Subtitle A, Chapter 1, Subchapter A, Part I.
 
26 USC 1This section discusses the tax imposed on individuals.
26 USC 1(a)Base tax of 15% of income within $36900 is imposed on taxable income of every—
26 USC 1(a)(1)married individual (by §7703) co-filing a return with their spouse (§6013) and
26 USC 1(a)(2)### surviving spouse (by §2(a)). Tax table is by ###.
26 USC 1(b)### Head of household is liable for tax by ###. Base is 15% of income up to $29600.
26 USC 1(c)### Single persons are liable for tax by ###. Base is 15% of income within $22100.
26 USC 1(d)### MFS individuals are liable for tax by ###. Base is 15% of income within $18450.
26 USC 1(e)Base tax of 15% of taxable income within $1500 is imposed on taxable income of—
26 USC 1(e)(1)every estate, and
26 USC 1(e)(2)### every trust. Tax table is by ###.
26 USC 1(f)Phaseout of marriage penalty and table adjustments to account for inflation.
26 USC 1(f)(1)By 19931215 & each year thereafter, Sec. adjusts tables by (a) - (e).
26 USC 1(f)(2)Table by (1) in lieu of that by (a) - (e), for a TY in any year, is set—
26 USC 1(f)(2)(A)by adjusting each rate bracket for the cost-of-living adjustment for such year,
26 USC 1(f)(2)(B)by not changing the applicable tax rate to any amount described in (A), and
26 USC 1(f)(2)(C)by adjusting the dollar amounts which set tax to reflect adjustments by (A).
26 USC 1(f)(3)For (2), the cost-of-living adjustment for any year is any percentage which—
26 USC 1(f)(3)(A)the CPI for the preceding calendar year, exceeds
26 USC 1(f)(3)(B)the CPI for the calendar year 1992.
26 USC 1(f)(4)CPI for a calendar year is CPI average in 12 month period ending August 31.
26 USC 1(f)(5)For (4), "CPI" is last Consumer Price Index published by Department of Labor.
26 USC 1(f)(6)This paragraph sets rules for rounding.
26 USC 1(f)(6)(A)For (2)(A) and §§63(c)(4), 68(b)(2) & 151(d)(4), round down to $50 multiple.
26 USC 1(f)(6)(B)MFS filers swap "$50" with "$25" in (A) (except §§63(c)(4) & §151(d)(4)(A)).
26 USC 1(f)(7)This paragraph sets special rules for certain brackets.
26 USC 1(f)(7)(A)Don't adjust 36% & 39.6% minimums for (a) - (e) tables for TYs starting in 1994.
26 USC 1(f)(7)(B)For adjustment by (1) in TYs after 1994, for (A), swap "1993" for "1992" in (3).
26 USC 1(f)(8)For TYs beginning after 20031231, in prescribing tables under (1)—
26 USC 1(f)(8)(A)maximum income in 15% bracket of (a) is 200% of such amount in bracket of (c), &
26 USC 1(f)(8)(B)comparable income amounts in table of (d) is ½ of amounts determined in (A).
26 USC 1(g)Certain unearned income of minors are taxed as if it were the parent's income.
26 USC 1(g)(1)For any child by (2), tax imposed by §1 is equal to the greater of—
26 USC 1(g)(1)(A)the tax imposed by §1 without regard to (g), or
26 USC 1(g)(1)(B)the sum of—
26 USC 1(g)(1)(B)(i)tax which would be imposed by §1, reduced by child's net unearned income, plus
26 USC 1(g)(1)(B)(ii)such child's share of the allocable parental tax.
26 USC 1(g)(2)(g) applies to any child for any taxable year if—
26 USC 1(g)(2)(A)such child—
26 USC 1(g)(2)(A)(i)has not attained age 18 before the close of the taxable year, or
26 USC 1(g)(2)(A)(ii)
26 USC 1(g)(2)(A)(ii)(I)has attained age 18 before TY end and meets §152(c)(3) (except such (B)), and
26 USC 1(g)(2)(A)(ii)(II)whose earned income (§911(d)(2)) is within ½ of his support for the TY,
26 USC 1(g)(2)(B)either parent of such child is alive at the close of the taxable year, and
26 USC 1(g)(2)(C)such child doesn't file a joint return for the taxable year.
26 USC 1(g)(3)This paragraph defines the "allocable parental tax".
26 USC 1(g)(3)(A)Such tax is any excess of—
26 USC 1(g)(3)(A)(i)that which would be tax if income by (4) for all children were included, over
26 USC 1(g)(3)(A)(ii)the tax imposed by §1 on the parent without regard to (g).
26 USC 1(g)(3)(B)Child's share of tax has same ratio as his income by (4) bears to aggregate.
26 USC 1(g)(3)(C)Figure tax by parent's TY ending within the child's year, if TYs are dissimilar.
26 USC 1(g)(4)This paragraph defines "net unearned income".
26 USC 1(g)(4)(A)Net unearned income is any excess of—
26 USC 1(g)(4)(A)(i)the portion of AGI which is not earned income (§911(d)(2)), over
26 USC 1(g)(4)(A)(ii)the sum of—
26 USC 1(g)(4)(A)(ii)(I)amount by §63(c)(5)(A) (relating to standard deduction limitation), plus
26 USC 1(g)(4)(A)(ii)(II)greater of (I) amount or child's itemized deductions for income by (i).
26 USC 1(g)(4)(B)Net unearned income amount is limited to individual's taxable income of the TY.
26 USC 1(g)(4)(C)Inclusion by §652 & §662 is earned income to beneficiaries of §642(b)(2)(C)(ii).
26 USC 1(g)(5)For (g), account the taxable income of the parent who is—
26 USC 1(g)(5)(A)the custodial parent (§152(e)) of the child if the parents are not married, and
26 USC 1(g)(5)(B)the individual with greater taxable income for MFS individuals.
26 USC 1(g)(6)The child's tax return must include the TIN of the parent determined by (g).
26 USC 1(g)(7)An election for parents to claim certain unearned income of the child.
26 USC 1(g)(7)(A)A child has no gross income as is not required to file a return by §6012 if—
26 USC 1(g)(7)(A)(i)any child which meets (g) has income only from interest and dividends,
26 USC 1(g)(7)(A)(ii)such income is more than that by (4)(A)(ii)(I) & less than 10 times such amount,
26 USC 1(g)(7)(A)(iii)such child made no estimated tax payments nor withheld any income under §3406, &
26 USC 1(g)(7)(A)(iv)the parent by (5) elects to apply (B).
26 USC 1(g)(7)(B)For a parent making the election under (7)—
26 USC 1(g)(7)(B)(i)include in gross income excess over twice the amount by (4)(A)(ii)(I) in the TY,
26 USC 1(g)(7)(B)(ii)tax imposed by §1 for such TY for such parent is equal to the sum of—
26 USC 1(g)(7)(B)(ii)(I)the amount determined under §1 after applying clause (i), plus
26 USC 1(g)(7)(B)(ii)(II)10% of the lesser of (4)(A)(ii)(I) or excess of gross income over such amount, &
26 USC 1(g)(7)(B)(iii)any interest by §57(a)(5) is an item of tax preference for the parent.
26 USC 1(g)(7)(C)The Secretary prescribes necessary regulations to carry out (7).
26 USC 1(h)This subsection sets the maximum capital gains rate.
26 USC 1(h)(1)If taxpayer has net capital gain, §1 tax for such TY is limited to the sum of—
26 USC 1(h)(1)(A)the tax figured as if (h) were not enacted on the greater of—
26 USC 1(h)(1)(A)(i)taxable income reduced by net capital gain, or
26 USC 1(h)(1)(A)(ii)the lesser of—
26 USC 1(h)(1)(A)(ii)(I)the amount of taxable income taxed at a rate below 25%; or
26 USC 1(h)(1)(A)(ii)(II)taxable income reduced by the adjusted net capital gain;
26 USC 1(h)(1)(B)0% of net capital gain within any excess of—
26 USC 1(h)(1)(B)(i)the amount of taxable income which would be taxed at a rate under 25%, over
26 USC 1(h)(1)(B)(ii)the taxable income reduced by the adjusted net capital gain;
26 USC 1(h)(1)(C)15% of the lesser of—
26 USC 1(h)(1)(C)(i)adjusted net capital gain (or taxable income) exceeding amount taxed by (B), or
26 USC 1(h)(1)(C)(ii)the excess of—
26 USC 1(h)(1)(C)(ii)(I)the amount of taxable income which would be taxed below 39.6%, over
26 USC 1(h)(1)(C)(ii)(II)the sum of amounts subject to tax under (A) and (B),
26 USC 1(h)(1)(D)20% of net capital gain or taxable income exceeding amounts taxed by (B) & (C),
26 USC 1(h)(1)(E)25% of any excess of—
26 USC 1(h)(1)(E)(i)unrecaptured §1250 gain (or, if less, the net capital gain (ignore (11)) over
26 USC 1(h)(1)(E)(ii)any excess of—
26 USC 1(h)(1)(E)(ii)(I)The sum of the amount determined in (A) above plus the net capital gain.
26 USC 1(h)(1)(E)(ii)(II)taxable income; and
26 USC 1(h)(1)(F)28% of taxable income exceeding the sum of amounts from (A) - (D).
26 USC 1(h)(2)For (h), net capital gain is reduced by income from §163(d)(4)(B)(iii).
26 USC 1(h)(3)For (h), "adjusted net capital gain" is the sum of—
26 USC 1(h)(3)(A)the net capital gain (without regard to (11)) reduced by the sum of—
26 USC 1(h)(3)(A)(i)unrecaptured §1250 gain, and
26 USC 1(h)(3)(A)(ii)28% rate gain, plus
26 USC 1(h)(3)(B)qualified dividend income (as by (11)).
26 USC 1(h)(4)For (h), "28% rate gain" is any excess of—
26 USC 1(h)(4)(A)the sum of—
26 USC 1(h)(4)(A)(i)collectibles gain; and
26 USC 1(h)(4)(A)(ii)§1202 gain, over
26 USC 1(h)(4)(B)the sum of—
26 USC 1(h)(4)(B)(i)collectibles loss,
26 USC 1(h)(4)(B)(ii)net short-term capital loss, and
26 USC 1(h)(4)(B)(iii)long-term capital loss carried under §1212(b)(1)(B) to the TY.
26 USC 1(h)(5)Definition of "collectibles gain" and "collectibles loss" for purposes of (h).
26 USC 1(h)(5)(A)Such term is by a recognized sale of a collectible (§408(m), ignore such (3)).
26 USC 1(h)(5)(B)Sale of certain interests with unrealized collectible appreciation meets (A).
26 USC 1(h)(6)This paragraph defines "unrecaptured §1250 gain".
26 USC 1(h)(6)(A)Such gain is any excess of—
26 USC 1(h)(6)(A)(i)long-term capital gain which would be ordinary income if fully depreciated, over
26 USC 1(h)(6)(A)(ii)any excess of—
26 USC 1(h)(6)(A)(ii)(I)the amount described in (4)(B); over
26 USC 1(h)(6)(A)(ii)(II)the amount described in (4)(A).
26 USC 1(h)(6)(B)(A)(i) amount for §1231(a)(3)(A) exchanges is limited to net §1231 gain.
26 USC 1(h)(7)For (h), "§1202 gain" is any excess of—
26 USC 1(h)(7)(A)gain excludable by §1202 but for the percentage limitation in §1202(a), over
26 USC 1(h)(7)(B)gain excludable from gross income under §1202.
26 USC 1(h)(8)Allocate ordinary income by §1231(c) to separate categories of §1231 gain.
26 USC 1(h)(9)Sec. may apply (h) to exchanges by pass-thru entities and of their interests.
26 USC 1(h)(10)For (h), a "pass-thru entity" is—
26 USC 1(h)(10)(A)a regulated investment company (RIC);
26 USC 1(h)(10)(B)a real estate investment trust (REIT);
26 USC 1(h)(10)(C)an S corporation (S-Corp);
26 USC 1(h)(10)(D)a partnership;
26 USC 1(h)(10)(E)an estate or trust;
26 USC 1(h)(10)(F)a common trust fund; and
26 USC 1(h)(10)(G)a qualified electing fund (as defined by §1295).
26 USC 1(h)(11)This paragraph sets a treatment for dividends to be taxed as net capital gain.
26 USC 1(h)(11)(A)For (h), "net capital gain" is net capital gain plus qualified dividend income.
26 USC 1(h)(11)(B)This subparagraph defines "qualified dividend income" for purposes of (11).
26 USC 1(h)(11)(B)(i)Such dividends are received during the taxable year from—
26 USC 1(h)(11)(B)(i)(I)domestic corporations, and
26 USC 1(h)(11)(B)(i)(II)qualified foreign corporations.
26 USC 1(h)(11)(B)(ii)Qualified dividend income does not include—
26 USC 1(h)(11)(B)(ii)(I)certain dividends from corporations exempt from tax under §501 or §521,
26 USC 1(h)(11)(B)(ii)(II)any amount allowed as a deduction under §591, and
26 USC 1(h)(11)(B)(ii)(III)any dividend described in §404(k).
26 USC 1(h)(11)(B)(iii)Qualified dividend income doesn't include any dividend on any share of stock—
26 USC 1(h)(11)(B)(iii)(I)that does not meet 75% of the days for holding requirements of §246(c), or
26 USC 1(h)(11)(B)(iii)(II)to the extent the taxpayer is under obligation to make related payments.
26 USC 1(h)(11)(C)This subparagraph defines "qualified foreign corporations".
26 USC 1(h)(11)(C)(i)Except as provided otherwise, such term means any foreign corporation if—
26 USC 1(h)(11)(C)(i)(I)the corporation is incorporated in a possession of the US, or
26 USC 1(h)(11)(C)(i)(II)the corporation is eligible for benefits of an income tax treaty with the US.
26 USC 1(h)(11)(C)(ii)Foreign corporation dividends qualify if stock is tradable in a US market.
26 USC 1(h)(11)(C)(iii)Foreign investment companies are disqualified if §1297 applies in certain TYs.
26 USC 1(h)(11)(C)(iv)Rules by §904(b)(2)(B) apply to the dividend rate differential of (11).
26 USC 1(h)(11)(D)This subparagraph sets special rules.
26 USC 1(h)(11)(D)(i)Such income does not include investment income accounted by §163(d)(4)(B).
26 USC 1(h)(11)(D)(ii)Loss on extraordinary dividends (§1059(c)) of shares is long-term capital loss.
26 USC 1(h)(11)(D)(iii)Dividends from REIT or RIC are subject to limitations from §854 and §857.
26 USC 1(i)This subsection sets rate reductions after calendar year 2000.
26 USC 1(i)(1)This paragraph sets rules for the 10% rate bracket.
26 USC 1(i)(1)(A)For taxable years beginning after 20001231—
26 USC 1(i)(1)(A)(i)the tax rate in (a) - (d) on income not exceeding the first bracket is 10%, and
26 USC 1(i)(1)(A)(ii)the 15% rate applies only to taxable income within the initial bracket amount.
26 USC 1(i)(1)(B)For (l), the "initial bracket amount" is—
26 USC 1(i)(1)(B)(i)for (a), $14000,
26 USC 1(i)(1)(B)(ii)for (b), $10000, and
26 USC 1(i)(1)(B)(iii)½ of (i) (after any adjustment by (C)) for (c) and (d).
26 USC 1(i)(1)(C)In adjusting tables of (f) which apply to tax years starting after 2003—
26 USC 1(i)(1)(C)(i)for cost-of-living adjustment by (f)(3), swap "2002" for "1992" in such (B), and
26 USC 1(i)(1)(C)(ii)adjustments by (i) don't apply to amount referred to in (B)(iii).
26 USC 1(i)(1)(D)(1) does not apply to any taxable year to which §6428 applies.
26 USC 1(i)(2)The tables under (a) - (e) are applied by substituting—
26 USC 1(i)(2)(A)"25%" for "28%" each place it appears (before the application of (B))
26 USC 1(i)(2)(B)"28%" for "31%" each place it appears, and
26 USC 1(i)(2)(C)"33%" for "36%" each place it appears.
26 USC 1(i)(3)Modifications to income tax brackets for high-income taxpayers.
26 USC 1(i)(3)(A)In the case of taxable years beginning after 20121231—
26 USC 1(i)(3)(A)(i)rate under (a) - (d) in highest bracket is 35% of income within excess of—
26 USC 1(i)(3)(A)(i)(I)the applicable threshold under (B), over
26 USC 1(i)(3)(A)(i)(II)the dollar amount at which such bracket begins, and
26 USC 1(i)(3)(A)(ii)the 39.6% rate under (a) - (d) applies to income exceeding clause (i) amount.
26 USC 1(i)(3)(B)For (3), the "applicable threshold" is—
26 USC 1(i)(3)(B)(i)$450K in the case of (a),
26 USC 1(i)(3)(B)(ii)$425K in the case of (b),
26 USC 1(i)(3)(B)(iii)$400K in the case of (c), and
26 USC 1(i)(3)(B)(iv)½ of amount under clause (i) (after applying (C)) in the case of (d).
26 USC 1(i)(3)(C)Adjust (i) - (iii) of (B) as by (1)(C)(i); swap "2012" for "1992" in (f)(3)(B).
26 USC 1(i)(4)The Secretary shall adjust all tables in (f) to carry out subsection (i).
 
26 USC 2This section sets definitions and special rules.
26 USC 2(a)This subsection defines a "surviving spouse".
26 USC 2(a)(1)For purposes of §1, a surviving spouse is a taxpayer—
26 USC 2(a)(1)(A)whose spouse died during either of 2 TYs before the current TY, and
26 USC 2(a)(1)(B)who maintains a household which is the principal home of a dependent
26 USC 2(a)(1)(B)(i)who is their child or stepchild (§152, but such (b)(1), (b)(2), & (d)(1)(B)), &
26 USC 2(a)(1)(B)(ii)for whom the taxpayer is entitled to a deduction under §151.
26 USC 2(a)(2)For purposes of §1, a taxpayer is not a surviving spouse if—
26 USC 2(a)(2)(A)the taxpayer has remarried before the end of the TY, or
26 USC 2(a)(2)(B)a joint return could have been filed under §6013 (ignoring §6013(a)(3)).
26 USC 2(a)(3)Date of death for missing individuals (§6013(f)(3)) from combat zone service is—
26 USC 2(a)(3)(A)date of determination made under 37 USC §556 or 5 USC §5566, or, if earlier
26 USC 2(a)(3)(B)2 years after date of termination of combat activity termination under §112.
26 USC 2(b)This subsection defines a head of household.
26 USC 2(b)(1)Such an individual is unmarried at end of year, doesn't meet (a), and either—
26 USC 2(b)(1)(A)maintains a household (more than ½ of TY) which is the principal abode of—
26 USC 2(b)(1)(A)(i)an individual's qualifying child ((c) of §152, without such (e)), unless—
26 USC 2(b)(1)(A)(i)(I)such child is married at end of individual's taxable year, and
26 USC 2(b)(1)(A)(i)(II)is not a dependent of such individual by (2) or (3) of §152(b), or
26 USC 2(b)(1)(A)(ii)any other dependent of the taxpayer for which deduction by §151 is allowed, or
26 USC 2(b)(1)(B)pays over half of cost to run household for parent who is dependent under §151.
26 USC 2(b)(2)For (b)—
26 USC 2(b)(2)(A)an individual legally separated from his spouse is not considered as married;
26 USC 2(b)(2)(B)a taxpayer is not married if spouse is a nonresident alien any time in TY; &
26 USC 2(b)(2)(C)a taxpayer is married at end of TY if spouse died during the TY.
26 USC 2(b)(3)A taxpayer is not considered a head of household by subtitle A—
26 USC 2(b)(3)(A)if he is a nonresident alien at any time in the taxable year, or
26 USC 2(b)(3)(B)by reason that the individual would not be a dependent for the TY but for—
26 USC 2(b)(3)(B)(i)§152(d)(2)(H), or
26 USC 2(b)(3)(B)(ii)§152(d)(3).
26 USC 2(c)A taxpayer is not considered married at end of TY if §7703(b) could apply.
26 USC 2(d)For nonresident aliens, taxes set by §1 and §55 apply only by §§871 or 877.
26 USC 2(e)See §63 for a definition of taxable income.
 
26 USC 3This section sets tax tables for individuals.
26 USC 3(a)This subsection sets imposition of tax table tax.
26 USC 3(a)(1)In lieu of §1, tax is annually imposed on taxable income for each individual—
26 USC 3(a)(1)(A)who does not itemize his deductions for the taxable year, and
26 USC 3(a)(1)(B)whose income for year does not exceed ceiling amount. Table's basis is from §1.
26 USC 3(a)(2)For (1), "ceiling amount" is amount (at least $20) which sets tax rate category.
26 USC 3(a)(3)The Secretary may choose to apply §3 to individuals who itemize deductions.
26 USC 3(b)§3 does not apply to—
26 USC 3(b)(1)taxpayers filing a return under §443(a)(1) due to accounting period change, and
26 USC 3(b)(2)an estate or trust.
26 USC 3(c)For 26 USC, tax imposed by §3 is treated as imposed by §1.
26 USC 3(d)Taxable income is determined under §63 when needed to determine taxable income.
26 USC 3(e)See §6014 for computation of tax by Secretary.
 
26 USC 4Repealed.
 
26 USC 5This section sets cross references relating to tax on individuals.
26 USC 5(a)For other rates of tax on individuals, &c., see:
26 USC 5(a)(1)§871 for rates of tax on nonresident aliens.
26 USC 5(a)(2)§891 for doubling of tax on certain foreign citizens.
26 USC 5(a)(3)§1441 for rate of withholding in the case of nonresident aliens.
26 USC 5(a)(4)§55 for alternative minimum tax.
26 USC 5(b)For special limitations on tax, see:
26 USC 5(b)(1)§692 for tax limitation of USAF members, victims of terrorist attacks, &c.
26 USC 5(b)(2)§1341 for tax where taxpayer restores amount held under claim of right.
 
Subtitle A, Chapter 1, Subchapter A, Part II.
 
26 USC 11This section sets the tax imposed on corporations.
26 USC 11(a)A tax is imposed for each taxable year on taxable income of every corporation.
26 USC 11(b)This subsection sets the amount of tax.
26 USC 11(b)(1)The amount of tax imposed by (a) is the sum of the following—
26 USC 11(b)(1)(A)15% of taxable income within $50000,
26 USC 11(b)(1)(B)25% of taxable income exceeding $50000 and within $75000,
26 USC 11(b)(1)(C)34% of taxable income exceeding $75000 and within $10000000, and
26 USC 11(b)(1)(D)35% of taxable income exceeding $10000000. Special rules may otherwise apply.
26 USC 11(b)(2)Tax imposed by (a) on a QPSC (§448(d)(2)) is 35% of taxable income.
26 USC 11(c)(a) does not apply to corporations subject to tax imposed by—
26 USC 11(c)(1)§594 (relating to mutual savings banks conducting life insurance business),
26 USC 11(c)(2)subchapter L (§801 - 848 (relating to insurance companies)), or
26 USC 11(c)(3)subchapter M (§851 - 860L (relating to RICs and REITs)).
26 USC 11(d)For foreign corporations, (a) and §55 apply only as provided by §882.
 
26 USC 12This section sets cross references relating to tax on corporations. See:
26 USC 12(1)§511 for tax on unrelated business income of corporations exempt from this tax.
26 USC 12(2)§531 for the accumulated earnings tax and personal holding company tax.
26 USC 12(3)§891 for the doubling of tax on corporations of certain foreign countries.
26 USC 12(4)§1201(a) for the alternative tax in case of capital gains.
26 USC 12(5)§1442 for the rate of withholding in case of foreign corporations.
26 USC 12(6)§1551 for limitation on benefits of graduated rate schedule of §11(b).
26 USC 12(7)§55 for alternative minimum tax.
 
Subtitle A, Chapter 1, Subchapter A, Part III.
 
26 USC 15This section describes the effect of changes.
26 USC 15(a)If any chapter 1 tax rate changes & the TY includes the effective date—
26 USC 15(a)(1)both rates before and after date of change will apply to taxable income, and
26 USC 15(a)(2)the year's tax is sum of tax by (1) applied proportionally to their duration.
26 USC 15(b)For purposes of (a)—
26 USC 15(b)(1)any repeal of tax is considered a change of rate, and
26 USC 15(b)(2)the rate for the period after the repeal is 0.
26 USC 15(c)For purposes of (a) and (b), if a rate changes for taxable years—
26 USC 15(c)(1)"beginning after" or "ending after" a date, the next day is date of change; and
26 USC 15(c)(2)"beginning on or after" a date, that date is considered the date of change.
26 USC 15(d)§15 doesn't apply to any change in rates under §1(f).
26 USC 15(e)Reference to highest tax by (b) of §1 or §11 uses weighted average of rates.
26 USC 15(f)§15 doesn't apply any change in rates under §1(i).
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart A.
 
26 USC 21Household expenses and dependent care services necessary for gainful employment.
26 USC 21(a)This subsection sets the allowance of credit.
26 USC 21(a)(1)Rate by (2) of (b)(2) costs is credit if (b)(1) applies regarding an individual.
26 USC 21(a)(2)Applicable percentage is 35%, less 1% (minimum 20%) each $2K AGI exceeds $15K.
26 USC 21(b)Definition of "qualifying individual" and "employment-related expenses".
26 USC 21(b)(1)A "qualifying individual" is—
26 USC 21(b)(1)(A)a dependent (§152(a)(1)) who has not attained age 13,
26 USC 21(b)(1)(B)a certain dependent who is physically or mentally deficient, or
26 USC 21(b)(1)(C)taxpayer's spouse, if (B) is met and lives with taxpayer for at least ½ of year.
26 USC 21(b)(2)This paragraph defines "employment-related expenses".
26 USC 21(b)(2)(A)To provide employment while (1) applies regarding taxpayer, such costs are:
26 USC 21(b)(2)(A)(i)expenses for household services.
26 USC 21(b)(2)(A)(ii)expenses for the care of the dependent, unless paid for overnight camps.
26 USC 21(b)(2)(B)Expenses by (A) are accounted only if incurred for the care of an individual—
26 USC 21(b)(2)(B)(i)who is described in (1)(A), or
26 USC 21(b)(2)(B)(ii)not by (1)(A) & usually spends 8 hours or more per day in taxpayer's household.
26 USC 21(b)(2)(C)Expenses by (A) incurred from a care center by (D) is applicable if—
26 USC 21(b)(2)(C)(i)the center complies with applicable laws of a State or local government, and
26 USC 21(b)(2)(C)(ii)(B) is met.
26 USC 21(b)(2)(D)A "dependent care center" is a facility that provides—
26 USC 21(b)(2)(D)(i)care for more than six non-resident individuals, and
26 USC 21(b)(2)(D)(ii)receives a form of payment or grant for providing services to such individuals.
26 USC 21(c)Expenses by (b)(2) incurred during any TY and accounted by (a) is limited to—
26 USC 21(c)(1)$3K if there is 1 qualifying individual regarding the taxpayer in such TY, or
26 USC 21(c)(2)$6K if there are 2 or more such individuals. §129 exclusion reduces such limits.
26 USC 21(d)This subsection sets an earned income limitation.
26 USC 21(d)(1)Expenses by (b)(2) accounted by (a) is limited to—
26 USC 21(d)(1)(A)for unmarried an individual, his earned income for the TY, or
26 USC 21(d)(2)(B)for married individuals, the lesser of his income or his spouse's.
26 USC 21(d)(2)Treat a spouse who is a student or meets (b)(1)(C) as having monthly income of—
26 USC 21(d)(2)(A)$250 if (c)(1) applies, or
26 USC 21(d)(2)(B)$500 if (c)(2) applies. (2) applies to only one spouse for a single month.
26 USC 21(e)This subsection sets special rules for purposes of §21.
26 USC 21(e)(1)If relationship violates law, individual and taxpayer don't live at same abode.
26 USC 21(e)(2)Credit by (a) is given only if married taxpayers file a joint return.
26 USC 21(e)(3)An individual separated from spouse by decree of divorce, &c., is not married.
26 USC 21(e)(4)An individual is not considered as married if—
26 USC 21(e)(4)(A)such individual is married and files a separate return, and—
26 USC 21(e)(4)(A)(i)maintains a home for more than one half of the year for a dependent, and
26 USC 21(e)(4)(A)(ii)furnishes more than half of maintaining such a household, and
26 USC 21(e)(4)(B)his spouse is not a member of such household for the last 6 months of the TY.
26 USC 21(e)(5)A child of a custodial parent (§152(e)(1)) is a qualifying individual if both—
26 USC 21(e)(5)(A)§152(e) applies to such child respect to the taxable year, and
26 USC 21(e)(5)(B)such child is under age 13 or is physically or mentally incapable of self care.
26 USC 21(e)(6)No credit from (a) is allowed for any amount paid to an individual who—
26 USC 21(e)(6)(A)is allowed a deduction to the taxpayer or spouse under §151(c), or
26 USC 21(e)(6)(B)is a child (§152(f)(1)) under age 19 at the end of the taxpayer's taxable year.
26 USC 21(e)(7)A "student" attends an educational organization for 5 calendar months full-time.
26 USC 21(e)(8)An "educational organization" is described in §170(b)(1)(A)(ii).
26 USC 21(e)(9)No credit by (a) is allowed for expenses unless the taxpayer's return has—
26 USC 21(e)(9)(A)the name, address, and TIN of the recipient, or
26 USC 21(e)(9)(B)the name and address of a receiving corporation subject to §501(c)(3).
26 USC 21(e)(10)No credit by (a) is allowed unless return has TIN of each individual by (b)(1).
26 USC 21(f)The Secretary prescribes regulations necessary to carry out §21 as needed.
 
26 USC 22This section sets credit for the elderly and the permanently & totally disabled.
26 USC 22(a)A qualified individual may claim a tax credit of 15% of §22 amount for the TY.
26 USC 22(b)For §22, a "qualified individual" is any individual who—
26 USC 22(b)(1)has attained age 65 before the end of the taxable year, or
26 USC 22(b)(2)retired on disability by the end of the TY and was disabled before retirement.
26 USC 22(c)This subsection defines the "§22 amount" for purposes of (a).
26 USC 22(c)(1)Such amount is initial amount by (2), reduced under (3) and subsection (d).
26 USC 22(c)(2)This paragraph sets the initial amount.
26 USC 22(c)(2)(A)Except by (B), the initial amount is—
26 USC 22(c)(2)(A)(i)$5000 for a single individual, or if only one spouse is a qualified individual,
26 USC 22(c)(2)(A)(ii)$7500 for a joint return where both spouses are qualified individuals, or
26 USC 22(c)(2)(A)(iii)$3750 for a married individual filing a separate return.
26 USC 22(c)(2)(B)A limitation for qualifying individuals who are not age 65.
26 USC 22(c)(2)(B)(i)Such individual's initial amount is limited to their disability income.
26 USC 22(c)(2)(B)(ii)For a joint return of two qualified spouses, the initial amount is limited to—
26 USC 22(c)(2)(B)(ii)(I)sum of their disability income, if both spouses haven't attained age 65, or
26 USC 22(c)(2)(B)(ii)(II)$5000 plus the disability income of the spouse who hasn't attained age 65.
26 USC 22(c)(2)(B)(iii)"Disability income" is amount included by §72 or §105(a) as disability wages.
26 USC 22(c)(3)This paragraph sets a reduction.
26 USC 22(c)(3)(A)Reduction by (3) is sum an individual or both spouses receive as pension, &c.,—
26 USC 22(c)(3)(A)(i)which is excluded from gross income and payable under—
26 USC 22(c)(3)(A)(i)(I)title II of the Social Security Act,
26 USC 22(c)(3)(A)(i)(II)the Railroad Retirement Act of 1974 (PL 93-445), or
26 USC 22(c)(3)(A)(i)(III)a law administered by Veterans' Administration, unless §104(a)(4) applies, or
26 USC 22(c)(3)(A)(ii)is excluded from gross income under any law not contained within 26 USC.
26 USC 22(c)(3)(B)For (A), treat SS benefit under §86(d)(3) as received by title II of SSA.
26 USC 22(d)The §22 amount is reduced by one-half of excess of AGI over—
26 USC 22(d)(1)$7500 in the case of a single individual, or
26 USC 22(d)(2)$10000 in the case of a joint return, or
26 USC 22(d)(3)$5000 in the case of a married individual filing a separate return.
26 USC 22(e)This subsection sets definitions and special rules for purposes §22.
26 USC 22(e)(1)Credit by (a) is only claimed on joint return unless spouses lived apart all TY.
26 USC 22(e)(2)Marital status is determined under §7703.
26 USC 22(e)(3)A person is disabled if unable to engage in gainful activity due to impairment.
26 USC 22(f)No credit is allowed by §22 to any nonresident alien.
 
26 USC 23This section discusses adoption expenses.
26 USC 23(a)This subsection sets the allowance of credit.
26 USC 23(a)(1)Qualified adoption expenses paid by taxpayer is credit against chapter 1 tax.
26 USC 23(a)(2)Credit by (1) is allowed regarding any expense in allowed in the TY—
26 USC 23(a)(2)(A)after TY such expenses are paid if occurring before adoption is final, and
26 USC 23(a)(2)(B)when expenses are paid or incurred if within or after TY when adoption is final.
26 USC 23(a)(3)Add $10000 to expenses in TY when adoption of child with special needs is final.
26 USC 23(b)This subsection sets limitations.
26 USC 23(b)(1)Total qualified expenses accounted under (a) for all TYs is limited to $10000.
26 USC 23(b)(2)This paragraph sets an income limitation.
26 USC 23(b)(2)(A)Credit by (a) is reduced by a ratio to total allowable credit as—
26 USC 23(b)(2)(A)(i)the amount the taxpayer's AGI exceeds $150000, bears to
26 USC 23(b)(2)(A)(ii)$40000.
26 USC 23(b)(2)(B)For (A), AGI is determined without regard to §§911, 931, and 933.
26 USC 23(b)(3)Denial of double benefits. No credit by (a) is allowed for any expense:
26 USC 23(b)(3)(A)For which a credit or deduction is allowed anywhere else in chapter 1.
26 USC 23(b)(3)(B)For which funds are received under any Federal, State, or local program.
26 USC 23(c)This subsection sets carryforwards of unused credit.
26 USC 23(c)(1)Excess of (a) over §26(a) limit (less certain credit) is carried to next TY.
26 USC 23(c)(2)Credit by §23 isn't carried to any TY 5 years after TY when such credit arose.
26 USC 23(d)This subsection sets definition for purposes of §23.
26 USC 23(d)(1)"Qualified adoption expenses" are necessary adoption fees, &c., which are—
26 USC 23(d)(1)(A)directly related to the taxpayer's legal adoption of an eligible child,
26 USC 23(d)(1)(B)not in violation of any State law or under surrogate parenting agreement,
26 USC 23(d)(1)(C)not related to the adoption of a child who is the taxpayer's spouse, and
26 USC 23(d)(1)(D)not reimbursed under an employer program or otherwise.
26 USC 23(d)(2)An "eligible child" is any individual who—
26 USC 23(d)(2)(A)has not attained age 18, or
26 USC 23(d)(2)(B)is physically or mentally incapable of caring for himself.
26 USC 23(d)(3)A "child with special needs" means any child if—
26 USC 23(d)(3)(A)a State has determined the child can't or shouldn't return to his parent's home,
26 USC 23(d)(3)(B)the child can't be placed with adoptive parents without adoption assistance, and
26 USC 23(d)(3)(C)the child is a citizen or resident of the US (§217(h)(3)).
26 USC 23(e)For the adoption of a child who is not a US citizen or resident (§217(h)(3))—
26 USC 23(e)(1)(a) doesn't apply to any expense by (d)(1) until the adoption is finalized, and
26 USC 23(e)(2)treat such expenses paid in TY before finalization as paid in finalization year.
26 USC 23(f)This subsection sets filing requirements.
26 USC 23(f)(1)Rules similar to (2), (3), and (4) of §§21(e) apply for purposes of §23.
26 USC 23(f)(2)This paragraph sets a requirement for taxpayer to include TIN.
26 USC 23(f)(2)(A)Credit by §23 requires filing of name, age, and TIN of any qualifying children.
26 USC 23(f)(2)(B)The Secretary, in lieu of (A), may require more information for purposes of (A).
26 USC 23(g)For subtitle A, decrease basis of applicable property by credit allowed by §23.
26 USC 23(h)For TYs beginning after 20021231, increase amounts in (a)(3) and (b) by—
26 USC 23(h)(1)such dollar amount, multiplied by
26 USC 23(h)(2)the cost-of-living adjustment by §1(f)(3); swap "2001" for "1992" in such (B).
26 USC 23(i)Sec. sets rules for §23 & §137 and to treat unmarried persons as 1 taxpayer.
 
26 USC 24This section discusses the child tax credit.
26 USC 24(a)$1K credit per qualifying child of taxpayer is allowed against chapter 1 tax.
26 USC 24(b)This subsection sets limitations.
26 USC 24(b)(1)(a) is reduced $50 each $1000 AGI & income by §§911, 931, & 933 exceeds (2).
26 USC 24(b)(2)For (1), the "threshold amount" is—
26 USC 24(b)(2)(A)$110000 in the case of a joint return,
26 USC 24(b)(2)(B)$75000 in the case of an unmarried individual, and
26 USC 24(b)(2)(C)$55000 for a married taxpayer (as by §7703) filing a separate return.
26 USC 24(c)This subsection defines a "qualifying child".
26 USC 24(c)(1)Such a child meets §152(c) regarding the taxpayer and hasn't attained age 17.
26 USC 24(c)(2)A resident of a "contiguous country" by §152(b)(3)(A) isn't a qualified child.
26 USC 24(d)This subsection sets rules to refund a portion of credit.
26 USC 24(d)(1)The aggregate credits allowed under subpart C is increased by the lesser of—
26 USC 24(d)(1)(A)credit allowed by §24, as if (d) and §26(a)(2) didn't apply, or
26 USC 24(d)(1)(B)credit by subpart C as if limitation by (b)(3) were increased by greater of—
26 USC 24(d)(1)(B)(i)15% of taxable earned income (§32) and exclusion by §112 in excess of $10000, or
26 USC 24(d)(1)(B)(ii)in the case of a taxpayer with at least 3 qualifying children, the excess of—
26 USC 24(d)(1)(B)(ii)(I)the taxpayer's social security taxes for the taxable year, over
26 USC 24(d)(1)(B)(ii)(II)credit under §32 for such TY; (d) is not credit and reduces (a).
26 USC 24(d)(2)This paragraph defines "social security taxes" for purposes of (1).
26 USC 24(d)(2)(A)Such taxes are, with respect to any taxpayer for any taxable year—
26 USC 24(d)(2)(A)(i)taxes by (a) of §3101 and §3201 on amounts received within year starting in TY,
26 USC 24(d)(2)(A)(ii)50% of taxes imposed by §1401 on self-employment income for such TY, and
26 USC 24(d)(2)(A)(iii)50% of taxes imposed by §3211(a) on amounts received during year by (i).
26 USC 24(d)(2)(B)Amount of taxes subject to refund by §6413(c) are not "social security taxes".
26 USC 24(d)(2)(C)For (A)(i), account equivalent amounts paid under §3121(l) agreement.
26 USC 24(d)(3)For TYs starting after 2001, the $10000 amount by (1)(B) shall be increased by—
26 USC 24(d)(3)(A)such dollar amount, multiplied by
26 USC 24(d)(3)(B)the cost-of-living adjustment by §1(f)(3); swap "2000" for "1992" in such (B).
26 USC 24(d)(4)For TYs starting in 2009 - 2017, the amount by (1)(B)(i) is $3000.
26 USC 24(e)Credit by §24 requires filing of name and TIN of any qualifying children.
26 USC 24(f)No credit by §24 is allowed for a TY of less than 12 months unless due to death.
 
