
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 701(a),]
[Document affected by Public Law 107-16 Section 701(c)]
[CITE: 26USC55]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
              Subchapter A--Determination of Tax Liability
 
                    PART VI--ALTERNATIVE MINIMUM TAX
 
Sec. 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 taxable year, over
        (2) the regular tax for the taxable year.

(b) Tentative minimum tax

    For purposes of this part--

                     (1) Amount of tentative tax

        (A) Noncorporate taxpayers

            (i) In general

                In the case of a taxpayer other than a corporation, the 
            tentative minimum tax for the taxable 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 taxable year.
            (ii) 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.
            (iii) Married individual filing separate return

                In the case of a married individual filing a separate 
            return, clause (i) shall be applied by substituting 
            ``$87,500'' for ``$175,000'' each place it appears. For 
            purposes of the preceding sentence, marital status shall be 
            determined under section 7703.

        (B) Corporations

            In the case of a corporation, the tentative minimum tax for 
        the taxable year is--
                (i) 20 percent of so much of the alternative minimum 
            taxable income for the taxable year as exceeds the exemption 
            amount, reduced by
                (ii) the alternative minimum tax foreign tax credit for 
            the taxable year.

               (2) Alternative minimum taxable income

        The term ``alternative minimum taxable income'' means the 
    taxable income of the taxpayer for the taxable year--
            (A) determined with the adjustments provided in section 56 
        and section 58, and
            (B) 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).

    (3) Maximum rate of tax on net capital gain of noncorporate 
                                  taxpayers

        The amount determined under the first sentence of paragraph 
    (1)(A)(i) shall not exceed the sum of--
            (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--
                (i) the net capital gain; or
                (ii) the sum of--
                    (I) the adjusted net capital gain, plus
                    (II) the unrecaptured section 1250 gain, plus

            (B) 10 percent of so much of the adjusted net capital gain 
        (or, if less, taxable excess) as does not exceed the amount on 
        which a tax is determined under section 1(h)(1)(B), plus
            (C) 20 percent of the adjusted net capital gain (or, if 
        less, taxable excess) in excess of the amount on which tax is 
        determined under subparagraph (B), plus
            (D) 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.

    In the case of taxable years beginning after December 31, 2000, 
    rules similar to the rules of section 1(h)(2) shall apply for 
    purposes of subparagraphs (B) and (C). 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.

(c) Regular tax

                           (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), the section 936 credit allowable under section 27(b), and the 
    Puerto Rico economic activity credit under section 30A. Such term 
    shall not include any increase in tax under section 49(b) or 50(a) 
    or subsection (j) or (k) of section 42.

                        (2) Cross references

            For provisions providing that certain credits are not 
        allowable against the tax imposed by this section, see sections 
        26(a), 29(b)(6), 30(b)(3), and 38(c).

(d) Exemption amount

    For purposes of this section--

     (1) Exemption amount for taxpayers other than corporations

        In the case of a taxpayer other than a corporation, the term 
    ``exemption amount'' means--
            (A) $45,000 in the case of--
                (i) a joint return, or
                (ii) a surviving spouse,

            (B) $33,750 in the case of an individual who--
                (i) is not a married individual, and
                (ii) is not a surviving spouse, and

            (C) $22,500 in the case of--
                (i) a married individual who files a separate return, or
                (ii) 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.

                          (2) Corporations

        In the case of a corporation, the term ``exemption amount'' 
    means $40,000.

                  (3) 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--
            (A) $150,000 in the case of a taxpayer described in 
        paragraph (1)(A) or (2),
            (B) $112,500 in the case of a taxpayer described in 
        paragraph (1)(B), and
            (C) $75,000 in the case of a taxpayer described in paragraph 
        (1)(C).

    In the case of a taxpayer described in paragraph (1)(C)(i), 
    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 $165,000 or 
    (ii) $22,500.

