§ 26. Limitation based on tax liability; definition of tax liability

• (a) The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the sum of—
  • (1) the taxpayer’s regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27, and
  • (2) the tax imposed by section 55(a) for the taxable year.
• (b) For purposes of this part—
  • (1) The term “regular tax liability” means the tax imposed by this chapter for the taxable year.
  • (2) For purposes of paragraph (1), any tax imposed by any of the following provisions shall not be treated as tax imposed by this chapter:
    • (A) section 55 (relating to minimum tax),
    • (B) section 59A (relating to base erosion and anti-abuse tax),
    • (C) subsection (m)(5)(B), (q), (t), or (v) of section 72 (relating to additional taxes on certain distributions),
    • (D) section 143(m) (relating to recapture of proration of Federal subsidy from use of mortgage bonds and mortgage credit certificates),
    • (E) section 530(d)(4) (relating to additional tax on certain distributions from Coverdell education savings accounts),
    • (F) section 531 (relating to accumulated earnings tax),
    • (G) section 541 (relating to personal holding company tax),
    • (H) section 1351(d)(1) (relating to recoveries of foreign expropriation losses),
    • (I) section 1374 (relating to tax on certain built-in gains of S corporations),
    • (J) section 1375 (relating to tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts),
    • (K) subparagraph (A) of section 7518(g)(6) (relating to nonqualified withdrawals from capital construction funds taxed at highest marginal rate),
    • (L) sections 871(a) and 881 (relating to certain income of nonresident aliens and foreign corporations),
    • (M) section 860E(e) (relating to taxes with respect to certain residual interests),
    • (N) section 884 (relating to branch profits tax),
    • (O) sections 453( l )(3) and 453A(c) (relating to interest on certain deferred tax liabilities),
    • [(P) Repealed. Pub. L. 115–141, div. U, title IV, § 401(b)(2) , Mar. 23, 2018 , 132 Stat. 1201 .]
    • (Q) section 220(f)(4) (relating to additional tax on Archer MSA distributions not used for qualified medical expenses),
    • (R) section 138(c)(2) (relating to penalty for distributions from Medicare Advantage MSA not used for qualified medical expenses if minimum balance not maintained),
    • (S) sections 106(e)(3)(A)(ii), 223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II) (relating to certain failures to maintain high deductible health plan coverage),
    • (T) section 170( o )(3)(B) (relating to recapture of certain deductions for fractional gifts),
    • (U) section 223(f)(4) (relating to additional tax on health savings account distributions not used for qualified medical expenses),
    • (V) subsections (a)(1)(B)(i) and (b)(4)(A) of section 409A (relating to interest and additional tax with respect to certain deferred compensation),
    • (W) section 36(f) (relating to recapture of homebuyer credit),
    • (X) section 457A(c)(1)(B) (relating to determinability of amounts of compensation),
    • (Y) section 529A(c)(3)(A) (relating to additional tax on ABLE account distributions not used for qualified disability expenses), and
    • (Z) section 24(j)(2) (relating to excess advance payments).
• (c) For purposes of this part, the term “tentative minimum tax” means the amount determined under section 55(b)(1).