26 USC 25This section discusses interest of certain home mortgages.
26 USC 25(a)This subsection sets the allowance of credit.
26 USC 25(a)(1)Credit allowed against chapter 1 tax imposed is equal to the product of—
26 USC 25(a)(1)(A)the certificate credit rate, and
26 USC 25(a)(1)(B)the interest paid on the remaining principal of certified indebtedness.
26 USC 25(a)(2)This paragraph sets a limitation where credit rate exceeds 20%.
26 USC 25(a)(2)(A)Credit by (1) is limited to $2000 if rate by (1)(A) exceeds 20%.
26 USC 25(a)(2)(B)(A) is allocated in proportion to all persons holding interest in the residence.
26 USC 25(b)Definition of "certificate credit rate" and "certified indebtedness amount".
26 USC 25(b)(1)The certificate credit rate is specified in the mortgage credit certificate.
26 USC 25(b)(2)Certified indebtedness amount is the amount of indebtedness which is—
26 USC 25(b)(2)(A)incurred by the taxpayer—
26 USC 25(b)(2)(A)(i)to acquire the principal residence of the taxpayer,
26 USC 25(b)(2)(A)(ii)as a qualified home improvement loan (§143(k)(4)) regarding such residence, or
26 USC 25(b)(2)(A)(iii)as a qualified rehabilitation loan (§143(k)(5)) regarding such residence, and
26 USC 25(b)(2)(B)specified in the mortgage credit certificate.
26 USC 25(c)"Mortgage credit certificate" & "qualified mortgage credit certificate program".
26 USC 25(c)(1)A mortgage credit certificate (MCC) is any certificate which—
26 USC 25(c)(1)(A)is issued by a qualified State program, &c., authorized to issue mortgage bond,
26 USC 25(c)(1)(B)is issued in connection with the acquisition, &c., of principal residence,
26 USC 25(c)(1)(C)specifies—
26 USC 25(c)(1)(C)(i)the certificate credit rate, and
26 USC 25(c)(1)(C)(ii)the certified indebtedness amount, and
26 USC 25(c)(1)(D)is in such form as the Secretary may prescribe.
26 USC 25(c)(2)This paragraph defines a "qualified mortgage credit certificate program".
26 USC 25(c)(2)(A)A qualified mortgage credit certificate program is any program—
26 USC 25(c)(2)(A)(i)established by State, &c., for any year it may issue qualified mortgage bonds,
26 USC 25(c)(2)(A)(ii)where the issuing authority elects not to issue private activity bonds,
26 USC 25(c)(2)(A)(iii)from which debt certified by MCC meets, regarding §143 (as modified by (B)),:
26 USC 25(c)(2)(A)(iii)(I)(c) (relating to residence requirements),
26 USC 25(c)(2)(A)(iii)(II)(d) (relating to 3-year requirement),
26 USC 25(c)(2)(A)(iii)(III)(e) (relating to purchase price requirement),
26 USC 25(c)(2)(A)(iii)(IV)(f) (relating to income requirements),
26 USC 25(c)(2)(A)(iii)(V)(h) (relating to required placement of portion of loans), and
26 USC 25(c)(2)(A)(iii)(VI)(i)(1) (relating to other requirements),
26 USC 25(c)(2)(A)(iv)under which no MCC is financed by a qualified mortgage bond, &c.,
26 USC 25(c)(2)(A)(v)which is not limited to indebtedness incurred from particular lenders,
26 USC 25(c)(2)(A)(vi)which provides that a mortgage credit certificate is not transferable, and
26 USC 25(c)(2)(A)(vii)requiring certain developers to certify residence price as equal despite MCC.
26 USC 25(c)(2)(B)For applying §143 for purposes of (II), (IV), and (V) of (A)(iii)—
26 USC 25(c)(2)(B)(i)each qualified MCC program shall be treated as a separate issue,
26 USC 25(c)(2)(B)(ii)the amount deemed the total proceeds of the issue is determined by multiplying—
26 USC 25(c)(2)(B)(ii)(I)the certified indebtedness of each MCC issued under such program, by
26 USC 25(c)(2)(B)(ii)(II)the certificate credit rate specified in such certificate, and
26 USC 25(c)(2)(A)(iii)substitute "100%" for "95% or more" in §143(d)(1).
26 USC 25(d)This subsection sets determination of certificate credit rate.
26 USC 25(d)(1)Such rate specified in a MCC is no less than 10% and is limited to 50%.
26 USC 25(d)(2)This paragraph sets an aggregate limit on credit certificate rates.
26 USC 25(d)(2)(A)For each qualified program, limit of 25% of amount by (B) applies to product of—
26 USC 25(d)(2)(A)(i)total certified indebtedness amount of each MCC issued by the program, by
26 USC 25(d)(2)(A)(ii)the respective credit rate with respect to such MCC.
26 USC 25(d)(2)(B)"Nonissued bond amount" is amount of unissued bonds by (c)(2)(A)(ii).
26 USC 25(e)This subsection sets special rules and definitions for purposes of §25.
26 USC 25(e)(1)This paragraph sets a carryforward of unused credit.
26 USC 25(e)(1)(A)Credit by (a) which exceeds (C) is carried over to each of next 3 years.
26 USC 25(e)(1)(B)Amount by (A) is limited to amount that applicable tax limit exceeds sum of—
26 USC 25(e)(1)(B)(i)credit by (a) for the TY determined without (1), and
26 USC 25(e)(1)(B)(ii)amounts carried to current TY from previous TYs by (1).
26 USC 25(e)(1)(C)"Applicable tax limit" is §26(a) limit less credits under subpart A.
26 USC 25(e)(2)(a) doesn't apply if debt doesn't meet certain rules by §143 and by (c)(2)(A).
26 USC 25(e)(3)This paragraph sets the period for which the certificate is in effect.
26 USC 25(e)(3)(A)Except by (B), a MCC is in effect regarding interest attributable to the period—
26 USC 25(e)(3)(A)(i)beginning on the date such certificate is issued, and
26 USC 25(e)(3)(A)(ii)ending on the earlier date on which—
26 USC 25(e)(3)(A)(ii)(I)the certificate is revoked by the issuing authority, or
26 USC 25(e)(3)(A)(ii)(II)the applicable residence ceases to be principal home of taxpayer.
26 USC 25(e)(3)(B)MCC doesn't apply to debt incurred 2 years after (c)(2)(A)(ii) election is made.
26 USC 25(e)(3)(C)Per regulations, issuing authority notifies the Sec. if any MCC is revoked.
26 USC 25(e)(4)MCC may be reissued if credit by (a) is equal or less than credit by prior MCC.
26 USC 25(e)(5)At least 90 days before issue, issuing authority will give public notice of—
26 USC 25(e)(5)(A)the eligibility requirements of such certificates,
26 USC 25(e)(5)(B)the methods by which such certificates are to be issued, and
26 USC 25(e)(5)(C)any other information as the Secretary may require.
26 USC 25(e)(6)No credit by (a) allowed for interest paid to a related person (§144(a)(3)(A)).
26 USC 25(e)(7)A "principal residence" has the same meaning as used in §121.
26 USC 25(e)(8)Definition of "qualified rehabilitation" and "qualified home improvement".
26 USC 25(e)(8)(A)Qualified rehabilitation has the same meaning as under §143(k)(5)(B).
26 USC 25(e)(8)(B)Qualified home improvement has the same meaning as under §143(k)(4).
26 USC 25(e)(9)A "qualified mortgage bond" has the same meaning as under §143(a)(1).
26 USC 25(e)(10)"Single family residence" is a home with minimum 400 ft² living space.
26 USC 25(f)Reduction of total qualified bonds which may be issued due to noncompliance.
26 USC 25(f)(1)If (d)(2) is unmet, §146(d) ceiling is reduced by 1.25 times amount by (2).
26 USC 25(f)(2)This paragraph sets the "correction amount".
26 USC 25(f)(2)(A)Such amount is equal to the excess credit amount divided by 0.25.
26 USC 25(f)(2)(B)This subparagraph sets the "excess credit amount".
26 USC 25(f)(2)(B)(i)For (A)(ii), the excess credit amount the excess of—
26 USC 25(f)(2)(B)(i)(I)the credit amount for any mortgage credit certificate program, over
26 USC 25(f)(2)(B)(i)(II)the credit amount which would be allowed if (d)(2) was met.
26 USC 25(f)(2)(B)(ii)"Credit amount" is the sum of products by (i) and (ii) of (d)(2)(A).
26 USC 25(f)(3)Reduction by (1) is allocated to cities by §146(d)(3)(C) within a State.
26 USC 25(f)(4)(f) doesn't apply if a certification program in place to ensure compliance.
26 USC 25(f)(5)Secretary may waive (1) if failure is determined as by reasonable cause.
26 USC 25(g)Person who makes loan of certified indebtedness under MCC must file a report of—
26 USC 25(g)(1)the name, address, and SSN of the individual to which certificate was issued,
26 USC 25(g)(2)certificate's issuer, date of issue, debt amount, credit rate, and
26 USC 25(g)(3)any other information the Secretary may require, as prescribed by regulations.
26 USC 25(h)This subsection sets regulations and rules for contracts.
26 USC 25(h)(1)Sec. sets rules for §25 and imposition of processing fees on MCC recipients.
26 USC 25(h)(2)Sec. may enter contracts with any person regarding administration of §25.
26 USC 25(i)See §143(m) for increase of chapter 1 tax due to recapture of Federal subsidy.
 
26 USC 25AThis section discusses the Hope Credit and Lifetime Learning Credit.
26 USC 25A(a)For individuals, a credit is allowed against chapter 1 tax equal to the sum of—
26 USC 25A(a)(1)the Hope Scholarship Credit, plus
26 USC 25A(a)(2)the Lifetime Learning Credit.
26 USC 25A(b)This subsection sets rules for the Hope Scholarship Credit.
26 USC 25A(b)(1)For TY of any electing eligible student, the Hope Credit is the sum of—
26 USC 25A(b)(1)(A)100% of qualified tuition and expenses paid in TY within $1000, plus
26 USC 25A(b)(1)(B)50% of such expenses exceeding $1000 and within applicable limit.
26 USC 25A(b)(2)This paragraph sets limitations applicable to the Hope Scholarship Credit.
26 USC 25A(b)(2)(A)Election by §25A isn't allowed if such election is made for any 2 prior TYs.
26 USC 25A(b)(2)(B)Credit is allowed only to eligible students for at least one academic period.
26 USC 25A(b)(2)(C)Credit is allowed for the first 2 years of student's postsecondary education.
26 USC 25A(b)(2)(D)Credit is disallowed if student is convicted of a drug-related felony.
26 USC 25A(b)(3)An "eligible student" is, with respect to any academic period, a student who—
26 USC 25A(b)(3)(A)meets §484(a)(1) of PL 89-329 in effect as of 19970805, and
26 USC 25A(b)(3)(B)has at least ½ the normal full-time work load for his course of study.
26 USC 25A(b)(4)For (1)(B), the applicable limit is 2 times the dollar amount under (1)(A).
26 USC 25A(c)This subsection sets rules for the Lifetime Learning Credit.
26 USC 25A(c)(1)Such Credit is 20% of qualified tuition and expenses within $10000.
26 USC 25A(c)(2)This paragraph sets special rules for determining expenses.
26 USC 25A(c)(2)(A)Qualified tuition and expenses accounted by (a)(1) are not accounted by (c).
26 USC 25A(c)(2)(B)For (1), expenses by (f)(1) to acquire or improve job skills are qualified.
26 USC 25A(d)This subsection sets a limitation based on modified gross adjusted income.
26 USC 25A(d)(1)Amount determined by (a) is reduced (not less than zero) by amount by (2).
26 USC 25A(d)(2)Reduction bears the same ratio to the amount which would be accounted as—
26 USC 25A(d)(2)(A)the excess of—
26 USC 25A(d)(2)(A)(i)the taxpayer's modified adjusted gross income for the taxable year, over
26 USC 25A(d)(2)(A)(ii)$40000 ($80000 in the case of a joint return), bears to
26 USC 25A(d)(2)(B)$10000 ($20000 in the case of a joint return).
26 USC 25A(d)(3)"Modified AGI" is AGI increased by any exclusions under §§911, 931, or 933.
26 USC 25A(e)A taxpayer may elect to not have §25A apply to qualified tuition and expenses.
26 USC 25A(f)This subsection sets definitions for purposes of §25A.
26 USC 25A(f)(1)This paragraph defines "qualified tuition and related expenses".
26 USC 25A(f)(1)(A)Such expenses required for enrollment at an eligible educational institution by—
26 USC 25A(f)(1)(A)(i)the taxpayer,
26 USC 25A(f)(1)(A)(ii)the taxpayer's spouse, or
26 USC 25A(f)(1)(A)(iii)any taxpayer's dependent for which the taxpayer may take deduction by §151.
26 USC 25A(f)(1)(B)Such expenses are not for courses involving sports, &c., without degree program.
26 USC 25A(f)(1)(C)Such expenses are not activity fees, &c., unrelated to course of instruction.
26 USC 25A(f)(2)An "eligible educational institution" is an institution which is—
26 USC 25A(f)(2)(A)described in §481 of PL 89-329, and
26 USC 25A(f)(2)(B)eligible to participate in a program under title IV of such PL.
26 USC 25A(g)This subsection sets special rules.
26 USC 25A(g)(1)Credit by (a) requires reporting of name and TIN of student by (b)(3) on return.
26 USC 25A(g)(2)Expenses accounted by (a) is reduced (before applying (b) - (d)) by the sum of—
26 USC 25A(g)(2)(A)qualified scholarships which are excludable from gross income under §117,
26 USC 25A(g)(2)(B)assistance allowances by chapters 30 - 35 of 38 USC or chapter 1606 of 10 USC, &
26 USC 25A(g)(2)(C)any educational payments (other than gifts as by §102(a)) excluded from income.
26 USC 25A(g)(3)If a deduction for a dependent by §151 is allowed to another taxpayer—
26 USC 25A(g)(3)(A)no credit under (a) is allowed to such dependent for his taxable year, and
26 USC 25A(g)(3)(B)expenses paid by the dependent are considered paid by the other taxpayer.
26 USC 25A(g)(4)Expenses paid in 1st 3 months after TY are accounted for such prior TY.
26 USC 25A(g)(5)No credit is allowed for costs deductible under any other chapter 1 provision.
26 USC 25A(g)(6)§25A applies only to married individuals by §7703 who file a joint return.
26 USC 25A(g)(7)§25A applies to nonresident aliens who make election by (g) or (h) of §6013.
26 USC 25A(h)This subsection sets inflation adjustments.
26 USC 25A(h)(1)This paragraph sets a dollar limitation on the amount of credit.
26 USC 25A(h)(1)(A)For TYs after 2001, the $1000 amounts by (b)(1) are increased by—
26 USC 25A(h)(1)(A)(i)such dollar amount, multiplied by
26 USC 25A(h)(1)(A)(ii)the cost-of-living adjustment by §1(f)(3); swap "2000" for "1992" in such (B).
26 USC 25A(h)(1)(B)Amounts under (A) shall be rounded to the next lowest multiple of $100.
26 USC 25A(h)(2)This paragraph sets income limits.
26 USC 25A(h)(2)(A)After 2001, the $40000 and $80000 amounts by (d)(2) are increased by—
26 USC 25A(h)(2)(A)(i)such dollar amount, multiplied by
26 USC 25A(h)(2)(A)(ii)the cost-of-living adjustment by §1(f)(3); swap "2000" for "1992" in such (B).
26 USC 25A(h)(2)(B)Amounts under (A) are rounded to the next lowest multiple of $1000.
26 USC 25A(i)Rules for the American Opportunity Tax Credit for TYs beginning in 2009 - 2017.
26 USC 25A(i)(1)The Hope Scholarship Credit is equal to the sum of—
26 USC 25A(i)(1)(A)100% of qualified tuition paid within $2000 for education of eligible student, &
26 USC 25A(i)(1)(B)25% of such expenses paid as exceeds $2000 but is within $4000.
26 USC 25A(i)(2)(A) and (C) of (b)(2) are applied by substituting "4" for "2".
26 USC 25A(i)(3)(f)(1)(A) is applied by accounting "tuition, fees, and course materials".
26 USC 25A(i)(4)For (d), such credit is reduced by amount bearing same ratio thereto as—
26 USC 25A(i)(4)(A)the excess of—
26 USC 25A(i)(4)(A)(i)taxpayers MAGI (as by (d)(3)) for such taxable year, over
26 USC 25A(i)(4)(A)(ii)$80K ($160K in the case of a joint return), bears to
26 USC 25A(i)(4)(B)$10K ($20K in the case of a joint return).
26 USC 25A(i)(5)40% of credit by (b) is considered as under subpart C and not under (a).
26 USC 25A(i)(6)Taxpayer subject to §702(a)(1)(B) of PL 110-343 may elect to not apply (i).
26 USC 25A(j)Sec. sets rules for §25A & to recapture credit if cost is accounted in other TY.
 
26 USC 25BElective deferrals and IRA contributions by certain individuals.
26 USC 25B(a)Percentage of contributions by (d) within $2K is credit against chapter 1 tax.
26 USC 25B(b)This subsection sets the applicable percentage for purposes of §25B.
26 USC 25B(b)(1)For a joint return, the applicable percentage is, if taxpayer's AGI is—
26 USC 25B(b)(1)(A)within $30000, 50%,
26 USC 25B(b)(1)(B)over $30000 but not over $32500, 20%,
26 USC 25B(b)(1)(C)over $32500 but not over $50000, 10%, and
26 USC 25B(b)(1)(D)over $50000, 0%.
26 USC 25B(b)(2)To figure the applicable percentage of a taxpayer who is—
26 USC 25B(b)(2)(A)head of household, apply (1) by swapping each amount with 75% of such amount, &
26 USC 25B(b)(2)(B)not by (1) or (A), apply (1) by swapping each amount with 50% of such amount.
26 USC 25B(b)(3)After 2006, the dollar amounts by (1) are increased by—
26 USC 25B(b)(3)(A)such dollar amount, multiplied by
26 USC 25B(b)(3)(B)the cost-of-living adjustment by §1(f)(3); swap "2005" for "1992" in such (B).
26 USC 25B(c)This subsection defines an "eligible individual".
26 USC 25B(c)(1)An eligible individual has attained age of 18 at the end of the taxable year.
26 USC 25B(c)(2)An eligible individual doesn't include any individual who—
26 USC 25B(c)(2)(A)is claimed by another taxpayer regarding the deduction under §151, and
26 USC 25B(c)(2)(B)is a student (§152(f)(2)).
26 USC 25B(d)This subsection defines "qualified retirement savings contributions".
26 USC 25B(d)(1)Such contributions are, with respect to any taxable year, the sum of—
26 USC 25B(d)(1)(A)the amount of contributions by §219(e) made by the eligible individual,
26 USC 25B(d)(1)(B)the amount of—
26 USC 25B(d)(1)(B)(i)any elective deferrals (§402(g)(3)) of such individual, and
26 USC 25B(d)(1)(B)(ii)deferrals under a plan by §457(b) of an employer by §457(e)(1)(A), and
26 USC 25B(d)(1)(C)the amount of contributions to any qualified retirement plan (§4974(c)).
26 USC 25B(d)(2)This paragraph sets a reduction for certain distributions.
26 USC 25B(d)(2)(A)Contributions by (1) are reduced by distributions received in (B) period.
26 USC 25B(d)(2)(B)For (A), the testing period for a taxable year includes—
26 USC 25B(d)(2)(B)(i)such taxable year,
26 USC 25B(d)(2)(B)(ii)the 2 preceding taxable years, and
26 USC 25B(d)(2)(B)(iii)the period after such TY and before the due date of filing its return.
26 USC 25B(d)(2)(C)(A) doesn't account any distribution—
26 USC 25B(d)(2)(C)(i)by §§72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), 408(d)(4), and
26 USC 25B(d)(2)(C)(ii)to which §408A(d)(3) applies.
26 USC 25B(d)(2)(D)Distributions received by spouse are applicable if joint return is filed.
26 USC 25B(e)For §25B, adjusted AGI is determined without regard to §§911, 931, and 933.
26 USC 25B(f)Contributions must be included to figure investment in contract under §72.
 
26 USC 25CThis section discusses the nonbusiness energy property credit.
26 USC 25C(a)Credit against chapter 1 tax is allowed to an individual equal to the sum of—
26 USC 25C(a)(1)10% of payments for energy efficiency improvements installed during the TY, and
26 USC 25C(a)(2)residential energy property expenditures paid by the taxpayer during such TY.
26 USC 25C(b)This subsection sets limitations.
26 USC 25C(b)(1)Credit is limited to excess of $500 over total §25C credit for TYs after 2005.
26 USC 25C(b)(2)For credit in respect of windows by (c)(2)(B), swap "$200" for "$500" in (1).
26 USC 25C(b)(3)Credit allowed by §25C under (a)(2) is limited to—
26 USC 25C(b)(3)(A)$50 for any advanced main air circulating fan,
26 USC 25C(b)(3)(B)$150 for any qualified boiler (as by (d)(4)), and
26 USC 25C(b)(3)(B)$300 for any item of energy-efficient building property.
26 USC 25C(c)This subsection defines "qualified energy efficiency improvements".
26 USC 25C(c)(1)Such improvements meet the 2009 International Energy Conversation Code, if—
26 USC 25C(c)(1)(A)such component is installed in the US for taxpayer's principal residence (§121),
26 USC 25C(c)(1)(B)the original use of such component starts with the taxpayer, and
26 USC 25C(c)(1)(C)such component is reasonably expected to remain in use for at least 5 years.
26 USC 25C(c)(2)A "building envelope component" is—
26 USC 25C(c)(2)(A)an insulation material or system designed to reduce heat loss or gain in a unit,
26 USC 25C(c)(2)(B)exterior windows (including skylights),
26 USC 25C(c)(2)(C)exterior doors, and
26 USC 25C(c)(2)(D)a metal roof with pigmented coating made for reduction of heat gain in the unit.
26 USC 25C(c)(3)A "dwelling unit" includes a home conforming to standards by 24 CFR part 3280.
26 USC 25C(d)This subsection defines "residential energy property expenditures".
26 USC 25C(d)(1)Such expenditures are incurred by the taxpayer for qualified energy property—
26 USC 25C(d)(1)(A)installed on or in a US dwelling unit used as a principal residence (§121), and
26 USC 25C(d)(1)(B)originally placed in service by the taxpayer. Include allocable labor costs.
26 USC 25C(d)(2)This paragraph defines "qualified energy property".
26 USC 25C(d)(2)(A)Qualified energy property is—
26 USC 25C(d)(2)(A)(i)energy-efficient building property,
26 USC 25C(d)(2)(A)(ii)a natural gas, propane, or oil furnace or hot water blower (as by (d)(4)), or
26 USC 25C(d)(2)(A)(iii)an advanced main air circulating fan.
26 USC 25C(d)(2)(B)Property of (A) meets the performance standards and certifications, which—
26 USC 25C(d)(2)(B)(i)the Sec. sets after consultation with Sec. of Energy or EPA Administrator, and
26 USC 25C(d)(2)(B)(ii)are in effect at time of property's acquisition, completion, erection, &c.
26 USC 25C(d)(2)(C)The standards and requirements prescribed by the Secretary in (B)—
26 USC 25C(d)(2)(C)(i)for energy efficiency ratio (EER) of central air conditioners and heat pumps—
26 USC 25C(d)(2)(C)(i)(I)are based on published data which is tested by manufacturers at 95°F, and
26 USC 25C(d)(2)(C)(i)(II)is based on certified data of Air Conditioning and Refrigeration Institute, and
26 USC 25C(d)(2)(C)(ii)in the case of geothermal heat pumps—
26 USC 25C(d)(2)(C)(ii)(I)is based on testing under ARI/ISO Standard 13256-1 for Water Pumps, &c., and
26 USC 25C(d)(2)(C)(ii)(II)has evidence that water heating services were through a desuperheater, &c.
26 USC 25C(d)(3)"Energy-efficient building property" is—
26 USC 25C(d)(3)(A)an electric heat pump water heater yielding energy factor of at least 2.0,
26 USC 25C(d)(3)(B)an electric pump with HSPF of 9 or more, SEER of 15 or more, EER of 13 or more,
26 USC 25C(d)(3)(C)a central air conditioner which achieves at highest energy tier as of 20090101,
26 USC 25C(d)(3)(D)property by (4) with at least energy factor of 0.82 or efficiency of 90%, and
26 USC 25C(d)(3)(E)a stove using biomass fuel to heat a (c)(3) unit with efficiency of 75% or more.
26 USC 25C(d)(4)A "qualified boiler", &c., has annual fuel utilization efficiency of 95 or more.
26 USC 25C(d)(5)An "advanced main air circulating fan" has no more than 2% annual furnace use.
26 USC 25C(d)(6)"Biomass fuel" is any plant-derived fuel available on a renewable basis.
26 USC 25C(e)This subsection sets special rules for purposes of §25C.
26 USC 25C(e)(1)Rules similar to those of (4) - (8) of §25D(e) apply for §25C.
26 USC 25C(e)(2)This paragraph sets rules for joint ownership of energy items.
26 USC 25C(e)(2)(A)Expenditures do not fail to qualify because they were made for multiple units.
26 USC 25C(e)(2)(B)For (A), figure credit separately for each expenditure made for each unit.
26 USC 25C(e)(3)Do not account costs made from subsidized energy financing as by §48(a)(4)(C).
26 USC 25C(f)For subtitle A, decrease the basis of property by credit allowed under §25C.
26 USC 25C(g)§25C doesn't apply with respect to property placed in service—
26 USC 25C(g)(1)after 20071231 and before 20091010, or
26 USC 25C(g)(2)after 20131231.
 
26 USC 25DThis section discusses the residential energy efficient property credit.
26 USC 25D(a)Individual is allowed credit against chapter 1 tax for a TY equal to the sum of—
26 USC 25D(a)(1)30% of qualified solar electric property expenditures,
26 USC 25D(a)(2)30% of qualified solar water heating property expenditures,
26 USC 25D(a)(3)30% of qualified fuel cell property expenditures,
26 USC 25D(a)(4)30% of qualified small wind energy property expenditures, and
26 USC 25D(a)(5)30% of qualified geothermal heat pump property expenditures.
26 USC 25D(b)This subsection sets limitations.
26 USC 25D(b)(1)Credit by (a) for expenditures by such (3) is limited to $500 per ½KW capacity.
26 USC 25D(b)(2)Property by (d)(1) requires Solar Rating Certification Corporation approval.
26 USC 25D(c)(a) credit exceeding §26(a) limit (reduced by credits) is carried to next TY.
26 USC 25D(d)Definitions for §25D. Regarding a dwelling unit in the US used as a residence:
26 USC 25D(d)(1)Cost by (a)(1) is for property where half of energy use is from the sun.
26 USC 25D(d)(2)Cost by (a)(2) is for property which generates electricity from solar energy.
26 USC 25D(d)(3)Cost by (a)(3) is for property by §48(c)(1) where such residence meets §121.
26 USC 25D(d)(4)Cost by (a)(4) is for property which generates electricity from a wind turbine.
26 USC 25D(d)(5)Rules for "qualified geothermal heat pump property expenditures".
26 USC 25D(d)(5)(A)Such costs are for property by (B) installed on such a residential unit.
26 USC 25D(d)(5)(B)"Qualified geothermal heat pump property" is any equipment which—
26 USC 25D(d)(5)(B)(i)uses the ground or ground water as an energy source to heat unit by (A), and
26 USC 25D(d)(5)(B)(ii)meets the Energy Star requirements which are in effect when cost is incurred.
26 USC 25D(e)This subsection sets special rules for purposes of §25D.
26 USC 25D(e)(1)Labor costs allocable to preparation, assembly, &c., of property is accounted.
26 USC 25D(e)(2)(1) & (2) of (d) applies to roof installations which are structural components.
26 USC 25D(e)(3)Costs allocable to pools, &c., which don't store energy don't apply.
26 USC 25D(e)(4)For units jointly occupied by 2 or more individuals, the following rules apply:
26 USC 25D(e)(4)(A)Maximum costs accounted by (a) is $1667 per ½KW of property for costs by (a)(3).
26 USC 25D(e)(4)(B)Expenditures allocated to any individual for TY is equal to the lesser of—
26 USC 25D(e)(4)(B)(i)the amount of expenditures made by such individual for the unit in TY, or
26 USC 25D(e)(4)(B)(ii)the maximum amount of expenditures set by (A) multiplied by a fraction with a—
26 USC 25D(e)(4)(B)(ii)(I)numerator of expenditure amount for such unit by such individual, and
26 USC 25D(e)(4)(B)(ii)(II)denominator of total expenditures made by all individuals for such unit.
26 USC 25D(e)(5)Tenant-stockholders (§216) have proportional share (§216(b)(3)) of expenditures.
26 USC 25D(e)(6)This paragraph sets rules for condominiums.
26 USC 25D(e)(6)(A)Members of management association make proportionate share of expenditures.
26 USC 25D(e)(6)(B)A "condominium management association" is by §528(c)(1) (except such (E)).
26 USC 25D(e)(7)If less than 80% of item use is for nonbusiness, only such portion is accounted.
26 USC 25D(e)(8)This paragraph determines when expenditures are made and their amount.
26 USC 25D(e)(8)(A)An expenditure for an item is made when original installation is completed.
26 USC 25D(e)(8)(B)An expenditure for structure construction is made when original use begins.
26 USC 25D(e)(9)To figure expenditures for a unit, exclude costs from financing by §48(a)(4)(C).
26 USC 25D(f)For subtitle A, decrease the basis of property by credit allowed under §25D.
26 USC 25D(g)§25D does not apply to property placed in service after 20161231.
 
26 USC 26This section defines tax liability and limitations based upon tax liability.
26 USC 26(a)Credit allowed by subpart A for the TY is limited to sum of—
26 USC 26(a)(1)regular tax liability for such TY, reduced by foreign tax credit under §27(a), &
26 USC 26(a)(2)the tax imposed by §55(a) for the taxable year.
26 USC 26(b)This subsection defines "regular tax liability".
26 USC 26(b)(1)Regular tax liability is the tax imposed by chapter 1 for the taxable year.
26 USC 26(b)(2)Tax imposed by any of these provisions is not considered imposed by chapter 1:
26 USC 26(b)(2)(A)§55 (minimum tax),
26 USC 26(b)(2)(B)§59A (environmental tax),
26 USC 26(b)(2)(C)(m)(5)(B), (q), (t), or (v) of §72 (additional taxes on certain distributions),
26 USC 26(b)(2)(D)§143(m) (recapture of Federal subsidy from use of mortgage bonds, &c.),
26 USC 26(b)(2)(E)§530(d)(4) (additional tax on Coverdell account distribution),
26 USC 26(b)(2)(F)§531 (accumulated earnings tax),
26 USC 26(b)(2)(G)§541 (personal holding company tax),
26 USC 26(b)(2)(H)§1351(d)(1) (recoveries of foreign expropriation losses),
26 USC 26(b)(2)(I)§1374 (tax on certain built-in gains of S corporations),
26 USC 26(b)(2)(J)§1375 (certain passive investment income of corporation subchapter C earnings),
26 USC 26(b)(2)(K)§7518(g)(6)(A) (nonqualified withdrawals from capital construction funds),
26 USC 26(b)(2)(L)§§871(a), 881 (certain income of nonresident aliens and foreign corporations),
26 USC 26(b)(2)(M)§860E(e) (taxes with respect to certain residual interests),
26 USC 26(b)(2)(N)§884 (branch profits tax),
26 USC 26(b)(2)(O)§§453(l)(3), 453A(c) (interest on certain deferred tax liabilities),
26 USC 26(b)(2)(P)§860K (treatment of transfers of high-yield interests to disqualified holders),
26 USC 26(b)(2)(Q)§220(f)(4) (tax on Archer MSA distributions not used for medical purposes),
26 USC 26(b)(2)(R)§138(c)(2) (penalty for certain distributions from Medicare Advantage MSA),
26 USC 26(b)(2)(S)§§106(e)(3)(A)(ii), 223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II),
26 USC 26(b)(2)(T)§170(o)(3)(B) (recapture of certain deductions for fractional gifts),
26 USC 26(b)(2)(U)§223(f)(4) (additional tax on HSA distributions not used for medical costs), and
26 USC 26(b)(2)(V)(a)(1)(B)(i) and (b)(4)(A) of §409A (additional tax on deferred compensation).
26 USC 26(c)The "tentative minimum tax" means the amount determined under §55(b)(1).
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart B.
 
26 USC 27Taxes of foreign countries and possessions of the US; possession tax credit.
26 USC 27(a)Per §901, taxes imposed by such countries is a credit against chapter 1 tax.
26 USC 27(b)For domestic corporations, amount by §936 is a credit against chapter 1 tax.
 
26 USC 28Renumbered §45C.
 
26 USC 29Renumbered §45K.
 
26 USC 30This section discusses a credit for certain plug-in electric vehicles.
26 USC 30(a)10% of cost of (d) vehicle put in service in TY is credit against chapter 1 tax.
26 USC 30(b)Amount of credit allowed under (a) for any vehicle is limited to $2500.
26 USC 30(c)This subsection sets application with other credits.
26 USC 30(c)(1)Credit by (a) for depreciable property is considered as given under §38(b).
26 USC 30(c)(2)For 26 USC, credit by (a) is a credit allowable under subpart A for the TY.
26 USC 30(d)This subsection defines a "qualified plug-in electric vehicle" for §30.
26 USC 30(d)(1)A qualified plug-in electric vehicle is a specified vehicle—
26 USC 30(d)(1)(A)the original use of which commences with the taxpayer,
26 USC 30(d)(1)(B)which is acquired for use or lease by the taxpayer and not for resale,
26 USC 30(d)(1)(C)which is made by a manufacturer,
26 USC 30(d)(1)(D)which is manufactured primarily for use on public roads, streets, and highways,
26 USC 30(d)(1)(E)which has a gross vehicle weight rating of less than 14000 pounds, and
26 USC 30(d)(1)(F)which is significantly propelled by a electric motor from using a battery which—
26 USC 30(d)(1)(F)(i)has a capacity of at least 4 kilowatt hours, and
26 USC 30(d)(1)(F)(ii)is capable of being recharged from an external source of electricity.
26 USC 30(d)(2)A "specified vehicle" is any vehicle which—
26 USC 30(d)(2)(A)is a low speed vehicle as by §517.3 of 49 CFR (as in effect on 20090217), or
26 USC 30(d)(2)(B)has 2 or 3 wheels.
26 USC 30(d)(3)A "manufacturer" is set by the Administrator of EPA for title II of PL 88-206.
26 USC 30(d)(4)A battery's "capacity" is the quantity of energy it stores at 100% charge state.
26 USC 30(e)This subsection sets special rules.
26 USC 30(e)(1)For subtitle A, the adjusted basis of such property is reduced by credit by (a).
26 USC 30(e)(2)Any other chapter 1 credit, &c., for such property is reduced by credit by (a).
26 USC 30(e)(3)If use meets (3) or (4) of §50(b), vehicle's seller has put vehicle in service.
26 USC 30(e)(4)No credit by (a) is allowed to property subject to §50(b)(1).
26 USC 30(e)(5)Sec. sets recapture for any property which ceases to be eligible for credit.
26 USC 30(e)(6)Credit by (a) is not allowed if taxpayer elects to not have §30 apply.
26 USC 30(f)§30 does not apply to any vehicle acquired after 20111231.
 
26 USC 30AThis section discusses the Puerto Rico economic activity credit.
26 USC 30A(a)This subsection sets the allowance of credit.
26 USC 30A(a)(1)If (1) & (2) of (b) are met, credit is allowed against attributable income from—
26 USC 30A(a)(1)(A)the active conduct of a trade or business within Puerto Rico, or
26 USC 30A(a)(1)(B)the sale of mostly all related assets. After 2001 TY, §936(j) limit applies.
26 USC 30A(a)(2)A "qualified domestic corporation" means a corporation—
26 USC 30A(a)(2)(A)which is an existing credit claimant with respect to Puerto Rico, and
26 USC 30A(a)(2)(B)in respect to which §936(a)(4)(B) does not apply for the taxable year.
26 USC 30A(a)(3)In respect to Puerto Rico, §30A and §936 are applied separately in figuring—
26 USC 30A(a)(3)(A)if taxpayer is an existing credit claimant, and
26 USC 30A(a)(3)(B)the amount of credit allowed by §30A.
26 USC 30A(b)Conditions which must be satisfied by a qualified domestic corporation.
26 USC 30A(b)(1)80% or more of income comes from possession sources in 3 years before end of TY.
26 USC 30A(b)(2)75% or more of corporate income within such period is derived within possession.
26 USC 30A(c)Credit by (a) is not allowed against tax imposed by—
26 USC 30A(c)(1)§59A (relating to environmental tax),
26 USC 30A(c)(2)§531 (relating to tax on accumulated earnings),
26 USC 30A(c)(3)§541 (relating to personal holding company tax), or
26 USC 30A(c)(4)§1351 (relating to recoveries of foreign expropriation losses).
26 USC 30A(d)Credit by (a) for any TY is limited to the sum of the following amounts:
26 USC 30A(d)(1)60% the sum of—
26 USC 30A(d)(1)(A)aggregate amount of qualified domestic corporation's wages for the TY, plus
26 USC 30A(d)(1)(B)allocable fringe benefit expenses of the corporation for such TY.
26 USC 30A(d)(2)The sum of—
26 USC 30A(d)(2)(A)15% of depreciation allowances for short-life qualified tangible property,
26 USC 30A(d)(2)(B)40% of depreciation allowances for medium-life qualified tangible property, and
26 USC 30A(d)(2)(C)65% of depreciation allowances for long-life qualified tangible property.
26 USC 30A(d)(3)If §936(h)(5)(C)(ii) is waived, taxes allocable to nonsheltered income.
26 USC 30A(e)This subsection sets administrative provisions for purposes of 26 USC.
26 USC 30A(e)(1)§936 applies in the same manner as if §30A credit were under §936(a)(1)(A).
26 USC 30A(e)(2)Credit under §30A is treated the same manner as credit under §936.
26 USC 30A(e)(3)A corporation to which §30A applies is treated similarly as if applying §936.
26 USC 30A(f)Expenses and wages taken into account for §30A are not accounted by §41.
26 USC 30A(g)Any term used in §30A and §936 has the same meaning as given in §936.
26 USC 30A(h)§30A applies to taxable years starting after 19951231 and before 20060101.
 