(e) Exemption for small corporations

                           (1) In general

        (A) $7,500,000 gross receipts test

            The tentative minimum tax of a corporation shall be zero for 
        any taxable year if the corporation's average annual gross 
        receipts for all 3-taxable-year periods ending before such 
        taxable year does not exceed $7,500,000. For purposes of the 
        preceding sentence, only taxable years beginning after December 
        31, 1993, shall be taken into account.

        (B) $5,000,000 gross receipts test for first 3-year period

            Subparagraph (A) shall be applied by substituting 
        ``$5,000,000'' for ``$7,500,000'' for the first 3-taxable-year 
        period (or portion thereof) of the corporation which is taken 
        into account under subparagraph (A).

        (C) First taxable year corporation in existence

            If such taxable year is the first taxable year that such 
        corporation is in existence, the tentative minimum tax of such 
        corporation for such year shall be zero.

        (D) Special rules

            For purposes of this paragraph, the rules of paragraphs (2) 
        and (3) of section 448(c) shall apply.

        (2) Prospective application of minimum tax if small 
                       corporation ceases to be small

        In the case of a corporation whose tentative minimum tax is zero 
    for any prior taxable year by reason of paragraph (1), the 
    application of this part for taxable years beginning with the first 
    taxable year such corporation ceases to be described in paragraph 
    (1) shall be determined with the following modifications:
            (A) Section 56(a)(1) (relating to depreciation) and section 
        56(a)(5) (relating to pollution control facilities) shall apply 
        only to property placed in service on or after the change date.
            (B) Section 56(a)(2) (relating to mining exploration and 
        development costs) shall apply only to costs paid or incurred on 
        or after the change date.
            (C) Section 56(a)(3) (relating to treatment of long-term 
        contracts) shall apply only to contracts entered into on or 
        after the change date.
            (D) Section 56(a)(4) (relating to alternative net operating 
        loss deduction) shall apply in the same manner as if, in section 
        56(d)(2), the change date were substituted for ``January 1, 
        1987'' and the day before the change date were substituted for 
        ``December 31, 1986'' each place it appears.
            (E) Section 56(g)(2)(B) (relating to limitation on allowance 
        of negative adjustments based on adjusted current earnings) 
        shall apply only to prior taxable years beginning on or after 
        the change date.
            (F) Section 56(g)(4)(A) (relating to adjustment for 
        depreciation to adjusted current earnings) shall not apply.
            (G) Subparagraphs (D) and (F) of section 56(g)(4) (relating 
        to other earnings and profits adjustments and depletion) shall 
        apply in the same manner as if the day before the change date 
        were substituted for ``December 31, 1989'' each place it appears 
        therein.

                            (3) Exception

        The modifications in paragraph (2) shall not apply to--
            (A) any item acquired by the corporation in a transaction to 
        which section 381 applies, and
            (B) any property the basis of which in the hands of the 
        corporation is determined by reference to the basis of the 
        property in the hands of the transferor,

    if such item or property was subject to any provision referred to in 
    paragraph (2) while held by the transferor.

                           (4) Change date

        For purposes of paragraph (2), the change date is the first day 
    of the first taxable year for which the taxpayer ceases to be 
    described in paragraph (1).

     (5) Limitation on use of credit for prior year minimum tax 
                                  liability

        In the case of a taxpayer whose tentative minimum tax for any 
    taxable year is zero by reason of paragraph (1), section 53(c) shall 
    be applied for such year by reducing the amount otherwise taken into 
    account under section 53(c)(1) by 25 percent of so much of such 
    amount as exceeds $25,000. Rules similar to the rules of section 
    38(c)(3)(B) shall apply for purposes of the preceding sentence.

