Cases: Kappus v. Commissioner, 337 F.3d 1053 (D.C. Cir. 2003); Pekar v. Commissioner, 113 T.C. 158 (1999); Lindsey v. Commissioner, 98 T.C. 672 (1992)
Final rules 1
(a) Alternative minimum tax foreign tax credit For purposes of this part—
Amended 1998, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357 redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to limitation on alternative minimum tax foreign tax credit and carryback and carryforward of excess.
- 1998 Pub. L. 105-206 Pub. L. 105–206, § 6011(a), redesignated par. (3), relating to election to use simplified section 904 limitation, as (4).
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(1) In general The alternative minimum tax foreign tax credit for any taxable year shall be the credit which would be determined under section 27 for such taxable year if—
Amended 1988, 1990, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141 substituted “27” for “27(a)” in introductory provisions.
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(c)(2)(D), inserted “and” at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which read as follows: “for purposes of section 904, any increase in alternative minimum taxable income by reason of section 56(c)(1)(A) (relating to adjustment for book income) shall have the same proportionate source (and character) as alternative minimum taxable income determined without regard to such increase, and”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1007(e)(3), added subpar. (D).
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(A) the pre-credit tentative minimum tax were the tax against which such credit was taken for purposes of section 904 for the taxable year and all prior taxable years beginning after December 31, 1986,
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1703(e)(1), substituted “the pre-credit tentative minimum tax” for “the amount determined under section 55(b)(1)(A)”.
(B) section 904 were applied on the basis of alternative minimum taxable income instead of taxable income, and
Amended 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(c)(2)(D), inserted “and” at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which read as follows: “for purposes of section 904, any increase in alternative minimum taxable income by reason of section 56(c)(1)(A) (relating to adjustment for book income) shall have the same proportionate source (and character) as alternative minimum taxable income determined without regard to such increase, and”.
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(C) the determination of whether any income is high-taxed income for purposes of section 904(d)(2) were made on the basis of the applicable rate specified in section 55(b)(1) in lieu of the highest rate of tax specified in section 1.
Amended 1990, 1996, 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(3)(C)(i), substituted “section 55(b)(1) in lieu of the highest rate of tax specified in section 1” for “subparagraph (A)(i) or (B)(i) of section 55(b)(1) (whichever applies) in lieu of the highest rate of tax specified in section 1 or 11 (whichever applies)”.
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1703(e)(2), substituted “specified in subparagraph (A)(i) or (B)(i) of section 55(b)(1) (whichever applies)” for “specified in section 55(b)(1)(A)”.
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(c)(2)(D), inserted “and” at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which read as follows: “for purposes of section 904, any increase in alternative minimum taxable income by reason of section 56(c)(1)(A) (relating to adjustment for book income) shall have the same proportionate source (and character) as alternative minimum taxable income determined without regard to such increase, and”.
(2) Pre-credit tentative minimum tax For purposes of this subsection, the term “pre-credit tentative minimum tax” means the amount determined under the first sentence of section 55(b)(1)(A).
Amended 1989, 1990, 1992, 1996, 1997, 2004, 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(3)(C)(ii), substituted “means the amount determined under the first sentence of section 55(b)(1)(A).” for “means—
“(A) in the case of a taxpayer other than a corporation, the amount determined under the first sentence of section 55(b)(1)(A)(i), or
“(B) in the case of a corporation, the amount determined under section 55(b)(1)(B)(i).”
- 2004 Pub. L. 108-357 Pub. L. 108–357 redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to limitation on alternative minimum tax foreign tax credit and carryback and carryforward of excess.
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1057(a), struck out subpar. (C) which read as follows:
- 1997 “(C) Exception.—Subparagraph (A) shall not apply to any domestic corporation if—
“(i) more than 50 percent of the stock of such domestic corporation (by vote and value) is owned by United States persons who are not members of an affiliated group (as defined in section 1504 of such Code) which includes such corporation,
“(ii) all of the activities of such corporation are conducted in 1 foreign country with which the United States has an income tax treaty in effect and such treaty provides for the exchange of information between such foreign country and the United States,
“(iii) all of the current earnings and profits of such corporation are distributed at least annually (other than current earnings and profits retained for normal maintenance or capital replacements or improvements of an existing business), and
“(iv) all of such distributions by such corporation to United States persons are used by such persons in a trade or business conducted in the United States.”