26 USC 30BThis section discusses the alternative motor vehicle credit.
26 USC 30B(a)Credit allowed against chapter 1 tax for the taxable year is the sum of—
26 USC 30B(a)(1)the new qualified fuel cell motor vehicle credit determined by (b),
26 USC 30B(a)(2)the new advanced burn technology motor vehicle credit determined by (c),
26 USC 30B(a)(3)the new qualified hybrid motor vehicle credit determined by (d),
26 USC 30B(a)(4)the new qualified alternative fuel motor vehicle credit determined by (e), and
26 USC 30B(a)(5)the plug-in conversion credit determined by (i).
26 USC 30B(b)This subsection sets the new qualified fuel cell motor vehicle credit.
26 USC 30B(b)(1)For (a), credit for such a qualified vehicle placed in service during the TY is—
26 USC 30B(b)(1)(A)$8000 ($4K if after 20091231) if it has gross vehicle weight under 8500 pounds,
26 USC 30B(b)(1)(B)$10000 if it has a gross vehicle weight between 8500 and 14000 pounds,
26 USC 30B(b)(1)(C)$20000 if it has a gross vehicle weight between 14000 and 26000 pounds, and
26 USC 30B(b)(1)(D)$40000 if it has a gross vehicle weight over 26000 pounds.
26 USC 30B(b)(2)This paragraph sets an increase for fuel efficiency.
26 USC 30B(b)(2)(A)Amount by (1)(A) for passenger automobiles or light trucks is increased by—
26 USC 30B(b)(2)(A)(i)$1000, if it has at least 150% & up to 175% of the 2002 model city fuel economy,
26 USC 30B(b)(2)(A)(ii)$1500, if it has at least 175% & up to 200% of the 2002 model city fuel economy,
26 USC 30B(b)(2)(A)(iii)$2000, if it has at least 200% & up to 225% of the 2002 model city fuel economy,
26 USC 30B(b)(2)(A)(iv)$2500, if it has at least 225% & up to 250% of the 2002 model city fuel economy,
26 USC 30B(b)(2)(A)(v)$3000, if it has at least 250% & up to 275% of the 2002 model city fuel economy,
26 USC 30B(b)(2)(A)(vi)$3500, if it has at least 275% & up to 300% of the 2002 model city fuel economy,
26 USC 30B(b)(2)(A)(vii)$4000, if it achieves at least 300% of the 2002 model city fuel economy.
26 USC 30B(b)(2)(B)For (A), the 2002 model year city fuel economy is determined by these tables:
26 USC 30B(b)(2)(B)(i)For passenger automobiles, base weight is 1500 lbs. with 45.2 mpg.
26 USC 30B(b)(2)(B)(ii)For light trucks, base weight is 1500 lbs. with 39.4 mpg.
26 USC 30B(b)(2)(C)The "vehicle inertia weight class" (base weight) is defined by 42 USC §7521.
26 USC 30B(b)(3)A "new qualified fuel cell motor vehicle" is a motor vehicle which—
26 USC 30B(b)(3)(A)derives power from 1 or more cells which makes chemical energy into electricity,
26 USC 30B(b)(3)(B)is certified as meeting the Bin 5 Tier II standard by §202(i) of PL 84-159,
26 USC 30B(b)(3)(C)has its original use commenced by the taxpayer,
26 USC 30B(b)(3)(D)is acquired for use or lease by the taxpayer and not for resale, and
26 USC 30B(b)(3)(E)is made by a manufacturer.
26 USC 30B(c)Rules for the new advanced lean burn technology motor vehicle credit.
26 USC 30B(c)(1)Such credit is amount by (2) for such a vehicle placed in service in TY.
26 USC 30B(c)(2)This paragraph sets the credit amount.
26 USC 30B(c)(2)(A)This subparagraph sets rules for fuel economy.
26 USC 30B(c)(2)(A)(i)### Credit is by ###. Base amount is $400 for between 125% - 150% fuel economy.
26 USC 30B(c)(2)(A)(ii)Administrator of EPA uses tables of (b)(2)(A) to determine fuel economy.
26 USC 30B(c)(2)(B)### Credit by (A) is increased for conservation credit figured by ###.
26 USC 30B(c)(3)A "new advanced lean burn technology motor vehicle" is a car or light truck—
26 USC 30B(c)(3)(A)with an internal combustion engine which—
26 USC 30B(c)(3)(A)(i)is designed to operate using more air than needed for complete fuel combustion,
26 USC 30B(c)(3)(A)(ii)incorporates direct injection,
26 USC 30B(c)(3)(A)(iii)achieves at least 125% of the 2002 model year city fuel economy,
26 USC 30B(c)(3)(A)(iv)is certified that vehicles with model years as of 2004 meets or exceeds—
26 USC 30B(c)(3)(A)(iv)(I)standards by (b)(3)(B) for a vehicle weighing 6000 pounds or less, and
26 USC 30B(c)(3)(A)(iv)(II)the Bin 8 Tier II standard for vehicle weights between 6000 and 8500 pounds,
26 USC 30B(c)(3)(B)which has its original use commenced by the taxpayer,
26 USC 30B(c)(3)(C)which is acquired for use or lease by the taxpayer and not for resale, and
26 USC 30B(c)(3)(D)which is made by a manufacturer.
26 USC 30B(c)(4)For (c), "lifetime fuel savings" for such a vehicle is any excess of—
26 USC 30B(c)(4)(A)120000 divided by 2002 model year city fuel economy for its weight class, over
26 USC 30B(c)(4)(B)120000 divided by the city fuel economy for such vehicle.
26 USC 30B(d)This subsection sets the new qualified hybrid motor vehicle credit.
26 USC 30B(d)(1)Such credit is amount by (2) for such a vehicle placed in service in TY.
26 USC 30B(d)(2)This paragraph sets the credit amount.
26 USC 30B(d)(2)(A)For cars or trucks weighing up to 8500 lbs., credit is sum of (i) and (ii).
26 USC 30B(d)(2)(A)(i)This amount is figured in same manner as under (c)(2)(A).
26 USC 30B(d)(2)(A)(ii)This amount is figured in same manner as under (c)(2)(B).
26 USC 30B(d)(2)(B)This subparagraph sets the credit for other motor vehicles.
26 USC 30B(d)(2)(B)(i)Credit amount is applicable percentage of qualified cost as certified by (v).
26 USC 30B(d)(2)(B)(ii)The applicable percentage is, in respect of an increase of fuel economy—
26 USC 30B(d)(2)(B)(ii)(I)20% if such increase is at least 30% but less than 40%,
26 USC 30B(d)(2)(B)(ii)(II)30% if such increase is at least 40% but less than 50%,
26 USC 30B(d)(2)(B)(ii)(III)40% if such increase is at least 50%.
26 USC 30B(d)(2)(B)(iii)The qualified incremental hybrid cost is excess of price over comparable car, &
26 USC 30B(d)(2)(B)(iii)(I)is no more than $7500 for cars with a weight rating under 14000 pounds,
26 USC 30B(d)(2)(B)(iii)(II)is no more than $15000 for cars between weights of 14000 and 26000 lbs., and
26 USC 30B(d)(2)(B)(iii)(III)is no more than $30000 for cars with a weight rating over 26000 pounds.
26 USC 30B(d)(2)(B)(iv)A "comparable vehicle" is a car powered solely by gas and equal in dimension.
26 USC 30B(d)(2)(B)(v)Certification is made by manufacturer and is determined by Secretary's guidance.
26 USC 30B(d)(3)This paragraph defines a "new qualified hybrid motor vehicle".
26 USC 30B(d)(3)(A)A new qualified hybrid motor vehicle is a motor vehicle—
26 USC 30B(d)(3)(A)(i)which draws propulsion energy from onboard sources of energy which are both—
26 USC 30B(d)(3)(A)(i)(I)an internal combustion or heat engine using consumable fuel, and
26 USC 30B(d)(3)(A)(i)(II)a rechargeable energy storage system,
26 USC 30B(d)(3)(A)(ii)which, if (2)(A) applies, meets standard by §246(e)(2) of PL 84-159, and
26 USC 30B(d)(3)(A)(ii)(I)the Bin 5 Tier II standard by §202(i) of such PL for weights under 6000 lbs., &
26 USC 30B(d)(3)(A)(ii)(II)the Bin 8 Tier II standard so established for weights within 6000 and 8500 lbs.,
26 USC 30B(d)(3)(A)(iii)which has a maximum available power of at least—
26 USC 30B(d)(3)(A)(iii)(I)4% for vehicles to which (2)(A) applies,
26 USC 30B(d)(3)(A)(iii)(II)10% for vehicles with weight rating between 8500 and 14000 pounds, and
26 USC 30B(d)(3)(A)(iii)(III)15% for vehicles with weight rating exceeding 14000 pounds,
26 USC 30B(d)(3)(A)(iv)which, if (2)(B) applies, meets emission standards set by EPA for 2004 to 2007,
26 USC 30B(d)(3)(A)(v)the original use of which commences with the taxpayer,
26 USC 30B(d)(3)(A)(vi)which is acquired for use or lease by the taxpayer and not for resale, and
26 USC 30B(d)(3)(A)(vii)which is made by a manufacturer.
26 USC 30B(d)(3)(B)For (A)(i)(I), "consumable fuel" is any matter which releases energy when used.
26 USC 30B(d)(3)(C)This subparagraph defines "maximum available power". For vehicles by:
26 USC 30B(d)(3)(C)(i)(2)(A), it is maximum power available from energy storage system in power test.
26 USC 30B(d)(3)(C)(ii)(2)(B), it is amount of (i) divided by vehicle's total traction power.
26 USC 30B(d)(3)(D)Any vehicle subject to §30D (except by such (c)) isn't accounted by §30B.
26 USC 30B(e)This subsection sets the new qualified alternative fuel motor vehicle credit.
26 USC 30B(e)(1)Credit is applicable percentage of incremental cost of qualified vehicle.
26 USC 30B(e)(2)For (1), the applicable percentage is—
26 USC 30B(e)(2)(A)50%, plus
26 USC 30B(e)(2)(B)30%, if such vehicle—
26 USC 30B(e)(2)(B)(i)is certifies as conforming to most stringent standards under PL 84-159, or
26 USC 30B(e)(2)(B)(ii)conforms to same requirements as vehicles that are sold or leased in California.
26 USC 30B(e)(3)The "incremental cost" is excess of price over a similar gas model, limited to—
26 USC 30B(e)(3)(A)$5000 if the vehicle weighs under 8500 pounds,
26 USC 30B(e)(3)(B)$10000 if the vehicle weighs between 8500 and 14000 pounds,
26 USC 30B(e)(3)(C)$25000 if the vehicle weighs between 14000 and 26000 pounds, and
26 USC 30B(e)(3)(D)$40000 if the vehicle weighs more than 26000 pounds.
26 USC 30B(e)(4)This paragraph defines a "new qualified alternative fuel motor vehicle".
26 USC 30B(e)(4)(A)A new qualified alternative fuel motor vehicle is any motor vehicle which—
26 USC 30B(e)(4)(A)(i)is only capable of operating on alternative fuel,
26 USC 30B(e)(4)(A)(ii)the original use of which commences with the taxpayer,
26 USC 30B(e)(4)(A)(iii)is acquired by the taxpayer for use or lease, and not for resale, and
26 USC 30B(e)(4)(A)(iv)which is made by a manufacturer.
26 USC 30B(e)(4)(B)"Alternative fuel" is compressed natural gas, &c., & liquids with 85% methanol.
26 USC 30B(e)(5)This paragraph sets the credit for mixed-fuel vehicles.
26 USC 30B(e)(5)(A)For a mixed-fuel vehicle placed in service during TY, credit it equal to—
26 USC 30B(e)(5)(A)(i)70% of credit by (e) if vehicle met (4) (for 75/25 mixed-fuel vehicles), &
26 USC 30B(e)(5)(A)(ii)90% of credit by (e) if vehicle met (4) (for 90/10 mixed-fuel vehicles).
26 USC 30B(e)(5)(B)A "mixed-fuel vehicle" is any vehicle described by (C) or (D) of (3), which—
26 USC 30B(e)(5)(B)(i)is certified as able to use a combination of alternative & petroleum-based fuel,
26 USC 30B(e)(5)(B)(ii)either—
26 USC 30B(e)(5)(B)(ii)(I)has a certificate of conformity under PL 84-159, or
26 USC 30B(e)(5)(B)(ii)(II)conforms to same requirements as vehicles that are sold or leased in California,
26 USC 30B(e)(5)(B)(iii)the original use of which commences with the taxpayer,
26 USC 30B(e)(5)(B)(iv)which is acquired by the taxpayer for use or lease, and not for resale, and
26 USC 30B(e)(5)(B)(v)which is made by a manufacturer.
26 USC 30B(e)(5)(C)A "75/25 mixed-fuel vehicle" uses at least 75% alternative fuel.
26 USC 30B(e)(5)(D)A "90/10 mixed-fuel vehicle" uses at least 90% alternative fuel.
26 USC 30B(f)Limitations on number of hybrid and lean-burn vehicles eligible for credit.
26 USC 30B(f)(1)For cars sold in phaseout period, applicable percentage of credit is given.
26 USC 30B(f)(2)Such period starts 2 quarters after 2005 when manufacturer makes 60000 vehicles.
26 USC 30B(f)(3)For (1), the applicable percentage is—
26 USC 30B(f)(3)(A)50% for the first 2 calendar quarters of the phaseout period,
26 USC 30B(f)(3)(B)25% for the 3rd and 4th calendar quarters of the phaseout period, and
26 USC 30B(f)(3)(C)0% for each calendar quarter thereafter.
26 USC 30B(f)(4)This paragraph sets rules for controlled groups.
26 USC 30B(f)(4)(A)Persons subject to (a) or (b) of §52 or (m) or (o) of §414 is 1 manufacturer.
26 USC 30B(f)(4)(B)In applying (a) and (b) of §52, apply §1563 without regard to such (b)(2)(C).
26 USC 30B(f)(5)A "qualified vehicle" are cars by (d)(2)(A) or advanced lean-burn technology.
26 USC 30B(g)This subsection sets application with other credits.
26 USC 30B(g)(1)Credit by (a) for depreciable property is considered as credit by §38(b).
26 USC 30B(g)(2)For 26 USC, credit by (a) is a credit allowable under subpart A for the TY.
26 USC 30B(h)This subsection sets other definitions and special rules.
26 USC 30B(h)(1)A "motor vehicle" is manufactured mainly for use on public roads & has 4 wheels.
26 USC 30B(h)(2)City fuel economy is set by part 600, subchapter Q, chapter I of 40 CFR.
26 USC 30B(h)(3)"Automobile", "light truck", "manufacturer", &c., are set by 42 USC §7251.
26 USC 30B(h)(4)Reduce basis of any applicable property by credit allowed by (a) (ignoring (g)).
26 USC 30B(h)(5)The amount of credit allowable under chapter 1—
26 USC 30B(h)(5)(A)for any incremental cost accounted for (e) is reduced by attributable credit, &
26 USC 30B(h)(5)(B)for cars by (b) or (c) is reduced by credit allowed by (a).
26 USC 30B(h)(6)Taxpayer selling car can claim (a) for depreciation if disclosed to recipient.
26 USC 30B(h)(7)No credit is allowed to property by §50(b)(1) or cost accounted by §179.
26 USC 30B(h)(8)Secretary provides for recapture of (a) if property ceases to be eligible.
26 USC 30B(h)(9)No credit by (a) is allowed if taxpayer elects for §30B to not apply.
26 USC 30B(h)(10)A vehicle is not eligible for credit unless in compliance with—
26 USC 30B(h)(10)(A)applicable provisions of the PL 84-159 (or applicable State laws), and
26 USC 30B(h)(10)(B)the motor vehicle safety provisions by §30101 - §30169 of 49 USC.
26 USC 30B(i)This subsection sets the "plug-in conversion credit".
26 USC 30B(i)(1)Such credit is 10% of cost within $40K of converting vehicle by (2).
26 USC 30B(i)(2)A "qualified plug-in electric drive motor vehicle" is any vehicle by §30D.
26 USC 30B(i)(3)Such credit is given even if §30B credit applies such vehicle in a prior TY.
26 USC 30B(j)This subsection sets regulations.
26 USC 30B(j)(1)Secretary shall make regulations as necessary to carry out §30B.
26 USC 30B(j)(2)Sec., Administrator of EPA, &c., determines motor vehicle eligibility.
26 USC 30B(k)§30B does not apply to any property purchased after—
26 USC 30B(k)(1)20141231 for new qualified fuel cell motor vehicles ((b)),
26 USC 30B(k)(2)20101231 for advanced lean burn technology cars ((c)) or hybrids ((d)(2)(A)),
26 USC 30B(k)(3)20091231 for new qualified hybrid motor vehicles ((d)(2)(B)), and
26 USC 30B(k)(4)20101231 for new qualified alternative fuel vehicles ((e)).
 
26 USC 30CThis section discusses the alternative fuel vehicle refueling property credit.
26 USC 30C(a)Credit is 30% of cost of any qualified property placed in service in TY.
26 USC 30C(b)Credit allowed by (a) with respect to any such property is limited to—
26 USC 30C(b)(1)$30K for property subject to an allowance for depreciation, and
26 USC 30C(b)(2)$1K in any other case.
26 USC 30C(c)"Qualified alternative fuel vehicle refueling property" is by §179A(c) as if—
26 USC 30C(c)(1)§179A(d)(1) didn't apply to property installed on principal residence (§121), &
26 USC 30C(c)(2)only the following is considered clean-burning fuels for §179A(d):
26 USC 30C(c)(2)(A)Fuel where ethanol, natural gas, hydrogen, &c., is at least 85% of its volume.
26 USC 30C(c)(2)(B)Any mixture—
26 USC 30C(c)(2)(B)(i)which has 2 or more of: fuel by §40A(d)(1), §4083(a)(3), or kerosene, and
26 USC 30C(c)(2)(B)(ii)which has at least 20% of volume of fuel by §40A(d)(1) regardless of kerosene.
26 USC 30C(d)This subsection sets application with other credits.
26 USC 30C(d)(1)Credit by (a) for depreciable property is considered as credit by §38(b).
26 USC 30C(d)(2)Credit by (a) for any TY is limited to any excess of—
26 USC 30C(d)(2)(A)liability by §26(b) reduced by credits by §§21 - 26, 27, 30, & 30B over
26 USC 30C(d)(2)(B)the tentative minimum tax for the taxable year.
26 USC 30C(e)This subsection sets special rules for §30C.
26 USC 30C(e)(1)Reduce the basis of any applicable property by credit allowed by (a).
26 USC 30C(e)(2)Taxpayer selling car can claim (a) for depreciation if disclosed to recipient.
26 USC 30C(e)(3)No credit allowed to property by §50(b)(1) or cost accounted by §179.
26 USC 30C(e)(4)No credit by (a) is allowed if taxpayer elects for §30C to not apply.
26 USC 30C(e)(5)Recapture rules similar to those by §179A(e)(4).
26 USC 30C(e)(6)Rules for property put in service in TYs beginning between 20081231 & 20110101.
26 USC 30C(e)(6)(A)For any such property which doesn't relate to hydrogen—
26 USC 30C(e)(6)(A)(i)(a) is applied by substituting "50%" for "30%",
26 USC 30C(e)(6)(A)(ii)(b)(1) is applied by substituting "$50K" for "$30K", and
26 USC 30C(e)(6)(A)(iii)(b)(2) is applied by substituting "$2K" for "$1K", and
26 USC 30C(e)(6)(B)substitute "$200K" for "$30" in applying (b)(1) for property not by (A).
26 USC 30C(f)Secretary sets regulations as necessary to carry out §30C.
26 USC 30C(g)§30C does not apply to property placed in service after—
26 USC 30C(g)(1)20141231 for property relating to hydrogen, and
26 USC 30C(g)(2)20131231 for any other property.
 
26 USC 30DThis section discusses new qualified plug-in electric drive motor vehicles.
26 USC 30D(a)Total (b) amount for each such vehicle put in service in TY is chapter 1 credit.
26 USC 30D(b)This subsection sets the per vehicle dollar limitation.
26 USC 30D(b)(1)Amount by (b) for any such qualified vehicle is sum of amounts by (2) and (3).
26 USC 30D(b)(2)The base amount determined under (2) is $2500.
26 USC 30D(b)(3)$417, plus $417 per KWH of traction battery capacity exceeding 5 KWH. $5K limit.
26 USC 30D(c)This subsection sets application with other credits.
26 USC 30D(c)(1)Credit by (a) for depreciable property is considered as given under §38(b).
26 USC 30D(c)(2)For 26 USC, credit by (a) is a credit allowable under subpart A for the TY.
26 USC 30D(d)Definition of a "new qualified plug-in electric drive motor vehicle" for §30D.
26 USC 30D(d)(1)A new qualified plug-in electric drive motor vehicle is a vehicle—
26 USC 30D(d)(1)(A)the original use of which commences with the taxpayer,
26 USC 30D(d)(1)(B)which is acquired for use or lease by the taxpayer and not for resale,
26 USC 30D(d)(1)(C)which is made by a manufacturer,
26 USC 30D(d)(1)(D)which is treated as a motor vehicle for purposes of title II of PL 88-206,
26 USC 30D(d)(1)(E)which has a gross vehicle weight rating of less than 14000 pounds, and
26 USC 30D(d)(1)(F)which is significantly propelled by a electric motor from using a battery which—
26 USC 30D(d)(1)(F)(i)has a capacity of at least 4 kilowatt hours, and
26 USC 30D(d)(1)(F)(ii)is capable of being recharged from an external source of electricity.
26 USC 30D(d)(2)A "motor vehicle" is manufactured mainly for use on public roads & has 4 wheels.
26 USC 30D(d)(3)A "manufacturer" is set by the Administrator of EPA for title II of PL 88-206.
26 USC 30D(d)(4)A battery's "capacity" is the quantity of energy it stores at 100% charge state.
26 USC 30D(e)Limitation on number of new qualified plug-in vehicles eligible for credit.
26 USC 30D(e)(1)If (d) vehicle is sold in period by (2), apply percentage by (3) to (a) credit.
26 USC 30D(e)(2)Phaseout period starts 2nd quarter after 200K (d) vehicles have sold after 2009.
26 USC 30D(e)(3)For purposes of (1), the applicable percentage is—
26 USC 30D(e)(3)(A)50% for the first 2 calendar quarters of the phaseout period,
26 USC 30D(e)(3)(B)25% for the 3rd and 4th calendar quarters of the phaseout period, and
26 USC 30D(e)(3)(C)0% for each calendar quarter thereafter.
26 USC 30D(e)(4)Rules similar to those under §30B(f)(4) apply for purposes of (e).
26 USC 30D(f)This subsection sets special rules.
26 USC 30D(f)(1)For subtitle A, the adjusted basis of such vehicle is reduced by credit by (a).
26 USC 30D(f)(2)Any other chapter 1 credit, &c., for such vehicle is reduced by credit by (a).
26 USC 30D(f)(3)If use meets (3) or (4) of §50(b), vehicle's seller has put vehicle in service.
26 USC 30D(f)(4)No credit by (a) is allowed to property subject to §50(b)(1).
26 USC 30D(f)(5)Sec. may recapture credit by (a) if property ceases to be eligible for credit.
26 USC 30D(f)(6)No credit by (a) is allowed if the taxpayer elects for §30D to not apply.
26 USC 30D(f)(7)To be eligible for credit by §30D, a motor vehicle must be in compliance with—
26 USC 30D(f)(7)(A)the applicable rules by PL 88-206 (unless §209(b) of such PL applies), and
26 USC 30D(f)(7)(B)the vehicle safety provisions of §§30101 - 30169 of 49 USC.
26 USC 30D(g)A credit allowed for 2 and 3 wheeled plug-in electric vehicles.
26 USC 30D(g)(1)For any TY, in the case of a qualified 2 or 3 wheeled plug-in electric vehicle—
26 USC 30D(g)(1)(A)credit of applicable amount is allowed for each such vehicle put in service, and
26 USC 30D(g)(1)(B)credit amount allowed under (A) is treated as a credit allowed under (a).
26 USC 30D(g)(2)For (1), the "applicable amount" is equal to the lesser of—
26 USC 30D(g)(2)(A)10% of the cost of the qualified 2 or 3 wheeled plug-in electric vehicle, or
26 USC 30D(g)(2)(B)$2500.
26 USC 30D(g)(3)A "qualified 2 or 3 wheeled plug-in electric vehicle" is any vehicle which—
26 USC 30D(g)(3)(A)has 2 or 3 wheels,
26 USC 30D(g)(3)(B)meets requirements of (A) - (C), (E), and (F) of (d)(1),
26 USC 30D(g)(3)(C)is manufactured primarily for use on public streets, roads, and highways,
26 USC 30D(g)(3)(D)is capable of achieving speed of 45 miles per hour or greater, and
26 USC 30D(g)(3)(E)is acquired after 20111231 and before 20140101.
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart C.
 
26 USC 31This section discusses the tax withheld on wages.
26 USC 31(a)Rules for wage withholding for income tax purposes.
26 USC 31(a)(1)Amount withheld as tax by chapter 24 is allowed as credit against chapter 1 tax.
26 USC 31(a)(2)Such amount is allowed as credit for last TY beginning in such calendar year.
26 USC 31(b)This subsection sets a credit for special refunds of Social Security tax.
26 USC 31(b)(1)Sec. may allow wage refund by §6413(c) as a chapter 1 tax credit under §3402.
26 USC 31(b)(2)Such refund is allowed as credit for last TY beginning in such calendar year.
26 USC 31(c)Credit for any amount withheld by §3406 is allowed for TY of receipt.
 
26 USC 32This section discusses earned income.
26 USC 32(a)This subsection sets the allowance of credit.
26 USC 32(a)(1)Credit is credit percentage of earned income within earned income amount.
26 USC 32(a)(2)Credit by (1) is limited to any excess of—
26 USC 32(a)(2)(A)the credit percentage of earned income amount, over
26 USC 32(a)(2)(B)phaseout percentage of greater of AGI or earned income exceeding phaseout limit.
26 USC 32(b)This subsection sets percentages and amounts.
26 USC 32(b)(1)Credit percentage and phaseout percentage shall be determined by these tables:
26 USC 32(b)(1)(A)TY after 1995, base percentage for both is 7.65 for no qualifying children.
26 USC 32(b)(1)(B)TY in 1995, credit percentage is 36 for having two or more qualifying children.
26 USC 32(b)(1)(C)TY in 1994, both percentages are less than (B) if individual has children.
26 USC 32(b)(2)The earned income amount and phaseout amount is by these tables:
26 USC 32(b)(2)(A)Base amounts (no qualifying children) is $4220 earned income and $5280 phaseout.
26 USC 32(b)(2)(B)For taxpayers filing a joint return, phaseout amounts by (A) is increased by—
26 USC 32(b)(2)(B)(i)$1000 for taxable years beginning in 2002, 2003, and 2004,
26 USC 32(b)(2)(B)(ii)$2000 for taxable years beginning in 2005, 2006, and 2007, and
26 USC 32(b)(2)(B)(iii)$3000 for taxable years beginning after 2007.
26 USC 32(b)(3)This paragraph sets special rules for taxable year beginning in 2009 - 2017.
26 USC 32(b)(3)(A)Credit percentage is 45% for taxpayers with 3 or more qualifying children.
26 USC 32(b)(3)(B)This subparagraph sets a reduction of marriage penalty.
26 USC 32(b)(3)(B)(i)The dollar amount in effect under (2)(B) is $5000.
26 USC 32(b)(3)(B)(ii)For TYs in 2010, $5000 amount by (i) is increased by an amount equal to—
26 USC 32(b)(3)(B)(ii)(I)such dollar amount, multiplied by
26 USC 32(b)(3)(B)(ii)(II)the cost-of-living adjustment by §1(f)(3); swap "2008" for "1992" in such (B).
26 USC 32(b)(3)(B)(iii)(j)(2)(A) applies after accounting any increase under (ii).
26 USC 32(c)This subsection sets definitions and special rules.
26 USC 32(c)(1)This paragraph defines an "eligible individual".
26 USC 32(c)(1)(A)An eligible individual is—
26 USC 32(c)(1)(A)(i)any individual who has a qualifying child for the taxable year, or
26 USC 32(c)(1)(A)(ii)any other individual who does not have a qualifying child, if—
26 USC 32(c)(1)(A)(ii)(I)such individual's principal abode is in the US for more than half the TY,
26 USC 32(c)(1)(A)(ii)(II)the age of such individual is between 25 and 65 at TY end, and
26 USC 32(c)(1)(A)(ii)(III)such individual is not a dependent (§151). Marital status is by §7703.
26 USC 32(c)(1)(B)Qualifying children are not eligible individuals for any taxable year.
26 USC 32(c)(1)(C)An eligible individual does not include those who claim benefits under §911.
26 USC 32(c)(1)(D)Nonresident aliens are ineligible if election by (g) or (h) of §6013 isn't made.
26 USC 32(c)(1)(E)No credit allowed to eligible individual who does not include on the return—
26 USC 32(c)(1)(E)(i)such individual's TIN, and
26 USC 32(c)(1)(E)(ii)if the individual is married (as by §7703), the TIN of the spouse.
26 USC 32(c)(1)(F)No child is accounted by (b) if (3)(D) is not met.
26 USC 32(c)(2)This paragraph defines "earned income".
26 USC 32(c)(2)(A)Earned income is—
26 USC 32(c)(2)(A)(i)wages, salaries, tips, and other such amounts includible in gross income, plus
26 USC 32(c)(2)(A)(ii)net earnings from self-employment (§1402(a)), ignoring deduction by §164(f).
26 USC 32(c)(2)(B)For purposes of (A)—
26 USC 32(c)(2)(B)(i)figure individual's earned income without regard to community property laws,
26 USC 32(c)(2)(B)(ii)no amount from a pension or annuity is taken into account,
26 USC 32(c)(2)(B)(iii)no amount to which §871(a) applies is taken into account,
26 USC 32(c)(2)(B)(iv)no amount received for services provided while an inmate is accounted,
26 USC 32(c)(2)(B)(v)no amount by (A) received for subsidized service under any State program, and
26 USC 32(c)(2)(B)(vi)exclusions by §112 is earned income for nay taxable year ending—
26 USC 32(c)(2)(B)(vi)(I)after 20041004 and,
26 USC 32(c)(2)(B)(vi)(II)before 20080101.
26 USC 32(c)(3)This paragraph defines a "qualifying child".
26 USC 32(c)(3)(A)A qualifying child is by §152(c) (without accounting such (1)(D) and §152(e)).
26 USC 32(c)(3)(B)Married individuals for which no §151 deduction is allowed are not qualifying.
26 USC 32(c)(3)(C)For (A), §152(c)(1)(B) is met only if the principal abode is within the US.
26 USC 32(c)(3)(D)This subparagraph sets identification requirements.
26 USC 32(c)(3)(D)(i)Child is not taken into account by (b) unless name, age, and TIN is provided.
26 USC 32(c)(3)(D)(ii)Secretary may prescribe other methods for providing information in clause (i).
26 USC 32(c)(4)The main home for Armed Forces members is in US while serving active duty.
26 USC 32(d)Married individuals by §7703 apply §32 if return is filed jointly under §6013.
26 USC 32(e)No credit by (a) is allowed for TYs of less than 12 months unless taxpayer dies.
26 USC 32(f)This subsection sets rules to determine amount of credit under tables.
26 USC 32(f)(1)The Secretary shall prescribe the tables for the credit by §32.
26 USC 32(f)(2)Such tables are similar to (a) & (b) and won't have brackets more than $50 each—
26 USC 32(f)(2)(A)for earned income between $0 and credit phaseout amount under (b), and
26 USC 32(f)(2)(B)for AGI between where phaseout begins and ends under (b).
26 USC 32(g)Repealed.
26 USC 32(h)Repealed.
26 USC 32(i)A denial of credit to individuals with excessive investment income.
26 USC 32(i)(1)No credit allowed if aggregate amount of disqualified income exceeds $2200.
26 USC 32(i)(2)For (1), "disqualified income" is—
26 USC 32(i)(2)(A)interest or dividends which are includible in gross income for the TY,
26 USC 32(i)(2)(B)interest received or accrued which is exempt from chapter 1 tax,
26 USC 32(i)(2)(C)any excess of—
26 USC 32(i)(2)(C)(i)gross income from rents or royalties not derived from business, over
26 USC 32(i)(2)(C)(ii)the sum of—
26 USC 32(i)(2)(C)(ii)(I)the deductions which are directly allocable to such gross income, plus
26 USC 32(i)(2)(C)(ii)(II)interest deductions properly allocable to such gross income,
26 USC 32(i)(2)(D)capital gain net income (§1222) of the taxpayer for the taxable year, and
26 USC 32(i)(2)(E)any excess of, in respect of passive activities as under §469—
26 USC 32(i)(2)(E)(i)aggregate income (disregarding income accounted by (c)(2) or (A) - (D)), over
26 USC 32(i)(2)(E)(ii)aggregate losses.
26 USC 32(j)This subsection sets inflation adjustments.
26 USC 32(j)(1)For TYs beginning after 1996, the amounts in (b)(2) and (i)(1) is increased by—
26 USC 32(j)(1)(A)such dollar amount, multiplied by
26 USC 32(j)(1)(B)the cost-of-living adjustment by §1(f)(3) for the taxable year, determined—
26 USC 32(j)(1)(B)(i)for (b)(2)(A) and (i)(1), by swapping "1995" for "1992" in §1(f)(3)(B), and
26 USC 32(j)(1)(B)(ii)for the $3K amount in (b)(2)(B)(iii), by swapping "2007" for "1992" in such (B).
26 USC 32(j)(2)This paragraph sets rules for rounding.
26 USC 32(j)(2)(A)After applying (1), (b)(2)(A) amounts are rounded to nearest multiple of $10.
26 USC 32(j)(2)(B)After applying (1), (i)(1) amounts are rounded to next lowest multiple of $50.
26 USC 32(k)Restrictions on taxpayers who improperly claimed credit in a prior year.
26 USC 32(k)(1)Rules for taxpayers making prior fraudulent or reckless claims.
26 USC 32(k)(1)(A)No credit by §32 is allowed for any TY in the disallowance period.
26 USC 32(k)(1)(B)The "disallowance period" is—
26 USC 32(k)(1)(B)(i)10 TYs after most recent TY where claim of §32 credit was fraudulent, and
26 USC 32(k)(1)(B)(ii)2 TYs after most recent TY where rules for such claim were recklessly ignored.
26 USC 32(k)(2)For denial under §§6211 - 6216, only Sec. can approve credit in subsequent TYs.
26 USC 32(l)Refunds by §32 and employer payments under §3507 is not income for purposes of—
26 USC 32(l)(1)PL 75-412 (United States Housing Act of 1937),
26 USC 32(l)(2)title V of PL 81-171 (Housing Act of 1949),
26 USC 32(l)(3)§101 of PL 89-117 (Housing and Urban Development Act of 1965),
26 USC 32(l)(4)§§221(d)(3), 235, and 236 of PL 73-479 (National Housing Act), and
26 USC 32(l)(5)PL 88-525 (Food Stamp Act of 1977).
26 USC 32(m)For (1)(E) and (3)(D) of (c), A TIN is a SSN issued by the SS Administration.
 
26 USC 33Tax withheld at source under §§1441 - 1446 is credit against chapter 1 tax.
 
26 USC 34This section discusses certain uses of gasoline and special fuels.
26 USC 34(a)A credit is allowed against chapter 1 tax equal to the sum of amounts payable—
26 USC 34(a)(1)under §6420 (determined without regard to such (g)),
26 USC 34(a)(2)under §6421 (determined without regard to such (i)), and
26 USC 34(a)(3)under §6427 (determined without regard to such (k)),
26 USC 34(b)Credit by (a) isn't allowed for payments claimed under §6421(i) or §6427(k).
 
26 USC 35This section discusses health insurance costs of eligible individuals.
26 USC 35(a)Individual may claim 72.5% of coverage cost for months by (b) as credit.
26 USC 35(b)This subsection defines an "eligible coverage month" for purposes of §35.
26 USC 35(b)(1)An "eligible coverage month" is any month if—
26 USC 35(b)(1)(A)as of the first day of such month, the taxpayer—
26 USC 35(b)(1)(A)(i)is an eligible individual,
26 USC 35(b)(1)(A)(ii)pays the premium upon and is covered by qualified health insurance,
26 USC 35(b)(1)(A)(iii)does not have other specified coverage, and
26 USC 35(b)(1)(A)(iv)is not imprisoned under Federal, State, or local authority, and
26 USC 35(b)(1)(B)such month begins more than 90 days after 20020806 and before 20140101.
26 USC 35(b)(2)For joint returns, (1)(A) is met if at least one spouse meets requirements.
26 USC 35(c)This subsection defines an "eligible individual".
26 USC 35(c)(1)An eligible individual is—
26 USC 35(c)(1)(A)an eligible TAA recipient,
26 USC 35(c)(1)(B)an eligible alternative TAA recipient, and
26 USC 35(c)(1)(C)an eligible PGBC pension recipient.
26 USC 35(c)(2)This paragraph defines an "eligible TAA recipient".
26 USC 35(c)(2)(A)Such person gets amounts by PL 93-618 (or would if not for such §231(a)(3)(B)).
26 USC 35(c)(2)(B)For months by (b) starting after 20090217, such a recipient—
26 USC 35(c)(2)(B)(i)receives a trade readjustment allowance by chapter 2 of title II of PL 93-618,
26 USC 35(c)(2)(B)(ii)would receive (i) except for a break exceeding period by §233(e) of such PL, or
26 USC 35(c)(2)(B)(iii)gets §85(b) pay & would get (i) if (3)(B) & (5) of such §231(a) were ignored.
26 USC 35(c)(3)An "eligible alternative TAA recipient" means, for any month, someone who—
26 USC 35(c)(3)(A)is a worker by §246(a)(3)(B) of PL 93-618 and is a plan participant, and
26 USC 35(c)(3)(B)receives a benefit for such month under §246(a)(2) of such PL.
26 USC 35(c)(4)An "eligible PBGC pension recipient" means, for any month, someone who has—
26 USC 35(c)(4)(A)reached age 55 at the first day of such month, and
26 USC 35(c)(4)(B)at least partial benefits paid by the PBGC under title IV of PL 93-406.
26 USC 35(d)This subsection defines a "qualifying family member".
26 USC 35(d)(1)A qualifying family member is, in respect of the taxpayer—
26 USC 35(d)(1)(A)his spouse, and
26 USC 35(d)(1)(B)any of his uncovered dependents for which a deduction by §151(c) is allowed.
26 USC 35(d)(2)If a child meets (2) or (4) of §152(e), (1)(B) only applies to custodial parent.
26 USC 35(e)This subsection defines "qualified health insurance".
26 USC 35(e)(1)Qualified health insurance is coverage under any of the following:
26 USC 35(e)(1)(A)A COBRA continuation provision (§9832(d)(1)).
26 USC 35(e)(1)(B)State-based continuation as provided by the State and required by State law.
26 USC 35(e)(1)(C)A qualified State high risk pool (§2744(c)(2) of PL 91-572).
26 USC 35(e)(1)(D)A health insurance program offered for State employees.
26 USC 35(e)(1)(E)A State-based health insurance program that is comparable to the program of (D).
26 USC 35(e)(1)(F)An arrangement entered into by a State and—
26 USC 35(e)(1)(F)(i)a group health plan (as by §3(37) of PL 93-406),
26 USC 35(e)(1)(F)(ii)an issuer of health insurance coverage,
26 USC 35(e)(1)(F)(iii)an administrator, or
26 USC 35(e)(1)(F)(iv)an employer.
26 USC 35(e)(1)(G)A State arrangement with a private sector health care coverage purchasing pool.
26 USC 35(e)(1)(H)A State-operated health plan that does not receive any Federal finances.
26 USC 35(e)(1)(I)A group health plan that is available through the employment of the spouse.
26 USC 35(e)(1)(J)30 days of individual health insurance if previously qualified for—
26 USC 35(e)(1)(J)(i)in the case of an eligible TAA recipient, the amount in (c)(2).
26 USC 35(e)(1)(J)(ii)in the case of an eligible alternative recipient, the amount in (c)(3)(B).
26 USC 35(e)(1)(J)(iii)in the case of an eligible PGBC pension recipient, the amount in (c)(4)(B).
26 USC 35(e)(1)(K)Coverage funded by §501(c)(9) person by court order, &c.
26 USC 35(e)(2)This paragraph sets requirements for state-based coverage.
26 USC 35(e)(2)(A)For (B) - (H) of (1), State must elect §35 to apply and the following is met:
26 USC 35(e)(2)(A)(i)Those who pay premiums or provide credit by §7257(d) are guaranteed enrollment.
26 USC 35(e)(2)(A)(ii)No pre-existing condition limitations are imposed to any qualifying individual.
26 USC 35(e)(2)(A)(iii)Premiums for a qualifying individual does not exceed that for non-qualifiers.
26 USC 35(e)(2)(A)(iv)Benefits under coverage are similar to those provided to non-qualifiers.
26 USC 35(e)(2)(B)For (2), a "qualifying individual" is—
26 USC 35(e)(2)(B)(i)someone who seeks to enroll in coverage, meets (iii) and (iv) of (b)(1)(A), and
26 USC 35(e)(2)(B)(ii)the qualifying family members of such eligible individual.
26 USC 35(e)(3)"Qualified health insurance" doesn't include—
26 USC 35(e)(3)(A)a flexible spending or similar arrangement, and
26 USC 35(e)(3)(B)any insurance if majority of its coverage is of expected benefits by §9832(c).
26 USC 35(f)Individual has other specified coverage for any full month if following is met:
26 USC 35(f)(1)This paragraph sets rules for subsidized coverage.
26 USC 35(f)(1)(A)Such person is covered under insurance by employer plan paying 50% of costs.
26 USC 35(f)(1)(B)For eligible alternative TAA recipients, such individual is either—
26 USC 35(f)(1)(B)(i)eligible for insurance coverage which related employer pays 50% of costs, or
26 USC 35(f)(1)(B)(ii)covered by insurance which any part of cost is paid by a related employer.
26 USC 35(f)(1)(C)Extent of coverage paid by employer is benefits from a cafeteria plan (§125(d)).
26 USC 35(f)(2)Such individual, in respect of the Social Security ACt—
26 USC 35(f)(2)(A)receives benefits by part A of title XVIII or is enrolled under part B, or
26 USC 35(f)(2)(B)is enrolled under title XIX or title XXI (other than such §1928).
26 USC 35(f)(3)Such individual is—
26 USC 35(f)(3)(A)enrolled in a health benefits plan under chapter 89 of 5 USC, or
26 USC 35(f)(3)(B)entitled to receive benefits under chapter 55 of 10 USC.
26 USC 35(g)This subsection sets special rules.
26 USC 35(g)(1)Credit under (a) is reduced by aggregate amount paid under §7527.
26 USC 35(g)(2)Accounted amounts of (a) are not accounted for any deduction by §162(l) or §213.
26 USC 35(g)(3)Distributions from accounts by §220(d) or §223(d) are not accounted for (a).
26 USC 35(g)(4)No credit is allowed to individual subject to §151 deduction regarding taxpayer.
26 USC 35(g)(5)The spouse is not treated as a qualifying family member for (a), if—
26 USC 35(g)(5)(A)the taxpayer is married at the end of the taxable year,
26 USC 35(g)(5)(B)the taxpayer and his spouse are both eligible individuals during the year, and
26 USC 35(g)(5)(C)the taxpayer files a separate return for the taxable year.
26 USC 35(g)(6)Rules similar to those of (3) and (4) §21(e) apply for §35.
26 USC 35(g)(7)Apply §213(d)(6) to contracts paying coverage of persons unrelated to taxpayer.
26 USC 35(g)(8)This paragraph sets the treatment of payments.
26 USC 35(g)(8)(A)Secretary's payments of §7257 amounts are made on first day of month of receipt.
26 USC 35(g)(8)(B)Payments for eligible coverage months occur on first day of month of payment.
26 USC 35(g)(9)Individuals subject to §3001 of PL 111-5 aren't eligible, &c., for §35 & §7527.
26 USC 35(g)(10)Continued qualification of family members within 24 months after certain events.
26 USC 35(g)(10)(A)Month subject to (f)(2)(A) is (b)(1) month to figure credit for members by (d).
26 USC 35(g)(10)(B)(c) applies to spouse under finalized divorce to figure credit by §35 & §7527.
26 USC 35(g)(10)(C)For the death of a person by (c), within 24 months after such death—
26 USC 35(g)(10)(C)(i)any spouse thereof is such a person (if so qualifying before death), and
26 USC 35(g)(10)(C)(ii)any person by (i) is an eligible individual to figure credit by §35 and §7527.
26 USC 35(g)(10)Secretary may prescribe regulations as needed for §§35, 6050T, and 7527.
 