(Added and amended Pub. L. 99-514, title II, Sec. 252(c), title VII, 
Sec. 701(a), Oct. 22, 1986, 100 Stat. 2205, 2321; Pub. L. 100-647, title 
I, Secs. 1002(l)(27), 1007(a), Nov. 10, 1988, 102 Stat. 3381, 3428; Pub. 
L. 101-508, title XI, Secs. 11102(a), 11813(b)(5), Nov. 5, 1990, 104 
Stat. 1388-406, 1388-551; Pub. L. 102-318, title V, Sec. 521(b)(1), July 
3, 1992, 106 Stat. 310; Pub. L. 102-486, title XIX, Sec. 1913(b)(2)(D), 
Oct. 24, 1992, 106 Stat. 3020; Pub. L. 103-66, title XIII, 
Sec. 13203(a)-(c)(1), Aug. 10, 1993, 107 Stat. 461, 462; Pub. L. 104-
188, title I, Secs. 1205(d)(6), 1401(b)(3), 1601(b)(2)(A), Aug. 20, 
1996, 110 Stat. 1776, 1788, 1832; Pub. L. 105-34, title III, 
Sec. 311(b)(1), (2)(A), title IV, Sec. 401(a), title XVI, 
Sec. 1601(f)(1)(C), Aug. 5, 1997, 111 Stat. 834, 835, 843, 1090; Pub. L. 
105-206, title VI, Secs. 6005(d)(2), 6006(a), July 22, 1998, 112 Stat. 
804, 806.)