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1703(e)(1), substituted “the pre-credit tentative minimum tax” for “the amount determined under section 55(b)(1)(A)”.
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1703(e)(3), substituted “which would be the pre-credit tentative minimum tax” for “which would be determined under section 55(b)(1)(A)”.
- 1992 Pub. L. 102-486 Pub. L. 102–486 substituted “and section 57(a)(2)(E)” for “and the alternative tax energy preference deduction under section 56(h)”.
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11531(b)(2), inserted before period at end “and the alternative tax energy preference deduction under section 56(h)”.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7612(e)(1), added subpar. (C).
(3) Election to use simplified section 904 limitation
Amended 1996, 1997, 1998, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357 redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to limitation on alternative minimum tax foreign tax credit and carryback and carryforward of excess.
- 1998 Pub. L. 105-206 Pub. L. 105–206, § 6011(a), redesignated par. (3), relating to election to use simplified section 904 limitation, as (4).
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1103(a), added par. (3) relating to election to use simplified section 904 limitation.
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1703(e)(4), added par. (3).
(A) In general In determining the alternative minimum tax foreign tax credit for any taxable year to which an election under this paragraph applies—
(i) subparagraph (B) of paragraph (1) shall not apply, and
(ii) the limitation of section 904 shall be based on the proportion which—
(I) the taxpayer’s taxable income (as determined for purposes of the regular tax) from sources without the United States (but not in excess of the taxpayer’s entire alternative minimum taxable income), bears to
(II) the taxpayer’s entire alternative minimum taxable income for the taxable year.
(B) Election
(i) In general An election under this paragraph may be made only for the taxpayer’s first taxable year which begins after December 31, 1997, and for which the taxpayer claims an alternative minimum tax foreign tax credit.
(ii) Election revocable only with consent An election under this paragraph, once made, shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary.
[(b) Repealed. Pub. L. 115–97, title I, § 12001(b)(10), Dec. 22, 2017, 131 Stat. 2093]
Amended 1996, 1998, 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(10), struck out subsec. (b). Text read as follows: “In the case of any corporation for which a credit is allowable for the taxable year under section 30A or 936, alternative minimum taxable income shall not include any income with respect to which a credit is determined under section 30A or 936.”
- 1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(2), substituted “credits under section 30A or 936” for “section 936 credit” in heading.
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1601(b)(2)(D), substituted “section 30A or 936, alternative minimum taxable income shall not include any income with respect to which a credit is determined under section 30A or 936.” for “section 936, alternative minimum taxable income shall not include any amount with respect to which the requirements of subparagraph (A) or (B) of section 936(a)(1) are met.”
(c) Treatment of estates and trusts In the case of any estate or trust, the alternative minimum taxable income of such estate or trust and any beneficiary thereof shall be determined by applying part I of subchapter J with the adjustments provided in this part.
(d) Apportionment of differently treated items in case of certain entities
(1) In general The differently treated items for the taxable year shall be apportioned (in accordance with regulations prescribed by the Secretary)—
(A) Regulated investment companies and real estate investment trusts In the case of a regulated investment company to which part I of subchapter M applies or a real estate investment company to which part II of subchapter M applies, between such company or trust and shareholders and holders of beneficial interest in such company or trust.
(B) Common trust funds In the case of a common trust fund (as defined in section 584(a)), pro rata among the participants of such fund.
(2) Differently treated items For purposes of this section, the term “differently treated item” means any item of tax preference or any other item which is treated differently for purposes of this part than for purposes of computing the regular tax.
(e) Optional 10-year writeoff of certain tax preferences
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(1) In general For purposes of this title, any qualified expenditure to which an election under this paragraph applies shall be allowed as a deduction ratably over the 10-year period (3-year period in the case of circulation expenditures described in section 173) beginning with the taxable year in which such expenditure was made (or, in the case of a qualified expenditure described in paragraph (2)(C), over the 60-month period beginning with the month in which such expenditure was paid or incurred).
Amended 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7611(f)(5)(B), inserted before period at end “(or, in the case of a qualified expenditure described in paragraph (2)(C), over the 60-month period beginning with the month in which such expenditure was paid or incurred)”.
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(2) Qualified expenditure For purposes of this subsection, the term “qualified expenditure” means any amount which, but for an election under this subsection, would have been allowable as a deduction (determined without regard to section 291) for the taxable year in which paid or incurred under—
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1007(e)(1), inserted “(determined without regard to section 291)” after “as a deduction”.