26 USC 36This section discusses the first-time homebuyer credit.
26 USC 36(a)(c)(1) person is allowed 10% of purchase price as credit against subtitle A tax.
26 USC 36(b)This subsection sets limitations.
26 USC 36(b)(1)This paragraph sets a dollar limitation.
26 USC 36(b)(1)(A)Except as otherwise set, credit allowed by (a) is limited to $8K.
26 USC 36(b)(1)(B)For MFS individuals, (A) is applied by substituting "$4K" for "$8K".
26 USC 36(b)(1)(C)(a) is allocated to multiple unmarried individuals who purchase a residence.
26 USC 36(b)(1)(D)If (c)(6) applies, swap "$6.5K" for "$8K" and "$3250" for "$4K" in (A) - (C).
26 USC 36(b)(2)A limitation based on modified adjusted gross income ("MAGI").
26 USC 36(b)(2)(A)Credit by (a) is reduced by amount bearing same ratio to such credit as—
26 USC 36(b)(2)(A)(i)any excess of—
26 USC 36(b)(2)(A)(i)(I)taxpayer's MAGI for the taxable year, over
26 USC 36(b)(2)(A)(i)(II)$75K ($150K in the case of a joint return), bears to
26 USC 36(b)(2)(A)(ii)$20K.
26 USC 36(b)(2)(B)MAGI is taxpayer's adjusted gross income plus exclusions by §§911, 931, or 933.
26 USC 36(b)(3)No credit by (a) is allowed if residence purchase price exceeds $800K.
26 USC 36(b)(4)Credit by (a) requires taxpayer or spouse to be age 18 or more on purchase date.
26 USC 36(c)This subsection sets definitions for purposes of §36.
26 USC 36(c)(1)A "first-time homebuyer" had no residence ownership in 3 years before purchase.
26 USC 36(c)(2)A "principal residence" has the same meaning as used in §121.
26 USC 36(c)(3)This paragraph defines a "purchase".
26 USC 36(c)(3)(A)A purchase is any acquisition, but only if—
26 USC 36(c)(3)(A)(i)the property is not acquired from a person related to the acquirer, and
26 USC 36(c)(3)(A)(ii)the basis of the property in the hands of the acquirer is not determined—
26 USC 36(c)(3)(A)(ii)(I)in any part by reference to the basis of the property to the former holder, or
26 USC 36(c)(3)(A)(ii)(II)under §1014(a) (relating to property acquired from a decedent).
26 USC 36(c)(3)(B)A residence constructed the taxpayer is purchased when occupancy starts.
26 USC 36(c)(4)The "purchase price" is the principal residence's basis on the date of purchase.
26 USC 36(c)(5)In general, two persons are related if the relationship meets §267 or §707(b).
26 USC 36(c)(6)Owner of same residence for 5 years within 8 years after purchase meets (1).
26 USC 36(d)No credit under (a) is allowed for any TY for the purchase of a residence if—
26 USC 36(d)(1)the taxpayer is a nonresident alien,
26 USC 36(d)(2)the residence is disposed or (c)(2) no longer applies before such TY ends,
26 USC 36(d)(3)a deduction under §151 regarding the taxpayer is allowed to another taxpayer, or
26 USC 36(d)(4)an copy of an executed settlement statement isn't attached to the tax return.
26 USC 36(e)If reporting is required by §6045(e)(2) person, disregard exception by §6045(e).
26 USC 36(f)This subsection sets rules for the recapture of credit.
26 USC 36(f)(1)Chapter 1 tax is increased by 6.6% of credit by (a) for each TY of (7) period.
26 USC 36(f)(2)If event by (d)(2) applies to taxpayer before end of period by (7)—
26 USC 36(f)(2)(A)chapter 1 tax is excess of credit amount over tax imposed by (1) in prior TYs, &
26 USC 36(f)(2)(B)(1) doesn't apply regarding such credit for such TY and any subsequent TY.
26 USC 36(f)(3)If residence is sold to unrelated person, (2) increase is limited to sale gain.
26 USC 36(f)(4)This paragraph sets exceptions.
26 USC 36(f)(4)(A)(1) and (2) don't apply to any TY ending after the date of the taxpayer's death.
26 USC 36(f)(4)(B)Don't apply (2) if §1033(a) applies & new residence is acquired within 2 years.
26 USC 36(f)(4)(C)In the case of a transfer of a residence to which §1041(a) applies—
26 USC 36(f)(4)(C)(i)(2) doesn't apply to such transfer, and
26 USC 36(f)(4)(C)(ii)for TYs after such transfer, (1) & (2) applies to transferee as if transferor.
26 USC 36(f)(4)(D)For credit allowed for the purchase of a residence between 20081231 & 20091201—
26 USC 36(f)(4)(D)(i)(1) doesn't apply, and
26 USC 36(f)(4)(D)(ii)(2) applies if event by (d)(2) occurs within 36 months after date of purchase.
26 USC 36(f)(4)(E)This subparagraph sets a special rule for members of the armed forces, &c.
26 USC 36(f)(4)(E)(i)For disposition of residence after 20081231 in connection to service by (ii)—
26 USC 36(f)(4)(E)(i)(I)(2) and (d)(2) don't apply to such disposition, and
26 USC 36(f)(4)(E)(i)(II)(1) doesn't apply to TY of such disposition if acquisition was before 20090101.
26 USC 36(f)(4)(E)(ii)"Qualified official extended duty service" is qualified duty service as—
26 USC 36(f)(4)(E)(ii)(I)a member of the uniformed services,
26 USC 36(f)(4)(E)(ii)(II)a member of the Foreign Service of the United States, or
26 USC 36(f)(4)(E)(ii)(III)an employee of the intelligence community.
26 USC 36(f)(4)(E)(iii)Any term used in (E) has the same meaning as used under §121(d)(9).
26 USC 36(f)(5)For MFJ returns, half of (a) credit is considered allowed to each individual.
26 USC 36(f)(6)Taxpayer is required to file a return of any chapter 1 tax is imposed under (f).
26 USC 36(f)(7)Recapture period is 15 TYs starting 2nd TY after purchase subject to (a) occurs.
26 USC 36(g)Purchase may be deemed made on December 31 of prior year if made after 20081231.
26 USC 36(h)This subsection sets rules for the application of §36.
26 USC 36(h)(1)§36 only applies to principal residence purchased between 20080409 and 20100501.
26 USC 36(h)(2)For (1), swap "20101001" for "20100501" if purchase is before 20101001, &c.
26 USC 36(h)(3)If 90 days of service by §121(d)(9)(C)(i) between 20081231 & 20100501 is given—
26 USC 36(h)(3)(A)(1) and (2) are applied by swapping "20110501" for "20100501", and
26 USC 36(h)(3)(B)(2) is applied by swapping "20110701" for "20100701" and "20101001".
 
26 USC 36AThis section discusses the making work pay credit.
26 USC 36A(a)For person by (d)(1), credit against subtitle A tax is allowed equal to—
26 USC 36A(a)(1)6.2% of the earned income of the taxpayer, or, if lesser
26 USC 36A(a)(2)$400 ($800 in the case of a joint return).
26 USC 36A(b)A limitation based on modified adjusted gross income ("MAGI").
26 USC 36A(b)(1)(a) credit is reduced by 2% of MAGI exceeding $75K ($150K for joint returns).
26 USC 36A(b)(2)MAGI is taxpayer's AGI plus any amounts excluded by §§911, 931, or 933.
26 USC 36A(c)(a) credit is reduced by payments or credits in TY by §2201 & §2202 of PL 111-5.
26 USC 36A(d)This subsection sets definitions and special rules for purposes of §36A.
26 USC 36A(d)(1)This paragraph defines an "eligible individual".
26 USC 36A(d)(1)(A)An eligible individual is any individual other than—
26 USC 36A(d)(1)(A)(i)any nonresident alien individual,
26 USC 36A(d)(1)(A)(ii)any individual for which deduction by §151 is allowed to another taxpayer, and
26 USC 36A(d)(1)(A)(iii)an estate or trust.
26 USC 36A(d)(1)(B)Such term doesn't include any individual who doesn't include on the tax return—
26 USC 36A(d)(1)(B)(i)such individual's social security account number, and
26 USC 36A(d)(1)(B)(ii)in the case of a joint return, the SSN of one of the taxpayers on such return.
26 USC 36A(d)(2)"Earned income" is by §32(c)(2). Untaxed self-employment income is excluded.
26 USC 36A(e)§36A doesn't apply to taxable years beginning after 20101231.
 
26 USC 36BA refundable credit for coverage under a qualified health plan.
26 USC 36B(a)(b) amount is credit against subtitle A tax imposed on an applicable taxpayer.
26 USC 36B(b)This subsection defines the "premium assistance credit amount" for §36B.
26 USC 36B(b)(1)Such amount is total of amounts by (2) for all coverage months in the TY.
26 USC 36B(b)(2)The premium assistance amount for any coverage month is the lesser of—
26 USC 36B(b)(2)(A)month's premium for plans enrolled through Exchange by §1311 of PL 111-148, or
26 USC 36B(b)(2)(B)any excess of—
26 USC 36B(b)(2)(B)(i)adjusted monthly premium by (3)(C) of taxpayer's applicable plan by (3)(B), over
26 USC 36B(b)(2)(B)(ii)1/12th of the applicable percentage of taxpayer's household income for the year.
26 USC 36B(b)(3)Other terms & rules relating to premium assistance amounts for purposes of (2).
26 USC 36B(b)(3)(A)This subparagraph sets the applicable percentage.
26 USC 36B(b)(3)(A)(i)### Rate is by ###, increased on a sliding scale in a linear manner within tiers.
26 USC 36B(b)(3)(A)(ii)This clause sets indexing.
26 USC 36B(b)(3)(A)(ii)(I)After 2014, (i) is adjusted to reflect premium growth from prior year.
26 USC 36B(b)(3)(A)(ii)(II)After 2018, rates by (I) are additionally adjusted for CPI growth.
26 USC 36B(b)(3)(A)(ii)(III)(II) applies if total credits & reductions by PL 111-148 exceeds 0.504% of GDP.
26 USC 36B(b)(3)(B)Applicable 2nd lowest cost silver plan is that in taxpayer's rating area which—
26 USC 36B(b)(3)(B)(i)is offered through same Exchange through which plans were accounted by (2)(A), &
26 USC 36B(b)(3)(B)(ii)provides—
26 USC 36B(b)(3)(B)(ii)(I)self-only coverage in the case of an applicable taxpayer—
26 USC 36B(b)(3)(B)(ii)(I)(aa)subject to §1(c) tax and isn't allowed §151 deduction for a dependent, or
26 USC 36B(b)(3)(B)(ii)(I)(bb)not by (aa), but has purchased only self-only coverage, and
26 USC 36B(b)(3)(B)(ii)(II)family coverage in the case of any other applicable taxpayer.
26 USC 36B(b)(3)(C)Premium is as if plan covers taxpayer with adjustment by §2701 of PL 78-410.
26 USC 36B(b)(3)(D)(2) doesn't apply to premium for benefits in addition to essential benefits if—
26 USC 36B(b)(3)(D)(i)a plan by §1302(b)(5) of PL 111-148 offers additional health benefits, or
26 USC 36B(b)(3)(D)(ii)State requires plan by §1311(d)(3)(B) of such PL to cover additional benefits.
26 USC 36B(b)(3)(E)Pediatric dental benefits required by PL 111-148 is payable for (c)(3)(A) plan.
26 USC 36B(c)Definitions and rules for applicable taxpayers, qualified health plans, &c.
26 USC 36B(c)(1)This paragraph defines an "applicable taxpayer".
26 USC 36B(c)(1)(A)Such taxpayer has household income exceeding within 100% - 400% of poverty line.
26 USC 36B(c)(1)(B)A taxpayer meets (A) with such income exceeding 100% of poverty line if he—
26 USC 36B(c)(1)(B)(i)has household income within 100% of the poverty line amount for his family, and
26 USC 36B(c)(1)(B)(ii)is an alien lawfully present in the US but isn't eligible for title XIX of SSA.
26 USC 36B(c)(1)(C)Such term applies to married taxpayers only if a joint return is filed.
26 USC 36B(c)(1)(D)§36B credit isn't allowed to an individual subject to §151 for another taxpayer.
26 USC 36B(c)(2)This paragraph defines a "coverage month" for purposes of (c).
26 USC 36B(c)(2)(A)A coverage month is, with respect to an applicable taxpayer, any month if—
26 USC 36B(c)(2)(A)(i)as of its 1st day, taxpayer, &c., is covered under §1311 of PL 111-148, and
26 USC 36B(c)(2)(A)(ii)premium for month's coverage is paid by taxpayer (or under §1412 of such PL).
26 USC 36B(c)(2)(B)This subparagraph sets an exception for minimum essential coverage.
26 USC 36B(c)(2)(B)(i)Don't apply (A) if individual is eligible under §5000A(f) (except such (1)(C)).
26 USC 36B(c)(2)(B)(ii)"Minimum essential coverage" is defined by §5000A(f).
26 USC 36B(c)(2)(C)A special rule for employer-sponsored minimum essential coverage.
26 USC 36B(c)(2)(C)(i)An employee isn't eligible for minimum essential coverage if such coverage—
26 USC 36B(c)(2)(C)(i)(I)consists of an eligible employer-sponsored plan (as by §5000A(f)(2)), and
26 USC 36B(c)(2)(C)(i)(II)contribution by §5000A(e)(1)(B) exceeds 9.5% of taxpayer's household income.
26 USC 36B(c)(2)(C)(ii)§5000A(f)(2) plan coverage allowing within 60% of costs doesn't meet (B)(ii).
26 USC 36B(c)(2)(C)(iii)(i) & (ii) don't apply if employee is under plan by §5000A(f)(2) or (3)(B).
26 USC 36B(c)(2)(C)(iv)After 2014, Sec. adjusts 9.8% rate by (i)(II) as under (b)(3)(A)(ii).
26 USC 36B(c)(3)This paragraph sets definitions and other rules.
26 USC 36B(c)(3)(A)"Qualified health plan" is by §1301(a) of PL 111-148; such §1302(e) is excluded.
26 USC 36B(c)(3)(B)A "grandfathered health plan" is defined by §1251 of PL 111-148.
26 USC 36B(d)Definition of terms relating to income and families for purposes of §36B.
26 USC 36B(d)(1)Taxpayer's family size is number of deductions by §151 allowed to him in the TY.
26 USC 36B(d)(2)This subparagraph defines "household income".
26 USC 36B(d)(2)(A)The household income of any taxpayer is equal to the sum of—
26 USC 36B(d)(2)(A)(i)the modified adjusted gross income of the taxpayer, plus
26 USC 36B(d)(2)(A)(ii)the aggregate of such income of all other individuals who were—
26 USC 36B(d)(2)(A)(ii)(I)accounted under (1) to figure the taxpayer's family size, and—
26 USC 36B(d)(2)(A)(ii)(II)required to file a return of tax imposed by §1 for the taxable year.
26 USC 36B(d)(2)(B)"Modified adjusted gross income" is adjusted gross income increased by—
26 USC 36B(d)(2)(B)(i)any amount excluded from gross income under §911,
26 USC 36B(d)(2)(B)(ii)any interest received or accrued in the TY which is exempt from tax, and
26 USC 36B(d)(2)(B)(iii)any SS benefits by §86(d) which are excluded from gross income under §86.
26 USC 36B(d)(3)This paragraph defines the "poverty line".
26 USC 36B(d)(3)(A)The poverty line is determined under §2110(c)(5) of SSA.
26 USC 36B(d)(3)(B)Line is figured when (c)(3)(A) plan offered through Exchange starts enrollment.
26 USC 36B(e)This subsection sets rules for individuals not lawfully present.
26 USC 36B(e)(1)If an individual subject to a taxpayer's §151 deduction isn't lawfully present—
26 USC 36B(e)(1)(A)(i) & (ii) of (b)(2)(A) amounts are reduced by their applicable premiums, and
26 USC 36B(e)(1)(B)the relationship between income & poverty level is made by any following method:
26 USC 36B(e)(1)(B)(i)A method under which—
26 USC 36B(e)(1)(B)(i)(I)the taxpayer's family size is figured without accounting such individuals, and
26 USC 36B(e)(1)(B)(i)(II)household income is product of taxpayer's household income with a fraction of—
26 USC 36B(e)(1)(B)(i)(II)(aa)a numerator of the poverty line for the family size after applying (I), and
26 USC 36B(e)(1)(B)(i)(II)(bb)a denominator of poverty line for the family size without applying (I).
26 USC 36B(e)(1)(B)(ii)A comparable method reaching the same result as that under clause (i).
26 USC 36B(e)(2)A US citizen, &c., present in US during enrollment period is lawfully present.
26 USC 36B(e)(3)Sec. of Health and Human Services sets rules to calculate (1) and (2) of (d).
26 USC 36B(f)This subsection sets rules for reconciliation of credit and advance credit.
26 USC 36B(f)(1)§36B credit is reduced by any advance payment in the TY by §1412 of PL 111-148.
26 USC 36B(f)(2)This paragraph sets rules for excess advance payments.
26 USC 36B(f)(2)(A)Chapter 1 tax is increased by payment by such §1412 which exceeds §36B credit.
26 USC 36B(f)(2)(B)A limitation on (A) if (d)(2) income is within certain amount of poverty line.
26 USC 36B(f)(2)(B)(i)### (A) increase is limited to amount by ### (at least $600, up to $2500).
26 USC 36B(f)(2)(B)(ii)After 201421231, increase amounts in table under clause (i) by—
26 USC 36B(f)(2)(B)(ii)(I)such dollar amount, multiplied by
26 USC 36B(f)(2)(B)(ii)(II)the cost-of-living adjustment by §1(f)(3); swap "2013" for "1992" in such (B).
26 USC 36B(f)(3)Exchange reports following to Sec. & taxpayer regarding any coverage thereunder:
26 USC 36B(f)(3)(A)The level of coverage by §1302(d) of PL 111-148 and the period of effectiveness.
26 USC 36B(f)(3)(B)Total premium for the coverage without §36B or reductions by §1402 of such PL.
26 USC 36B(f)(3)(C)Total of any advance payment of such credit or reductions by §1412 of such PL.
26 USC 36B(f)(3)(D)The name, address, and TIN of the primary insured and other coverage recipients.
26 USC 36B(f)(3)(E)Any information provided to the Exchange to determine the amount of such credit.
26 USC 36B(f)(3)(F)Information needed to figure if a taxpayer has received excess advance payments.
26 USC 36B(g)Sec. sets regulations for purposes of carrying out §36B, including rules to—
26 USC 36B(g)(1)coordinate §36B credit with program for payment under §1412 of PL 111-148, and
26 USC 36B(g)(2)apply (f) if filing status is dissimilar than when payment by (1) is made.
 
26 USC 37See §6401 for credit against subtitle A tax for overpayments of tax.
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart D.
 
26 USC 38This section discusses the general business credit.
26 USC 38(a)Credit against chapter 1 tax is allowed equal to the sum of—
26 USC 38(a)(1)the business credit carryforwards carried to the taxable year,
26 USC 38(a)(2)the amount of current year business credit, plus
26 USC 38(a)(3)the business credit carrybacks carried to the taxable year.
26 USC 38(b)For subpart D, the current year business credit is sum of following for the TY:
26 USC 38(b)(1)the investment credit by §46,
26 USC 38(b)(2)the work opportunity credit by §51(a),
26 USC 38(b)(3)the alcohol fuels credit by §40(a),
26 USC 38(b)(4)the research credit by §41(a),
26 USC 38(b)(5)the low-income housing credit by §42(a),
26 USC 38(b)(6)the enhanced oil recovery credit by §43(a),
26 USC 38(b)(7)for an eligible small business (§44(b)), the disabled access credit by §44(a),
26 USC 38(b)(8)the renewable electricity production credit by §45(a),
26 USC 38(b)(9)the empowerment zone employment credit by §1396(a),
26 USC 38(b)(10)the Indian employment credit by §45A(a),
26 USC 38(b)(11)the employer social security credit by §45B(a),
26 USC 38(b)(12)the orphan drug credit by §45C(a),
26 USC 38(b)(13)the new markets tax credit by §45D(a),
26 USC 38(b)(14)for employers (§45E(c)), the pension plan startup cost credit by §45E(a),
26 USC 38(b)(15)the employer-provided child care credit by §45F(a),
26 USC 38(b)(16)the railroad track maintenance credit by §45G(a),
26 USC 38(b)(17)the biodiesel fuels credit by §40A(a),
26 USC 38(b)(18)the low sulfur diesel fuel production credit by §45H(a),
26 USC 38(b)(19)the marginal oil and gas well production credit by §45I(a),
26 USC 38(b)(20)the distilled spirits credit by §5011(a),
26 USC 38(b)(21)the advanced nuclear power facility production credit by §45J(a),
26 USC 38(b)(22)the nonconventional source production credit by §45K(a),
26 USC 38(b)(23)the new energy efficient home credit by §45L(a),
26 USC 38(b)(24)the energy efficient appliance credit by §45M(a),
26 USC 38(b)(25)the portion of the alternative motor vehicle credit to which §30B(g)(1) applies,
26 USC 38(b)(26)the portion of the vehicle refueling property credit by §30C(g)(1),
26 USC 38(b)(27)the Hurricane Katrina housing credit by §1400P(b),
26 USC 38(b)(28)the Hurricane Katrina employee retention credit by §1400R(a),
26 USC 38(b)(29)the Hurricane Rita employee retention credit by §1400R(b),
26 USC 38(b)(30)the Hurricane Wilma employee retention credit by §1400R(c),
26 USC 38(b)(31)the mine rescue team training credit by §45N(a),
26 USC 38(b)(32)for an eligible agricultural business by §45O(e), the credit by §45O(a),
26 USC 38(b)(33)the differential wage payment credit by §45P(a),
26 USC 38(b)(34)the carbon dioxide sequestration credit by §45Q(a),
26 USC 38(b)(35)the new qualified plug-in electric drive motor vehicle credit by §30D(c)(1), and
26 USC 38(b)(36)the small employer health insurance credit determined by §45R.
26 USC 38(c)This subsection sets a limitation based on amount of tax.
26 USC 38(c)(1)Credit by (a) is limited to taxpayer's net income tax exceeding the greater of—
26 USC 38(c)(1)(A)the tentative minimum tax for the taxable year, or
26 USC 38(c)(1)(B)25% of taxpayer's net regular tax liability exceeding $25K.
26 USC 38(c)(2)Allowance for empowerment zone employment credit to offset 25% of minimum tax.
26 USC 38(c)(2)(A)In the application of the empowerment zone employment credit—
26 USC 38(c)(2)(A)(i)§38 and §39 are applied separately to such credit, and
26 USC 38(c)(2)(A)(ii)for purposes of applying (1) to such credit—
26 USC 38(c)(2)(A)(ii)(I)75% of tentative minimum tax is substituted for (A) thereof, and
26 USC 38(c)(2)(A)(ii)(II)limitation of (1) is reduced by credit allowed by (a) for the TY.
26 USC 38(c)(2)(B)The "empowerment zone employment credit" is attributable to credit by §1396.
26 USC 38(c)(3)Special rules for the New York Liberty Zone business employee credit.
26 USC 38(c)(3)(A)In the case of the New York Liberty Zone business employee credit—
26 USC 38(c)(3)(A)(i)§38 and §39 are applied separately with respect to such credit, and
26 USC 38(c)(3)(A)(ii)in applying (1) to such credit—
26 USC 38(c)(3)(A)(ii)(I)the tentative minimum tax is treated as being zero, and
26 USC 38(c)(3)(A)(ii)(II)limitation of (1) is reduced by credit allowed by (a) for taxable year.
26 USC 38(c)(3)(B)The "New York Liberty Zone business employee credit" is from §51, by §1400L(a).
26 USC 38(c)(4)This paragraph sets special rules for specified credits.
26 USC 38(c)(4)(A)In the case of specified credits—
26 USC 38(c)(4)(A)(i)§38 and §39 are applied separately to such credits, and
26 USC 38(c)(4)(A)(ii)in applying (1) to such credits—
26 USC 38(c)(4)(A)(ii)(I)the tentative minimum tax is treated as being zero, and
26 USC 38(c)(4)(A)(ii)(II)the limitation of (1) is reduced by credit of (a) for the TY (except specified).
26 USC 38(c)(4)(B)For (c), a "specified credit" is—
26 USC 38(c)(4)(B)(i)for TYs starting after 20041231, the credit determined by §40,
26 USC 38(c)(4)(B)(ii)credit by §42 attributable to buildings placed in service after 20071231,
26 USC 38(c)(4)(B)(iii)the credit by §45 to attributable extent of electricity of coal produced—
26 USC 38(c)(4)(B)(iii)(I)at a facility which is original placed in service after 20041022, and
26 USC 38(c)(4)(B)(iii)(II)during the 4-year period starting on such date of being placed in service.
26 USC 38(c)(4)(B)(iv)the credit determined under §45B,
26 USC 38(c)(4)(B)(v)the credit determined under §45G,
26 USC 38(c)(4)(B)(vi)the credit determined under §45R,
26 USC 38(c)(4)(B)(vii)credit by §46 attributable to the energy credit determined under §48,
26 USC 38(c)(4)(B)(viii)credit by §46 related to credit by §47 for expenses incurred after 20071231, and
26 USC 38(c)(4)(B)(ix)the credit determined under §51.
26 USC 38(c)(5)This paragraph sets special rules for eligible small business credits in 2010.
26 USC 38(c)(5)(A)For eligible small business credits determined in TYs beginning in 2010—
26 USC 38(c)(5)(A)(i)§38 and §39 are applied separately with respect to such credits, and
26 USC 38(c)(5)(A)(ii)in applying (1) to such credits—
26 USC 38(c)(5)(A)(ii)(I)the tentative minimum tax is treated as being 0, and
26 USC 38(c)(5)(A)(ii)(II)the limitation under (1) is reduced by credit by (a) for such TY.
26 USC 38(c)(5)(B)"Eligible small business credits" is sum of credits by (b) for business by (C).
26 USC 38(c)(5)(C)An "eligible small business" has average receipts within $50M in 3 TYs and is a—
26 USC 38(c)(5)(C)(i)a corporation whose stock is not publicly traded,
26 USC 38(c)(5)(C)(ii)a partnership, or
26 USC 38(c)(5)(C)(iii)a sole proprietorship.
26 USC 38(c)(5)(D)If partner, &c., meets (C), credit is deemed an eligible small business credit.
26 USC 38(c)(6)This paragraph sets special rules in respect of the $25000 limit by (1)(B).
26 USC 38(c)(6)(A)Such limit is halved for MFS filers, unless spouse has no §38 or §39 amounts.
26 USC 38(c)(6)(B)Such limit is reduced proportionally for controlled group (§1563(a)) members.
26 USC 38(c)(6)(C)Such limit is the ratable share regarding persons by (A) or (B) of §46(e)(1).
26 USC 38(c)(6)(D)For estates, limit is reduced by ratio of unallocated income to total income.
26 USC 38(d)This subsection sets ordering rules.
26 USC 38(d)(1)The order of credit's use is determined by the credit's listing order in (b).
26 USC 38(d)(2)The order of credit used from §46 is set by the credit's listing order in §46.
26 USC 38(d)(3)This paragraph sets rules for credits no longer listed.
26 USC 38(d)(3)(A)Credits by §40 and §41(a) are referred to in that order after end of (b).
26 USC 38(d)(3)(B)The credit determined under §46 attributable to extent of percentage by—
26 USC 38(d)(3)(B)(i)such (a)(2)(E) (as in effect as of day before 19840718) comes after §46(1), and
26 USC 38(d)(3)(B)(ii)such (b)(1) (as in effect as of day before 19901105) is first credit in §46.
 
26 USC 39This section discusses carryback and carryforward of unused business credits.
26 USC 39(a)This subsection sets the general rule.
26 USC 39(a)(1)If sum of carryforwards and current credit exceeds §38(c) limit, excess is—
26 USC 39(a)(1)(A)a business credit carryback to the TY preceding the unused credit year, and
26 USC 39(a)(1)(B)a carryforward to each of the following 20 TYs, subject to (b) and (c).
26 USC 39(a)(2)This paragraph sets the amount carried to each year.
26 USC 39(a)(2)(A)Unused credit is carried to earliest of 21 TYs to which it can be carried.
26 USC 39(a)(2)(B)Unused credit not carried due to (b) or (c) is carried to such other 20 TYs.
26 USC 39(a)(3)Despite (d), for the marginal oil and gas well production credit—
26 USC 39(a)(3)(A)§39 is applied separately from the other business credits,
26 USC 39(a)(3)(B)apply (1)(A) by substituting "each of the 5 TYs" for "the TY", and
26 USC 39(a)(3)(C)apply (2) by substituting—
26 USC 39(a)(3)(C)(i)"25 TYs" for "21 TYs" in (A) thereof, and
26 USC 39(a)(3)(C)(ii)"24 TYs" for "20 TYs" in (B) thereof.
26 USC 39(b)Unused credit by §38(a)(3) is limited by amount §38(c) limit exceeds sum of—
26 USC 39(b)(1)the amounts figured by (1) and (2) of §38(a) for the taxable year, plus
26 USC 39(b)(2)amounts carried back to such current TY and attributable to prior TYs.
26 USC 39(c)§38(a)(1) credit is limited to excess of §38(c) over prior carryforwards.
26 USC 39(d)No credit from §38(b) can be carried back to TYs before 1st TY credit is given.
 
26 USC 40This section discusses alcohol used as a fuel.
26 USC 40(a)For §38, the alcohol fuels credit for the taxable year is equal to the sum of—
26 USC 40(a)(1)the alcohol mixture credit,
26 USC 40(a)(2)the alcohol credit
26 USC 40(a)(3)the small ethanol producer credit, in the case of an eligible producer, plus
26 USC 40(a)(4)the second generation biofuel producer credit.
26 USC 40(b)This subsection defines the credits referred to in (1) - (3) of (a).
26 USC 40(b)(1)This paragraph defines the "alcohol mixture credit".
26 USC 40(b)(1)(A)Such credit is 60¢ per gallon used in the production of a qualified mixture.
26 USC 40(b)(1)(B)A "qualified mixture" is a mix of alcohol with gasoline or with other fuel—
26 USC 40(b)(1)(B)(i)which is sold by the taxpayer producing such mixture for use as a fuel, or
26 USC 40(b)(1)(B)(ii)which is used as a fuel by the taxpayer producing such mixture.
26 USC 40(b)(1)(C)Alcohol used in the production of a qualified mixture is taken into account—
26 USC 40(b)(1)(C)(i)only if the sale or use by (B) is in a trade or business of the taxpayer, and
26 USC 40(b)(1)(C)(ii)for the taxable year in which such sale or use occurs.
26 USC 40(b)(1)(D)No credit is allowed for casual off-farm production of a qualified mixture.
26 USC 40(b)(2)This paragraph defines the "alcohol credit".
26 USC 40(b)(2)(A)Such credit is 60¢ per gallon of unmixed alcohol and which—
26 USC 40(b)(2)(A)(i)is used by the taxpayer as a fuel in a trade or business, or
26 USC 40(b)(2)(A)(ii)is sold by the taxpayer at retail to a person, and placed in purchaser's tank.
26 USC 40(b)(3)For alcohol of 149 - 190 proof, swap "45¢" for "60¢" in (1)(A) and (2)(A).
26 USC 40(b)(4)This paragraph defines the "small ethanol producer credit".
26 USC 40(b)(4)(A)Such credit is 10¢ for each gallon of qualified ethanol fuel production.
26 USC 40(b)(4)(B)"Qualified ethanol fuel production" is production by (g)(1) person which—
26 USC 40(b)(4)(B)(i)is of ethanol sold by such producer to another person—
26 USC 40(b)(4)(B)(i)(I)for use by such other person in the production of a qualified mixture,
26 USC 40(b)(4)(B)(i)(II)for use by such other person as a fuel in a trade or business, or
26 USC 40(b)(4)(B)(i)(III)who sells it at retail to another person and places it in their fuel tank, or
26 USC 40(b)(4)(B)(ii)is of ethanol used or sold by such producer for any purpose described in (i).
26 USC 40(b)(4)(C)Such qualified production for any TY is limited to 15M gallons.
26 USC 40(b)(4)(D)Alcohol which has its proof increased by distillation isn't accounted by (4).
26 USC 40(b)(5)The addition of denaturant is not treated as the production of a mixture.
26 USC 40(b)(6)This paragraph sets the second generation biofuel producer credit.
26 USC 40(b)(6)(A)Such credit is the applicable amount of each gallon of production by (C).
26 USC 40(b)(6)(B)For (A), the amount is $1.01; for fuel by (E) which is alcohol, reduce $1.01 by—
26 USC 40(b)(6)(B)(i)credit in effect for such alcohol under (b)(1) (ignore (b)(3)) when produced, &
26 USC 40(b)(6)(B)(ii)in the case of ethanol, amount of credit in effect under (b)(4) at such time.
26 USC 40(b)(6)(C)"Qualified second generation biofuel production" is (E) fuel produced which—
26 USC 40(b)(6)(C)(i)is sold by the taxpayer to another person—
26 USC 40(b)(6)(C)(i)(I)for use by such person in a business or trade to produce mixture by (D),
26 USC 40(b)(6)(C)(i)(II)for use by such other person as a fuel in a trade or business, or
26 USC 40(b)(6)(C)(i)(III)who sells such biofuel at retail to another person, or
26 USC 40(b)(6)(C)(ii)is used or sold by the taxpayer for any purpose by (i).
26 USC 40(b)(6)(D)A "qualified 2nd generation biofuel mixture" is a mix of (E) & gasoline which—
26 USC 40(b)(6)(D)(i)is sold by the person producing such mixture to any person for use as a fuel, or
26 USC 40(b)(6)(D)(ii)is used as a fuel by the person producing such mixture.
26 USC 40(b)(6)(E)This subparagraph defines "second generation biofuel".
26 USC 40(b)(6)(E)(i)Second generation biofuel is any liquid fuel which—
26 USC 40(b)(6)(E)(i)(I)is derived by or from qualified feedstocks, and
26 USC 40(b)(6)(E)(i)(II)meets the requirements for fuels set by EPA under §211 of PL 88-206.
26 USC 40(b)(6)(E)(ii)Alcohol with a proof of less than 150 (without denaturants) is excluded.
26 USC 40(b)(6)(E)(iii)2nd generation biofuel doesn't include any fuel if, regarding the fuel's weight—
26 USC 40(b)(6)(E)(iii)(I)more than 4% of such fuel is any combination of water and sediment,
26 USC 40(b)(6)(E)(iii)(II)the ash content of such fuel is more than 1%, or
26 USC 40(b)(6)(E)(iii)(III)such fuel has an acid number greater than 25.
26 USC 40(b)(6)(F)For purposes of (6), "qualified feedstock" is—
26 USC 40(b)(6)(F)(i)any lignocellulosic matter that is available on a renewable basis, and
26 USC 40(b)(6)(F)(ii)any cultivated algae, cyanobacteria, or lemna.
26 USC 40(b)(6)(G)If (F)(ii) fuel is sold to refine to (E)(i)(II) fuel & not subject to (E)(iii)—
26 USC 40(b)(6)(G)(i)its sale is treated as described under (C)(i),
26 USC 40(b)(6)(G)(ii)the fuel meets (E)(i)(II) and is not excluded under (E)(iii) for the seller, and
26 USC 40(b)(6)(G)(iii)the fuel (and any derived fuel) is not subject to (C) for seller or buyer.
26 USC 40(b)(6)(H)Rules similar to rules under (g)(6) apply for purposes of (6).
26 USC 40(b)(6)(I)Credit by (6) requires taxpayer to be registered with Sec. under §4101.
26 USC 40(b)(6)(J)This paragraph sets rules for the application of (6).
26 USC 40(b)(6)(J)(i)(6) applies to biofuel production between 20081231 and 20140101.
26 USC 40(b)(6)(J)(ii)If (6) doesn't apply by reason of clause (i), rules of (e)(2) apply.
26 USC 40(c)§40 credit is reduced by applicable credits by §§4041(b)(2), 6426, or 6427(e).
26 USC 40(d)This subsection sets other definitions and special rules.
26 USC 40(d)(1)This paragraph defines "alcohol".
26 USC 40(d)(1)(A)Alcohol includes methanol and ethanol but does not include—
26 USC 40(d)(1)(A)(i)alcohol produced from petroleum, natural gas, or coal (including peat), or
26 USC 40(d)(1)(A)(ii)alcohol with a proof of less than 150.
26 USC 40(d)(1)(B)Determination of alcohol proof is made without regard to added denaturants.
26 USC 40(d)(2)"Special fuel" includes any liquid fuel (other than gas) usable in an engine.
26 USC 40(d)(3)This paragraph defines sets rules for mixtures or alcohol not used as fuel.
26 USC 40(d)(3)(A)A tax of 60¢ for each gallon of alcohol in a mixture is imposed if—
26 USC 40(d)(3)(A)(i)any credit was given with respect to the production of a qualified mixture, and
26 USC 40(d)(3)(A)(ii)any person—
26 USC 40(d)(3)(A)(ii)(I)separates the alcohol from the mixture, or
26 USC 40(d)(3)(A)(ii)(II)without separation, uses the mixture other than as a fuel.
26 USC 40(d)(3)(B)A tax of 60¢ for each gallon of alcohol used is imposed if—
26 USC 40(d)(3)(B)(i)any credit was given with respect to the retail sale of any alcohol, and
26 USC 40(d)(3)(B)(ii)any person mixes such alcohol or uses such alcohol other than as a fuel.
26 USC 40(d)(3)(C)A tax of 10¢ for each gallon of alcohol used is imposed if—
26 USC 40(d)(3)(C)(i)any credit was determined under (a)(3), and
26 USC 40(d)(3)(C)(ii)any person doesn't use the fuel for a purpose as described in (b)(4)(B).
26 USC 40(d)(3)(D)Tax of (b)(6)(B) amount on each gallon of biofuel used is imposed if—
26 USC 40(d)(3)(D)(i)any credit was determined under (a)(4), and
26 USC 40(d)(3)(D)(ii)any person doesn't use the fuel for a purpose as described in (b)(6)(C).
26 USC 40(d)(3)(E)Taxes and applicable laws are imposed on (A) - (D) as if under §4081.
26 USC 40(d)(4)For (a), the volume of alcohol includes up to 5% of volume of denaturants.
26 USC 40(d)(5)Per Secretary's regulations, rules similar to those by §52(d) apply to §40.
26 USC 40(d)(6)Credit under (a)(4) requires such fuel to be produced and used within the US.
26 USC 40(d)(7)No credit by §40 is allowed for alcohol produced or used without the US.
26 USC 40(e)This subsection sets rules for termination.
26 USC 40(e)(1)This section shall not apply to any sale or use for any period—
26 USC 40(e)(1)(A)after 20111231, or
26 USC 40(e)(1)(B)before 20120101, during which the tax by §4081(a)(2)(A) is 4.3¢ per gallon.
26 USC 40(e)(2)No carryforwards by §39 may be made to 3 TYs starting when (1) occurs.
26 USC 40(f)This subsection sets an election to have the alcohol fuels credit not apply.
26 USC 40(f)(1)A taxpayer may elect to have §40 not apply for any taxable year.
26 USC 40(f)(2)Such election can be made or revoked within 3 year period of return's due date.
26 USC 40(f)(3)Such election is made in such manner as Sec. prescribes in regulations.
26 USC 40(g)Definitions and special rules for the eligible small ethanol producer credit.
26 USC 40(g)(1)Such producer has productive capacity for alcohol within 60M gallons in a TY.
26 USC 40(g)(2)All members of same controlled group or under common control are one person.
26 USC 40(g)(3)For pass-thru entities, limits of (b)(4)(C) and (1) are applied at entity level.
26 USC 40(g)(4)Sec. allocates the productive capacity among persons with facility interest.
26 USC 40(g)(5)The Secretary may prescribe such regulations as may be necessary to prevent—
26 USC 40(g)(5)(A)(a)(3) credit going to persons with production exceeding 60M gallons, or
26 USC 40(g)(5)(B)any person from benefiting with respect to more than 15M gallons.
26 USC 40(g)(6)Allocation of credit to patrons of cooperative organizations by §1381(a).
26 USC 40(g)(6)(A)This subparagraph sets an election to allocate.
26 USC 40(g)(6)(A)(i)Organization may elect to allocate (a)(3) credit on basis of patron business.
26 USC 40(g)(6)(A)(ii)Election by (i) is made on a timely filed return for the TY and is irrevocable.
26 USC 40(g)(6)(B)This subparagraph sets treatment of organizations and patrons.
26 USC 40(g)(6)(B)(i)(a)(3) credit not allocated by (A) is included for the TY of the organization.
26 USC 40(g)(6)(B)(ii)Patrons include (A) in 1st TY ending as of last day of period by §1382(d).
26 USC 40(g)(6)(B)(iii)Organization treats as an increase of chapter 1 tax any excess of—
26 USC 40(g)(6)(B)(iii)(I)(a)(3) credit for a TY which is less than such credit shown on its return, over
26 USC 40(g)(6)(B)(iii)(II)the amount not apportioned to patrons under (A) for such taxable year.
26 USC 40(h)This subsection sets a reduced for ethanol blenders.
26 USC 40(h)(1)For credit by (1) or (2) of (b) regarding ethanol sold between 2001 and 2011—
26 USC 40(h)(1)(A)swap "the blender amount" for "60¢" in (b)(1)(A) and (b)(2)(A),
26 USC 40(h)(1)(B)swap "low-proof blender amount" for "45¢" and apply (A) to (b)(3), and
26 USC 40(h)(1)(C)apply substitutions by (A) and (B) to (d)(3)(A) and (d)(3)(B).
26 USC 40(h)(2)### For (1), the blender amount and the low-proof blender amount are by ###.
26 USC 40(h)(3)A reduction until yearly ethanol production or importation is 7.5B gallons.
26 USC 40(h)(3)(A)After 2008, if (B) is made, blender amount by (2) after 2007 is 51¢.
26 USC 40(h)(3)(B)Sec. & EPA determines that less than 7.5B gallons have been made or imported.
 