                            Prior Provisions

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


                               Amendments

    1998--Subsec. (b)(3). Pub. L. 105-206, Sec. 6005(d)(2), reenacted 
par. heading without change and amended text of par. (3) generally. 
Prior to amendment, text read as follows: ``The amount determined under 
the first sentence of paragraph (1)(A)(i) shall not exceed the sum of--
        ``(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--
            ``(i) the net capital gain, or
            ``(ii) the sum of--
                ``(I) the adjusted net capital gain, plus
                ``(II) the unrecaptured section 1250 gain, plus
        ``(B) 25 percent of the lesser of--
            ``(i) the unrecaptured section 1250 gain, or
            ``(ii) the amount of taxable excess in excess of the sum 
        of--
                ``(I) the adjusted net capital gain, plus
                ``(II) the amount on which a tax is determined under 
            subparagraph (A), plus
        ``(C) 10 percent of so much of the taxpayer's adjusted net 
    capital gain (or, if less, taxable excess) as does not exceed the 
    amount on which a tax is determined under section 1(h)(1)(D), plus
        ``(D) 20 percent of the taxpayer's adjusted net capital gain 
    (or, if less, taxable excess) in excess of the amount on which tax 
    is determined under subparagraph (C).
In the case of taxable years beginning after December 31, 2000, rules 
similar to the rules of section 1(h)(2) shall apply for purposes of 
subparagraphs (C) and (D). 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).''
    Subsec. (e)(1). Pub. L. 105-206, Sec. 6006(a), reenacted par. 
heading without change and amended text of par. (1) generally. Prior to 
amendment, text read as follows: ``The tentative minimum tax of a 
corporation shall be zero for any taxable year if--
        ``(A) such corporation met the $5,000,000 gross receipts test of 
    section 448(c) for its first taxable year beginning after December 
    31, 1996, and
        ``(B) such corporation would meet such test for the taxable year 
    and all prior taxable years beginning after such first taxable year 
    if such test were applied by substituting `$7,500,000' for 
    `$5,000,000'.''
    1997--Subsec. (b)(1)(A)(ii). Pub. L. 105-34, Sec. 311(b)(2)(A), 
substituted ``this subsection'' for ``clause (i)''.
    Subsec. (b)(3). Pub. L. 105-34, Sec. 311(b)(1), added par. (3).
    Subsec. (c)(1). Pub. L. 105-34, Sec. 1601(f)(1)(C), substituted 
``Puerto Rico'' for ``Puerto Rican''.
    Subsec. (e). Pub. L. 105-34, Sec. 401(a), added subsec. (e).
    1996--Subsec. (c)(1). Pub. L. 104-188, Sec. 1601(b)(2)(A), 
substituted ``, the section 936 credit allowable under section 27(b), 
and the Puerto Rican economic activity credit under section 30A'' for 
``and the section 936 credit allowable under section 27(b)''.
    Pub. L. 104-188, Sec. 1401(b)(3), struck out ``shall not include any 
tax imposed by section 402(d) and'' before ``shall not include any 
increase in tax under section 49(b)''.
    Subsec. (c)(2). Pub. L. 104-188, Sec. 1205(d)(6), struck out 
``28(d)(2),'' after ``26(a),''.
    1993--Subsec. (b)(1). Pub. L. 103-66, Sec. 13203(a), amended heading 
and text of par. (1) generally. Prior to amendment, text read as 
follows: ``The tentative minimum tax for the taxable year is--
        ``(A) 20 percent (24 percent in the case of a taxpayer other 
    than a corporation) of so much of the alternative minimum taxable 
    income for the taxable year as exceeds the exemption amount, reduced 
    by
        ``(B) the alternative minimum tax foreign tax credit for the 
    taxable year.''
    Subsec. (d)(1). Pub. L. 103-66, Sec. 13203(b), substituted 
``$45,000'' for ``$40,000'' in subpar. (A), ``$33,750'' for ``$30,000'' 
in subpar. (B), and ``$22,500'' for ``$20,000'' in subpar. (C).
    Subsec. (d)(3). Pub. L. 103-66, Sec. 13203(c)(1), substituted 
``$165,000 or (ii) $22,500'' for ``$155,000 or (ii) $20,000'' in last 
sentence.
    1992--Subsec. (c)(1). Pub. L. 102-318 substituted ``402(d)'' for 
``402(e)''.
    Subsec. (c)(2). Pub. L. 102-486 substituted ``29(b)(6), 30(b)(3),'' 
for ``29(b)(5),''.
    1990--Subsec. (b)(1)(A). Pub. L. 101-508, Sec. 11102(a), substituted 
``24 percent'' for ``21 percent''.
    Subsec. (c)(1). Pub. L. 101-508, Sec. 11813(b)(5), substituted 
``section 49(b) or 50(a)'' for ``section 47''.
    1988--Subsec. (b)(2). Pub. L. 100-647, Sec. 1007(a)(2), inserted at 
end ``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).''
    Subsec. (c)(1). Pub. L. 100-647, Sec. 1007(a)(1), inserted ``and the 
section 936 credit allowable under section 27(b)'' before period at end 
of first sentence.
    Pub. L. 100-647, Sec. 1002(l)(27), substituted ``subsection (j) or 
(k) of section 42'' for ``section 42(j)''.
    Subsec. (d)(3). Pub. L. 100-647, Sec. 1007(a)(3), inserted at end 
``In the case of a taxpayer described in paragraph (1)(C)(i), 
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 $155,000, or (ii) 
$20,000.''
    1986--Subsec. (c)(1). Pub. L. 99-514, Sec. 252(c), inserted ``or 
section 42(j)''.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-206 effective, except as otherwise 
provided, as if included in the provisions of the Taxpayer Relief Act of 
1997, Pub. L. 105-34, to which such amendment relates, see section 6024 
of Pub. L. 105-206, set out as a note under section 1 of this title.


                    Effective Date of 1997 Amendment

    Amendment by section 311(b)(1), (2)(A) of Pub. L. 105-34 applicable 
to taxable years ending after May 6, 1997, see section 311(d) of Pub. L. 
105-34, set out as a note under section 1 of this title.
    Section 401(b) of Pub. L. 105-34 provided that: ``The amendment made 
by this section [amending this section] shall apply to taxable years 
beginning after December 31, 1997.''
    Amendment by section 1601(f)(1)(C) of Pub. L. 105-34 effective as if 
included in the provisions of the Small Business Job Protection Act of 
1996, Pub. L. 104-188, to which it relates, see section 1601(j) of Pub. 
L. 105-34, set out as a note under section 23 of this title.