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(A) section 173 (relating to circulation expenditures),
(B) section 174A(a) (relating to domestic research or experimental expenditures),
Amended 2025
- 2025 Pub. L. 119-21 Pub. L. 119–21 substituted “section 174A(a) (relating to domestic research or experimental expenditures)” for “section 174(a) (relating to research and experimental expenditures)”.
(C) section 263(c) (relating to intangible drilling and development expenditures),
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(D) section 616(a) (relating to development expenditures), or
(E) section 617(a) (relating to mining exploration expenditures).
(3) Other sections not applicable Except as provided in this subsection, no deduction shall be allowed under any other section for any qualified expenditure to which an election under this subsection applies.
(4) Election
(A) In general An election may be made under paragraph (1) with respect to any portion of any qualified expenditure.
(B) Revocable only with consent Any election under this subsection may be revoked only with the consent of the Secretary.
(C) Partners and shareholders of S corporations In the case of a partnership, any election under paragraph (1) shall be made separately by each partner with respect to the partner’s allocable share of any qualified expenditure. A similar rule shall apply in the case of an S corporation and its shareholders.
(5) Dispositions
(A) Application of section 1254 In the case of any disposition of property to which section 1254 applies (determined without regard to this section), any deduction under paragraph (1) with respect to amounts which are allocable to such property shall, for purposes of section 1254, be treated as a deduction allowable under section 263(c), 616(a), or 617(a), whichever is appropriate.
(B) Application of section 617(d) In the case of any disposition of mining property to which section 617(d) applies (determined without regard to this subsection), any deduction under paragraph (1) with respect to amounts which are allocable to such property shall, for purposes of section 617(d), be treated as a deduction allowable under section 617(a).
(6) Amounts to which election apply not treated as tax preference Any portion of any qualified expenditure to which an election under paragraph (1) applies shall not be treated as an item of tax preference under section 57(a) and section 56 shall not apply to such expenditure.
[(f) Repealed. Pub. L. 115–97, title I, § 12001(b)(10), Dec. 22, 2017, 131 Stat. 2093]
Amended 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 12001(b)(10), struck out subsec. (f). Text read as follows: “Except as otherwise provided in this part, section 291 (relating to cutback of corporate preferences) shall apply before the application of this part.”
(g) Tax benefit rule The Secretary may prescribe regulations under which differently treated items shall be properly adjusted where the tax treatment giving rise to such items will not result in the reduction of the taxpayer’s regular tax for the taxable year for which the item is taken into account or for any other taxable year.
Amended 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(d)(1)(A), substituted “for the taxable year for which the item is taken into account or for any other taxable year” for “for any taxable year”.
(h) Coordination with certain limitations The limitations of sections 704(d), 465, and 1366(d) (and such other provisions as may be specified in regulations) shall be applied for purposes of computing the alternative minimum taxable income of the taxpayer for the taxable year with the adjustments of sections 56, 57, and 58.
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1007(e)(2), substituted “taxable year with the adjustments of sections 56, 57, and 58” for “taxable year—
“(1) with the adjustments of section 56, and
“(2) by not taking into account any deduction to the extent such deduction is an item of tax preference under section 57(a)”.
(i) Special rule for amounts treated as tax preference For purposes of this subtitle (other than this part), any amount shall not fail to be treated as wholly exempt from tax imposed by this subtitle solely by reason of being included in alternative minimum taxable income.
Amended 1988, 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7611(f)(6), substituted “amounts” for “interest” in heading and “any amount shall” for “interest shall” in text.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1007(e)(4), inserted “(other than this part)” after “of this subtitle” and substituted “subtitle” for “title” before “solely”.
(j) Treatment of unearned income of minor children
Amended 1988, 1990, 1996, 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1201(b)(1), amended subsec. (j) generally, restating limitation on exemption amount, adding provisions for inflation adjustment of such amount, and deleting provisions relating to limitation based on parental minimum tax and unused parental minimum tax exemption.
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1702(a)(1), substituted “section 1(g)(3)(B)” for “section 1(i)(3)(B)”.
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11101(d)(3)(A), substituted “section 1(g)” for “section 1(i)” in pars. (1), (2)(A), (B)(i)(I), (II), (D), and (3).
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11702(d)(2), added par. (3).
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1014(e)(5)(A), added subsec. (j).