26 USC 40AThis section discusses biodiesel and renewable diesel used as fuel.
26 USC 40A(a)For §38, the biodiesel fuels credit for the taxable year is equal to the sum of—
26 USC 40A(a)(1)the biodiesel mixture credit,
26 USC 40A(a)(2)the biodiesel credit, plus
26 USC 40A(a)(3)the small agri-biodiesel producer credit, in the case of an eligible producer.
26 USC 40A(b)This subsection defines the terms used in (a).
26 USC 40A(b)(1)This paragraph defines the "biodiesel mixture credit".
26 USC 40A(b)(1)(A)Credit is 50¢ per gallon of biodiesel fuel used to produce qualified mixtures.
26 USC 40A(b)(1)(B)A "qualified biodiesel mixture" has biodiesel & diesel fuel (§4083(a)(3)) and—
26 USC 40A(b)(1)(B)(i)is sold by the producing taxpayer to any person for use as a fuel, or
26 USC 40A(b)(1)(B)(ii)is used as a fuel by the taxpayer producing such mixture.
26 USC 40A(b)(1)(C)Biodiesel used in production of a qualified mixture is taken into account—
26 USC 40A(b)(1)(C)(i)only if the sale or use by (B) is in taxpayer's business, and
26 USC 40A(b)(1)(C)(ii)for the taxable year in which such sale or use occurs.
26 USC 40A(b)(1)(D)No credit is allowed for casual off-farm production of a qualified mixture.
26 USC 40A(b)(2)This paragraph defines the "biodiesel credit".
26 USC 40A(b)(2)(A)Credit is 50¢ per gallon of biodiesel which is not in a mixture & which in a TY—
26 USC 40A(b)(2)(A)(i)is used by taxpayer as a fuel in a business, or
26 USC 40A(b)(2)(A)(ii)is sold at retail to a person and placed in his vehicle's fuel tank.
26 USC 40A(b)(2)(B)No credit is allowed by (A)(i) for biodiesel sold as by (A)(ii).
26 USC 40A(b)(3)For agri-biodiesel, apply (1)(A) and (2)(A) by substituting "$1" for "50¢".
26 USC 40A(b)(4)No credit is allowed by (a)(1) or (a)(2) unless fuel contents are certified.
26 USC 40A(b)(5)This paragraph defines the "small agri-biodiesel producer credit".
26 USC 40A(b)(5)(A)Such credit is 10¢ for each gallon of qualified agri-biodiesel production.
26 USC 40A(b)(5)(B)"Qualified agri-biodiesel production" is by an eligible producer of—
26 USC 40A(b)(5)(B)(i)agri-diesel biofuel which is sold by such producer to another person—
26 USC 40A(b)(5)(B)(i)(I)for use by such other person in production of a qualified mixture,
26 USC 40A(b)(5)(B)(i)(II)for use by such other person as a fuel in a business, or
26 USC 40A(b)(5)(B)(i)(III)who sells such fuel at retail to another person (placing fuel in tank), or
26 USC 40A(b)(5)(B)(ii)such biofuel which is used or sold by such producer for any purpose by (i).
26 USC 40A(b)(5)(C)Qualified production for any producer is limited to 15M gallons per TY.
26 USC 40A(c)Credit by §40A is reduced to account benefits from applying §6246 or §6427(e).
26 USC 40A(d)This subsection sets definitions and special rules.
26 USC 40A(d)(1)"Biodiesel" is monoalkyl esters of long chain fatty acids from matter, meeting—
26 USC 40A(d)(1)(A)the registration requirements for fuels by §211 of PL 84-159, and
26 USC 40A(d)(1)(B)the requirements of the American Society of Testing and Materials D6751.
26 USC 40A(d)(2)"Agri-biodiesel" is derived solely from virgin oils, such as corn, soybeans, &c.
26 USC 40A(d)(3)This paragraph sets rules for mixtures or biodiesel not used as a fuel, &c.
26 USC 40A(d)(3)(A)Tax of (b)(1)(A) rate multiplied by gallons of biodiesel used is imposed if—
26 USC 40A(d)(3)(A)(i)any credit was given for biodiesel used in production of a qualified mixture, &
26 USC 40A(d)(3)(A)(ii)any person—
26 USC 40A(d)(3)(A)(ii)(I)separates the biodiesel from the mixture, or
26 USC 40A(d)(3)(A)(ii)(II)uses the mixture other than as a fuel without separation.
26 USC 40A(d)(3)(B)Tax of (b)(2)(A) rate multiplied by gallons of biodiesel used is imposed if—
26 USC 40A(d)(3)(B)(i)any credit was allowed with respect to retail sale of any biodiesel, and
26 USC 40A(d)(3)(B)(ii)any person mixes such biodiesel or uses such biodiesel other than as fuel.
26 USC 40A(d)(3)(C)Tax of 10¢ per gallon of agri-biodiesel used is imposed if—
26 USC 40A(d)(3)(C)(i)any credit was given by (a)(3), and
26 USC 40A(d)(3)(C)(ii)a person's use of such use doesn't meet (b)(5)(B).
26 USC 40A(d)(3)(D)Any taxes imposed by (A) or (B) are considered imposed by §4081.
26 USC 40A(d)(4)Per Sec.'s regulations, rules similar to those by §52(d) apply to §40A.
26 USC 40A(e)Definitions and special rules for small agri-biodiesel producer credit.
26 USC 40A(e)(1)An eligible producer has productive capacity within 60M gallons.
26 USC 40A(e)(2)For (b)(5)(C) & (1), all controlled group & common control members are 1 person.
26 USC 40A(e)(3)For (b)(5)(C) & (1), limitations therein are applied at entity or partner level.
26 USC 40A(e)(4)Secretary prescribes allocation of productive capacity to all interest holders.
26 USC 40A(e)(5)Secretary shall prescribe regulations as necessary to prevent—
26 USC 40A(e)(5)(A)credit of (a)(3) applying to excess of 60M gallons of agri-biodiesel, or
26 USC 40A(e)(5)(B)any direct or indirect benefit from excess of 15M gallons in the taxable year.
26 USC 40A(e)(6)Allocation of credit to patrons of cooperative organizations by §1381(a).
26 USC 40A(e)(6)(A)This subparagraph sets an election to allocate.
26 USC 40A(e)(6)(A)(i)Organization may elect to allocate (a)(3) credit on basis of patron business.
26 USC 40A(e)(6)(A)(ii)Election by (i) is made on a timely filed return for the TY and is irrevocable.
26 USC 40A(e)(6)(B)This subparagraph sets treatment of organizations and patrons.
26 USC 40A(e)(6)(B)(i)(a)(3) credit not allocated by (A) is included for the TY of the organization.
26 USC 40A(e)(6)(B)(ii)Patrons include (A) in 1st TY ending as of last day of period by §1382(d).
26 USC 40A(e)(6)(B)(iii)Organization treats as an increase of chapter 1 tax any excess of—
26 USC 40A(e)(6)(B)(iii)(I)(a)(3) credit for a TY which is less than such credit shown on its return, over
26 USC 40A(e)(6)(B)(iii)(II)the amount not apportioned to patrons under (A) for such taxable year.
26 USC 40A(f)This subsection sets rules for renewable diesel.
26 USC 40A(f)(1)Except by (2), renewable diesel is treated in the same manner as biodiesel.
26 USC 40A(f)(2)This paragraph sets exceptions to (1).
26 USC 40A(f)(2)(A)Apply (b)(1)(A) and (b)(2)(A) by substituting "$1" for "50¢".
26 USC 40A(f)(2)(B)(b)(3) and (b)(5) do not apply with respect to renewable diesel.
26 USC 40A(f)(3)Renewable diesel is from biomass (§45K(c)(3)) by depolymerization process that—
26 USC 40A(f)(3)(A)meets registration requirements by §211 of PL 84-159, and
26 USC 40A(f)(3)(B)meets requirements of American Society of Testing And Materials D975 or D396.
26 USC 40A(g)This section does not apply to any sale or use after 20131231.
 
26 USC 41This section discusses the credit for increasing research activities.
26 USC 41(a)For §38, the research credit for the TY is an amount equal to the sum of—
26 USC 41(a)(1)20% of any excess of—
26 USC 41(a)(1)(A)the qualified research expenses for the taxable year, over
26 USC 41(a)(1)(B)the base amount,
26 USC 41(a)(2)20% of the basic research payments determined under (e)(1)(A), and
26 USC 41(a)(3)20% of payments incurred in business to an energy research consortium.
26 USC 41(b)This subsection defines "qualified research expenses".
26 USC 41(b)(1)Such expenses is the sum of the following, paid in TY for taxpayer's business—
26 USC 41(b)(1)(A)in-house research expenses, and
26 USC 41(b)(1)(B)contract research expenses.
26 USC 41(b)(2)This paragraph defines "in-house research expenses".
26 USC 41(b)(2)(A)In-house research expenses are—
26 USC 41(b)(2)(A)(i)any wages paid to an employee for qualified services performed,
26 USC 41(b)(2)(A)(ii)any amount paid or incurred for supplies used in qualified research, and
26 USC 41(b)(2)(A)(iii)amounts paid to other persons for the right to use computers in such research.
26 USC 41(b)(2)(B)"Qualified services" are services consisting of—
26 USC 41(b)(2)(B)(i)engaging in qualified research, or
26 USC 41(b)(2)(B)(ii)engaging in the direct supervision of activities that are qualified research.
26 USC 41(b)(2)(C)"Supplies" are any tangible property other than—
26 USC 41(b)(2)(C)(i)land or improvements to land, and
26 USC 41(b)(2)(C)(ii)property of a character subject to the allowance for depreciation.
26 USC 41(b)(2)(D)This subparagraph defines "wages".
26 USC 41(b)(2)(D)(i)In general, "wages" has the meaning given by §3401(a).
26 USC 41(b)(2)(D)(ii)For employees by §401(c), wages includes earned income by §401(c)(2).
26 USC 41(b)(2)(D)(iii)Amounts accounted to figure credit under §51(a) are not considered "wages".
26 USC 41(b)(3)This paragraph defines "contract research expenses".
26 USC 41(b)(3)(A)Such expenses are 65% of costs taxpayer pays to a person for qualified research.
26 USC 41(b)(3)(B)Expenses paid in TY before research occurs is deemed paid when research is made.
26 USC 41(b)(3)(C)This subparagraph sets rules for amounts paid to certain research consortia.
26 USC 41(b)(3)(C)(i)For (A), swap 75% for 65% for payments to consortium by (ii) for research.
26 USC 41(b)(3)(C)(ii)A "qualified research consortium" means any organization which—
26 USC 41(b)(3)(C)(ii)(I)is described in (3) or (6) of §501(c) and is tax-exempt by §501(a),
26 USC 41(b)(3)(C)(ii)(II)is organized and operated primarily to conduct scientific research, and
26 USC 41(b)(3)(C)(ii)(III)is not a private foundation.
26 USC 41(b)(3)(D)Payments to eligible small businesses, universities, and Federal laboratories.
26 USC 41(b)(3)(D)(i)For (A), swap "100%" for "65%" for payments by the taxpayer to—
26 USC 41(b)(3)(D)(i)(I)an eligible small business,
26 USC 41(b)(3)(D)(i)(II)an institution of higher education (as defined by §3304(f)), or
26 USC 41(b)(3)(D)(i)(III)an organization which is a Federal laboratory.
26 USC 41(b)(3)(D)(ii)An "eligible small business" is any which taxpayer doesn't own more than 50% of—
26 USC 41(b)(3)(D)(ii)(I)in case of a corporation, its outstanding stock (either by vote or value), and
26 USC 41(b)(3)(D)(ii)(II)in case of a partnership, its capital and profits interest.
26 USC 41(b)(3)(D)(iii)This clause defines a "small business" for purposes of (D).
26 USC 41(b)(3)(D)(iii)(I)A small business employs an average of up to 500 employees within 2 prior years.
26 USC 41(b)(3)(D)(iii)(II)Rules by (B) and (D) of §220(c)(4) apply for purposes of (iii).
26 USC 41(b)(3)(D)(iv)A "Federal laboratory" is by §4(6) of PL 96-480 as in effect upon 20050808.
26 USC 41(b)(4)(1) is met if costs by (2) are incurred for use in conduct of a future business—
26 USC 41(b)(4)(A)of the taxpayer, or
26 USC 41(b)(4)(B)or 1 or more other persons considered 1 taxpayer under (f)(1).
26 USC 41(c)This subsection defines the "base amount".
26 USC 41(c)(1)The base amount is, regarding TY when §41 credit is figured (the "credit year")—
26 USC 41(c)(1)(A)the fixed-base percentage, multiplied by
26 USC 41(c)(1)(B)average annual gross receipts for the 4 TYs preceding the credit year.
26 USC 41(c)(2)The base amount is at least 50% of the qualified research expenses for the TY.
26 USC 41(c)(3)This paragraph sets the "fixed-base percentage".
26 USC 41(c)(3)(A)Percentage is rate of costs by (b) for certain TYs of total gross receipts.
26 USC 41(c)(3)(B)This subparagraph sets rules for start-up companies.
26 USC 41(c)(3)(B)(i)The fixed-base percentage is determined under (B) if—
26 USC 41(c)(3)(B)(i)(I)the first TY for both expenses and gross receipts is after 19831231, or
26 USC 41(c)(3)(B)(i)(II)there are less than 3 TYs of expenses & receipts between 19831231 and 19890101.
26 USC 41(c)(3)(B)(ii)If (B) applies, the fixed-base percentage is, for TYs beginning after 19931231—
26 USC 41(c)(3)(B)(ii)(I)3% for the first 5 such TYs for which there is qualified research,
26 USC 41(c)(3)(B)(ii)(II)for the 6th such TY, 1/6 of expenses divided by receipts from 4th and 5th TY,
26 USC 41(c)(3)(B)(ii)(III)for the 7th such TY, 1/3 of expenses divided by receipts from 5th and 6th TY,
26 USC 41(c)(3)(B)(ii)(IV)for the 8th such TY, 1/2 of expenses divided by receipts from 5th, 6th & 7th TY,
26 USC 41(c)(3)(B)(ii)(V)for the 9th such TY, 2/3 of expenses divided by receipts from 5th - 8th TYs,
26 USC 41(c)(3)(B)(ii)(VI)for 10th such TY, 5/6 of expenses divided by receipts from 5th - 9th TYs, and
26 USC 41(c)(3)(B)(ii)(VII)for TYs after (VI), the expenses divided by receipts from 5th - 10th TYs.
26 USC 41(c)(3)(B)(iii)Sec. may set that de minimis receipts & expenses aren't accounted by (i) & (ii).
26 USC 41(c)(3)(C)The fixed-base percentage is limited to 16%.
26 USC 41(c)(3)(D)The percentages figured in (A) & (B) of (ii) is rounded to nearest .01 of 1%.
26 USC 41(c)(4)This paragraph sets an election of alternative incremental credit.
26 USC 41(c)(4)(A)If elected, (a)(1) credit is, regarding average by (c)(1)(B), the sum of—
26 USC 41(c)(4)(A)(i)3% of expenses by (b) exceeding 1% but not 1.5% such average,
26 USC 41(c)(4)(A)(ii)4% of expenses by (b) exceeding 1.5% but not 2% of such average, and
26 USC 41(c)(4)(A)(iii)5% of expenses by (b) which exceed 2% of such average.
26 USC 41(c)(4)(B)Election applies to TY when made and all subsequent TYs unless revoked by Sec.
26 USC 41(c)(5)This paragraph sets an election of alternative simplified credit.
26 USC 41(c)(5)(A)(a)(1) is 12% of excess of (b) over ½ of average of such costs in 3 prior TYs.
26 USC 41(c)(5)(B)A special rule if no expenses by (b) are incurred in any of 3 prior TYs.
26 USC 41(c)(5)(B)(i)(B) applies if taxpayer has no expenses by (3) in any of 3 prior TYs.
26 USC 41(c)(5)(B)(ii)Credit by (B) is 6% of qualified research expenses of the taxable year.
26 USC 41(c)(5)(C)Election applies as by (c)(4)(B) and isn't allowed if election by (4) is made.
26 USC 41(c)(6)This paragraph sets a requirement for consistent treatment of expenses.
26 USC 41(c)(6)(A)Method to figure (b) in credit year is used to figure fixed-base percentage.
26 USC 41(c)(6)(B)Secretary may set rules to prevent errors caused by accounting method changes.
26 USC 41(c)(7)Gross receipts is reduced by returns & allowances (within US or possessions).
26 USC 41(d)This subsection defines "qualified research".
26 USC 41(d)(1)Qualified research means research not by (4) which—
26 USC 41(d)(1)(A)may have its expenditures treated as expenses under §174,
26 USC 41(d)(1)(B)is undertaken for the purpose of discovering information—
26 USC 41(d)(1)(B)(i)which is technological in nature, and
26 USC 41(d)(1)(B)(ii)intended for use in the development of a new or improved business component, and
26 USC 41(d)(1)(C)constitute a process of experimentation for a purpose by (3).
26 USC 41(d)(2)A requirement of separate application to each business component.
26 USC 41(d)(2)(A)(1) is applied separately to each business component of the taxpayer.
26 USC 41(d)(2)(B)A "business component" is any product, process, software, &c., which is to be—
26 USC 41(d)(2)(B)(i)held for sale, lease, or licence, or
26 USC 41(d)(2)(B)(ii)used by the taxpayer in his trade or business.
26 USC 41(d)(2)(C)Any technique, &c., for business component commercial production is separate.
26 USC 41(d)(3)This paragraph sets purposes for which research may qualify for credit.
26 USC 41(d)(3)(A)Research is conducted for a purpose described by (3) it relates to—
26 USC 41(d)(3)(A)(i)a new or improved function,
26 USC 41(d)(3)(A)(ii)performance, or
26 USC 41(d)(3)(A)(iii)reliability or quality.
26 USC 41(d)(3)(B)Research doesn't apply if it relates to style, taste, or other design factors.
26 USC 41(d)(4)"Qualified research" does not include any of the following:
26 USC 41(d)(4)(A)Research conducted after commercial production of the component has started.
26 USC 41(d)(4)(B)Research for the adaptation of an existing component to a customer's request.
26 USC 41(d)(4)(C)Research related to reproduction of an existing product from public information.
26 USC 41(d)(4)(D)Any—
26 USC 41(d)(4)(D)(i)efficiency surveys,
26 USC 41(d)(4)(D)(ii)activity relating to management function or technique,
26 USC 41(d)(4)(D)(iii)market research, testing, or development (including advertising or promotions),
26 USC 41(d)(4)(D)(iv)routine data collection, or
26 USC 41(d)(4)(D)(v)routine testing or inspection for quality control.
26 USC 41(d)(4)(E)Research of computer software developed and used by the taxpayer, except in—
26 USC 41(d)(4)(E)(i)an activity which constitutes qualified research, or
26 USC 41(d)(4)(E)(ii)a production process with respect to which the requirements of (1) are met.
26 USC 41(d)(4)(F)Any research conducted outside the US, Puerto Rico, or any US possession.
26 USC 41(d)(4)(G)Any research in the social sciences, arts, or humanities.
26 USC 41(d)(4)(H)The extent of funding by grants, &c., from another person or government entity.
26 USC 41(e)A credit for certain payments to qualified organizations for basic research.
26 USC 41(e)(1)For any taxpayer who makes basic research payments for any taxable year—
26 USC 41(e)(1)(A)the amount of such payments taken into account by (a)(2) is the excess of—
26 USC 41(e)(1)(A)(i)such basic research payments, over
26 USC 41(e)(1)(A)(ii)the qualified organization base period amount, and
26 USC 41(e)(1)(B)payments within base period amount is contract research expenses for (a)(1).
26 USC 41(e)(2)This paragraph defines "basic research payments".
26 USC 41(e)(2)(A)Such payments are of cash by a corporation to an qualified organization, if—
26 USC 41(e)(2)(A)(i)such payment is subject to a written agreement between the two entities, and
26 USC 41(e)(2)(A)(ii)such basic research is to be performed by such qualified organization.
26 USC 41(e)(2)(B)(A)(ii) doesn't apply to organizations described by (C) or (D) of (6).
26 USC 41(e)(3)The "qualified organization base period amount" is equal to the sum of—
26 USC 41(e)(3)(A)the minimum basic research amount, plus
26 USC 41(e)(3)(B)the maintenance-of-effort amount.
26 USC 41(e)(4)This paragraph defines the "minimum basic research amount".
26 USC 41(e)(4)(A)The minimum basic research amount is equal to the greater of—
26 USC 41(e)(4)(A)(i)1% of the average of the amounts paid or incurred during the base period for—
26 USC 41(e)(4)(A)(i)(I)any in-house research expenses, and
26 USC 41(e)(4)(A)(i)(II)any contract research expenses, or
26 USC 41(e)(4)(A)(ii)amounts treated as contract research expenses in base period under (e).
26 USC 41(e)(4)(B)The minimum basic research amount for a base period is at least 50% of payments.
26 USC 41(e)(5)This paragraph defines "maintenance-of-effort amount".
26 USC 41(e)(5)(A)The maintenance-of-effort amount is, for any TY, equal to the excess of—
26 USC 41(e)(5)(A)(i)an amount equal to—
26 USC 41(e)(5)(A)(i)(I)average of nondesignated university contributions paid in base period, times
26 USC 41(e)(5)(A)(i)(II)the cost-of-living adjustment for the calendar year when TY starts, over
26 USC 41(e)(5)(A)(ii)the amount of nondesignated university contributions paid in the taxable year.
26 USC 41(e)(5)(B)"Nondesignated university contributions" are toward any organization in (6)(A)—
26 USC 41(e)(5)(B)(i)for which a deduction by §170 was allowed, and
26 USC 41(e)(5)(B)(ii)which was not taken into account—
26 USC 41(e)(5)(B)(ii)(I)in figuring the credit by §41 during any TY in the base period, or
26 USC 41(e)(5)(B)(ii)(II)as a basic research payment for purposes of §41.
26 USC 41(e)(5)(C)This subparagraph defines the "cost-of-living adjustment".
26 USC 41(e)(5)(C)(i)The adjustment is figured in §1(f)(3); swap "1987" for "1992" in (B) thereof.
26 USC 41(e)(5)(C)(ii)Swap end of base period year which isn't 1983 or 1984 for "1992" in §1(f)(3)(B).
26 USC 41(e)(6)A "qualified organization" is any of the following organizations:
26 USC 41(e)(6)(A)Any educational organization which is—
26 USC 41(e)(6)(A)(i)an institution of higher education (as under §3304(f)), and
26 USC 41(e)(6)(A)(ii)described in §170(b)(1)(A)(ii).
26 USC 41(e)(6)(B)Any organization not described in (A) which is—
26 USC 41(e)(6)(B)(i)described in §503(c)(3) and is tax exempt by §501(a),
26 USC 41(e)(6)(B)(ii)organized and operated primarily to conduct scientific research, and
26 USC 41(e)(6)(B)(iii)not a private foundation.
26 USC 41(e)(6)(C)Any organization which—
26 USC 41(e)(6)(C)(i)is described in—
26 USC 41(e)(6)(C)(i)(I)§501(c)(3) (other than a private foundation) or
26 USC 41(e)(6)(C)(i)(II)§506(c)(6),
26 USC 41(e)(6)(C)(ii)is tax exempt by §501(a),
26 USC 41(e)(6)(C)(iii)is operated primarily to promote scientific research by organizations in (A), &
26 USC 41(e)(6)(C)(iv)incurs costs for grants to, or research contracts with, entities by (A) from—
26 USC 41(e)(6)(C)(iv)(I)substantially all of its funds, or
26 USC 41(e)(6)(C)(iv)(II)substantially all the basic research payments which it receives.
26 USC 41(e)(6)(D)Any organization not described in (B) or (C) which is—
26 USC 41(e)(6)(D)(i)described in §501(c)(3) and tax exempt by §501(a) (except private foundations),
26 USC 41(e)(6)(D)(ii)established and maintained by an organization meeting (i) before 19810710,
26 USC 41(e)(6)(D)(iii)made exclusively for the purpose of making grants to organizations in (A), and
26 USC 41(e)(6)(D)(iv)elects to be considered a private foundation for 26 USC (except §4940).
26 USC 41(e)(7)This paragraph sets definitions and special rules for purposes of (e).
26 USC 41(e)(7)(A)"Basic research" is any new investigation to raise scientific knowledge unless—
26 USC 41(e)(7)(A)(i)it is conducted outside of the United States, and
26 USC 41(e)(7)(A)(ii)it is in the social sciences, arts, or humanities.
26 USC 41(e)(7)(B)The "base period" is 3 TYs, ending in TY before first TY after 19831231.
26 USC 41(e)(7)(C)In applying (a)(1), the basic research payments taken into account by (a)(2)—
26 USC 41(e)(7)(C)(i)are not treated as qualified research expenses under (a)(1)(A), and
26 USC 41(e)(7)(C)(ii)are not included in the computation of base amount under (a)(1)(B).
26 USC 41(e)(7)(D)In applying (b)(1), recognize payments in TY of payment (ignoring (b)(3)(B)).
26 USC 41(e)(7)(E)A "corporation" does not include—
26 USC 41(e)(7)(E)(i)an S corporation,
26 USC 41(e)(7)(E)(ii)a personal holding company (as defined in §542), or
26 USC 41(e)(7)(E)(iii)a service organization (as defined in §414(m)(3)).
26 USC 41(f)This subsection sets special rules for purposes of §41.
26 USC 41(f)(1)This paragraph sets rules for the aggregation of expenditures.
26 USC 41(f)(1)(A)In determining §41 credit for a controlled group of corporations, all members—
26 USC 41(f)(1)(A)(i)belonging to the same group are treated as a single taxpayer, and
26 USC 41(f)(1)(A)(ii)are allowed credit on basis of their proportional share of expenses & payments.
26 USC 41(f)(1)(B)Per Secretary's regulations, to figure §41 credit for a common control group—
26 USC 41(f)(1)(B)(i)all businesses (incorporated or not) under it are treated as one taxpayer, and
26 USC 41(f)(1)(B)(ii)each person gets credit based on proportional share of expenses, payments, &c.
26 USC 41(f)(2)This paragraph sets rules for allocations.
26 USC 41(f)(2)(A)Per Sec.'s regulations, rules similar to those of §52(d) apply.
26 USC 41(f)(2)(B)Per Sec.'s regulations, credit is allocated among partners of partnership.
26 USC 41(f)(3)This paragraph sets adjustments for certain acquisitions after 19831231.
26 USC 41(f)(3)(A)This subparagraph sets rules for acquisitions.
26 USC 41(f)(3)(A)(i)Business acquiror's expenses paid and receipts is increased by (ii) and (iii).
26 USC 41(f)(3)(A)(ii)Amount determined by (ii) for applying §41 to the taxable year—
26 USC 41(f)(3)(A)(ii)(I)of acquisition is the acquisition year amount, and
26 USC 41(f)(3)(A)(ii)(II)after acquisition is expenses paid by predecessor during (vi) period.
26 USC 41(f)(3)(A)(iii)(iii) amount is as if reference to expenses in (ii) & (iv) is made to receipts.
26 USC 41(f)(3)(A)(iv)For (ii), the acquisition year amount is the product of—
26 USC 41(f)(3)(A)(iv)(I)research costs paid by predecessor regarding acquired business in (vi) period, &
26 USC 41(f)(3)(A)(iv)(II)the number of days between date of acquisition & last day in TY of acquisition.
26 USC 41(f)(3)(A)(v)If the acquiring person & predecessor have TYs which begin on a different date—
26 USC 41(f)(3)(A)(v)(I)reference to a TY in (ii) & (iv) refer to appropriate TY of acquirer,
26 USC 41(f)(3)(A)(v)(II)predecessor's expenses, &c., within (vi) period is allocated to days in such TY,
26 USC 41(f)(3)(A)(v)(III)expenses accounted under (ii) & (iv) are equal to expenses accounted by (II), &
26 USC 41(f)(3)(A)(v)(IV)receipts accounted under (iii) are equal to receipts accounted under (II).
26 USC 41(f)(3)(A)(vi)"Measurement period" is any acquiror's period accounted to figure prior credit.
26 USC 41(f)(3)(B)Predecessor who gives data to apply (A) can reduce expenses and receipts by—
26 USC 41(f)(3)(B)(i)in the case of the TY of disposition, an amount equal to the product of—
26 USC 41(f)(3)(B)(i)(I)predecessor's expenses paid and receipts incurred within (A)(vi) period, and
26 USC 41(f)(3)(B)(i)(II)the number of days between date of acquisition & last day in acquisition TY, and
26 USC 41(f)(3)(B)(ii)the amount by (i)(I) in the case of a TY after the TY of disposition.
26 USC 41(f)(3)(C)If reimbursement after (B) occurs, expenses subject to (c)(3) is raised by—
26 USC 41(f)(3)(C)(i)amount of decrease under (B) allocable to TYs taken into account, or, is lesser
26 USC 41(f)(3)(C)(ii)the product of TYs by the amount of reimbursement described in (C).
26 USC 41(f)(4)Secretary may set methods to annualize expenses and receipts for a short TY.
26 USC 41(f)(5)A "controlled group of corporations" has same meaning under §1563(a), except—
26 USC 41(f)(5)(A)"50%" is swapped for "80%" each place it appears in §1563(a)(1), and
26 USC 41(f)(5)(B)the determination is made by ignoring (a)(4) and (e)(3)(C) of §1563.
26 USC 41(f)(6)This paragraph defines an "energy research consortium".
26 USC 41(f)(6)(A)An energy research consortium is any organization which—
26 USC 41(f)(6)(A)(i)is—
26 USC 41(f)(6)(A)(i)(I)by §501(c)(3), tax exempt by §501(a), and mainly conducts energy research, or
26 USC 41(f)(6)(A)(i)(II)operated mainly to conduct energy research in the public interest (§501(c)(3)),
26 USC 41(f)(6)(A)(ii)is not a private foundation,
26 USC 41(f)(6)(A)(iii)receives amounts for research from at least 5 unrelated persons in the year, and
26 USC 41(f)(6)(A)(v)receives within 50% of total amounts received for research from a single person.
26 USC 41(f)(6)(B)Persons under (a) or (b) of §52 are related (A)(iii) and 1 person for (A)(iv).
26 USC 41(f)(6)(C)For (a)(3), payments for research without US, its possessions, &c., are ignored.
26 USC 41(f)(6)(D)Amounts accounted by (a)(3) are not accounted by (1) or (2) of (a).
26 USC 41(f)(6)(E)"Energy research" doesn't include research which isn't qualified research.
26 USC 41(g)Credit by (a) is limited to tax allocable to portion of income of a person who—
26 USC 41(g)(1)owns an interest in an unincorporated trade or business,
26 USC 41(g)(2)is a partner in a partnership,
26 USC 41(g)(3)is a beneficiary of an estate or trust, or
26 USC 41(g)(4)is a shareholder in an S Corporation.
26 USC 41(h)This subsection sets rules for termination.
26 USC 41(h)(1)§41 doesn't apply to any amount paid or incurred—
26 USC 41(h)(1)(A)after 19950630 and before 19960701, or
26 USC 41(h)(1)(B)after 20131231.
26 USC 41(h)(2)Base amount of credit year is proportion of days in TY to full calendar year.
 