                    Effective Date of 1996 Amendment

    Amendment by section 1205(d)(6) of Pub. L. 104-188 applicable to 
amounts paid or incurred in taxable years ending after June 30, 1996, 
see section 1205(e) of Pub. L. 104-188, set out as a note under section 
29 of this title.
    Amendment by section 1401(b)(3) of Pub. L. 104-188 applicable to 
taxable years beginning after Dec. 31, 1999, with retention of certain 
transition rules, see section 1401(c) of Pub. L. 104-188, set out as a 
note under section 402 of this title.
    Amendment by section 1601(b)(2)(A) of Pub. L. 104-188 applicable to 
taxable years beginning after Dec. 31, 1995, except as otherwise 
provided, see section 1601(c) of Pub. L. 104-188, set out as an 
Effective Date note under section 30A of this title.


                    Effective Date of 1993 Amendment

    Section 13203(d) of Pub. L. 103-66 provided that: ``The amendments 
made by this section [amending this section and section 897 of this 
title] shall apply to taxable years beginning after December 31, 1992.''


                    Effective Date of 1992 Amendments

    Amendment by Pub. L. 102-486 applicable to property placed in 
service after June 30, 1993, see section 1913(c) of Pub. L. 102-486, set 
out as an Effective Date note under section 30 of this title.
    Amendment by Pub. L. 102-318 applicable to distributions after Dec. 
31, 1992, see section 521(e) of Pub. L. 102-318, set out as a note under 
section 402 of this title.


                    Effective Date of 1990 Amendment

    Section 11102(b) of Pub. L. 101-508 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after December 31, 1990.''
    Amendment by section 11813(b)(5) of Pub. L. 101-508 applicable to 
property placed in service after Dec. 31, 1990, but not applicable to 
any transition property (as defined in section 49(e) of this title), any 
property with respect to which qualified progress expenditures were 
previously taken into account under section 46(d) of this title, and any 
property described in section 46(b)(2)(C) of this title, as such 
sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 
101-508, set out as a note under section 29 of this title.


                    Effective Date of 1988 Amendment

    Amendment by section 1002(l)(27) of Pub. L. 100-647 effective, 
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 section 1 of 
this title.
    Section 1007(a)(3) of Pub. L. 100-647 provided that the amendment 
made by that section is effective with respect to taxable years ending 
after Nov. 10, 1988.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to buildings placed in 
service after Dec. 31, 1986, in taxable years ending after such date, 
see section 252(e) of Pub. L. 99-514, set out as an Effective Date note 
under section 42 of this title.


