26 U.S.C. § 54 — Untitled legal text

Page 404 TITLE 26—INTERNAL REVENUE CODE [§ 54 ending after June 30, 1996, see section 1205(e) of Pub. L. 104–188, set out as a note under section 45K of this title. Pub. L. 104–188, title I, § 1704(j)(1), Aug. 20, 1996, 110 Stat. 1881, provided that the amendment made by that section is effective with respect to taxable years begin- ning after Dec. 31, 1990. EFFECTIVE DATE OF 1993 AMENDMENT Pub. L. 103–66, title XIII, § 13113(e), Aug. 10, 1993, 107 Stat. 430, provided that: ‘‘The amendments made by this section [enacting section 1202 of this title and amending this section and sections 57, 172, 642, 643, 691, 871, and 6652 of this title] shall apply to stock issued after the date of the enactment of this Act [Aug. 10, 1993].’’ Pub. L. 103–66, title XIII, § 13171(d), Aug. 10, 1993, 107 Stat. 455, provided that: ‘‘The amendments made by this section [amending this section and sections 56 and 57 of this title] shall apply to contributions made after June 30, 1992, except that in the case of any contribu- tion of capital gain property which is not tangible per- sonal property, such amendments shall apply only if the contribution is made after December 31, 1992.’’ EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 104–188, title I, § 1702(e)(5), Aug. 20, 1996, 110 Stat. 1870, provided that: ‘‘The amendment made by section 1913(b)(2)(C)(i) of the Energy Policy Act of 1992 [Pub. L. 102–486] shall apply to taxable years beginning after December 31, 1990.’’ Pub. L. 102–486, title XIX, § 1913(c), Oct. 24, 1992, 106 Stat. 3020, provided that: ‘‘The amendments made by this section [enacting sections 30 and 179A of this title and amending this section and sections 55, 62, and 1016 of this title] shall apply to property placed in service after June 30, 1993.’’ EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–239, title VII, § 7612(a)(3), Dec. 19, 1989, 103 Stat. 2373, provided that: ‘‘The amendments made by this subsection [amending this section] shall apply for purposes of determining the adjusted net minimum tax for taxable years beginning after December 31, 1989.’’ Pub. L. 101–239, title VII, § 7612(b)(2), Dec. 19, 1989, 103 Stat. 2374, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall apply for purposes of determining the amount of the minimum tax credit for taxable years beginning after December 31, 1989; except that, for such purposes, section 53(b)(1) of the Internal Revenue Code of 1986 shall be applied as if such amendment had been in effect for all prior tax- able years.’’ Amendment by section 7811(d)(2) of Pub. L. 101–239 ef- fective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Rev- enue Act of 1988, Pub. L. 100–647, to which such amend- ment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by section 1007(g)(4) of Pub. L. 100–647 ef- fective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under sec- tion 1 of this title. Pub. L. 100–647, title VI, § 6304(b), Nov. 10, 1988, 102 Stat. 3756, provided that: ‘‘The amendment made by this section [amending this section] shall take effect as if included in the amendments made by section 701 of the Tax Reform Act of 1986 [Pub. L. 99–514].’’ EFFECTIVE DATE Section applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifica- tions, see section 701(f) of Pub. L. 99–514, set out as an Effective Date of 1986 Amendment note under section 55 of this title. APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99–514 IN RELATION TO TREATY OBLIGATIONS OF UNITED STATES For applicability of amendment by section 701(b) of Pub. L. 99–514 [enacting this section] notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of Pub. L. 100–647 be treated as if it had been included in the provision of Pub. L. 99–514 to which such amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100–647, set out as a note under section 861 of this title. CONSTRUCTION Pub. L. 113–295, div. A, title II, § 221(a)(8)(A)(ii), Dec. 19, 2014, 128 Stat. 4038, provided that: ‘‘The amendment made by clause (i) striking subsection (f) of section 53 of the Internal Revenue Code of 1986 shall not be con- strued to allow any tax abated by reason of section 53(f)(1) of such Code (as in effect before such amend- ment) to be included in the amount determined under section 53(b)(1) of such Code.’’ SPECIAL RULE Pub. L. 116–136, div. A, title II, § 2305(d), Mar. 27, 2020, 134 Stat. 357, provided that: ‘‘(1) IN GENERAL.—For purposes of the Internal Rev- enue Code of 1986, a credit or refund for which an appli- cation described in paragraph (2)(A) is filed shall be treated as made under section 6411 of such Code. ‘‘(2) TENTATIVE REFUND.— ‘‘(A) APPLICATION.—A taxpayer may file an applica- tion for a tentative refund of any amount for which a refund is due by reason of an election under section 53(e)(5) of the Internal Revenue Code of 1986. Such ap- plication shall be in such manner and form as the Secretary of the Treasury (or the Secretary’s dele- gate) may prescribe and shall— ‘‘(i) be verified in the same manner as an applica- tion under section 6411(a) of such Code, ‘‘(ii) be filed prior to December 31, 2020, and ‘‘(iii) set forth— ‘‘(I) the amount of the refundable credit claimed under section 53(e) of such Code for such taxable year, ‘‘(II) the amount of the refundable credit claimed under such section for any previously filed return for such taxable year, and ‘‘(III) the amount of the refund claimed. ‘‘(B) ALLOWANCE OF ADJUSTMENTS.—Within a period of 90 days from the date on which an application is filed under subparagraph (A), the Secretary of the Treasury (or the Secretary’s delegate) shall— ‘‘(i) review the application, ‘‘(ii) determine the amount of the overpayment, and ‘‘(iii) apply, credit, or refund such overpayment, in a manner similar to the manner provided in sec- tion 6411(b) of the Internal Revenue Code of 1986. ‘‘(C) CONSOLIDATED RETURNS.—The provisions of sec- tion 6411(c) of the Internal Revenue Code of 1986 Code shall apply to an adjustment under this paragraph to the same extent and manner as the Secretary of the Treasury (or the Secretary’s delegate) may provide.’’ [SUBPART H—REPEALED] [§ 54. Repealed. Pub. L. 115–97, title I, § 13404(a), Dec. 22, 2017, 131 Stat. 2138] Section, added Pub. L. 109–58, title XIII, § 1303(a), Aug. 8, 2005, 119 Stat. 992; amended Pub. L. 109–135, title I, § 101(b)(1), title IV, § 402(c)(1), Dec. 21, 2005, 119 Stat. 2593, 2610; Pub. L. 109–222, title V, § 508(d)(3), May 17, 2006, 120 Stat. 362; Pub. L. 109–432, div. A, title I, § 107(b)(2), title II, § 202(a), Dec. 20, 2006, 120 Stat. 2939, Page 405 TITLE 26—INTERNAL REVENUE CODE § 55 2944; Pub. L. 110–234, title XV, § 15316(c)(1), May 22, 2008, 122 Stat. 1511; Pub. L. 110–246, § 4(a), title XV, § 15316(c)(1), June 18, 2008, 122 Stat. 1664, 2273; Pub. L. 110–343, div. B, title I, § 107(c), Oct. 3, 2008, 122 Stat. 3819; Pub. L. 111–5, div. B, title I, §§ 1531(c)(3), 1541(b)(1), Feb. 17, 2009, 123 Stat. 360, 362; Pub. L. 115–97, title I, § 13404(c)(2), Dec. 22, 2017, 131 Stat. 2138, related to credit to holders of clean renewable energy bonds. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Pub. L. 115–97, title I, § 13404(d), Dec. 22, 2017, 131 Stat. 2138, provided that: ‘‘The amendments made by this section [amending this section and sections 6211 and 6401 of this title and repealing this section and sections 54A to 54F, 54AA, 1397E, and 6431 of this title] shall apply to bonds issued after December 31, 2017.’’ REGULATIONS Pub. L. 109–58, title XIII, § 1303(d), Aug. 8, 2005, 119 Stat. 997, provided that the Secretary of the Treasury was to issue regulations required under former 26 U.S.C. 54 not later than 120 days after Aug. 8, 2005. [SUBPART I—REPEALED] [§§ 54A to 54F. Repealed. Pub. L. 115–97, title I, § 13404(a), Dec. 22, 2017, 131 Stat. 2138] Section 54A, added Pub. L. 110–234, title XV, § 15316(a), May 22, 2008, 122 Stat. 1505, and Pub. L. 110–246, § 4(a), title XV, § 15316(a), June 18, 2008, 122 Stat. 1664, 2267; amended Pub. L. 110–343, div. B, title I, § 107(b)(1), (2), title III, § 301(b)(1), (2), div. C, title III, § 313(b)(1), (2), Oct. 3, 2008, 122 Stat. 3818, 3819, 3843, 3844, 3872; Pub. L. 111–5, div. B, title I, §§ 