26 USC 42This section discusses the low-income housing credit.
26 USC 42(a)For purposes of §38, credit for any TY in the credit period is equal to—
26 USC 42(a)(1)the applicable percentage of
26 USC 42(a)(2)the qualified basis of each qualified low-income building.
26 USC 42(b)Applicable percentage for new buildings and other buildings.
26 USC 42(b)(1)This paragraph sets the determination of the "applicable percentage".
26 USC 42(b)(1)(A)Such percentage is percentage set by Sec. under (B) for the earlier of—
26 USC 42(b)(1)(A)(i)the month in which any building is placed in service, or
26 USC 42(b)(1)(A)(ii)at the election of the taxpayer, the month in which—
26 USC 42(b)(1)(A)(ii)(I)an agreement of allocated credit amount is made with housing credit agency, or
26 USC 42(b)(1)(A)(ii)(II)the tax-exempt obligations are issued, if (h)(4)(B) applies.
26 USC 42(b)(1)(B)Percentage is rate yielding (a) credit over 10 year period and present value of—
26 USC 42(b)(1)(B)(i)70% of the qualified basis of a new building which isn't federally subsidized, &
26 USC 42(b)(1)(B)(ii)30% of the qualified basis of a building not by (i).
26 USC 42(b)(1)(C)The present value under (B) is determined—
26 USC 42(b)(1)(C)(i)as of the last day of 1st year of 10-year period referred to in (B),
26 USC 42(b)(1)(C)(ii)with a rate of 72% of rates under §1274(d)(1) to months by (i) or (ii) of (A), &
26 USC 42(b)(1)(C)(iii)by assuming that credit under §42 is received on the last day of such year.
26 USC 42(b)(2)The applicable percentage is not less than 9% for any new building—
26 USC 42(b)(2)(A)put in service after 20130102 regarding before allocations made before 2014, and
26 USC 42(b)(2)(B)which is not federally subsidized for the taxable year.
26 USC 42(b)(2)(C)The present value under (B) is determined—
26 USC 42(b)(2)(C)(i)as of the last day of the 1st year of the 10 year period of (B),
26 USC 42(b)(2)(C)(ii)by using a discount rate of 72% of annual Federal rates by §1274(d)(1), and
26 USC 42(b)(2)(C)(iii)by assuming that the credit by §42 is received on the last day of such year.
26 USC 42(b)(3)This paragraph sets cross references. See:
26 USC 42(b)(3)(A)(e) for figuring certain rehabilitation costs as separate new buildings.
26 USC 42(b)(3)(B)(f)(3) for figuring applicable percentage for increases in qualified basis.
26 USC 42(b)(3)(C)(h)(7) for authority of housing credit agency to limit percentage and basis.
26 USC 42(c)This subsection defines "qualified basis" and "qualified low-income building".
26 USC 42(c)(1)This paragraph defines "qualified basis".
26 USC 42(c)(1)(A)The qualified basis of a qualified low-income building for any TY is equal to—
26 USC 42(c)(1)(A)(i)the applicable fraction (determined at end of TY) of
26 USC 42(c)(1)(A)(ii)the eligible basis of such building (determined under (d)(5)).
26 USC 42(c)(1)(B)"Applicable fraction" is the lesser of unit fraction or floor space fraction.
26 USC 42(c)(1)(C)For (B), the term "unit fraction" means the fraction which has a—
26 USC 42(c)(1)(C)(i)numerator of the number of low-income units in the building, and
26 USC 42(c)(1)(C)(ii)denominator of the number of residential rental units in the building.
26 USC 42(c)(1)(D)For (B), the "floor space fraction" means the fraction which has a—
26 USC 42(c)(1)(D)(i)numerator by the total floor space of the building's low-income units, and
26 USC 42(c)(1)(D)(ii)denominator by the total floor space of the building's residential rental units.
26 USC 42(c)(1)(E)Qualified basis of building by (i)(3)(B)(iii) is increased by the lesser of—
26 USC 42(c)(1)(E)(i)the eligible basis of the building used to provide supportive services, or
26 USC 42(c)(1)(E)(ii)20% of the qualified basis of such building (ignoring (E)).
26 USC 42(c)(2)A "qualified low-income building" is any building—
26 USC 42(c)(2)(A)which is part of a qualified project at all times during the period—
26 USC 42(c)(2)(A)(i)starting on 1st day in compliance period of which such building is a part, and
26 USC 42(c)(2)(A)(ii)ending on the last day of the compliance period for such building, and
26 USC 42(c)(2)(B)to which the amendments made by §201(a) of PL 99-514 apply.
26 USC 42(d)This subsection defines "eligible basis".
26 USC 42(d)(1)New building's eligible basis is adjusted basis at end of 1st credit period TY.
26 USC 42(d)(2)This paragraph sets rules for existing buildings.
26 USC 42(d)(2)(A)The eligible basis of an existing building is—
26 USC 42(d)(2)(A)(i)its adjusted basis at end of 1st TY of credit period if (B) is met, and
26 USC 42(d)(2)(A)(ii)0 in any other case.
26 USC 42(d)(2)(B)A building meets the requirements of (B) if—
26 USC 42(d)(2)(B)(i)the building is acquired by purchase (as defined in §179(d)(2)),
26 USC 42(d)(2)(B)(ii)there is at least 10 years between date of acquisition and placement in service,
26 USC 42(d)(2)(B)(iii)taxpayer or any related person didn't previously place it in service, and
26 USC 42(d)(2)(B)(iv)except as under (f)(5), credit by (a) is allowed by reason of (e).
26 USC 42(d)(2)(C)For (A), basis determined by reference to other property is not accounted.
26 USC 42(d)(2)(D)This subparagraph sets special rules for (B).
26 USC 42(d)(2)(D)(i)To figure date under (B)(ii)(I), do not account any placement in service—
26 USC 42(d)(2)(D)(i)(I)connected to building acquisition if basis is determined by reference,
26 USC 42(d)(2)(D)(i)(II)by a person whose basis in the building is determined by §1014(a),
26 USC 42(d)(2)(D)(i)(III)by any governmental unit or organization by (h)(5) if (B)(ii) is met,
26 USC 42(d)(2)(D)(i)(IV)by any acquirer by foreclosure of any interest held if (B)(ii) is met, or
26 USC 42(d)(2)(D)(i)(V)of a single-family house by an individual for use as his principal residence.
26 USC 42(d)(2)(D)(iii)Persons meeting §267(b) or §707(b)(1), or under control by §52, are related.
26 USC 42(d)(3)A reduction of eligible basis for disproportionate standards of units.
26 USC 42(d)(3)(A)Basis is reduced by proportion non-low-income and above average quality units.
26 USC 42(d)(3)(B)This subparagraph sets an exception if taxpayer elects to exclude excess costs.
26 USC 42(d)(3)(B)(i)(A) doesn't apply to a building's rental unit that is not low-income if—
26 USC 42(d)(3)(B)(i)(I)the excess of (ii) for such unit is no more than 15% of the cost by (ii)(II), &
26 USC 42(d)(3)(B)(i)(II)taxpayer elects to exclude such excess from such building's eligible basis.
26 USC 42(d)(3)(B)(ii)The excess described by (ii) for any unit is the excess of—
26 USC 42(d)(3)(B)(ii)(I)the cost of such unit, over
26 USC 42(d)(3)(B)(ii)(II)such cost if average cost per ft² of low-income units applied to entire unit.
26 USC 42(d)(4)This paragraph sets special rules regarding determination of adjusted basis.
26 USC 42(d)(4)(A)Adjusted basis is figured by ignoring basis of non-rental property.
26 USC 42(d)(4)(B)Adjusted basis is figured by including basis of common areas or amenities.
26 USC 42(d)(4)(C)Inclusion of property used to provide services for certain nontenants in basis.
26 USC 42(d)(4)(C)(i)The basis of buildings in a census tract include community service facilities.
26 USC 42(d)(4)(C)(ii)Maximum increase in adjusted basis for building accounted by (i) is the sum of—
26 USC 42(d)(4)(C)(ii)(I)25% of low-income housing project's qualified basis within $15M, plus
26 USC 42(d)(4)(C)(ii)(II)10% of such qualified basis not accounted under clause (i).
26 USC 42(d)(4)(C)(iii)"Community service facility" serves persons of income at 60% or less of median.
26 USC 42(d)(4)(D)Figure adjusted basis of any building without regard to (2) and (3) of §1016(a).
26 USC 42(d)(5)This paragraph sets special rules for figuring eligible basis.
26 USC 42(d)(5)(A)Building basis excludes any costs financed by Federal grant proceeds.
26 USC 42(d)(5)(B)This subparagraph sets an increase in credit for buildings in high cost areas.
26 USC 42(d)(5)(B)(i)For buildings in a qualified census tract, difficult development area, &c.,—
26 USC 42(d)(5)(B)(i)(I)the eligible basis of new buildings is 130% of basis figured ignoring (C), and
26 USC 42(d)(5)(B)(i)(II)rehabilitation costs by (e) is 130% of such costs figured ignoring (C).
26 USC 42(d)(5)(B)(ii)This clause defines a "qualified census tract".
26 USC 42(d)(5)(B)(ii)(I)Such a tract is by Secretary of HUD and has at least 25% poverty rate, &c.
26 USC 42(d)(5)(B)(ii)(II)Area designated by (C) has within 20% of such statistical area's population.
26 USC 42(d)(5)(B)(ii)(III)For (ii), treat areas by (III) of (iv) as separate & areas by (IV) of (iv) as 1.
26 USC 42(d)(5)(B)(iii)This clause defines "difficult development areas".
26 USC 42(d)(5)(B)(iii)(I)Such areas are set by HUD as having high land costs relative to (iv)(II) income.
26 USC 42(d)(5)(B)(iii)(II)Area designated by (C) has within 20% of such statistical area's population.
26 USC 42(d)(5)(B)(iv)This clause sets other special rules and definitions for purposes of (C).
26 USC 42(d)(5)(B)(iv)(I)Population is determined on basis of most recent and available decennial census.
26 USC 42(d)(5)(B)(iv)(II)Area gross median income is determined in accordance with (g)(4).
26 USC 42(d)(5)(B)(iv)(III)A "metropolitan statistical area" has meaning from §143(k)(2)(B).
26 USC 42(d)(5)(B)(iv)(IV)A "nonmetropolitan area" is a county or part thereof not within area by (III).
26 USC 42(d)(5)(B)(v)Building set by State agency as requiring credit increase is in (iii)(I) area.
26 USC 42(d)(6)Credit is given for certain buildings acquired in 10 year period of (2)(B)(ii).
26 USC 42(d)(6)(A)(2)(B)(ii) doesn't apply to any building by (C).
26 USC 42(d)(6)(B)Sec. may waive (2)(B)(ii) for buildings acquired from depository in default.
26 USC 42(d)(6)(C)Definition of "Federally-assisted building" and "State-assisted building".
26 USC 42(d)(6)(C)(i)Federally-assisted building is operated in housing program (PL 75-412 §8, &c.).
26 USC 42(d)(6)(C)(ii)State-assisted building is operated in State law similar to clause (i).
26 USC 42(d)(7)Rules for building acquisition before prior compliance period ends.
26 USC 42(d)(7)(A)Per Secretary's regulations, if taxpayer acquires a building described by (B)—
26 USC 42(d)(7)(A)(i)(2)(B) does not apply, but
26 USC 42(d)(7)(A)(ii)credit by (a) is amount which would have been allowed to prior owner.
26 USC 42(d)(7)(B)A building is described by (B) if—
26 USC 42(d)(7)(B)(i)a credit was allowed by (a) to any prior owner of such building, and
26 USC 42(d)(7)(B)(ii)the building was acquired before compliance period ended for prior owner.
26 USC 42(e)Treatment of rehabilitation expenditures as a separate new building.
26 USC 42(e)(1)For §42, treat expenses by (2) for any building as a separate new building.
26 USC 42(e)(2)This paragraph defines "rehabilitation expenditures".
26 USC 42(e)(2)(A)Such costs are chargeable to capital account in connection to rehabilitation.
26 USC 42(e)(2)(B)Cost of acquisition or amounts excluded by (3) or (4) of (d) are excluded.
26 USC 42(e)(3)This paragraph sets the minimum expenditures to qualify.
26 USC 42(e)(3)(A)(1) applies to rehabilitation expenditures regarding any building only if—
26 USC 42(e)(3)(A)(i)the costs are allocable to 1 or more low-income units or for their benefit, and
26 USC 42(e)(3)(A)(ii)the greater amount of such costs in a 24-month period meet these requirements:
26 USC 42(e)(3)(A)(ii)(I)Such amount is not less than 10% of building's adjusted basis (as by (d)(4)(D)).
26 USC 42(e)(3)(A)(ii)(II)Qualified basis related to costs, divided by low-income units, is $6K or more.
26 USC 42(e)(3)(B)For acquisition of gov't unit, ignore (A)(ii)(I) and apply (b)(2)(B)(ii) rate.
26 USC 42(e)(3)(C)Determination of (A) is made at close of the 1st TY in the credit period.
26 USC 42(e)(3)(D)For expenditures in service after 2009, increase $6K amount in (A)(ii)(II) by—
26 USC 42(e)(3)(D)(i)such dollar amount, multiplied by
26 USC 42(e)(3)(D)(ii)the cost-of-living adjustment in §1(f)(3); swap "2008" for "1992" in such (B).
26 USC 42(e)(4)To apply §42 to expenditures which are treated by §42 as a separate building—
26 USC 42(e)(4)(A)such expenditures are placed in service at end of 24-month period by (3)(A), and
26 USC 42(e)(4)(B)applicable fraction by (c)(1) applies to costs. (d)(2) doesn't prevent credit.
26 USC 42(e)(5)Expenditures may be accounted only under (e) or (d)(2)(A)(i).
26 USC 42(e)(6)Secretary may treat a group of units related to expenditures as a new building.
26 USC 42(f)This subsection defines the "credit period" and sets special rules.
26 USC 42(f)(1)The credit period is, for any qualified low-income building, 10 TYs starting in—
26 USC 42(f)(1)(A)the TY in which the building is placed in service, or
26 USC 42(f)(1)(B)the TY succeeding TY by (A), at the irrevocable election of the taxpayer.
26 USC 42(f)(2)This paragraph sets the special rule for the 1st year of credit period.
26 USC 42(f)(2)(A)Figure credit for (a) by substituting applicable fraction of (c)(1) a fraction—
26 USC 42(f)(2)(A)(i)with a numerator of the sum of fractions by (c)(1) at close of each month, and
26 USC 42(f)(2)(A)(ii)with a denominator of 12.
26 USC 42(f)(2)(B)Any reduction by (A) for 1st TY is allowed for 1st TY after credit period.
26 USC 42(f)(3)Applicable percentage for basis increases after 1st TY of credit period.
26 USC 42(f)(3)(A)Rate by (b) is reduced 33% if a building is qualified at end of such 1st TY and—
26 USC 42(f)(3)(A)(i)qualified basis of such building at end of any TY in compliance period exceeds
26 USC 42(f)(3)(A)(ii)qualified basis of such building at end of 1st TY in credit period.
26 USC 42(f)(3)(B)Rules similar to (2)(A) apply to any increase of basis to which (A) applies.
26 USC 42(f)(4)If building is disposed, credit by (a) is allocated based on length of holding.
26 USC 42(f)(5)This subsection sets rules for the credit period for existing buildings.
26 USC 42(f)(5)(A)Such period doesn't begin before 1st credit period TY for (e)(2) expenditures.
26 USC 42(f)(5)(B)Allowance of acquisition credit for certain buildings with no rehabilitation.
26 USC 42(f)(5)(B)(i)For a building described by (ii) and its applicable credit period—
26 USC 42(f)(5)(B)(i)(I)(d)(2)(B)(iv) does not apply, and
26 USC 42(f)(5)(B)(i)(II)such period doesn't start before period in respect of (ii)(II) would start.
26 USC 42(f)(5)(B)(ii)A building is described in this clause if—
26 USC 42(f)(5)(B)(ii)(I)waiver is granted by (d)(6)(C) for acquisition of the building, and
26 USC 42(f)(5)(B)(ii)(II)(I) of (e)(3)(A)(ii) is ignored & such (II) is met by swapping "$2K" for "$3K".
26 USC 42(g)This subsection defines a "qualified low-income housing project".
26 USC 42(g)(1)Such project is for residential rental property if elected to meet (A) or (B):
26 USC 42(g)(1)(A)20% of the units are rent-restricted, tenants earn 50% of median gross income.
26 USC 42(g)(1)(B)40% of the units are rent-restricted, tenants earn 60% of median gross income.
26 USC 42(g)(2)This paragraph defines "rent-restricted units".
26 USC 42(g)(2)(A)Such units have gross rent within 30% of allocable imputed income limitation.
26 USC 42(g)(2)(B)For (A), gross rent includes—
26 USC 42(g)(2)(B)(i)no payment under §8 of the PL 75-412 or any equivalent assistance program,
26 USC 42(g)(2)(B)(ii)any utility allowance from the Secretary after accounting such §8,
26 USC 42(g)(2)(B)(iii)no fee for a supportive service if it is inseparable from rent assistance, and
26 USC 42(g)(2)(B)(iv)no rental payment to the extent of FHA payments by §515 of PL 81-171.
26 USC 42(g)(2)(C)The "imputed income limitation" is limit by (1) applied to unit occupants as if:
26 USC 42(g)(2)(C)(i)1 individual occupied units with no separate bedroom.
26 USC 42(g)(2)(C)(ii)1.5 individuals occupied units with at least one bedroom.
26 USC 42(g)(2)(D)Treatment of units occupied by individuals whose incomes rise above limit.
26 USC 42(g)(2)(D)(i)Unit is still treated as low-income if tenants initially met income limitation.
26 USC 42(g)(2)(D)(ii)If tenant's income increases above 140% of limit under (1), (i) does not apply.
26 USC 42(g)(2)(E)If rent exceeds limit due to income increase, unit is still rent-restricted if—
26 USC 42(g)(2)(E)(i)a Federal rental assistance payment by (B)(i) is made to such unit or tenants, &
26 USC 42(g)(2)(E)(ii)sum of such payment and gross rent does not exceed sum of such amounts as if—
26 USC 42(g)(2)(E)(ii)(I)tenant's income did not exceed appliable income limitation under (1), and
26 USC 42(g)(2)(E)(ii)(II)units were rest-restricted. (ii) applies only if required by Federal statute.
26 USC 42(g)(3)This paragraph sets the dates for meeting requirements.
26 USC 42(g)(3)(A)Building is qualified only if project meets (1) at end of 1st credit period TY.
26 USC 42(g)(3)(B)Rules for buildings which rely on later buildings for qualification.
26 USC 42(g)(3)(B)(i)Additional buildings put in service in (A) period may apply for qualification.
26 USC 42(g)(3)(B)(ii)If (i) is elected, period by (A) for such buildings is same as prior building.
26 USC 42(g)(3)(B)(iii)Prior building is put in service when most recent placement in service occurs.
26 USC 42(g)(3)(C)No building is qualified unless it is part of a qualified project, except—
26 USC 42(g)(3)(C)(i)the 1st building placed in service as part of a qualified project, and
26 USC 42(g)(3)(C)(ii)buildings put in service regarding prior buildings after 12-month period by (A).
26 USC 42(g)(3)(D)A project has 1 building unless more are identified by end of 1st project year.
26 USC 42(g)(4)Apply §142(d) & §6652(j) to figure qualification; "gross rent" is by (2)(B).
26 USC 42(g)(5)Taxpayer may elect to treat building as not in a project after period by (i)(1).
26 USC 42(g)(6)Despite de minimis payments toward purchase, property is still rental type if—
26 USC 42(g)(6)(A)all such payments are refunded to tenant upon cessation of unit occupation, and
26 USC 42(g)(6)(B)the unit can't be purchased until end of period by (i)(1). (6) applies to (2).
26 USC 42(g)(7)Buildings form a project if all residential units therein are rent-restricted.
26 USC 42(g)(8)On application by the taxpayer, the Secretary may waive—
26 USC 42(g)(8)(A)any recapture under (j) for any de minimis error in complying with (1), or
26 USC 42(g)(8)(B)annual tenant income recertification, if entire building has low-income tenants.
26 USC 42(g)(9)Project meets general public use requirement despite rules which favor tenants—
26 USC 42(g)(9)(A)with special needs,
26 USC 42(g)(9)(B)who are members of a specified group in a Federal or State housing program, or
26 USC 42(g)(9)(C)who are involved in artistic or literary activities.
26 USC 42(h)Limitations on allowable credit regarding projects located in a State.
26 USC 42(h)(1)A limitation of credit to credit amount allocated to a building.
26 USC 42(h)(1)(A)§42 credit is limited to housing credit allocated to such building by (h).
26 USC 42(h)(1)(B)Unless (C) - (F) is met, allocation is made by end of year when put in service.
26 USC 42(h)(1)(C)There must be a binding commitment by housing credit agency to make allocation.
26 USC 42(h)(1)(D)This subparagraph sets an exception for increases in qualified basis.
26 USC 42(h)(1)(D)(i)Allocation meets (D) if made at end of year in TY and within limit by (ii).
26 USC 42(h)(1)(D)(ii)Limitation is amount of §42 credit in respect of basis increase is excess of—
26 USC 42(h)(1)(D)(ii)(I)qualified basis of such building at end of 1st TY when allocation applies, over
26 USC 42(h)(1)(D)(ii)(II)such basis at end of 1st TY when most recent prior §42 credit applied.
26 USC 42(h)(1)(D)(iii)Notwithstanding clause (i), full amount of allocation is accounted under (2).
26 USC 42(h)(1)(E)This subparagraph sets an exception where 10% of cost is incurred.
26 USC 42(h)(1)(E)(i)Allocations made within 2 years after year building is put in service meets (E).
26 USC 42(h)(1)(E)(ii)If basis in project is more than 10% of expected basis, building is qualified.
26 USC 42(h)(1)(F)This subparagraph sets rules for allocation of credit on a project basis.
26 USC 42(h)(1)(F)(i)For projects with more than 1 building, allocation meets (F) if it—
26 USC 42(h)(1)(F)(i)(I)is made to the project for a calendar year within the project period,
26 USC 42(h)(1)(F)(i)(II)only applies to buildings placed in service during or after allocation year, and
26 USC 42(h)(1)(F)(i)(III)is specified as for such buildings as of end of year building is put in service.
26 USC 42(h)(1)(F)(ii)For clause (i), the "project period" is the period which—
26 USC 42(h)(1)(F)(ii)(I)starts with 1st year which allocation is allowed to 1st building, and
26 USC 42(h)(1)(F)(ii)(II)ends with year when last building is placed in service as part of the project.
26 USC 42(h)(2)Any housing credit amount allocated to any building for any calendar year—
26 USC 42(h)(2)(A)applies for all TYs in compliance period ending during or after such year, and
26 USC 42(h)(2)(B)reduces aggregate credit of the allocating agency only for such calendar year.
26 USC 42(h)(3)This paragraph sets the housing credit dollar amount for agencies.
26 USC 42(h)(3)(A)Agency may allocate its portion of State credit ceiling allocated under (3).
26 USC 42(h)(3)(B)State housing credit ceiling for each year is allocated to agency of such State.
26 USC 42(h)(3)(C)State housing credit ceiling applicable to any State for any year is sum of—
26 USC 42(h)(3)(C)(i)the unused State housing credit ceiling of such State for preceding year,
26 USC 42(h)(3)(C)(ii)the greater of—
26 USC 42(h)(3)(C)(ii)(I)$1.75 ($1.50 for 2001) multiplied by the State population, or
26 USC 42(h)(3)(C)(ii)(II)$2M,
26 USC 42(h)(3)(C)(iii)amount of State housing credit ceiling returned in the calendar year, plus
26 USC 42(h)(3)(C)(iv)any amount allocated by (D) to such State by the Secretary. Other rules apply.
26 USC 42(h)(3)(D)Allocation of unused housing credit carryovers among certain States.
26 USC 42(h)(3)(D)(i)Secretary allocates such credit to qualified States for the succeeding year.
26 USC 42(h)(3)(D)(ii)The unused housing credit carryover of a state for any year is excess of—
26 USC 42(h)(3)(D)(ii)(I)unused State housing credit ceiling for previous year, over
26 USC 42(h)(3)(D)(ii)(II)aggregate housing credit amount allocated for such year.
26 USC 42(h)(3)(D)(iii)Allocation is based on ratio of total carryovers to total population of States.
26 USC 42(h)(3)(D)(iv)A "qualified State" is, for any calendar year, any State which—
26 USC 42(h)(3)(D)(iv)(I)allocated its entire credit ceiling for the previous year, and
26 USC 42(h)(3)(D)(iv)(II)made a request (before May 1 of the year) to receive an allocation under (iii).
26 USC 42(h)(3)(E)A special rule for States with constitutional home rule cities.
26 USC 42(h)(3)(E)(i)The credit for such a city is amount with same ratio to credit ceiling as—
26 USC 42(h)(3)(E)(i)(I)the population of such city bears to
26 USC 42(h)(3)(E)(i)(II)the population of the entire State.
26 USC 42(h)(3)(E)(ii)Reduce State credit ceiling by total amounts allocated to such home rule cities.
26 USC 42(h)(3)(E)(iii)A "constitutional home city" has the meaning given by §146(d)(3)(C).
26 USC 42(h)(3)(F)Rules similar to those in §146(e) (except (2)(B) thereof) apply for (3).
26 USC 42(h)(3)(G)For (3), population is determined in accordance with §146(j).
26 USC 42(h)(3)(H)This subparagraph explains the cost-of-living adjustment.
26 USC 42(h)(3)(H)(i)After 2002, the $2 million and $1.75 amounts in (C) is increased by—
26 USC 42(h)(3)(H)(i)(I)such dollar amount, multiplied by
26 USC 42(h)(3)(H)(i)(II)the cost-of-living adjustment in §1(f)(3); swap "2001" for "1992" in such (B).
26 USC 42(h)(3)(H)(ii)This clause sets rules for rounding.
26 USC 42(h)(3)(H)(ii)(I)For the $2M amount, amounts are rounded to next lowest multiple of $5K.
26 USC 42(h)(3)(H)(ii)(II)For the $1.75 amount, amounts are rounded to next lowest multiple of 5¢.
26 USC 42(h)(3)(I)For 2008 and 2009, in respect of (C)(ii), increase the amount in effect under—
26 USC 42(h)(3)(I)(i)(I) (after increase under (H)) by 20¢, and
26 USC 42(h)(3)(I)(ii)(II) (after such increase) by 10% (rounded to next lowest $5K multiple).
26 USC 42(h)(4)Buildings financed by tax-exempt bonds are subject to unaccounted volume cap.
26 USC 42(h)(4)(A)(1) doesn't apply to credit on basis financed by obligations subject to §103 if—
26 USC 42(h)(4)(A)(i)such obligation is taken into account under §146, and
26 USC 42(h)(4)(A)(ii)principal payments to redeem such obligation are made in a reasonable period.
26 USC 42(h)(4)(B)If financing by (A) constitutes 50% or more of basis, (1) doesn't apply to (a).
26 USC 42(h)(5)Portion of State ceiling set-aside for projects with nonprofit organizations.
26 USC 42(h)(5)(A)No more than 90% of State ceiling is allocated to projects other than by (B).
26 USC 42(h)(5)(B)An organization by (C) must own interest and participate in the project.
26 USC 42(h)(5)(C)A "qualified nonprofit organization" is any organization if—
26 USC 42(h)(5)(C)(i)it is described in (3) or (4) of §501(c) and is tax-exempt by §501(a),
26 USC 42(h)(5)(C)(ii)it is determined to not be affiliated with a for-profit organization, and
26 USC 42(h)(5)(C)(iii)1 of the exempt purposes for it is the fostering of low-income housing.
26 USC 42(h)(5)(D)This subparagraph sets the treatment of certain subsidiaries.
26 USC 42(h)(5)(D)(i)Organization meets (B) if it holds stock in other qualified corporation.
26 USC 42(h)(5)(D)(ii)A "qualified corporation" has all stock owned by nonprofit organizations.
26 USC 42(h)(5)(E)Nothing in (3)(F) allows a State to not comply with (A).
26 USC 42(h)(6)Credit eligibility only for minimum long-term commitment to low-income housing.
26 USC 42(h)(6)(A)Credit requires "extended low-income housing commitment" to be made by TY end.
26 USC 42(h)(6)(B)Such commitment is an agreement between taxpayer and credit agency which—
26 USC 42(h)(6)(B)(i)requires (c)(1) fraction to at least equal agreed amount and prohibits (E)(ii),
26 USC 42(h)(6)(B)(ii)allows individuals meeting (g) the right to enforce clause (i) in State court,
26 USC 42(h)(6)(B)(iii)prohibits disposition of any portion of the building to any other person,
26 USC 42(h)(6)(B)(iv)doesn't refuse to lease to holders of vouchers by §8 of PL 75-412 due to status,
26 USC 42(h)(6)(B)(v)is binding on all successors of the taxpayer, and
26 USC 42(h)(6)(B)(vi)is recorded pursuant to State law as a restrictive covenant.
26 USC 42(h)(6)(C)Allocation of credit is limited to amount necessary to support commitment.
26 USC 42(h)(6)(C)(i)Credit allocation is limited to (c)(1) fraction plus increases by (f)(3).
26 USC 42(h)(6)(C)(ii)If (4) applies, maximum credit is amount needed to support (c)(1) fraction.
26 USC 42(h)(6)(D)For (6), the "extended use period" means the period—
26 USC 42(h)(6)(D)(i)starting on 1st day of compliance period which building is part of project, and
26 USC 42(h)(6)(D)(ii)ending on the later date which is—
26 USC 42(h)(6)(D)(ii)(I)specified by such agency in such agreement, or
26 USC 42(h)(6)(D)(ii)(II)15 years after the close of the compliance period.
26 USC 42(h)(6)(E)Exceptions for foreclosure or if no buyer maintains low-income status.
26 USC 42(h)(6)(E)(i)The extended use period for any building terminates on the date—
26 USC 42(h)(6)(E)(i)(I)of acquisition by foreclosure, unless such action was part of an arrangement, or
26 USC 42(h)(6)(E)(i)(II)when subparagraph (I) ends, if no new owner will use low-income status.
26 USC 42(h)(6)(E)(ii)Termination by (i) does not permit before end of 3 years after such event—
26 USC 42(h)(6)(E)(ii)(I)the eviction (other than for good cause) of a low-income unit tenant, or
26 USC 42(h)(6)(E)(ii)(II)any increase in gross rent for such unit which is otherwise not allowed.
26 USC 42(h)(6)(F)A "qualified contract" grants acquisition of low-income building portion for—
26 USC 42(h)(6)(F)(i)an amount not less than the applicable fraction of the sum of—
26 USC 42(h)(6)(F)(i)(I)the outstanding indebtedness secured by the building,
26 USC 42(h)(6)(F)(i)(II)the adjusted investor equity in the building, plus
26 USC 42(h)(6)(F)(i)(III)other capital contributions not reflected by (I) or (II), reduced by
26 USC 42(h)(6)(F)(ii)cash distributions from the project. Sec. sets regulations for (6).
26 USC 42(h)(6)(G)This subparagraph defines adjusted investor equity.
26 USC 42(h)(6)(G)(i)Such equity is, for any year, sum of project cash investments increased by—
26 USC 42(h)(6)(G)(i)(I)such amount, multiplied by
26 USC 42(h)(6)(G)(i)(II)the cost-of-living adjustment by §1(f)(3), substituting base year for 1987.
26 USC 42(h)(6)(G)(ii)If CPI exceeds last year's by 5%, apply such excess to base year CPI for (i).
26 USC 42(h)(6)(G)(iii)The "base calendar year" is year in which 1st TY of credit period ends.
26 USC 42(h)(6)(H)Low-income portion of a building is specified in extended housing commitment.
26 USC 42(h)(6)(I)Period is 1 year starting when taxpayer requests agency to find interest buyer.
26 USC 42(h)(6)(J)If agreement failed in TY, (A) still applies if failure is corrected in 1 year.
26 USC 42(h)(6)(K)Secretary regulates application of (6) to projects with more than 1 building.
26 USC 42(h)(7)This paragraph sets special rules.
26 USC 42(h)(7)(A)Credit is only allocable to buildings in agency's governmental jurisdiction.
26 USC 42(h)(7)(B)If allocations exceed State ceiling, reduce amounts in reverse of their issue.
26 USC 42(h)(7)(C)Credit is reduced if allocation is less than credit without some limitations.
26 USC 42(h)(7)(C)(i)§42 credit is limited to (ii) percentage that would apply to such building.
26 USC 42(h)(7)(C)(ii)The (ii) percentage with respect to any building is the percentage which—
26 USC 42(h)(7)(C)(ii)(I)the housing credit dollar amount allocated to such building bears to
26 USC 42(h)(7)(C)(ii)(II)the credit amount determined by (iii).
26 USC 42(h)(7)(C)(iii)Such amount is credit which would apply in respect to such building if—
26 USC 42(h)(7)(C)(iii)(I)§42 were applied without (2)(A) and (3)(B) of (f), and
26 USC 42(h)(7)(C)(iii)(II)(f)(3)(A) was applied without accounting the applicable percentage reduction.
26 USC 42(h)(7)(D)Agency sets applicable percentage & maximum basis for an allocated building.
26 USC 42(h)(8)This paragraph sets other definitions.
26 USC 42(h)(8)(A)A "housing credit agency" is any agency authorized to carry out (h).
26 USC 42(h)(8)(B)A "State" includes a US possession.
26 USC 42(i)This subsection sets definitions and special rules for §42.
26 USC 42(i)(1)The "compliance period" is 15 TYs starting with 1st TY of credit period.
26 USC 42(i)(2)Determination of whether a building is federally subsidized.
26 USC 42(i)(2)(A)For (b)(1), a building is subsidized if funded by Federal loan proceeds.
26 USC 42(i)(2)(B)A loan does not apply to (A) if taxpayer elects to exclude from basis by (d)—
26 USC 42(i)(2)(B)(i)in the case of a loan, the principal amount of such loan, and
26 USC 42(i)(2)(B)(ii)in the case of a tax-exempt obligation, the proceeds thereof.
26 USC 42(i)(2)(C)(A) applies to no tax-exempt obligation or below market loan for financing if—
26 USC 42(i)(2)(C)(i)such note (at issue) identified the building for which the proceeds apply, and
26 USC 42(i)(2)(C)(ii)the obligation is redeemed or loan is repaid before building is put in service.
26 USC 42(i)(3)This paragraph defines a "low-income unit".
26 USC 42(i)(3)(A)A low-income unit is any unit in a building if—
26 USC 42(i)(3)(A)(i)such unit is rent-restricted (as by (g)(2)), and
26 USC 42(i)(3)(A)(ii)tenants of such unit meet income limitation by (g)(1) regarding the project.
26 USC 42(i)(3)(B)This subparagraph sets exceptions.
26 USC 42(i)(3)(B)(i)A low-income unit must be suitable for living and not used on a transient basis.
26 USC 42(i)(3)(B)(ii)The suitability by (i) is regulated by local health, building, and safety codes.
26 USC 42(i)(3)(B)(iii)A unit meets (i) if it has a bedroom, kitchen, bathroom, and is in a building—
26 USC 42(i)(3)(B)(iii)(I)used exclusively to facilitate homeless individuals to independent living, and
26 USC 42(i)(3)(B)(iii)(II)which a qualified entity provides such individuals to locate & acquire housing.
26 USC 42(i)(3)(B)(iv)A single-room unit is not used on transient basis even if rented month-by-month.
26 USC 42(i)(3)(C)For buildings with 4 or less units, none are low-income if units are owned by—
26 USC 42(i)(3)(C)(i)an individual who occupies a residential unit in such building, or
26 USC 42(i)(3)(C)(ii)anyone related (by (d)(2)(D)(iii)) to such individual.
26 USC 42(i)(3)(D)A unit retains low-income status even if it is occupied—
26 USC 42(i)(3)(D)(i)by an individual who is—
26 USC 42(i)(3)(D)(i)(I)a student and receiving assistance by title IV of the SSA, or
26 USC 42(i)(3)(D)(i)(II)enrolled in a job training program and receiving benefits by PL 97-300, or
26 USC 42(i)(3)(D)(ii)entirely by full-time students if such students are—
26 USC 42(i)(3)(D)(ii)(I)single parents and their children, to which dependency (§152) can be claimed, or
26 USC 42(i)(3)(D)(ii)(II)married and file a joint return.
26 USC 42(i)(3)(E)Buildings with 4 or less units are eligible if there is a development plan.
26 USC 42(i)(3)(E)(i)(C) doesn't apply if there is a development plan sponsored by State, &c.
26 USC 42(i)(3)(E)(ii)If (i) applies, applicable fraction is no more than 80% of unit fraction.
26 USC 42(i)(3)(E)(iii)If (i) applies, units unrented for 90 days are considered occupied by owner.
26 USC 42(i)(4)A "new building" is a building whose original use begins with the taxpayer.
26 USC 42(i)(5)An "existing building" is any building which is not a new building.
26 USC 42(i)(6)Credit and tax by (j) is apportioned between any trust and its beneficiaries.
26 USC 42(i)(7)This paragraph sets rules for tenant's right of 1st refusal to acquire property.
26 USC 42(i)(7)(A)No tax benefit is denied due to 1st refusal to buy property at price by (B).
26 USC 42(i)(7)(B)The minimum purchase price under (B) is equal to the sum of—
26 USC 42(i)(7)(B)(i)principal amount of currently outstanding debts secured by the building, and
26 USC 42(i)(7)(B)(ii)all Federal, State, and local taxes attributable to such sale.
26 USC 42(i)(8)Rural project income limit is greater of area or non-metropolitan median income.
26 USC 42(i)(9)This paragraph sets coordination with low-income housing grants.
26 USC 42(i)(9)(A)For 2009, reduce (h)(3)(C) by amounts used to figure grant by §1602 of PL 111-5.
26 USC 42(i)(9)(B)Basis of a qualified low-income building is not reduced by any grant under (A).
26 USC 42(j)This subsection sets rules for the recapture of credit.
26 USC 42(j)(1)Chapter 1 tax for TY is increased by credit recapture amount if—
26 USC 42(j)(1)(A)as of a TY end in compliance period, qualified basis in a building is less than
26 USC 42(j)(1)(B)amount of such basis at end of preceding taxable year.
26 USC 42(j)(2)For (1), the credit recapture amount is equal to the sum of—
26 USC 42(j)(2)(A)all credit decreases by §38 if accelerated portion by (3) weren't allowed, plus
26 USC 42(j)(2)(B)interest at overpayment rate by §6621 on (A) amount for applicable prior TYs.
26 USC 42(j)(3)Accelerated portion of credit for prior TYs for any basis amount is excess of—
26 USC 42(j)(3)(A)aggregate credit allowed by §42, ignoring (j), for such years and basis, over
26 USC 42(j)(3)(B)aggregate credit which would be allowed if rated over entire compliance period.
26 USC 42(j)(4)This paragraph sets special rules.
26 USC 42(j)(4)(A)Carryforwards and carrybacks by §39 are adjusted if not used to reduce tax.
26 USC 42(j)(4)(B)Qualified basis used for (1)(B) is no more than basis used for (a) in last TY.
26 USC 42(j)(4)(C)(1) applies to basis decrease to extent decrease is more than basis in (f)(3).
26 USC 42(j)(4)(D)Increase in tax by (j) is not treated as tax imposed to figure chapter 1 credit.
26 USC 42(j)(4)(E)Tax increase doesn't apply to basis reduction due to unrestored casualty loss.
26 USC 42(j)(4)(F)Secretary may not apply tax increase under (j) to any building if—
26 USC 42(j)(4)(F)(i)such increase is from a de minimis change in floor space fraction in (c)(1), and
26 USC 42(j)(4)(F)(ii)the building is a qualified low-income building after such change.
26 USC 42(j)(5)This paragraph sets rules to treat certain partnerships as the taxpayer.
26 USC 42(j)(5)(A)For applying (j) to an partnership subject to (j)—
26 USC 42(j)(5)(A)(i)it is treated as the taxpayer to which the credit of (a) is allowed,
26 USC 42(j)(5)(A)(ii)such credit is amount that would be allowed to partnership if permitted,
26 USC 42(j)(5)(A)(iii)(4)(A) does not apply, and
26 USC 42(j)(5)(A)(iv)tax increase for any TY is allocated to partners as for allocation of income.
26 USC 42(j)(5)(B)Unless elected otherwise, (5) applies to partnerships with 35 or more partners.
26 USC 42(j)(5)(C)This subparagraph sets special rules.
26 USC 42(j)(5)(C)(i)For (B)(i), a husband and wife (and their estates) are treated as 1 partner.
26 USC 42(j)(5)(C)(ii)Any election made under (B) is irrevocable.
26 USC 42(j)(6)No recapture on disposition of building which continues in qualified use.
26 USC 42(j)(6)(A)Ignore (j) increase if qualified use continues in remaining compliance period.
26 USC 42(j)(6)(B)If disposal causes basis reduction which increases tax under (j), then—
26 USC 42(j)(6)(B)(i)period of assessment doesn't expire within 3 years after notification to Sec., &
26 USC 42(j)(6)(B)(ii)deficiency may be assessed within (i) period despite any other applicable law.
26 USC 42(k)This subsection sets the application of at-risk rules.
26 USC 42(k)(1)Certain rules by (a)(1), (a)(2), and (b)(1) of §49 apply for figuring basis.
26 USC 42(k)(2)This paragraph sets special rules for determining a qualified person.
26 USC 42(k)(2)(A)Qualification of financing borrowed from (h)(5) entity meeting (B) - (D) is—
26 USC 42(k)(2)(A)(i)made regardless of if such entity actively and regularly lends money, or
26 USC 42(k)(2)(A)(ii)made regardless of if such entity is described by §49(a)(1)(D)(iv)(II).
26 USC 42(k)(2)(B)(B) is met if building secures financing, except for buildings by (d)(6)(B) if—
26 USC 42(k)(2)(B)(i)a security interest in the building is not permitted by holding agency, and
26 USC 42(k)(2)(B)(ii)any proceeds from financing are applied to acquire or improve such building.
26 USC 42(k)(2)(C)No more than 60% of building's eligible basis can come from such financing.
26 USC 42(k)(2)(D)The federal financing must be fully repaid on or before the earliest of—
26 USC 42(k)(2)(D)(i)the date on which such financing matures,
26 USC 42(k)(2)(D)(ii)the 90th day after compliance period ends for the low-income building, or
26 USC 42(k)(2)(D)(iii)the date of its refinancing or the sale of such building. Other rules apply.
26 USC 42(k)(3)Basis is equal to financing if discounted rate is within 1% below Federal rate.
26 USC 42(k)(4)This paragraph sets rules for failure to fully repay.
26 USC 42(k)(4)(A)If (2)(D) isn't met, tax is increased by portion by (B) & interest in period—
26 USC 42(k)(4)(A)(i)starting with due date for filing return for 1st TY of allowed credit, and
26 USC 42(k)(4)(A)(ii)ending with due date for TY of failure. Rate and method under §6621 applies.
26 USC 42(k)(4)(B)Applicable portion is net decrease under §38 for prior TYs as if (2)(D) failed.
26 USC 42(k)(4)(C)Rules similar to those of (A) - (D) of (j)(4) apply for (k).
26 USC 42(l)This subsection sets rules for certifications and other reports to the Sec.
26 USC 42(l)(1)After end of 1st TY in credit period, taxpayer shall certify to Secretary—
26 USC 42(l)(1)(A)the TY and calendar year in which such building was placed in service,
26 USC 42(l)(1)(B)the adjusted basis and eligible basis of such building as of such time,
26 USC 42(l)(1)(C)the maximum applicable percentage and basis allowed by agency under (h),
26 USC 42(l)(1)(D)the election by (g) in regard to the qualified low-income housing project, and
26 USC 42(l)(1)(E)any other information the Secretary may require.
26 USC 42(l)(2)The Secretary may require an annual information return for each TY, reporting—
26 USC 42(l)(2)(A)the qualified basis for the TY of each qualified low-income building,
26 USC 42(l)(2)(B)the information described by (1)(C) for the TY, and
26 USC 42(l)(2)(C)any other required information. Penalty by §6652(j) applies for noncompliance.
26 USC 42(l)(3)Agencies which allocate housing credit submit an annual report which specifies—
26 USC 42(l)(3)(A)the amount of housing credit allocated to each building for the year,
26 USC 42(l)(3)(B)sufficient information to identify all related buildings and taxpayers, and
26 USC 42(l)(3)(C)any other required information. Penalty by §6652(j) applies for noncompliance.
26 USC 42(m)This subsection sets the responsibilities of housing credit agencies.
26 USC 42(m)(1)This paragraph sets rules for plans for allocation of credit among projects.
26 USC 42(m)(1)(A)The housing credit dollar amount for any building is zero unless—
26 USC 42(m)(1)(A)(i)such allocation is under a plan (B), subject to rules similar to §147(f)(2),
26 USC 42(m)(1)(A)(ii)the agency notifies the CEO of local jurisdiction of location for such project,
26 USC 42(m)(1)(A)(iii)a market study of needs of low-income persons is made before allocation, and
26 USC 42(m)(1)(A)(iv)an explanation is made public for any allocation not otherwise in accordance.
26 USC 42(m)(1)(B)A "qualified allocation plan" is any plan which—
26 USC 42(m)(1)(B)(i)sets selection criteria to determine housing priorities of the agency,
26 USC 42(m)(1)(B)(ii)gives preference in allocating credit among selected projects to those which—
26 USC 42(m)(1)(B)(ii)(I)serve the lowest income tenants,
26 USC 42(m)(1)(B)(ii)(II)oblige to serve qualified tenants for the longest periods, and
26 USC 42(m)(1)(B)(ii)(III)are located in tracts by (d)(5)(C) and is part of a revitalization plan, and
26 USC 42(m)(1)(B)(iii)sets procedures to monitor noncompliance and IRS notification thereof.
26 USC 42(m)(1)(C)The selection criteria set forth in a qualified allocation plan must include—
26 USC 42(m)(1)(C)(i)project location,
26 USC 42(m)(1)(C)(ii)housing needs characteristics,
26 USC 42(m)(1)(C)(iii)project characteristics, including if the plan uses existing housing,
26 USC 42(m)(1)(C)(iv)sponsor characteristics,
26 USC 42(m)(1)(C)(v)tenant populations with special housing needs,
26 USC 42(m)(1)(C)(vi)public housing waiting lists,
26 USC 42(m)(1)(C)(vii)tenant populations of individuals with children,
26 USC 42(m)(1)(C)(viii)projects intended for eventual tenant ownership,
26 USC 42(m)(1)(C)(ix)the energy efficiency of the project, and
26 USC 42(m)(1)(C)(x)the historic nature of the project.
26 USC 42(m)(1)(D)(h)(4) does not apply unless project meets applicable qualified allocation plan.
26 USC 42(m)(2)Allocation of credit limited to necessary amount to assure project feasibility.
26 USC 42(m)(2)(A)Allocation is figured by agency as needed for project's financial feasibility.
26 USC 42(m)(2)(B)For determining amount by (A), the housing credit agency must consider—
26 USC 42(m)(2)(B)(i)the sources of funds, their use, and the total planned project financing,
26 USC 42(m)(2)(B)(ii)any proceeds or receipts expected to be generated from tax benefits,
26 USC 42(m)(2)(B)(iii)the percentage of credit used for project costs other than intermediaries, and
26 USC 42(m)(2)(B)(iv)the reasonableness of the developmental and operational project costs.
26 USC 42(m)(2)(C)This subparagraph sets when determination for (A) occurs.
26 USC 42(m)(2)(C)(i)Determination under (A) is made as of each of the following times:
26 USC 42(m)(2)(C)(i)(I)The application for the housing credit dollar amount.
26 USC 42(m)(2)(C)(i)(II)The allocation of the housing credit dollar amount.
26 USC 42(m)(2)(C)(i)(III)The date in which the building is placed in service.
26 USC 42(m)(2)(C)(ii)Prior to applying (i), agency must certify extent of all applicable subsidies.
26 USC 42(m)(2)(D)(h)(4) doesn't apply unless bond issuer applies rules similar to (A) and (B).
26 USC 42(n)Secretary will prescribe regulations as needed, including regulations which—
26 USC 42(n)(1)pertain to—
26 USC 42(n)(1)(A)projects that include more than 1 building or only a portion of a building,
26 USC 42(n)(1)(B)buildings which are placed in service in portions,
26 USC 42(n)(2)provide for the application of §42 to short taxable years,
26 USC 42(n)(3)prevent the avoidance of the rules of §42, and
26 USC 42(n)(4)allow housing credit agencies to correct administrative errors and omissions.
 