                             Effective Date

    Section 701(f) of Pub. L. 99-514, as amended by Pub. L. 100-647, 
title I, Sec. 1007(f)(2), (3), Nov. 10, 1988, 102 Stat. 3433, provided 
that:
    ``(1) In general.--Except as otherwise provided in this subsection, 
the amendments made by this section [enacting this section and sections 
53 and 56 to 59 of this title and amending sections 5, 12, 26, 28, 29, 
38, 48, 173, 174, 263, 381, 443, 703, 882, 897, 904, 936, 1016, 1363, 
1366, 1561, 6154, 6425, and 6655 of this title] shall apply to taxable 
years beginning after December 31, 1986.
    ``(2) Adjustment of net operating loss.--
        ``(A) Individuals.--In the case of a net operating loss of an 
    individual for a taxable year beginning after December 31, 1982, and 
    before January 1, 1987, for purposes of determining the amount of 
    such loss which may be carried to a taxable year beginning after 
    December 31, 1986, for purposes of the minimum tax, such loss shall 
    be adjusted in the manner provided in section 55(d)(2) of the 
    Internal Revenue Code of 1954 [now 1986] as in effect on the day 
    before the date of the enactment of this Act [Oct. 22, 1986].
        ``(B) Corporations.--If the minimum tax of a corporation was 
    deferred under section 56(b) of the Internal Revenue Code of 1954 
    [now 1986] (as in effect on the day before the date of the enactment 
    of this Act [Oct. 22, 1986]) for any taxable year beginning before 
    January 1, 1987, and the amount of such tax has not been paid for 
    any taxable year beginning before January 1, 1987, the amount of the 
    net operating loss carryovers of such corporation which may be 
    carried to taxable years beginning after December 31, 1986, for 
    purposes of the minimum tax shall be reduced by the amount of tax 
    preferences a tax on which was so deferred.
    ``(3) Installment sales.--Section 56(a)(6) of the Internal Revenue 
Code of 1986 (as amended by this section) shall not apply to any 
disposition to which the amendments made by section 811 of this Act 
[enacting section 453C of this title] (relating to allocation of 
dealer's indebtedness to installment obligations) do not apply by reason 
of section 811(c)(2) of this Act [enacting provisions set out as a note 
under section 453C of this title].
    ``(4) Exception for charitable contributions before august 16, 
1986.--Section 57(a)(6) of the Internal Revenue Code of 1986 (as amended 
by this section) shall not apply to any deduction attributable to 
contributions made before August 16, 1986.
    ``(5) Book income.--
        ``(A) In general.--In the case of a corporation to which this 
    paragraph applies, the amount of any increase for any taxable year 
    under section 56(c)(1)(A) of the Internal Revenue Code of 1986 (as 
    added by this section) shall be reduced (but not below zero) by the 
    excess (if any) of--
            ``(i) 50 percent of the excess of taxable income for the 5-
        taxable year period ending with the taxable year preceding the 
        1st taxable year to which such section applies over the adjusted 
        net book income for such period, over
            ``(ii) the aggregate amounts taken into account under this 
        paragraph for preceding taxable years.
        ``(B) Taxpayer to whom paragraph applies.--This paragraph 
    applies to a taxpayer which was incorporated in Delaware on May 31, 
    1912.
        ``(C) Terms.--Any term used in this paragraph which is used in 
    section 56 of such Code (as so added) shall have the same meaning as 
    when used in such section.
    ``(6) Certain public utility.--
        ``(A) In the case of investment tax credits described in 
    subparagraph (B) or (C), subsection 38(c)(3)(A)(ii) of the Internal 
    Revenue Code of 1986 shall be applied by substituting `25 percent' 
    for `75 percent', and section 38(c)(3)(B) of the Internal Revenue 
    Code of 1986 shall be applied by substituting `75 percent' for `25 
    percent'.
        ``(B) If, on September 25, 1985, a regulated electric utility 
    owned an undivided interest, within the range of 1,111 and 1,149, in 
    the `maximum dependable capacity, net, megawatts electric' of an 
    electric generating unit located in Illinois or Mississippi for 
    which a binding written contract was in effect on December 31, 1980, 
    then any investment tax credit with respect to such unit shall be 
    described in this subparagraph. The aggregate amount of investment 
    tax credits with respect to the unit in Mississippi allowed solely 
    by reason of being described in this subparagraph shall not exceed 
    $141,000,000.
        ``(C) If, on September 25, 1985, a regulated electric utility 
    owned an undivided interest, within the range of 1,104 and 1,111, in 
    the `maximum dependable capacity, net, megawatts electric' of an 
    electric generating unit located in Louisiana for which a binding 
    written contract was in effect on December 31, 1980, then any 
    investment tax credit of such electric utility shall be described in 
    this subparagraph. The aggregate amount of investment tax credits 
    allowed solely by reason of being described by this subparagraph 
    shall not exceed $20,000,000.
    ``(7) Agreement vessel depreciation adjustment.--
        ``(A) For purposes of part VI of subchapter A of chapter 1 of 
    the Internal Revenue Code of 1986, in the case of a qualified 
    taxpayer, alternative minimum taxable income for the taxable year 
    shall be reduced by an amount equal to the agreement vessel 
    depreciation adjustment.
        ``(B) For purposes of this paragraph, the agreement vessel 
    depreciation adjustment shall be an amount equal to the depreciation 
    deduction that would have been allowable for such year under section 
    167 of such Code with respect to agreement vessels placed in service 
    before January 1, 1987, if the basis of such vessels had not been 
    reduced under section 607 of the Merchant Marine Act of 1936 [46 
    App. U.S.C. 1177], as amended, and if depreciation with respect to 
    such vessel had been computed using the 25-year straight-line 
    method. The aggregate amount by which basis of a qualified taxpayer 
    is treated as not reduced by reason of this subparagraph shall not 
    exceed $100,000,000.
        ``(C) For purposes of this paragraph, the term `qualified 
    taxpayer' means a parent corporation incorporated in the State of 
    Delaware on December 1, 1972, and engaged in water transportation, 
    and includes any other corporation which is a member of the 
    affiliated group of which the parent corporation is the common 
    parent. No taxpayer shall be treated as a qualified corporation for 
    any taxable year beginning after December 31, 1991.''