1521(b)(1), (2), 1531(c)(2), 1541(b)(2), Feb. 17, 2009, 123 Stat. 357, 360, 362; Pub. L. 113–295, div. A, title II, § 220(e), Dec. 19, 2014, 128 Stat. 4036, related to credit to holders of qualified tax credit bonds. Section 54B, added Pub. L. 110–234, title XV, § 15316(a), May 22, 2008, 122 Stat. 1509, and Pub. L. 110–246, § 4(a), title XV, § 15316(a), June 18, 2008, 122 Stat. 1664, 2271, re- lated to qualified forestry conservation bonds. Section 54C, added Pub. L. 110–343, div. B, title I, § 107(a), Oct. 3, 2008, 122 Stat. 3817; amended Pub. L. 111–5, div. B, title I, § 1111, Feb. 17, 2009, 123 Stat. 322, re- lated to new clean renewable energy bonds. Section 54D, added Pub. L. 110–343, div. B, title III, § 301(a), Oct. 3, 2008, 122 Stat. 3841; amended Pub. L. 111–5, div. B, title I, § 1112, Feb. 17, 2009, 123 Stat. 322, re- lated to qualified energy conservation bonds. Section 54E, added Pub. L. 110–343, div. C, title III, § 313(a), Oct. 3, 2008, 122 Stat. 3869; amended Pub. L. 111–5, div. B, title I, § 1522(a), Feb. 17, 2009, 123 Stat. 358; Pub. L. 111–312, title VII, § 758(a), Dec. 17, 2010, 124 Stat. 3322; Pub. L. 112–240, title III, § 310(a), Jan. 2, 2013, 126 Stat. 2330; Pub. L. 113–295, div. A, title I, § 120(a), Dec. 19, 2014, 128 Stat. 4015; Pub. L. 114–95, title IX, § 9215(uu)(1), Dec. 10, 2015, 129 Stat. 2183; Pub. L. 114–113, div. Q, title I, § 164(a), Dec. 18, 2015, 129 Stat. 3066, re- lated to qualified zone academy bonds. Section 54F, added Pub. L. 111–5, div. B, title I, § 1521(a), Feb. 17, 2009, 123 Stat. 355; amended Pub. L. 111–147, title III, § 301(b), Mar. 18, 2010, 124 Stat. 78, re- lated to qualified school construction bonds. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to bonds issued after Dec. 31, 2017, see section 13404(d) of Pub. L. 115–97, set out as a note under former section 54 of this title. [SUBPART J—REPEALED] [§ 54AA. Repealed. Pub. L. 115–97, title I, § 13404(a), Dec. 22, 2017, 131 Stat. 2138] Section, added Pub. L. 111–5, div. B, title I, § 1531(a), Feb. 17, 2009, 123 Stat. 358, related to build America bonds. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to bonds issued after Dec. 31, 2017, see section 13404(d) of Pub. L. 115–97, set out as a note under former section 54 of this title. TRANSITIONAL COORDINATION WITH STATE LAW Pub. L. 111–5, div. B, title I, § 1531(d), Feb. 17, 2009, 123 Stat. 360, provided that, except as otherwise provided by a State after Feb. 17, 2009, the interest on any build America bond (as defined in former 26 U.S.C. 54AA) and the amount of any credit determined under such sec- tion with respect to such bond was to be treated for purposes of the income tax laws of such State as being exempt from Federal income tax. [PART V—REPEALED] Editorial Notes CODIFICATION Part V, consisting of a prior section 51, was repealed by Pub. L. 94–455, title XIX, § 1901(a)(7), Oct. 4, 1976, 90 Stat. 1765. See Prior Provisions note set out under sec- tion 51 of this title. PART VI—ALTERNATIVE MINIMUM TAX Sec. 55. Alternative minimum tax imposed. 56. Adjustments in computing alternative min- imum taxable income. 56A. Adjusted financial statement income. 57. Items of tax preference. 58. Denial of certain losses. 59. Other definitions and special rules. Editorial Notes AMENDMENTS 2022—Pub. L. 117–169, title I, § 10101(b)(2), Aug. 16, 2022, 136 Stat. 1827, added item 56A. § 55. Alternative minimum tax imposed (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— (1) the tentative minimum tax for the tax- able year, over (2) the regular tax for the taxable year plus, in the case of an applicable corporation, the tax imposed by section 59A. (b) Tentative minimum tax For purposes of this part— (1) Noncorporate taxpayers In the case of a taxpayer other than a cor- poration— (A) In general The tentative minimum tax for the tax- able year is the sum of— (i) 26 percent of so much of the taxable excess as does not exceed $175,000, plus (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 tax- able year. (B) Taxable excess For purposes of this subsection, the term ‘‘taxable excess’’ means so much of the al-