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(1) In general In the case of a child to whom section 1(g) applies, the exemption amount for purposes of section 55 shall not exceed the sum of—
(A) such child’s earned income (as defined in section 911(d)(2)) for the taxable year, plus
(B) $5,000.
Amended 1990, 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1704(m)(3), substituted “twice the amount in effect for the taxable year under section 63(c)(5)(A)” for “$1,000”.
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11702(d)(1), inserted “(or, if greater, the child’s share of the unused parental minimum tax exemption)” before period at end.
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(2) Inflation adjustment In the case of any taxable year beginning in a calendar year after 1998, the dollar amount in paragraph (1)(B) shall be increased by an amount equal to the product of—
Amended 1989, 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11101(d)(3)(B), substituted “section 1(g)(3)(B)” for “section 1(i)(3)(B)”.
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11702(d)(3), substituted “paragraphs (3)(D), (5), and (6)” for “paragraphs (5) and (6)”.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(j)(7), substituted “Other rules” for “Others rules” in heading.
(A) such dollar amount, and
(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “1997” for “2016” in subparagraph (A)(ii) thereof.
Amended 2017
- 2017 Pub. L. 115-97 Pub. L. 115–97, § 11002(d)(4), substituted “for ‘2016’ in subparagraph (A)(ii)” for “for ‘1992’ in subparagraph (B)”.
If any increase determined under the preceding sentence is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.
(k) Applicable corporation For purposes of this part—
Amended 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(a)(2), added subsec. (k).
(1) Applicable corporation defined
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(A) In general The term “applicable corporation” means, with respect to any taxable year, any corporation (other than an S corporation, a regulated investment company, or a real estate investment trust) which meets the average annual adjusted financial statement income test of subparagraph (B) for one or more taxable years which—
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(i) are prior to such taxable year, and
(ii) end after December 31, 2021.
(B) Average annual adjusted financial statement income test For purposes of this subsection—
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(i) a corporation meets the average annual adjusted financial statement income test for a taxable year if the average annual adjusted financial statement income of such corporation (determined without regard to section 56A(d)) for the 3-taxable-year period ending with such taxable year exceeds $1,000,000,000, and
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(ii) in the case of a corporation described in paragraph (2), such corporation meets the average annual adjusted financial statement income test for a taxable year if—
(I) the corporation meets the requirements of clause (i) for such taxable year (determined after the application of paragraph (2)), and
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(II) the average annual adjusted financial statement income of such corporation (determined without regard to the application of paragraph (2) and without regard to section 56A(d)) for the 3-taxable-year-period ending with such taxable year is $100,000,000 or more.
(C) Exception Notwithstanding subparagraph (A), the term “applicable corporation” shall not include any corporation which otherwise meets the requirements of subparagraph (A) if—
(i) such corporation—
(I) has a change in ownership, or
(II) has a specified number (to be determined by the Secretary and which shall, as appropriate, take into account the facts and circumstances of the taxpayer) of consecutive taxable years, including the most recent taxable year, in which the corporation does not meet the average annual adjusted financial statement income test of subparagraph (B), and
(ii) the Secretary determines that it would not be appropriate to continue to treat such corporation as an applicable corporation.
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The preceding sentence shall not apply to any corporation if, after the Secretary makes the determination described in clause (ii), such corporation meets the average annual adjusted financial statement income test of subparagraph (B) for any taxable year beginning after the first taxable year for which such determination applies.
(D) Special rules for determining applicable corporation status Solely for purposes of determining whether a corporation is an applicable corporation under this paragraph, all adjusted financial statement income of persons treated as a single employer with such corporation under subsection (a) or (b) of section 52 shall be treated as adjusted financial statement income of such corporation, and adjusted financial statement income of such corporation shall be determined without regard to paragraphs (2)(D)(i) and (11) of section 56A(c).
Amended 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 13904(a), amended subpar. (D) generally. Prior to amendment, text of subpar. (D) read as follows:
- 2022 “(i) In general.—Solely for purposes of determining whether a corporation is an applicable corporation under this paragraph, all adjusted financial statement income of persons treated as a single employer with such corporation under subsection (a) or (b) of section 52 (determined with the modifications described in clause (ii)) shall be treated as adjusted financial statement income of such corporation, and adjusted financial statement income of such corporation shall be determined without regard to paragraphs (2)(D)(i) and (11) of section 56A(c).
