the case of any taxable year beginning in a calendar year after 2012, the amounts described in subparagraph (B) shall each be increased by an amount equal to—

**§ 55(d)(3)(A)(i)** such dollar amount, multiplied by

**§ 55(d)(3)(A)(ii)** the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2011” for “calendar year 2016” in subparagraph (A)(ii) thereof.

**§ 55(d)(3)(B) Amounts described.** The amounts described in this subparagraph are—

**§ 55(d)(3)(B)(i)** each of the dollar amounts contained in subsection (b)(1)(A),

**§ 55(d)(3)(B)(ii)** each of the dollar amounts contained in subparagraphs (A), (B), and (D) of paragraph (1), and

**§ 55(d)(3)(B)(iii)** each of the dollar amounts in subparagraphs (A) and (B) of paragraph (2).

**§ 55(d)(3)(C) Rounding.** Any increased amount determined under subparagraph (A) shall be rounded to the nearest multiple of $100.

**§ 55(d)(4) Special rule for taxable years beginning after 2017.**

**§ 55(d)(4)(A) In general.** In the case of any taxable year beginning after December 31, 2017—

**§ 55(d)(4)(A)(i)** paragraph (1) shall be applied—

**§ 55(d)(4)(A)(i)(I)** by substituting “$109,400” for “$78,750” in subparagraph (A), and

**§ 55(d)(4)(A)(i)(II)** by substituting “$70,300” for “$50,600” in subparagraph (B),

**§ 55(d)(4)(A)(ii)** paragraph (2) shall be applied—

**§ 55(d)(4)(A)(ii)(I)** by substituting “$1,000,000” for “$150,000” in subparagraph (A),

**§ 55(d)(4)(A)(ii)(II)** by substituting “50 percent of the dollar amount applicable under subparagraph (A)” for “$112,500” in subparagraph (B),

**§ 55(d)(4)(A)(ii)(III)** in the case of a taxpayer described in paragraph (1)(D), without regard to the substitution under subclause (I), and

**§ 55(d)(4)(A)(ii)(IV)** by substituting “50 percent” for “25 percent”, and

**§ 55(d)(4)(A)(iii)** subsection (j) of section 59 shall not apply.

**§ 55(d)(4)(B) Inflation adjustment.**

**§ 55(d)(4)(B)(i) In general.** In the case of any taxable year beginning in a calendar year after 2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I)), the amounts described in clause (ii) shall each be increased by an amount equal to—

**§ 55(d)(4)(B)(i)(I)** such dollar amount, multiplied by

**§ 55(d)(4)(B)(i)(II)** the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting for “calendar year 2016” in subparagraph (A)(ii) thereof—

**§ 55(d)(4)(B)(i)(II)(1)** “calendar year 2017”, in the case of the $109,400 amount in subparagraph (A)(i)(I) and the $70,300 amount in subparagraph (A)(i)(II), and

**§ 55(d)(4)(B)(i)(II)(2)** “calendar year 2025”, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I).

**§ 55(d)(4)(B)(ii) Amounts described.** The amounts described in this clause are the $109,400 amount in subparagraph (A)(i)(I), the $70,300 amount in subparagraph (A)(i)(II), and the $1,000,000 amount in subparagraph (A)(ii)(I).

**§ 55(d)(4)(B)(iii) Rounding.** Any increased amount determined under clause (i) shall be rounded to the nearest multiple of $100.

**§ 55(d)(4)(B)(iv) Coordination with current adjustments.** In the case of any taxable year to which subparagraph (A) applies, no adjustment shall be made under paragraph (3) to any of the numbers which are substituted under subparagraph (A) and adjusted under this subparagraph.

## Regulations

- [Treas. Reg. § 1.55-1](/26/reg/1.55-1.md): Alternative minimum taxable income. (interprets § 55)

## Final rules

- [FR Doc. 94-28980](https://www.federalregister.gov/documents/1994/11/25/94-28980/alternative-minimum-taxable-income) (1994): Alternative Minimum Taxable Income

## Leading cases

- [Okin v. Commissioner, 808 F.2d 1338 (9th Cir. 1987)](https://www.courtlistener.com/opinion/481393/samuel-okin-v-commissioner-of-internal-revenue/)
- [Huntsberry v. Commissioner, 83 T.C. 742 (1984)](https://www.courtlistener.com/opinion/4706055/huntsberry-v-commissioner/)
- [Allen v. Commissioner, 118 T.C. 1 (2002)](https://www.courtlistener.com/opinion/4696602/allen-v-commr/)

## Connections

Cites: § 1 Tax imposed; § 2 Definitions and special rules; § 26 Limitation based on tax liability; definition of tax liability; § 27 Taxes of foreign countries and possessions of the United States; § 42 Low-income housing credit; § 45 Electricity produced from certain renewable resources, etc.; § 56 Adjustments in computing alternative minimum taxable income; § 56A Adjusted financial statement income; § 57 Items of tax preference; § 58 Denial of certain losses; § 59 Other definitions and special rules; § 59A Tax on base erosion payments of taxpayers with substantial gross receipts; § 1250 Gain from dispositions of certain depreciable realty; § 1301 Averaging of farm income; § 7703 Determination of marital status