26 USC 43This section discusses the enhanced oil recovery credit.
26 USC 43(a)For §38, such credit for a TY is 15% of taxpayer's qualified oil recovery costs.
26 USC 43(b)This subsection sets a phase-out of credit as crude oil prices increase.
26 USC 43(b)(1)Credit by (a) for any TY is reduced by amount bearing same ratio as—
26 USC 43(b)(1)(A)the reference price for year before year in which TY begins exceeds $28, to
26 USC 43(b)(1)(B)$6.
26 USC 43(b)(2)The "reference price" is determined for such calendar year by §45K(d)(2)(C).
26 USC 43(b)(3)This paragraph sets adjustments for inflation.
26 USC 43(b)(3)(A)For TYs after 1991, substitute $28 amount in (1)(A) by the product of—
26 USC 43(b)(3)(A)(i)$28, and
26 USC 43(b)(3)(A)(ii)the inflation adjustment factor by (B) for such calendar year.
26 USC 43(b)(3)(B)Such factor is fraction set by dividing GNP deflator by such deflator for 1990.
26 USC 43(c)This subsection defines "qualified enhanced oil recovery costs".
26 USC 43(c)(1)Qualified enhanced oil recovery costs are any of the following:
26 USC 43(c)(1)(A)Any amount paid or incurred during the taxable year for tangible property which—
26 USC 43(c)(1)(A)(i)is an integral part of a qualified enhanced oil recovery project, and
26 USC 43(c)(1)(A)(ii)has allowable depreciation or amortization under chapter 1.
26 USC 43(c)(1)(B)Any intangible drilling and development costs which—
26 USC 43(c)(1)(B)(i)are paid or incurred in connection with a qualified recovery project, and
26 USC 43(c)(1)(B)(ii)are subject to taxpayer's election under §263(c) for the taxable year.
26 USC 43(c)(1)(C)Qualified tertiary injectant expenses (§193(b)) connected to a project.
26 USC 43(c)(1)(D)Amounts paid or incurred in the TY to construct a gas treatment plant which—
26 USC 43(c)(1)(D)(i)is located within US (as by §638(1)) north of 64° North latitude,
26 USC 43(c)(1)(D)(ii)prepares Alaska natural gas for transport in a pipeline of certain capacity, and
26 USC 43(c)(1)(D)(iii)produces carbon dioxide which is injected into hydrocarbon-bearing formations.
26 USC 43(c)(2)This paragraph defines a "qualified enhanced oil recovery project".
26 USC 43(c)(2)(A)A qualified enhanced oil recovery project means any project which—
26 USC 43(c)(2)(A)(i)applies 1 or methods by §193(b)(3) to increase the amount of recovered oil,
26 USC 43(c)(2)(A)(ii)is located within the United States (as by §683(1)) and
26 USC 43(c)(2)(A)(iii)commences the first injection of liquids, gases, or other matter after 19901231.
26 USC 43(c)(2)(B)Project is not qualified until certified by petroleum engineer that (A) is met.
26 USC 43(c)(3)To figure costs, rules similar to those by (a)(1), (a)(2), and (b) of §49 apply.
26 USC 43(c)(4)Immiscible non-hydrocarbon gas displacement meets definition by §193(b)(3).
26 USC 43(c)(5)This paragraph defines "Alaska natural gas" for purposes of (1)(D).
26 USC 43(c)(5)(A)Such gas enters Alaska natural gas pipeline which is produced form a well—
26 USC 43(c)(5)(A)(i)located within certain areas of Alaska north of 64° North latitude, and
26 USC 43(c)(5)(A)(ii)pursuant to applicable State and Federal requirements for permit, &c.
26 USC 43(c)(5)(B)"Natural gas" is defined by §613A(e)(2).
26 USC 43(d)This subsection sets other rules.
26 USC 43(d)(1)Any deduction allowed for costs accounted by (a) are reduced by related credit.
26 USC 43(d)(2)For costs of property, any increase of such basis is reduced by credit allowed.
26 USC 43(e)This subsection sets rules for election to have the credit not apply.
26 USC 43(e)(1)A taxpayer may elect to have §43 not apply for any taxable year.
26 USC 43(e)(2)Election or revocation of (1) can be made within 3 years of return's due date.
26 USC 43(e)(3)Election or revocation of (1) is made by regulations prescribed by Secretary.
 
26 USC 44This section discusses expenditures to provide access to disabled individuals.
26 USC 44(a)If eligible, the disabled access credit is 50% of costs between $250 and $10250.
26 USC 44(b)An "eligible small business" means any person if such person—
26 USC 44(b)(1)either—
26 USC 44(b)(1)(A)has gross receipts not exceeding $1M for the preceding taxable year, or
26 USC 44(b)(1)(B)if (A) doesn't apply, employed no more than 30 full-time employees, and
26 USC 44(b)(2)elects the application of §44 for taxable year.
26 USC 44(c)This subsection defines "eligible access expenditures".
26 USC 44(c)(1)Such expenditures are paid by business by (b) for compliance with PL 101-336.
26 USC 44(c)(2)Eligible access expenditures includes amounts paid or incurred—
26 USC 44(c)(2)(A)for removing certain barriers which make a business unusable by the disabled,
26 USC 44(c)(2)(B)to make aurally delivered materials available to those with hearing impairments,
26 USC 44(c)(2)(C)to make visually delivered materials available to those with visual impairments,
26 USC 44(c)(2)(D)to acquire or modify equipment or devices for the disabled, or
26 USC 44(c)(2)(E)to provide other similar services, modifications, materials, or equipment.
26 USC 44(c)(3)Amounts paid by (2) only include necessary and reasonable expenditures.
26 USC 44(c)(4)Costs by (2)(A) paid to facilities put in service after 19901105 are excluded.
26 USC 44(c)(5)Costs by (2)(A) must meet standards by certain Barriers Compliance Board.
26 USC 44(d)This subsection defines "disability" and sets other special rules.
26 USC 44(d)(1)Disability has same meaning as when used in PL 101-336.
26 USC 44(d)(2)This paragraph sets rules for controlled groups of corporations.
26 USC 44(d)(2)(A)All members of same group or under common control as under §52 are 1 person.
26 USC 44(d)(2)(B)Secretary apportions dollar limitation of (a) among group members of (A).
26 USC 44(d)(3)For partnerships or S-Corps, limitation of (a) applies respectively to members.
26 USC 44(d)(4)Secretary sets adjustments for (b)(1) if preceding TY is less than 12 months.
26 USC 44(d)(5)Gross receipts for any TY are reduced by returns and allowances.
26 USC 44(d)(6)The reference to any person in (b)(1) also refers to any predecessor.
26 USC 44(d)(7)For the amount of credit determined by §44—
26 USC 44(d)(7)(A)no credit or deduction is allowed for such amount under any other provision, and
26 USC 44(d)(7)(B)adjusted basis of any property is not increased in respect of such amount.
26 USC 44(e)Secretary prescribes regulations necessary to carry out purposes of §44.
 
26 USC 44ARenumbered §21.
 
26 USC 44BRepealed.
 
26 USC 44CRenumbered §23.
 
26 USC 44DRenumbered §29.
 
26 USC 44ERenumbered §40.
 
26 USC 44FRenumbered §30.
 
26 USC 44GRenumbered §41.
 
26 USC 44HRenumbered §45C.
 
26 USC 45This section discusses electricity produced from certain renewable sources.
26 USC 45(a)For §38, the renewable electricity production credit is the product of—
26 USC 45(a)(1)1.5¢, multiplied by
26 USC 45(a)(2)the kilowatt hours of electricity—
26 USC 45(a)(2)(A)produced by the taxpayer—
26 USC 45(a)(2)(A)(i)from qualified energy resources, and
26 USC 45(a)(2)(A)(ii)at a qualified facility in 10-year period starting at placement in service, and
26 USC 45(a)(2)(B)sold by the taxpayer to an unrelated person during the taxable year.
26 USC 45(b)This subsection sets limitations and adjustments.
26 USC 45(b)(1)Credit is reduced by amount bearing same ratio to the amount of credit as—
26 USC 45(b)(1)(A)amount the reference price for year of sale exceeds 8¢, bears to
26 USC 45(b)(1)(B)3¢.
26 USC 45(b)(2)Amounts used to figure credit & phaseout are adjusted by factor under (e)(2)(C).
26 USC 45(b)(3)Credit regarding any project is reduced by multiplying it by ½ or a fraction—
26 USC 45(b)(3)(A)with a numerator which is the sum, for the TY and all prior TYs, of—
26 USC 45(b)(3)(A)(i)grants from the US, a State, or political subdivision for project use,
26 USC 45(b)(3)(A)(ii)proceeds from government obligations which are tax-exempt by §103,
26 USC 45(b)(3)(A)(iii)the aggregate energy financing from Federal, State, or local programs, and
26 USC 45(b)(3)(A)(iv)amount of any other credit allowed to property which is part of the project, and
26 USC 45(b)(3)(B)with a denominator of sum amount of additions to the project capital account.
26 USC 45(b)(4)Credit rate & other rules regarding facilities by (3), (5) - (7), & (9) of (d).
26 USC 45(b)(4)(A)(a)(1) is halved if such facility produces & sells electricity after 2003.
26 USC 45(b)(4)(B)This subparagraph sets the credit period.
26 USC 45(b)(4)(B)(i)For such facilities, swap "10-year" with "5-year" to apply (a)(2)(A)(ii).
26 USC 45(b)(4)(B)(ii)For (i), swap "20050101" for "5-year" for facilities by (d)(3)(A)(ii).
26 USC 45(b)(4)(B)(iii)Clause (i) does not apply to any facility placed in service after 20050808.
26 USC 45(c)This subsection defines resources.
26 USC 45(c)(1)"Qualified energy sources" means—
26 USC 45(c)(1)(A)wind,
26 USC 45(c)(1)(B)closed-loop biomass,
26 USC 45(c)(1)(C)open-loop biomass,
26 USC 45(c)(1)(D)geothermal energy,
26 USC 45(c)(1)(E)solar energy,
26 USC 45(c)(1)(F)small irrigation power,
26 USC 45(c)(1)(G)municipal solid waste,
26 USC 45(c)(1)(H)qualified hydropower production, and
26 USC 45(c)(1)(I)marine and hydrokinetic renewable energy.
26 USC 45(c)(2)"Closed-loop biomass" is organic material raised for energy production purposes.
26 USC 45(c)(3)This paragraph defines "open-loop biomass"
26 USC 45(c)(3)(A)Open-loop biomass is—
26 USC 45(c)(3)(A)(i)any agricultural livestock waste nutrients, or
26 USC 45(c)(3)(A)(ii)solid, nonhazardous waste material segregated from other waste & derived from—
26 USC 45(c)(3)(A)(ii)(I)mill and harvesting residues, slash, brush, and other forest-related resources,
26 USC 45(c)(3)(A)(ii)(II)pallets, crates, and other wood waste materials (with no chemical treatment),
26 USC 45(c)(3)(A)(ii)(III)orchard tree tops, grain, sugar, and other agriculture sources or by-products.
26 USC 45(c)(3)(B)This subparagraph defines "agricultural livestock waste nutrients".
26 USC 45(c)(3)(B)(i)Such nutrients are livestock manure and litter, including straw, rice hulls, &c.
26 USC 45(c)(3)(B)(ii)"Agricultural livestock" includes bovine, swine, poultry, and sheep.
26 USC 45(c)(4)"Geothermal energy" is derived from a geothermal deposit (as by §613(e)(2)).
26 USC 45(c)(5)"Small irrigation power" is power which is—
26 USC 45(c)(5)(A)generated without any dam or impoundment of water by an irrigation system, and
26 USC 45(c)(5)(B)between 150 kilowatts and 5 megawatts for its nameplate capacity rating.
26 USC 45(c)(6)"Municipal solid waste" is defined as "solid waste" under §2(27) of PL 94-580.
26 USC 45(c)(7)This paragraph defines "refined coal".
26 USC 45(c)(7)(A)Refined coal is a fuel which—
26 USC 45(c)(7)(A)(i)is a liquid, solid, or gaseous fuel produced from coal or high carbon fly ash,
26 USC 45(c)(7)(A)(ii)is sold with reasonable expectation that it will be used for steam production,
26 USC 45(c)(7)(A)(iii)is certified by the taxpayer as resulting in a qualified emission reduction, and
26 USC 45(c)(7)(A)(iv)is produced to result in an increase of at least 50% market value.
26 USC 45(c)(7)(B)"Qualified emission reduction" is reduction of 20% or more of certain emissions.
26 USC 45(c)(8)This paragraph defines "qualified hydropower production".
26 USC 45(c)(8)(A)Qualified hydropower production is—
26 USC 45(c)(8)(A)(i)the incremental hydropower production for the TY, and
26 USC 45(c)(8)(A)(ii)for dams by (C), the hydropower production from the facility for the TY.
26 USC 45(c)(8)(B)This subparagraph sets determination of incremental hydropower production.
26 USC 45(c)(8)(B)(i)Such production is certified percentage attributable to efficiency improvements.
26 USC 45(c)(8)(B)(ii)Operational changes not related to efficiency improvements aren't accounted.
26 USC 45(c)(8)(C)For (A), a facility is a nonhydroelectric dam if it is—
26 USC 45(c)(8)(C)(i)licensed by the FERC meets other applicable regulatory requirements,
26 USC 45(c)(8)(C)(ii)placed in service before 20050808 & made no hydroelectric power at such date, &
26 USC 45(c)(8)(C)(iii)augmented by turbines, &c., after 20050808 to produce hydroelectric power.
26 USC 45(c)(9)This paragraph defines "Indian coal".
26 USC 45(c)(9)(A)Indian coal is coal produced from reserves which, on 20050614—
26 USC 45(c)(9)(A)(i)were owned by an Indian tribe, or
26 USC 45(c)(9)(A)(ii)were held in trust by the US for the benefit of an Indian tribe or its members.
26 USC 45(c)(9)(B)An "Indian tribe" has the same meaning as by §7871(c)(3)(E)(ii).
26 USC 45(c)(10)This paragraph defines "marine and hydrokinetic renewable energy".
26 USC 45(c)(10)(A)Marine and hydrokinetic renewable energy is energy derived from—
26 USC 45(c)(10)(A)(i)waves, tides, and currents in oceans, estuaries, and tidal areas,
26 USC 45(c)(10)(A)(ii)free flowing water in rivers, lakes, and streams,
26 USC 45(c)(10)(A)(iii)free flowing water in a man-made channel, & projects which hasten water flow, or
26 USC 45(c)(10)(A)(iv)differentials in ocean temperature (ocean thermal energy conversion).
26 USC 45(c)(10)(B)Diversionary structures (not by (A)(iii)) for electric production are excluded.
26 USC 45(d)This subsection sets rules for qualified facilities.
26 USC 45(d)(1)A qualified wind facility is in service by 19931231 and constructed by 20140101.
26 USC 45(d)(2)This paragraph sets qualification of a closed-loop biomass facility.
26 USC 45(d)(2)(A)For such a facility to be qualified, it must be—
26 USC 45(d)(2)(A)(i)placed in service after 19921231 and constructed before 20140101, or
26 USC 45(d)(2)(A)(ii)modified for such use by the Biomass Power for Rural Development Programs, &c.
26 USC 45(d)(2)(B)Include electricity from unit in service after 20041022 & connected to (A)(i).
26 USC 45(d)(2)(C)For a qualified facility described in (A)(ii)—
26 USC 45(d)(2)(C)(i)10-year period of (a) begins no earlier than 20041022, and
26 USC 45(d)(2)(C)(ii)person eligible for credit is lessee if owner doesn't produce electricity.
26 USC 45(d)(3)This paragraph sets qualification of an open-loop biomass facility.
26 USC 45(d)(3)(A)An open-loop biomass facility is qualified if its owned by the taxpayer and—
26 USC 45(d)(3)(A)(i)in the case of a facility which uses agricultural livestock waste nutrients—
26 USC 45(d)(3)(A)(i)(I)is in service before 20041022 and constructed before 20140101, and
26 USC 45(d)(3)(A)(i)(II)the nameplate capacity rating of which is not less than 150 kilowatts, and
26 USC 45(d)(3)(A)(ii)for other facilities, is placed in service before 20140101.
26 USC 45(d)(3)(B)Include electricity from unit put in service after 20041022 & connected to (A).
26 USC 45(d)(3)(C)Person eligible for credit is lessee if owner doesn't produce electricity.
26 USC 45(d)(4)Geothermal or solar facility is qualified if in service after 20041022 & which—
26 USC 45(d)(4)(A)is in service before 20060101, if the facility uses solar energy, and
26 USC 45(d)(4)(B)is in construction before 20140101, if the facility uses geothermal energy.
26 USC 45(d)(5)Small irrigation facilities in service within 20041022 & 20140101 is qualified.
26 USC 45(d)(6)Landfill gas facility in service & constructed by 20041022 & 20140101 qualifies.
26 USC 45(d)(7)Trash facility in service & constructed by 20041022 & 20140101 qualifies.
26 USC 45(d)(8)A refined coal facility in service within 20041022 & 20140101 is qualified.
26 USC 45(d)(8)A facility producing refined coal is qualified if it has been placed in service—
26 USC 45(d)(8)(A)before 20100101, if the facility produces steel industry fuel, and
26 USC 45(d)(8)(B)between 20041022 & 20120101, if the facility doesn't meet (A).
26 USC 45(d)(9)Definition of a "qualified hydropower facility".
26 USC 45(d)(9)(A)A facility which produces qualified production by (c)(8) qualifies if—
26 USC 45(d)(9)(A)(i)it has any additions ((c)(8)(B)) in service between 20041022 and 20140101, and
26 USC 45(d)(9)(A)(ii)it has any other facility in service before 200410122 and made before 20140101.
26 USC 45(d)(9)(C)For (A), 10-year period of (a) starts when such additions are placed in service.
26 USC 45(d)(10)Indian coal production facility is qualified if put in service before 20140101.
26 USC 45(d)(11)A facility producing power as by (c)(10) is qualified if it—
26 USC 45(d)(11)(A)has a nameplate capacity rating of at least 150 kilowatts, and
26 USC 45(d)(11)(B)is originally placed in service before 20041022 and constructed before 20140101.
26 USC 45(e)This subsection sets definitions and special rules.
26 USC 45(e)(1)Sales are accounted for §45 only for the production of electricity within—
26 USC 45(e)(1)(A)the United States (within meaning of §638(1)), or
26 USC 45(e)(1)(B)a possession of the United States (within meaning of §638(2)).
26 USC 45(e)(2)Rules for computation of inflation adjustment factor and reference price.
26 USC 45(e)(2)(A)Sec. publishes such factor and price in the Federal Register, as of April 1.
26 USC 45(e)(2)(B)Inflation adjustment factor is set by dividing current GDP deflator by 1992's.
26 USC 45(e)(2)(C)Reference price is annual average contract price per electrical KWH.
26 USC 45(e)(3)Production is proportionally allocated among persons with ownership interest.
26 USC 45(e)(4)Persons are considered related if treated by §52(b) as a single employer.
26 USC 45(e)(5)Per Secretary's regulations, rules similar to those of §52(d) apply.
26 USC 45(e)(6)Repealed.
26 USC 45(e)(7)Credit to not apply to electricity sold to utilities by certain contracts.
26 USC 45(e)(7)(A)Credit by (a) does not apply to electricity which is—
26 USC 45(e)(7)(A)(i)produced at a facility by (d)(1) which is placed in service after 19990630, &
26 USC 45(e)(7)(A)(ii)sold to a utility under a contract initially entered into before 19870101.
26 USC 45(e)(7)(B)(A) doesn't apply if—
26 USC 45(e)(7)(B)(i)energy prices and capacity are established in an amendment to (A)(ii) contract,
26 USC 45(e)(7)(B)(ii)(i) sets that prices exceeding avoided cost prices apply to no more than—
26 USC 45(e)(7)(B)(ii)(I)the average annual quantity of electricity sold to utility from 1994 - 1998, or
26 USC 45(e)(7)(B)(ii)(II)estimate of annual production, or, greatest quantity sold from 1996 - 1998, and
26 USC 45(e)(7)(B)(iii)such amendment provides that energy and capacity exceeding (ii) may be sold to—
26 USC 45(e)(7)(B)(iii)(I)the utility only at prices which don't exceed avoided cost prices, or
26 USC 45(e)(7)(B)(iii)(II)a 3rd party upon notice. "Avoided cost prices" are set by 18 CFR 292.304(d)(1).
26 USC 45(e)(8)This paragraph sets rules for refined coal production facilities.
26 USC 45(e)(8)(A)For such producers, §45 credit is increased by $4.375 per ton of qualified coal—
26 USC 45(e)(8)(A)(i)produced at a facility during 10-year period starting when entered service, and
26 USC 45(e)(8)(A)(ii)sold by the taxpayer—
26 USC 45(e)(8)(A)(ii)(I)to an unrelated person, and
26 USC 45(e)(8)(A)(ii)(II)during such 10-year period and such taxable year.
26 USC 45(e)(8)(B)Increase by (A) is reduced by amount bearing same ratio to increase as—
26 USC 45(e)(8)(B)(i)excess of feedstock fuel price over product of 1.7 by 2002 fuel price bears to
26 USC 45(e)(8)(B)(ii)$8.75.
26 USC 45(e)(8)(C)Rules similar to those by (b)(3) and paragraphs (1) - (5) apply to (8).
26 USC 45(e)(9)Coordination with credit for producing fuel from a nonconventional source.
26 USC 45(e)(9)(A)A "qualified facility" does not use biodegradation (if given credit by §45K).
26 USC 45(e)(9)(B)A "refined coal production facility" doesn't include those given credit by §45K.
26 USC 45(e)(10)This paragraph sets rules for Indian coal production facilities.
26 USC 45(e)(10)(A)For such producers, §45 credit is increased by applicable dollar amount per ton—
26 USC 45(e)(10)(A)(i)produced at such facility during 8-year period starting 20060101, and
26 USC 45(e)(10)(A)(ii)sold by the taxpayer—
26 USC 45(e)(10)(A)(ii)(I)to an unrelated person, and
26 USC 45(e)(10)(A)(ii)(II)during such 8-year period and such taxable year.
26 USC 45(e)(10)(B)This subparagraph defines the "applicable dollar amount".
26 USC 45(e)(10)(B)(i)Such amount is—
26 USC 45(e)(10)(B)(i)(I)$1.50 for 2006 - 2009, and
26 USC 45(e)(10)(B)(i)(II)$2.00 for years after 2009.
26 USC 45(e)(10)(B)(ii)After 2006, adjust (i) for inflation as by (2)(B); swap 2005 for 1992 therein.
26 USC 45(e)(10)(C)Rules similar to those by (b)(3) and (1), (3), (4), and (5) apply to (10).
26 USC 45(e)(10)(D)(10) is specified credit for §38(c)(4)(A) during 4 years after entering service.
26 USC 45(e)(11)This paragraph sets allocation of credit to patrons of agricultural cooperative.
26 USC 45(e)(11)(A)This subparagraph sets rules for an election to allocate.
26 USC 45(e)(11)(A)(i)Credit by (a) is apportioned to patrons if organization by (D) makes election.
26 USC 45(e)(11)(A)(ii)Election is irrevocable and not in effect until patrons are notified.
26 USC 45(e)(11)(B)Any credit apportioned to patrons under (A) is—
26 USC 45(e)(11)(B)(i)not included in the amount determined by (a) for the organization, and
26 USC 45(e)(11)(B)(ii)included in 1st TY after end of payment period (or patron's TY end if earlier).
26 USC 45(e)(11)(C)If organization's credit is less than shown on return, its tax is increased by—
26 USC 45(e)(11)(C)(i)such reduction, exceeding
26 USC 45(e)(11)(C)(ii)amounts not apportioned to patrons under (A) for the taxable year.
26 USC 45(e)(11)(D)An "eligible cooperative" is by §1381(a) in which producers own more than 50%.
 
26 USC 45AThis section discusses the Indian employment credit.
26 USC 45A(a)For §38, the Indian employment credit is equal to 20% of any excess of—
26 USC 45A(a)(1)the sum of—
26 USC 45A(a)(1)(A)qualified wages paid or incurred during the taxable year, plus
26 USC 45A(a)(1)(B)qualified employee health insurance costs paid or incurred during such TY, over
26 USC 45A(a)(2)the sum of qualified wages and insurance costs paid by the employer during 1993.
26 USC 45A(b)This subsection defines "qualified wages" & "qualified health insurance costs".
26 USC 45A(b)(1)This paragraph defines "qualified wages".
26 USC 45A(b)(1)(A)Such wages are paid by an employer for services of a qualified employee.
26 USC 45A(b)(1)(B)Such wages do not include wages accounted by §51 in 1st year of employment.
26 USC 45A(b)(2)This paragraph defines "qualified employee health insurance costs".
26 USC 45A(b)(2)(A)Such costs are paid by employer for health insurance coverage of (c) employee.
26 USC 45A(b)(2)(B)No amount paid pursuant to a salary reduction arrangement is accounted by (A).
26 USC 45A(b)(3)Sum of wages and insurance costs taken into account is limited to $20000.
26 USC 45A(c)This subsection defines a "qualified employee".
26 USC 45A(c)(1)Except as provided otherwise, such employee is any employee who—
26 USC 45A(c)(1)(A)is an enrolled member of an Indian tribe or a spouse of an enrolled member,
26 USC 45A(c)(1)(B)performs substantially all services within an Indian reservation, and
26 USC 45A(c)(1)(C)has a principal place of abode on or near such Indian reservation.
26 USC 45A(c)(2)Employee is not qualified if total wages paid by employer in TY exceeds $30000.
26 USC 45A(c)(3)Sec. applies §415(d) to (2) for years after 1994; base period starts 19931001.
26 USC 45A(c)(4)Employee qualifies only if more than 50% of wages are for business services.
26 USC 45A(c)(5)A "qualified employee" does not include—
26 USC 45A(c)(5)(A)any individual described by (A), (B), or (C) of §51(i)(1),
26 USC 45A(c)(5)(B)any 5% owner (as defined by §416(i)(1)(B)), and
26 USC 45A(c)(5)(C)any individual performing gaming activity services as by §4 of PL 100-497.
26 USC 45A(c)(6)An "Indian tribe" is a group, &c., recognized as eligible for special programs.
26 USC 45A(c)(7)An "Indian reservation" has the meaning given by §168(j)(6).
26 USC 45A(d)This subsection sets rules for early termination of employment by employer.
26 USC 45A(d)(1)If employment is terminated within first year in which work began—
26 USC 45A(d)(1)(A)no wages of such employee are considered for (a) in the taxable year, and
26 USC 45A(d)(1)(B)chapter 1 tax is increased by credits of prior TYs by §38(a) for such wages.
26 USC 45A(d)(2)Carrybacks and carryforwards under §39 are properly adjusted if (1) applies.
26 USC 45A(d)(3)This paragraph sets cases where (d) may not apply.
26 USC 45A(d)(3)(A)(1) does not apply to a termination of employment of an individual who—
26 USC 45A(d)(3)(A)(i)voluntarily leaves taxpayer's employment,
26 USC 45A(d)(3)(A)(ii)becomes disabled to perform employment services within period by (1), or
26 USC 45A(d)(3)(A)(iii)is determined by State unemployment law to be due to misconduct.
26 USC 45A(d)(3)(B)For (1), relationship between employee and employer is not terminated—
26 USC 45A(d)(3)(B)(i)by a transaction under §381(a) if the employee continues service, or
26 USC 45A(d)(3)(B)(ii)due to a mere change in conducting business, if employee continues service.
26 USC 45A(d)(4)Any tax increase under (1) is not treated as imposed by chapter 1 for—
26 USC 45A(d)(4)(A)determining the amount of credit allowable under chapter 1, and
26 USC 45A(d)(4)(B)determining the amount of tax imposed by §55.
26 USC 45A(e)This subsection sets other definitions and special rules.
26 USC 45A(e)(1)"Wages" has the same meaning as given by §51.
26 USC 45A(e)(2)This paragraph sets rules for controlled groups of corporations.
26 USC 45A(e)(2)(A)All employers treated as single employer by (a) or (b) of §52 are 1 employer.
26 USC 45A(e)(2)(B)Credit for each employer is proportionate share of related wages and costs.
26 USC 45A(e)(3)Rules similar to those of §51(k), and (c), (d), & (e) of §52 apply.
26 USC 45A(e)(4)Reference to provisions not in 26 USC are treated as such on 19930810.
26 USC 45A(e)(5)(a)(2) amount is multiplied by fractional TY portion for short taxable years.
26 USC 45A(f)§45A does not apply to taxable years starting after 20131231.
 
26 USC 45BCredit for portion of employer SS taxes paid with respect to employee cash tips.
26 USC 45B(a)For §38, credit is equal to excess employer SS tax paid during the TY.
26 USC 45B(b)This subsection defines "excess employer social security tax".
26 USC 45B(b)(1)Employer pays such tax under §3111 for tips received, to the extent such tips—
26 USC 45B(b)(1)(A)are paid by the employer under §3121(q) (ignoring if reported to §6053), and
26 USC 45B(b)(1)(B)exceed wages less than amount which would be paid by §6(a)(1) of PL 75-718.
26 USC 45B(b)(2)Account tips only if in connection with food service if tipping is customary.
26 USC 45B(c)No deduction is allowed for any amount used to determine credit under §45B.
26 USC 45B(d)Taxpayer may elect to not have §45B apply for any taxable year.
 
26 USC 45CClinical testing expenses for certain drugs for rare diseases or conditions.
26 USC 45C(a)For §38, credit is 50% of qualified clinical testing expenses for TY.
26 USC 45C(b)This subsection sets rules for qualified clinical testing expenses.
26 USC 45C(b)(1)This paragraph defines "qualified clinical testing expenses".
26 USC 45C(b)(1)(A)Such expenses would be described by §41(b) after applying modifications by (B).
26 USC 45C(b)(1)(B)For (A), §41(b) shall be applied by substituting—
26 USC 45C(b)(1)(B)(i)"clinical testing" for "qualified research" within such (2) and (3), and
26 USC 45C(b)(1)(B)(ii)"100%" for "65%" within such (3)(A).
26 USC 45C(b)(1)(C)Funding from any grant, contract, or other persons are not accounted.
26 USC 45C(b)(1)(D)For (b), §41 remains in effect between 19950630 and 19960701, & after 20131231.
26 USC 45C(b)(2)This paragraph defines "clinical testing".
26 USC 45C(b)(2)(A)Clinical testing is any human clinical testing—
26 USC 45C(b)(2)(A)(i)under an exemption for testing a disease or condition by §505(i) of PL 75-717,
26 USC 45C(b)(2)(A)(ii)which occurs—
26 USC 45C(b)(2)(A)(ii)(I)after the date the drug is designated under §526 of such PL, and
26 USC 45C(b)(2)(A)(ii)(II)before the date of application by §505(b) of such PL is approved, &c., and
26 USC 45C(b)(2)(A)(iii)conducted by taxpayer, or person to whom §526 of such PL applies.
26 USC 45C(b)(2)(B)Only testing related to drugs designated by §526 of such PL apply to (a).
26 USC 45C(c)Rules for coordination with credit for increasing research expenditures.
26 USC 45C(c)(1)Expenses subject to §45C election are not accounted for credit under §41.
26 USC 45C(c)(2)(b)(1) expenses which meet §41(b) are accounted to figure base period expenses.
26 USC 45C(d)This subsection sets definitions and special rules.
26 USC 45C(d)(1)A "rare disease or condition" is any disease or condition—
26 USC 45C(d)(1)(A)which affects less than 200000 persons in the United States, or
26 USC 45C(d)(1)(B)for which the cost of drug development is expected to exceed its sales in US.
26 USC 45C(d)(2)This paragraph sets special limitations on foreign testing.
26 USC 45C(d)(2)(A)No credit is allowed for any clinical testing conducted outside the US unless—
26 USC 45C(d)(2)(A)(i)such remote testing is due to a lack of testing population in the US, and
26 USC 45C(d)(2)(A)(ii)a US or unrelated person (§526 of PL 75-717) conducts such test.
26 USC 45C(d)(2)(B)No credit is allowed for testing done by corporation under election by §936.
26 USC 45C(d)(3)Rules similar to those under (1) and (2) of §41 apply to §45C.
26 USC 45C(d)(4)§45C only applies to a taxable year subject to taxpayer's election.
 
26 USC 45DThis section discusses the new markets tax credit.
26 USC 45D(a)This subsection sets the allowance of credit.
26 USC 45D(a)(1)Credit is percentage by (2) of payments to qualified entities at original issue.
26 USC 45D(a)(2)For (1), the applicable percentage is—
26 USC 45D(a)(2)(A)5% with respect to the first 3 credit allowance dates, and
26 USC 45D(a)(2)(B)6% for the remainder of such credit allowance dates.
26 USC 45D(a)(3)The "credit allowance date" is, for any qualified entity investment—
26 USC 45D(a)(3)(A)the date on which such investment is first made, and
26 USC 45D(a)(3)(B)each of the 6 anniversary dates of such date thereafter.
26 USC 45D(b)This subsection defines a "qualified equity investment".
26 USC 45D(b)(1)Such investment is any equity investment in an entity by (c) if—
26 USC 45D(b)(1)(A)such investment is acquired at its original issue solely in exchange for cash,
26 USC 45D(b)(1)(B)such entity uses substantially all such cash to make investments by (d), and
26 USC 45D(b)(1)(C)it is designated for purposes of §45D by such entity.
26 USC 45D(b)(2)Maximum amount designated by (1)(C) is limited to limitation by (f).
26 USC 45D(b)(3)(1)(B) is met if at least 85% of entity's gross assets are for such investments.
26 USC 45D(b)(4)"Qualified equity investment" is treated as such if so treated by prior holder.
26 USC 45D(b)(5)A rule similar to that under §1202(c)(3) applies for purposes of (b).
26 USC 45D(b)(6)An "equity investment" is—
26 USC 45D(b)(6)(A)any stock (except nonpreferred stock by §351(g)(2)) in a corporate entity, and
26 USC 45D(b)(6)(B)any capital interest in a partnership entity.
26 USC 45D(c)This subsection defines a "qualified community development entity".
26 USC 45D(c)(1)Such entity any domestic corporation or partnership if the entity has—
26 USC 45D(c)(1)(A)a primary mission in serving low-income communities or residents,
26 USC 45D(c)(1)(B)accountability to such residents through their representation, and
26 USC 45D(c)(1)(C)the Secretary's certification as being such a qualified development entity.
26 USC 45D(c)(2)The requirements of (1) are considered met by—
26 USC 45D(c)(2)(A)any specialized small business investment company (§1044(c)(3)), and
26 USC 45D(c)(2)(B)any community development financial institution as by §103 of PL 103-325.
26 USC 45D(d)Definition of "qualified low-income community investments".
26 USC 45D(d)(1)A qualified low-income community investment is—
26 USC 45D(d)(1)(A)any capital investment in any qualified active low-income community business,
26 USC 45D(d)(1)(B)the purchase of loans which meets (d) and is issued from another entity by (c),
26 USC 45D(d)(1)(C)financial counseling, &c., to low-income community businesses and residents, and
26 USC 45D(d)(1)(D)any equity investment in, or loan to, a qualified community development entity.
26 USC 45D(d)(2)This paragraph defines a "qualified active low-income community business".
26 USC 45D(d)(2)(A)Such a business is any corporation (including nonprofit) or partnership if—
26 USC 45D(d)(2)(A)(i)at least 50% of gross income comes from business within a low-income community,
26 USC 45D(d)(2)(A)(ii)a majority of tangible property used by such entity is within such communities,
26 USC 45D(d)(2)(A)(iii)a majority of services performed by such entity are within such communities,
26 USC 45D(d)(2)(A)(iv)less than 5% of property's aggregate bases are collectibles (§408(m)(2)), and
26 USC 45D(d)(2)(A)(v)less than 5% of such bases are nonqualified financial property (§1397C(e)).
26 USC 45D(d)(2)(B)(A) applies to business as a proprietorship as if it were incorporated.
26 USC 45D(d)(2)(C)Includes any business which would qualify if it were separately incorporated.
26 USC 45D(d)(3)A "qualified business" has meaning by §1397C(d), except that—
26 USC 45D(d)(3)(A)rental of real property with improvements in community by (e) is so qualified, &
26 USC 45D(d)(3)(B)such (3) does not apply.
26 USC 45D(e)This subsection defines a "low-income community".
26 USC 45D(e)(1)A low-income community means any population census tract if—
26 USC 45D(e)(1)(A)the poverty rate for such tract is at least 20%, or
26 USC 45D(e)(1)(B)the median family income for such tract does not exceed—
26 USC 45D(e)(1)(B)(i)80% of statewide median for tracts not in a metropolitan area, or
26 USC 45D(e)(1)(B)(ii)80% of metropolitan area median. (B) uses possession income if applicable.
26 USC 45D(e)(2)Sec. may treat areas by §103(20) of PL 103-325 as low-income communities.
26 USC 45D(e)(3)Untracted areas use equivalent county divisions for figuring poverty rates, &c.
26 USC 45D(e)(4)A census tract with population less than 2000 is a low-income community if it—
26 USC 45D(e)(4)(A)is within an empowerment zone under designation by §1391, and
26 USC 45D(e)(4)(B)is contiguous to 1 or more low-income communities not by (4).
26 USC 45D(e)(5)Modification of requirements for tracts with "high migration rural counties".
26 USC 45D(e)(5)(A)For tracts within such a county, swap "85%" for "80%" in (1)(B)(i).
26 USC 45D(e)(5)(B)Such a county has a net out-migration of at least 10% of population in 20 years.
26 USC 45D(f)This subsection sets a national limitation of designated investments.
26 USC 45D(f)(1)The new markets tax credit limitation for a calendar year is—
26 USC 45D(f)(1)(A)$1B for 2001,
26 USC 45D(f)(1)(B)$1.5B for 2002 and 2003,
26 USC 45D(f)(1)(C)$2B for 2004 and 2005,
26 USC 45D(f)(1)(D)$3.5B for 2006 and 2007,
26 USC 45D(f)(1)(E)$5B for 2008,
26 USC 45D(f)(1)(F)$5B for 2009, and
26 USC 45D(f)(1)(G)$3.5B for 2010 - 2013.
26 USC 45D(f)(2)Secretary allocates (1) to qualified entities. Priority goes to entities which—
26 USC 45D(f)(2)(A)have a record of providing capital or assistance to disadvantaged businesses, or
26 USC 45D(f)(2)(B)can meet (b)(1)(B) by making investments (d) in other unrelated entities.
26 USC 45D(f)(3)Excess of limitation over aggregate of (2) is added to next year's limitation.
26 USC 45D(g)This subsection sets the recapture of credit in certain cases.
26 USC 45D(g)(1)Increase tax by amount by (2) in 7-year period starting from original issue.
26 USC 45D(g)(2)For (1), the credit recapture amount is equal to the sum of—
26 USC 45D(g)(2)(A)net decrease of credits by §38 for all prior TYs if §45D didn't apply, plus
26 USC 45D(g)(2)(B)interest at §6621 underpayment rate on amount by (A) for each prior TY involved.
26 USC 45D(g)(3)For (1), there is a recapture event to a qualified development entity if—
26 USC 45D(g)(3)(A)such entity ceases to be a qualified community development entity,
26 USC 45D(g)(3)(B)the use of investment proceeds cease to meet (b)(1)(B), or
26 USC 45D(g)(3)(C)such investment is redeemed by such entity.
26 USC 45D(g)(4)This paragraph sets special rules.
26 USC 45D(g)(4)(A)Increase by (1) is only for credits which reduce tax liability. §39 is adjusted.
26 USC 45D(g)(4)(B)For §55, any tax increase by (g) is not treated as imposed by chapter 1.
26 USC 45D(h)Except for §§1202, 1400B, & 1400F, credit reduces basis of (b)(4) investment.
26 USC 45D(i)Secretary sets regulations to carry out §45D, including regulations which—
26 USC 45D(i)(1)limit investment credits subsidized by Federal tax benefits (§42, §103),
26 USC 45D(i)(2)prevent the abuse of the purposes of §45D,
26 USC 45D(i)(3)provide rules for determining if the requirements by (b)(1)(B) are met,
26 USC 45D(i)(4)impose appropriate reporting requirements,
26 USC 45D(i)(5)apply the provisions of §45D to newly formed entries, and
26 USC 45D(i)(6)proportionately allocate investments by (b)(4) to non-metropolitan counties.
 