- 2022 “(ii) Modifications.—For purposes of this subparagraph—
“(I) section 52(a) shall be applied by substituting ‘component members’ for ‘members’, and
“(II) for purposes of applying section 52(b), the term ‘trade or business’ shall include any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase ‘To the extent provided in regulations’ in such paragraph (6)).
- 2022 “(iii) Component member.—For purposes of this subparagraph, the term ‘component member’ has the meaning given such term by section 1563(b), except that the determination shall be made without regard to section 1563(b)(2).”
(E) Other special rules
(i) Corporations in existence for less than 3 years If the corporation was in existence for less than 3-taxable years, subparagraph (B) shall be applied on the basis of the period during which such corporation was in existence.
(ii) Short taxable years Adjusted financial statement income for any taxable year of less than 12 months shall be annualized by multiplying the adjusted financial statement income for the short period by 12 and dividing the result by the number of months in the short period.
(iii) Treatment of predecessors Any reference in this subparagraph to a corporation shall include a reference to any predecessor of such corporation.
(2) Special rule for foreign-parented multinational groups
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(A) In general If a corporation is a member of a foreign-parented multinational group for any taxable year, then, solely for purposes of determining whether such corporation meets the average annual adjusted financial statement income test under paragraph (1)(B)(ii)(I) for such taxable year, the adjusted financial statement income of such corporation for such taxable year shall include the adjusted financial statement income of all members of such group. Solely for purposes of this subparagraph, adjusted financial statement income shall be determined without regard to paragraphs (2)(D)(i), (3), (4), and (11) of section 56A(c).
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(B) Foreign-parented multinational group For purposes of subparagraph (A), the term “foreign-parented multinational group” means, with respect to any taxable year, two or more entities if—
(i) at least one entity is a domestic corporation and another entity is a foreign corporation,
(ii) such entities are included in the same applicable financial statement with respect to such year, and
(iii) either—
(I) the common parent of such entities is a foreign corporation, or
(II) if there is no common parent, the entities are treated as having a common parent which is a foreign corporation under subparagraph (D).
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(C) Foreign corporations engaged in a trade or business within the United States For purposes of this paragraph, if a foreign corporation is engaged in a trade or business within the United States, such trade or business shall be treated as a separate domestic corporation that is wholly owned by the foreign corporation.
(D) Other rules The Secretary shall, applying the principles of this section, prescribe rules for the application of this paragraph, including rules for the determination of—
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(i) the entities (if any) which are to be to be treated under subparagraph (B)(iii)(II) as having a common parent which is a foreign corporation,
(ii) the entities to be included in a foreign-parented multinational group, and
(iii) the common parent of a foreign-parented multinational group.
(3) Regulations or other guidance The Secretary shall provide regulations or other guidance for the purposes of carrying out this subsection, including regulations or other guidance—
(A) providing a simplified method for determining whether a corporation meets the requirements of paragraph (1), and
’(B) [OLRC note: So in original.] addressing the application of this subsection to a corporation that experiences a change in ownership.
(l) Corporate AMT foreign tax credit
Amended 2022
- 2022 Pub. L. 117-169 Pub. L. 117–169, § 10101(c), added subsec. (l).
(1) In general For purposes of this part, if an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N for any taxable year, the corporate AMT foreign tax credit for the taxable year of the applicable corporation is an amount equal to sum of—
(A) the lesser of—
(i) the aggregate of the applicable corporation’s pro rata share (as determined under section 56A(c)(3)) of the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States which are—
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(I) taken into account on the applicable financial statement of each controlled foreign corporation with respect to which the applicable corporation is a United States shareholder, and
(II) paid or accrued (for Federal income tax purposes) by each such controlled foreign corporation, or
(ii) the product of the amount of the adjustment under section 56A(c)(3) and the percentage specified in section 55(b)(2)(A)(i), and
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(B) in the case of an applicable corporation that is a domestic corporation, the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States to the extent such taxes are—
(2) Carryover of excess tax paid For any taxable year for which an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N, the excess of the amount described in paragraph (1)(A)(i) over the amount described in paragraph (1)(A)(ii) shall increase the amount described in paragraph (1)(A)(i) in any of the first 5 succeeding taxable years to the extent not taken into account in a prior taxable year.
(3) Regulations or other guidance The Secretary shall provide for such regulations or other guidance as is necessary to carry out the purposes of this subsection.