Cited by: § 5 Cross references relating to tax on individuals; § 11 Tax imposed; § 12 Cross references relating to tax on corporations; § 26 Limitation based on tax liability; definition of tax liability; § 38 General business credit; § 40 Alcohol, etc., used as fuel; § 40A Biodiesel and renewable diesel used as fuel; § 45A Indian employment credit; § 45D New markets tax credit; § 45F Employer-provided child care credit; § 45H Credit for production of low sulfur diesel fuel; § 53 Credit for prior year minimum tax liability; § 59 Other definitions and special rules; § 168 Accelerated cost recovery system; § 199A Qualified business income; § 443 Returns for a period of less than 12 months; § 641 Imposition of tax; § 666 Accumulation distribution allocated to preceding years; § 860E Treatment of income in excess of daily accruals on residual interests; § 897 Disposition of investment in United States real property; § 911 Citizens or residents of the United States living abroad; § 1260 Gains from constructive ownership transactions; § 6425 Adjustment of overpayment of estimated income tax by corporation; § 6655 Failure by corporation to pay estimated income tax; § 6662 Imposition of accuracy-related penalty on underpayments

## Prior provisions

- A prior section 55, Pub. L. 95–600, title IV, § 421(a), Nov. 6, 1978, 92 Stat. 2871; amended Pub. L. 96–222, title I, § 104(a)(4)(A)–(D), (G), (H)(i), (ii), (viii), Apr. 1, 1980, 94 Stat. 215–218; Pub. L. 96–223, title II, § 232(b)(2)(A), (c)(2), Apr. 2, 1980, 94 Stat. 276, 277; Pub. L. 96–603, § 4(a), (b), Dec. 28, 1980, 94 Stat. 3513, 3514; Pub. L. 97–34, title I, § 101(d)(1), title II, § 221(b)(1)(A), title III, § 331(d)(1)(A), Aug. 13, 1981, 95 Stat. 183, 246, 294; Pub. L. 97–248, title II, § 201(a), Sept. 3, 1982, 96 Stat. 411; Pub. L. 97–354, § 5(a)(13), Oct. 19, 1982, 96 Stat. 1693; Pub. L. 97–448, title I, § 103(g)(2)(E), title III, §§ 305(c), 306(a)(1)(B), (C), Jan. 12, 1983, 96 Stat. 2379, 2399, 2400; Pub. L. 98–369, div. A, title IV, §§ 474(q), 491(d)(1), title VI, § 612(e)(3), title VII, § 711(a)(1), (4), (5), July 18, 1984, 98 Stat. 838, 849, 912, 942, 943; Pub. L. 99–514, title XVIII, § 1847(a), Oct. 22, 1986, 100 Stat. 2856, related to alternative minimum tax for taxpayers other than corporations, prior to the general revision of this part by Pub. L. 99–514, § 701(a).

## Amendments

- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2205
- 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3381
- 1990-11-05: [Pub. L. 101-508](/26/act/101-508.md), 104 Stat. 1388
- 1992-07-03: [Pub. L. 102-318](/26/act/102-318.md), 106 Stat. 310
- 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. 461
- 1996-08-20: [Pub. L. 104-188](/26/act/104-188.md), 110 Stat. 1776
- 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 834
- 1998-07-22: [Pub. L. 105-206](/26/act/105-206.md), 112 Stat. 804
- 2001-06-07: [Pub. L. 107-16](/26/act/107-16.md), 115 Stat. 148
- 2003-05-28: [Pub. L. 108-27](/26/act/108-27.md), 117 Stat. 755
- 2004-10-04: [Pub. L. 108-311](/26/act/108-311.md), 118 Stat. 1168
- 2004-10-22: [Pub. L. 108-357](/26/act/108-357.md), 118 Stat. 1468
- 2005-08-08: [Pub. L. 109-58](/26/act/109-58.md), 119 Stat. 991
- 2005-12-21: [Pub. L. 109-135](/26/act/109-135.md), 119 Stat. 2624
- 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
- 2008-05-22: [Pub. L. 110-234](/26/act/110-234.md), 122 Stat. 1503
- 2008-06-18: [Pub. L. 110-246](/26/act/110-246.md), 122 Stat. 1664
- 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. 319
- 2010-09-27: [Pub. L. 111-240](/26/act/111-240.md), 124 Stat. 2555
- 2010-12-17: [Pub. L. 111-312](/26/act/111-312.md), 124 Stat. 3299
- 2013-01-02: [Pub. L. 112-240](/26/act/112-240.md), 126 Stat. 2319
- 2014-12-19: [Pub. L. 113-295](/26/act/113-295.md), 128 Stat. 4024
- 2015-12-18: [Pub. L. 114-113](/26/act/114-113.md), 129 Stat. 3108
- 2017-12-22: [Pub. L. 115-97](/26/act/115-97.md), 131 Stat. 2060
- 2019-12-20: [Pub. L. 116-94](/26/act/116-94.md), 133 Stat. 3180
- 2022-08-16: [Pub. L. 117-169](/26/act/117-169.md), 136 Stat. 1818
- 2025-07-04: [Pub. L. 119-21](/26/act/119-21.md), 139 Stat. 162