                            Savings Provision

    For provisions that nothing in amendment by section 11813(b)(5) of 
Pub. L. 101-508 be construed to affect treatment of certain transactions 
occurring, property acquired, or items of income, loss, deduction, or 
credit taken into account prior to Nov. 5, 1990, for purposes of 
determining liability for tax for periods ending after Nov. 5, 1990, see 
section 11821(b) of Pub. L. 101-508, set out as a note under section 29 
of this title.


                         Transitional Provisions

    Section 1007(f)(1) of Pub. L. 100-647 provided that: ``In the case 
of the taxable year of an estate or trust which begins before January 1, 
1987, and ends on or after such date, the items of tax preference 
apportioned to any beneficiary of such estate or trust under section 
58(c) of the Internal Revenue Code of 1954 (as in effect on the day 
before the date of the enactment of the Tax Reform Act of 1986 [Oct. 22, 
1986]) shall be taken into account for purposes of determining the 
amount of the tax imposed by section 55 of the Internal Revenue Code of 
1986 (as amended by the Tax Reform Act of 1986 [Pub. L. 99-514]) on such 
beneficiary for such beneficiary's taxable year in which such taxable 
year of the estate or trust ends.''


           Plan Amendments Not Required Until January 1, 1998

    For provisions directing that if any amendments made by subtitle D 
[Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to 
any plan or annuity contract, such amendment shall not be required to be 
made before the first day of the first plan year beginning on or after 
Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note 
under section 401 of this title.


           Plan Amendments Not Required Until January 1, 1994

    For provisions directing that if any amendments made by subtitle B 
[Secs. 521-523] of title V of Pub. L. 102-318 require an amendment to 
any plan, such plan amendment shall not be required to be made before 
the first plan year beginning on or after Jan. 1, 1994, see section 523 
of Pub. L. 102-318, set out as a note under section 401 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(a) 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.


                       High Income Taxpayer Report

    Section 2123 of Pub. L. 94-455, as amended by Pub. L. 98-369, div. 
A, title IV, Sec. 441(b)(1), July 18, 1984, 98 Stat. 815, provided that: 
``The Secretary of the Treasury shall publish annually information on 
the amount of tax paid by individual taxpayers with high total incomes. 
Total income for this purpose is to be calculated and set forth by 
adding to adjusted gross income any items of tax preference excluded 
from, or deducted in arriving at, adjusted gross income, and by 
subtracting any investment expenses incurred in the production of such 
income to the extent of the investment income. These data are to include 
the number of such individuals with total income over $200,000 who owe 
no Federal income tax (after credits) and the deductions, exclusions, or 
credits used by them to avoid tax.''
    [Section 441(b)(2) of Pub. L. 98-369 provided that: ``The amendment 
made by paragraph (1) [amending section 2123 of Pub. L. 94-455, set out 
above] shall apply to information published after the date of the 
enactment of this Act [July 18, 1984].'']

                  Section Referred to in Other Sections

    This section is referred to in sections 2, 5, 11, 12, 24, 26, 32, 
38, 45A, 45D, 53, 59, 59A, 168, 443, 641, 666, 815, 847, 860E, 860J, 
871, 877, 882, 897, 962, 1260, 1397E, 1400I, 1561, 6015, 6425, 6655, 
6662 of this title.