26 USC 45EThis section discusses the credit for small employer pension plan startup costs.
26 USC 45E(a)For §38, such credit is 50% of qualified startup costs paid or incurred in TY.
26 USC 45E(b)The amount of credit under §45E for any taxable year is limited to—
26 USC 45E(b)(1)$500 for 1st credit year and each of the 2 TYs following such first year, and
26 USC 45E(b)(2)0 for any other taxable year.
26 USC 45E(c)This subsection defines an "eligible employer".
26 USC 45E(c)(1)An eligible employer has the same meaning as given by §408(p)(2)(C)(i).
26 USC 45E(c)(2)Employer who maintains certain plan in 3 TYs before (d)(3) year isn't eligible.
26 USC 45E(d)This subsection sets other definitions.
26 USC 45E(d)(1)This paragraph defines "qualified startup costs".
26 USC 45E(d)(1)(A)Such costs are necessary expenses of an eligible employer paid with—
26 USC 45E(d)(1)(A)(i)the establishment or administration of an eligible employer plan, or
26 USC 45E(d)(1)(A)(ii)the retirement-related education of employees with respect to such plan.
26 USC 45E(d)(1)(B)Expenses for plans which no highly compensated employee can join are excluded.
26 USC 45E(d)(2)An "eligible employer plan" is a qualified plan with meaning by §4972(d).
26 USC 45E(d)(3)The "first credit year" is the TY—
26 USC 45E(d)(3)(A)which includes the date costs related to eligible plan become effective, or
26 USC 45E(d)(3)(B)the TY after TY by (A), if elected by eligible employer.
26 USC 45E(e)This subsection sets special rules for §45E.
26 USC 45E(e)(1)All persons subject to (a) or (b) of §52 or (m) or (o) of §414 are 1 person.
26 USC 45E(e)(2)No deduction is allowed for expenses accounted to figure credit of (a).
26 USC 45E(e)(3)§45E does not apply if elected by the taxpayer.
 
26 USC 45FThis section discusses the employer-provided child care credit.
26 USC 45F(a)For §38, such credit for the taxable year is equal to the sum of—
26 USC 45F(a)(1)25% of the qualified child care expenditures, and
26 USC 45F(a)(2)10% of the taxpayer's qualified child care resource and referral expenditures.
26 USC 45F(b)Credit allowed under (a) is limited to $150000.
26 USC 45F(c)This subsection sets definitions for purposes of §45F.
26 USC 45F(c)(1)This paragraph defines a "qualified child care expenditure".
26 USC 45F(c)(1)(A)A qualified child care expenditure is any amount paid or incurred—
26 USC 45F(c)(1)(A)(i)to acquire, construct, rehabilitate, or expand property which—
26 USC 45F(c)(1)(A)(i)(I)will be used as part of a qualified child care facility of the taxpayer,
26 USC 45F(c)(1)(A)(i)(II)is subject to a deduction for depreciation (or amortization),
26 USC 45F(c)(1)(A)(i)(III)is not part of taxpayer's principal residence (§121) or any employee thereof.
26 USC 45F(c)(1)(A)(ii)for the various operating costs for a qualified child care facility, or
26 USC 45F(c)(1)(A)(iii)under a contract with such a qualified facility to provide child care services.
26 USC 45F(c)(1)(B)Expenses in excess of the FMV of such child care are excluded.
26 USC 45F(c)(2)This paragraph defines a "qualified child care facility".
26 USC 45F(c)(2)(A)A qualified child care facility is a facility which—
26 USC 45F(c)(2)(A)(i)has the principal use of providing child care assistance, and
26 USC 45F(c)(2)(A)(ii)meets requirements of all applicable laws of the State, &c., where it's located.
26 USC 45F(c)(2)(B)A facility is not qualified with respect to a taxpayer unless—
26 USC 45F(c)(2)(B)(i)facility enrollment is open to taxpayer's employees during the TY,
26 USC 45F(c)(2)(B)(ii)at least 30% of enrollees are dependents of such employees, and
26 USC 45F(c)(2)(B)(iii)facility use does not unfairly favor highly compensated employees (§414(q)).
26 USC 45F(c)(3)Definition of "qualified child care resource and referral expenditure".
26 USC 45F(c)(3)(A)Such cost is paid under a contract to provide such services to an employee.
26 USC 45F(c)(3)(B)Services which favor highly compensated employees (§414(q)) are disqualified.
26 USC 45F(d)This subsection sets the recapture of acquisition and construction credit.
26 USC 45F(d)(1)If there is a recapture event, chapter 1 tax is increased by the product of—
26 USC 45F(d)(1)(A)the applicable recapture percentage, and
26 USC 45F(d)(1)(B)aggregate credit decrease by §38 for all prior TYs if (c)(1)(A) was 0.
26 USC 45F(d)(2)This subparagraph sets the applicable recapture percentage.
26 USC 45F(d)(2)(A)### Such percentage is by ###. For the first 3 years, rate is 100%; after 10, 0%.
26 USC 45F(d)(2)(B)For (A), year 1 begins on 1st day of TY which facility is placed in service.
26 USC 45F(d)(3)For (d), a "recapture event" is:
26 USC 45F(d)(3)(A)The cessation of facility operation as a qualified child care facility.
26 USC 45F(d)(3)(B)This subparagraph sets rules for change in ownership.
26 USC 45F(d)(3)(B)(i)The taxpayer's interest in a facility to which credit was allowed is disposed.
26 USC 45F(d)(3)(B)(ii)(i) is inapplicable if acquirer agrees to assume recapture liability.
26 USC 45F(d)(4)This paragraph sets special rules.
26 USC 45F(d)(4)(A)Increase by (1) is only for credits which reduce tax liability. §39 is adjusted.
26 USC 45F(d)(4)(B)For §55, any tax increase by (d) is not treated as imposed by chapter 1.
26 USC 45F(d)(4)(C)Tax increase does not apply to facility casualty loss, to extent of replacement.
26 USC 45F(e)This subsection sets special rules.
26 USC 45F(e)(1)All persons deemed a single employer by (a) or (b) of §52 are 1 taxpayer.
26 USC 45F(e)(2)Rules similar to those under §52(d) apply.
26 USC 45F(e)(3)Per Secretary's regulations, credit under §45F is allocated amongst partners.
26 USC 45F(f)This subsection sets disallowance of double benefit.
26 USC 45F(f)(1)This paragraph sets rules for reduction of basis for purposes of subtitle A.
26 USC 45F(f)(1)(A)The basis of property accounted by (c)(1)(A) is reduced by credit under §45F.
26 USC 45F(f)(1)(B)The basis of property reduced by (A) is increased by any credit recapture.
26 USC 45F(f)(2)No other deduction or credit is allowed for any amounts given credit under §45F.
 
26 USC 45GThis section discusses the railroad track maintenance credit.
26 USC 45G(a)For §38, such credit is 50% of qualified railroad track maintenance costs paid.
26 USC 45G(b)This subsection sets limitations.
26 USC 45G(b)(1)Credit allowed under (a) for any TY is limited to the product of—
26 USC 45G(b)(1)(A)$3500, multiplied by—
26 USC 45G(b)(1)(B)the sum of—
26 USC 45G(b)(1)(B)(i)the number of miles of railroad track owned by eligible taxpayer at TY end, and
26 USC 45G(b)(1)(B)(ii)the miles of railroad track assigned by a Class II or Class III railroad.
26 USC 45G(b)(2)With respect to any assignment of a mile of railroad track under (1)(B)(ii)—
26 USC 45G(b)(2)(A)such assignment can only be made once per TY, and is treated as made at TY end,
26 USC 45G(b)(2)(B)such mile cannot be accounted under §45G by such railroad for such TY, and
26 USC 45G(b)(2)(C)such assignment is accounted in TY which includes the date such event occurred.
26 USC 45G(c)For §45G, an "eligible taxpayer" is any—
26 USC 45G(c)(1)Class II or Class III railroad, and
26 USC 45G(c)(2)person who transports property with such railroad or performs services for them.
26 USC 45G(d)"Qualified railroad track maintenance expenditures" apply to entity by (c)(1).
26 USC 45G(e)This subsection sets other definitions and special rules.
26 USC 45G(e)(1)Surface Transportation Board defines "Class II" and "Class III" railroads.
26 USC 45G(e)(2)Rules similar to those of §41(f)(1) apply to §45G for controlled groups.
26 USC 45G(e)(3)Basis of railroad track is reduced by any credit allowed.
26 USC 45G(f)§45G applies to expenditures paid between 20041231 and 20120101.
 
26 USC 45HThis section discusses the credit for production of low sulfur diesel fuel.
26 USC 45H(a)For §38, such credit for any facility is 5¢ per gallon of fuel produced in TY.
26 USC 45H(b)This subsection sets the maximum credit.
26 USC 45H(b)(1)Sum of credit under (a) for any taxable year is limited to—
26 USC 45H(b)(1)(A)25% of qualified capital costs incurred by such facility, reduced by
26 USC 45H(b)(1)(B)aggregate credits determined under §45H for all prior taxable years.
26 USC 45H(b)(2)If daily runs exceed 155000 barrels, reduce (1)(A) by ratio of excess to 50000.
26 USC 45H(c)This subsection sets definitions and a special rule.
26 USC 45H(c)(1)A "small business refiner" is, for any taxable year, a refiner of crude oil—
26 USC 45H(c)(1)(A)for which no more than 1500 individuals engage in operations on any day in TY, &
26 USC 45H(c)(1)(B)for which the average daily run (as of 20021231) did not exceed 205000 barrels.
26 USC 45H(c)(2)"Qualified capital costs" are paid for EPA regulation compliance, sitework, &c.
26 USC 45H(c)(3)Applicable EPA regulations are Highway Diesel Fuel Sulfur Control Requirements.
26 USC 45H(c)(4)"Applicable period" starts on 20030101 and ends when (3) is met or 20091231.
26 USC 45H(c)(5)"Low sulfur diesel fuel" has a sulfur content of 15 parts per million or less.
26 USC 45H(d)For §45H & §179B(b), account refineries of taxpayer and persons by §613A(d)(3).
26 USC 45H(e)This subsection sets rules for certification.
26 USC 45H(e)(1)Within 30 months of 1st day of 1st TY of credit, certification is required.
26 USC 45H(e)(2)Certification includes relevant information to determine EPA compliance.
26 USC 45H(e)(3)Notice of certification is made within 60 days of receipt.
26 USC 45H(e)(4)For the credit under §45H, in respect of any assessment of deficiency—
26 USC 45H(e)(4)(A)statutory period therefor lasts at least 3 years after period by (3) ends, and
26 USC 45H(e)(4)(B)such assessment may occur before the expiration of such 3 year period.
26 USC 45H(f)This section sets rules for cooperative organizations.
26 USC 45H(f)(1)This paragraph sets the apportionment of credit.
26 USC 45H(f)(1)(A)Organizations by §1381(a) elect for apportionment (of basis, &c.) among patrons.
26 USC 45H(f)(1)(B)Such election for a TY is made on timely filed return. Election is irrevocable.
26 USC 45H(f)(2)This paragraph sets the treatment of organizations and patrons.
26 USC 45H(f)(2)(A)Amounts not apportioned by (1) are included in under (a) for the organization.
26 USC 45H(f)(2)(B)Patrons apply (a) for 1st TY, ending on payment period (§1382(d)) or TY end.
26 USC 45H(f)(3)If credit apportioned to any patron by (f) is decreased—
26 USC 45H(f)(3)(A)such amount doesn't increase the tax imposed on such patron, and
26 USC 45H(f)(3)(B)tax imposed by chapter 1 on such organization is increased by such amount.
26 USC 45H(g)No credit under (a) is determined if elected by the taxpayer.
 
26 USC 45IThis section discusses the credit for producing oil and gas from marginal wells.
26 USC 45I(a)For §38, marginal well production credit or any TY is equal to the product of—
26 USC 45I(a)(1)the credit amount, and
26 USC 45I(a)(2)the qualified crude oil and natural gas production attributable to taxpayer.
26 USC 45I(b)This subsection sets the credit amount for purposes of §45I.
26 USC 45I(b)(1)In general, the credit amount is—
26 USC 45I(b)(1)(A)$3 per barrel of qualified crude oil production, and
26 USC 45I(b)(1)(A)50¢ per 1000 ft³ of qualified natural gas production.
26 USC 45I(b)(2)This paragraph sets a reduction as oil and gas prices increase.
26 USC 45I(b)(2)(A)Amounts under (1) are reduced by amount bearing same ratio to such amount as—
26 USC 45I(b)(2)(A)(i)excess of applicable reference price over $15 ($1.67 for gas), bears to
26 USC 45I(b)(2)(A)(ii)$3 (33¢ for gas). Applicable reference price is preceding year's price.
26 USC 45I(b)(2)(B)For TYs after 2005, (A) is adjusted as under §43(b)(3)(B); swap 2004 for 1990.
26 USC 45I(b)(2)(C)For (2), the "reference price" is, for any year is the—
26 USC 45I(b)(2)(C)(i)reference price determined by §45K(d)(2)(C) for qualified oil production, and
26 USC 45I(b)(2)(C)(ii)Sec.'s estimate of annual average wellhead price per 1000 ft³, for natural gas.
26 USC 45I(c)This subsection defines qualified crude oil and natural gas production.
26 USC 45I(c)(1)Such production is domestic oil or gas produced from a qualified marginal well.
26 USC 45I(c)(2)This paragraph sets a limitation on the production amount which may qualify.
26 USC 45I(c)(2)(A)Excess production over 1095 barrels or equivalents (§45K(d)(5)) doesn't apply.
26 USC 45I(c)(2)(B)This subparagraph sets proportionate reductions.
26 USC 45I(c)(2)(B)(i)For short TYs, limitations of (1) are reduced by ratio bearing TY's days to 365.
26 USC 45I(c)(2)(B)(ii)Limitations are reduced by ratio of production days bearing to total TY days.
26 USC 45I(c)(3)This paragraph sets definitions.
26 USC 45I(c)(3)(A)A "qualified marginal well" is a domestic well which—
26 USC 45I(c)(3)(A)(i)has its production treated as marginal production (§613A(c)(6)) for the TY, or
26 USC 45I(c)(3)(A)(ii)during the TY—
26 USC 45I(c)(3)(A)(ii)(I)has average daily production not more than 25 equivalents by §45K(d)(5), and
26 USC 45I(c)(3)(A)(ii)(II)produces water at a rate not less than 95% of total well effluent.
26 USC 45I(c)(3)(B)"Crude oil", "natural gas" , "domestic", and "barrel" are defined by §613A(e).
26 USC 45I(d)This subsection sets other rules.
26 USC 45I(d)(1)For wells with multiple owners, production is allocated by investment ratio.
26 USC 45I(d)(2)Credit can only be claimed on attributable production to interest holder.
26 USC 45I(d)(3)No credit is allowed from §45I unless taxpayer elects to not claim §45K credit.
 
26 USC 45JCredit for production from advanced nuclear power facilities.
26 USC 45J(a)For §38, the facility production credit for any taxpayer in TY is product of—
26 USC 45J(a)(1)1.8¢, multiplied by
26 USC 45J(a)(2)the kilowatt hours of electricity—
26 USC 45J(a)(2)(A)produced at an advanced nuclear power facility within its first 8 years, and
26 USC 45J(a)(2)(B)sold by the taxpayer to an unrelated person in the taxable year.
26 USC 45J(b)This subsection sets a national limitation.
26 USC 45J(b)(1)Credit is limited by amount (without applying (c)) bearing same ratio as the—
26 USC 45J(b)(1)(A)national megawatt capacity limitation allocated to facility by Sec., bears to
26 USC 45J(b)(1)(B)total megawatt nameplate capacity of such facility.
26 USC 45J(b)(2)The national megawatt capacity limitation is limited to 6000 megawatts.
26 USC 45J(b)(3)Secretary allocates national limitation as he may prescribe.
26 USC 45J(b)(4)Within 20060204, Sec. prescribes regulations for (b) and certification process.
26 USC 45J(c)This subsection sets other limitations.
26 USC 45J(c)(1)Credit allowed under (a) is limited to amount bearing same ratio to $125M as—
26 USC 45J(c)(1)(A)the national megawatt capacity limitation allocated to the facility, bears to
26 USC 45J(c)(1)(B)1000.
26 USC 45J(c)(2)This paragraph sets a phaseout of credit.
26 USC 45J(c)(2)(A)Credit is reduced by amount bearing same ratio to credit (ignoring (2)) as—
26 USC 45J(c)(2)(A)(i)excess of reference price (§45(e)(2)(C)) in year of sale over 8¢, bears to
26 USC 45J(c)(2)(A)(ii)3¢.
26 USC 45J(c)(2)(B)Multiply (A) by inflation factor by §45(e)(2)(B); round to nearest 0.1¢.
26 USC 45J(d)This subsection defines an "advanced nuclear power facility".
26 USC 45J(d)(1)Such a facility any advanced nuclear power facility which is—
26 USC 45J(d)(1)(A)owned by the taxpayer and uses nuclear energy to produce electricity, and
26 USC 45J(d)(1)(B)placed in service after the date (d) is enacted and before 20210101.
26 USC 45J(d)(2)Such facility must be approved by Nuclear Regulatory Commission after 19931231.
26 USC 45J(e)Rules similar to those by (1), (3), (4), and (5) of §45(e) apply for §45J.
 
26 USC 45KThis section sets the credit for producing fuel from a nonconventional source.
26 USC 45K(a)A credit is allowed against tax imposed by chapter 1 in an amount equal to—
26 USC 45K(a)(1)$3, multiplied by
26 USC 45K(a)(2)the barrel-of-oil equivalent of qualified fuels—
26 USC 45K(a)(2)(A)sold by the taxpayer to an unrelated person during the taxable year, and
26 USC 45K(a)(2)(B)the production of which is attributable to the taxpayer.
26 USC 45K(b)This subsection sets limitations and adjustments.
26 USC 45K(b)(1)Credit allowed under (a) is reduced by amount bearing same ratio as—
26 USC 45K(b)(1)(A)the amount by which the reference price in year of sale exceeds $23.50, bears to
26 USC 45K(b)(1)(B)$6.
26 USC 45K(b)(2)Dollar amounts by (a) and (1) are adjusted for inflation.
26 USC 45K(b)(3)Reduction of credit for grants, tax-exempt bonds, and subsidized financing.
26 USC 45K(b)(3)(A)Credit is reduced by amount which is product of amount of (a) by a fraction—
26 USC 45K(b)(3)(A)(i)the numerator of which is the sum, for the current and all prior TYs, of—
26 USC 45K(b)(3)(A)(i)(I)grants provided by the US, &c., for use in connection with the project,
26 USC 45K(b)(3)(A)(i)(II)proceeds from any State obligation tax-exempt by §103 used for the project, and
26 USC 45K(b)(3)(A)(i)(III)total subsidized energy financing (as by §48(a)(4)(C)) for the project, and
26 USC 45K(b)(3)(A)(ii)the denominator is sum amount of additions to capital account for the project.
26 USC 45K(b)(3)(B)Amounts under (A) for any TY are determined at close of the TY.
26 USC 45K(b)(4)Credit under (a), figured after applying (1) - (3), is reduced by any excess of—
26 USC 45K(b)(4)(A)sum amount allowed under §38 with respect to property used in the project, over
26 USC 45K(b)(4)(B)sum amount recaptured with respect to amount described in (A)—
26 USC 45K(b)(4)(B)(i)under §49(b) or §50(a) for all taxable years, or
26 USC 45K(b)(4)(B)(ii)under (4) for any prior TY. (4) applies to recaptures of §49(b) or §50(a).
26 USC 45K(b)(5)Credit under (a), figured after applying (1) - (4), is reduced by excess any of—
26 USC 45K(b)(5)(A)sum amount allowed under §38 by reason of credit under §43, over
26 USC 45K(b)(5)(B)sum amount recaptured with respect to the amount of (A) for any prior TY.
26 USC 45K(c)This subsection defines "qualified fuels".
26 USC 45K(c)(1)Qualified fuels are—
26 USC 45K(c)(1)(A)oil produced from shale and tar sands,
26 USC 45K(c)(1)(B)gas produced from—
26 USC 45K(c)(1)(B)(i)geopressured brine, Devonian shale, coal seams, or a tight formation, or
26 USC 45K(c)(1)(B)(ii)biomass, and
26 USC 45K(c)(1)(C)liquid, gaseous, or solid synthetic fuels made from coal (including lignite).
26 USC 45K(c)(2)This paragraph defines "gas from geopressured brine", &c., as under (1)(B)(i).
26 USC 45K(c)(2)(A)Determination of such gas is made as under §503 of PL 95-621.
26 USC 45K(c)(2)(B)"Gas produced from a tight formation" is only gas from a tight formation which—
26 USC 45K(c)(2)(B)(i)as of 19770420 was committed to interstate commerce (§2(18) of PL 95-621), or
26 USC 45K(c)(2)(B)(ii)which is produced from a well that is drilled after 19901105.
26 USC 45K(c)(3)"Biomass" means any organic material other than—
26 USC 45K(c)(3)(A)oil and natural gas (or any product thereof), and
26 USC 45K(c)(3)(B)coal (including lignite) or any product thereof.
26 USC 45K(d)This subsection sets other definitions and special rules.
26 USC 45K(d)(1)§45K only applies to the production of qualified fuels within—
26 USC 45K(d)(1)(A)the United States (as under §638(1)), or
26 USC 45K(d)(1)(B)a possession of the United States (as under §638(2)).
26 USC 45K(d)(2)Rules for computation of inflation adjustment factor and reference price.
26 USC 45K(d)(2)(A)Sec. annually sets inflation adjustment factor & reference price within April 1.
26 USC 45K(d)(2)(B)Inflation adjustment factor is ratio of current year deflator to 1979 deflator.
26 USC 45K(d)(2)(C)Reference price is Secretary's estimated barrel price for all unregulated oil.
26 USC 45K(d)(3)Property production is allocated among owners proportionally to gross sales.
26 USC 45K(d)(4)Credit is figured by ignoring production from (c)(2) sources before 19800101.
26 USC 45K(d)(5)The "barrel-of-oil equivalent" is amount of fuel which has a BTU of 5.8 million.
26 USC 45K(d)(6)A "barrel" is 42 US gallons.
26 USC 45K(d)(7)Persons are related if treated as single employer under §52(b).
26 USC 45K(d)(8)Per Secretary's regulations, rules similar to those of §52(d) apply.
26 USC 45K(e)§45K applies with respect to qualified fuels—
26 USC 45K(e)(1)which are produced—
26 USC 45K(e)(1)(A)from a well drilled after 19791231 and before 19930101, or
26 USC 45K(e)(1)(B)in a facility placed in service after 19791231 and before 19930101, and
26 USC 45K(e)(2)which are sold before 20030101.
26 USC 45K(f)This subsection sets an extension for certain facilities.
26 USC 45K(f)(1)For facilities producing fuels described by (B)(ii) or (C) of (c)(1)—
26 USC 45K(f)(1)(A)for (e)(1)(B), it is in service by 19930101 if bound by contract by 19970101, &
26 USC 45K(f)(1)(B)if in service after 19921231, apply (e)(2) by replacing "2008" for "2003".
26 USC 45K(f)(2)(1) does not apply to coke or coke gas production unless initiated by taxpayer.
26 USC 45K(g)This subsection sets an extension for facilities producing coke or coke gas.
26 USC 45K(g)(1)If in service by 19930101 or between 19980630 & 20100101, §45K applies from—
26 USC 45K(g)(1)(A)the later of 20060101 or date facility is placed in service, until
26 USC 45K(g)(1)(B)the date which is 4 years after such period began.
26 USC 45K(g)(2)Special rules to figure credit by §45K solely by reason of (g).
26 USC 45K(g)(2)(A)Amount of accountable fuel is limited to 4000 barrels or equivalents.
26 USC 45K(g)(2)(B)For applying (b)(2) for sales after 2005, swap "2004" for "1979" in (d)(2)(B).
26 USC 45K(g)(2)(C)(g) doesn't apply to credit given for current TY or prior TYs by (f).
26 USC 45K(g)(2)(D)(b)(1) doesn't apply.
 
26 USC 45LThis section discusses the new energy efficient home credit.
26 USC 45L(a)This subsection sets the allowance of credit.
26 USC 45L(a)(1)For §38, such credit is applicable amount for each qualified home which is—
26 USC 45L(a)(1)(A)constructed by the eligible contractor, and
26 USC 45L(a)(1)(B)acquired by a person from such eligible contractor for use as a residence.
26 USC 45L(a)(2)For (1), the applicable amount is equal to—
26 USC 45L(a)(2)(A)$2000 for a dwelling described by (c)(1) or (c)(2), and
26 USC 45L(a)(2)(B)$1000 for a dwelling described by (c)(3).
26 USC 45L(b)This subsection sets definitions for purposes of §45L.
26 USC 45L(b)(1)An "eligible contractor" is—
26 USC 45L(b)(1)(A)the person who constructed the qualified new energy efficient home, or
26 USC 45L(b)(1)(B)for a manufactured home, the manufactured home producer.
26 USC 45L(b)(2)A "qualified new energy efficient home" is a dwelling unit—
26 USC 45L(b)(2)(A)located in the United States,
26 USC 45L(b)(2)(B)which is substantially completed after 20050808, and
26 USC 45L(b)(2)(C)which meets the energy saving requirements of (c).
26 USC 45L(b)(3)"Construction" includes substantial reconstruction and rehabilitation.
26 USC 45L(b)(4)"Acquire" includes purchase.
26 USC 45L(c)A dwelling unit meets the energy saving requirements if such unit—
26 USC 45L(c)(1)is certified—
26 USC 45L(c)(1)(A)as having annual energy consumption at least 50% below that of a similar unit—
26 USC 45L(c)(1)(A)(i)constructed to meet chapter 4 of 2003 International Energy Conservation Code, &
26 USC 45L(c)(1)(A)(ii)for which equipment efficiencies equal that under regulations by PL 100-12, and
26 USC 45L(c)(1)(B)has building envelope component improvements accounting for 1/5 of such 50%,
26 USC 45L(c)(2)meets the Federal Manufactured Home Construction and Safety Standards, & (1), or
26 USC 45L(c)(3)meets such Standards (part 3280 of 24 CFR), and which—
26 USC 45L(c)(3)(A)meets (1) by replacing "30%" for "50%" and "1/3" for "1/5" where it appears, or
26 USC 45L(c)(3)(B)meets EPA Administrator requirements under an Energy Star Labeled Homes program.
26 USC 45L(d)For certification described in (c):
26 USC 45L(d)(1)Sec. prescribes guidance with consultation of Secretary of Energy.
26 USC 45L(d)(2)It is made in writing and specifies related components & equipment installed.
26 USC 45L(e)Basis of applicable property is reduced by any credit given under §45L.
26 USC 45L(f)Expenditures accounted by §47(a) and §48(a) do not apply to §45L.
26 USC 45L(g)§45L does not apply to qualified homes acquired after 20131231.
 
26 USC 45MThis section discusses the energy efficient appliance credit.
26 USC 45M(a)This subsection sets the general rule.
26 USC 45M(a)(1)For §38, such credit is equal to sum of amounts by (2) for each appliance type.
26 USC 45M(a)(2)The credit amount for any type of qualified energy efficient appliance is—
26 USC 45M(a)(2)(A)the applicable amount determined by (b) for such type, multiplied by
26 USC 45M(a)(2)(B)the eligible production for such type.
26 USC 45M(b)This subsection sets the applicable amount for purposes of (a).
26 USC 45M(b)(1)The applicable amount is, in respect of dishwashers manufactured in—
26 USC 45M(b)(1)(A)2008 or 2009, $45, if use is within 324 KWH and 5.8 gallons per cycle,
26 USC 45M(b)(1)(B)2008 - 2010, $75, if use is generally within 307 KWH and 5.0 gallons per cycle,
26 USC 45M(b)(1)(C)2011, $25, if use is generally within 307 KWH and 5.0 gallons per cycle,
26 USC 45M(b)(1)(D)2011 - 2013, $50, if use is within 295 KWH and 4.25 gallons per cycle, and
26 USC 45M(b)(1)(E)2011 - 2013, $75, if use is within 280 KWH and 4.0 gallons per cycle.
26 USC 45M(b)(2)The applicable amount is, in respect of a clothes washer manufactured in—
26 USC 45M(b)(2)(A)2008 & meets (f)(4), $75, if (f)(6) is within 1.72 and (f)(10) is within 8.0,
26 USC 45M(b)(2)(B)2008 - 2009 & by (f)(4), $125, if (f)(6) is within 1.8 & (f)(10) is within 7.5,
26 USC 45M(b)(2)(C)2008 - 2010, $150, if (f)(6) is within 2.0 and (f)(10) is within 6.0,
26 USC 45M(b)(2)(D)2008 - 2010, $250, if (f)(6) is within 2.2 and (f)(10) is within 4.5,
26 USC 45M(b)(2)(E)2011 & meets (f)(4), $175, if (f)(6) is within 2.2 and (f)(10) is within 4.4, &
26 USC 45M(b)(2)(F)2011 - 2013, $225, if such washer is—
26 USC 45M(b)(2)(F)(i)by (f)(4), and (f)(6) factor is within 2.4 and (f)(10) factor is within 4.2, or
26 USC 45M(b)(2)(F)(ii)not by (i), and (f)(6) factor is within 2.8 and (f)(10) factor is within 3.5.
26 USC 45M(b)(3)The applicable amount is, in respect of a refrigerator manufactured in—
26 USC 45M(b)(3)(A)2008, $50, if consumption is within 20% - 22.9% of (f)(8) standard,
26 USC 45M(b)(3)(B)2008 - 2009, $75, if consumption is within 23% - 24.9% of (f)(8) standard,
26 USC 45M(b)(3)(C)2008 - 2010, $100, if consumption is within 25% - 29.9% of (f)(8) standard,
26 USC 45M(b)(3)(D)2008 - 2010, $200, if consumption is at least 30% of (f)(8) standard,
26 USC 45M(b)(3)(E)2011 - 2013, $150, if consumption is at least 30% of (f)(8) standard, and
26 USC 45M(b)(3)(F)2011 - 2013, $200, if consumption is at least 35% of (f)(8) standard.
26 USC 45M(c)The eligible production in a year for each type of appliance is the excess of—
26 USC 45M(c)(1)number of such appliance type produced by taxpayer in the US for the year, over
26 USC 45M(c)(2)average of such appliance type produced in such manner in preceding 2 years.
26 USC 45M(d)For §45M, the types of energy efficient appliances are—
26 USC 45M(d)(1)dishwashers by (b)(1),
26 USC 45M(d)(2)clothes washers by (b)(2), and
26 USC 45M(d)(3)refrigerators by (b)(3).
26 USC 45M(e)This subsection sets limitations.
26 USC 45M(e)(1)Total credit by (a) is limited to $25M, reduced by credit for TYs after 2010.
26 USC 45M(e)(2)Appliances by (F) of (b)(2) and (b)(3) are not accounted under (1).
26 USC 45M(e)(3)Credit is limited to 4% of average annual gross receipts for 3 prior TYs.
26 USC 45M(e)(4)For (e), rules by (2) and (3) of §448(c) apply.
26 USC 45M(f)This subsection sets definitions.
26 USC 45M(f)(1)A "qualified energy efficient appliance" means—
26 USC 45M(f)(1)(A)any dishwasher described in (b)(1),
26 USC 45M(f)(1)(B)any clothes washer described in (b)(2), and
26 USC 45M(f)(1)(C)any refrigerator described in (b)(3).
26 USC 45M(f)(2)A "dishwasher" meets the energy conversation standards by Department of Energy.
26 USC 45M(f)(3)A "clothes washer" is a residential model, including a coin operated washer.
26 USC 45M(f)(4)A "top-loading clothes washer" operates on a vertical axis.
26 USC 45M(f)(5)A "refrigerator" has auto-defrost and at least 16.5 ft³ of volume.
26 USC 45M(f)(6)Modified energy factor is set for compliance with Federal conservation standard.
26 USC 45M(f)(7)"Produced" includes manufactured.
26 USC 45M(f)(8)The "2001 energy conservation standard" is set by the Department of Energy.
26 USC 45M(f)(9)"Gallons per cycle" is the amount a dishwasher requires to complete a cycle.
26 USC 45M(f)(10)Water consumption factor is per-cycle consumption divided by washer's capacity.
26 USC 45M(g)This subsection sets special rules for purposes of §45M.
26 USC 45M(g)(1)Rules similar to those of (c) - (e) of §52 apply.
26 USC 45M(g)(2)This paragraph sets rules for controlled groups.
26 USC 45M(g)(2)(A)Single employers by (a) or (b) of §52 or (m) or (o) of §414 are one producer.
26 USC 45M(g)(2)(B)For applying §52 to (A), ignore §1563(b)(2)(C).
26 USC 45M(g)(3)Credit under §45M requires Secretary's receipt of necessary certification.
 
26 USC 45NThis section discusses the mine rescue team training credit.
26 USC 45N(a)For §38, such credit for each qualified employee of an eligible employer is—
26 USC 45N(a)(1)20% of amount paid by the taxpayer for training program costs (plus wages), or
26 USC 45N(a)(2)$10000.
26 USC 45N(b)A "qualified mine rescue team employee" is a miner who for more than ½ the TY—
26 USC 45N(b)(1)can serve on such team by completion of a certain 20-hour course at minimum, or
26 USC 45N(b)(2)can serve on such team by receiving at least 40 hours of refresher training.
26 USC 45N(c)An "eligible employer" employs miners to work underground mines in the US.
26 USC 45N(d)"Wages" is defined by §3306(b).
26 USC 45N(e)§45N doesn't apply to taxable years beginning after 20131231.
 
26 USC 45OThis section discusses the agricultural chemicals security credit.
26 USC 45O(a)For §38, for a business by (e), such credit is 30% of expenditures by (d).
26 USC 45O(b)Credit determined under (a) regarding any facility for any TY is limited to—
26 USC 45O(b)(1)$100000, reduced by
26 USC 45O(b)(2)total credits under (a) figured for such facility for the 5 prior TYs.
26 USC 45O(c)Credit by (a) for any taxpayer for any TY is limited to $2M.
26 USC 45O(d)A "qualified chemical security expenditure" is incurred by business by (e) for—
26 USC 45O(d)(1)employee security training and background checks,
26 USC 45O(d)(2)limitations imposed on controls of specified agricultural chemicals (as by (f)),
26 USC 45O(d)(3)tagging, &c., made to prevent the theft or illegal use of such chemicals,
26 USC 45O(d)(4)protection of the perimeter of specified agricultural chemicals,
26 USC 45O(d)(5)installation of security equipment and intrusion detection sensors,
26 USC 45O(d)(6)implementation of features to increase the security of computers and networks,
26 USC 45O(d)(7)conduction a security vulnerability assessment,
26 USC 45O(d)(8)implementing a site security plan, and
26 USC 45O(d)(9)any other measures to protect such chemicals as set by Sec.'s regulations.
26 USC 45O(e)An "eligible agricultural business" is any person in the business of—
26 USC 45O(e)(1)selling agricultural products at retail mainly to farmers and ranchers, or
26 USC 45O(e)(2)manufacturing, distributing, &c., specified agricultural chemicals.
26 USC 45O(f)For §45O, "specified agricultural chemicals" are—
26 USC 45O(f)(1)any fertilizer commonly used in agricultural operations which is listed under—
26 USC 45O(f)(1)(A)§302(a)(2) of Title III of PL 99-499,
26 USC 45O(f)(1)(B)§101 of part 172 of 49 CFR, or
26 USC 45O(f)(1)(C)part 126, 127, or 154 of 33 CFR, and
26 USC 45O(f)(2)any pesticide by §2(u) of PL 80-104 used on crops grown for food, &c.
26 USC 45O(g)Rules by (1) and (2) of §41(f) apply for purposes of §45O.
26 USC 45O(h)Sec. may set regulations for §45O, including rules for the proper treatment of—
26 USC 45O(h)(1)amounts paid to protect any chemical by (f) and for other purposes, and
26 USC 45O(h)(2)related properties as one facility for purposes of (b).
26 USC 45O(i)§45O doesn't apply to amounts paid or incurred after 20121231.
 
26 USC 45PEmployer wage credit regarding active duty members of uniformed services.
26 USC 45P(a)For an employer by (b)(3), such credit is 20% of payments by (b)(1) in the TY.
26 USC 45P(b)This subsection sets definitions for purposes of §45P.
26 USC 45P(b)(1)"Eligible differential wage payments" are payments by §3401(h)(2) within $20K.
26 USC 45P(b)(2)A "qualified employee" is an employee for 91 days before payment by (1) is made.
26 USC 45P(b)(3)This paragraph defines an "eligible small business employer".
26 USC 45P(b)(3)(A)For any taxable year, an eligible small business employer—
26 USC 45P(b)(3)(A)(i)employs an average of less than 50 employees on business days in such TY, and
26 USC 45P(b)(3)(A)(ii)under a written plan, provides payments by (b)(1) to every qualified employee.
26 USC 45P(b)(3)(B)For (A), all persons subject to (b), (c), (m), or (o) of §414 are one employer.
26 USC 45P(c)Credit given by chapter 1 for paid compensation is reduced by credit under §45P.
26 USC 45P(d)No credit is allowed under (a) to a taxpayer for—
26 USC 45P(d)(1)any TY after 20080617 in which a judgement, &c., under 38 USC §4323 applies, and
26 USC 45P(d)(2)the 2 succeeding taxable years.
26 USC 45P(e)For §45P, rules similar to those by (c) - (e) of §52 apply.
26 USC 45P(f)§45P doesn't apply to payments made after 20131231.
 
26 USC 45QThis section discusses the credit for carbon dioxide ("CO2") sequestration.
26 USC 45Q(a)For §38, such credit for any taxable year is equal to the sum of—
26 USC 45Q(a)(1)$20 per metric ton of qualified carbon dioxide which is—
26 USC 45Q(a)(1)(A)captured by the taxpayer at a qualified facility, and
26 USC 45Q(a)(1)(B)disposed of in secure geological storage and not used as by (2)(B),
26 USC 45Q(a)(2)$10 per metric ton of qualified carbon dioxide which is—
26 USC 45Q(a)(2)(A)captured by the taxpayer at a qualified facility, and
26 USC 45Q(a)(2)(B)used as a tertiary injectant in a qualified recovery project as by (d)(4), and
26 USC 45Q(a)(2)(C)disposed of by the taxpayer in secure geological storage.
26 USC 45Q(b)This subsection defines "qualified carbon dioxide" for purposes of §45Q.
26 USC 45Q(b)(1)Qualified carbon dioxide is captured from an industrial source which—
26 USC 45Q(b)(1)(A)would otherwise be released into the atmosphere as an industrial emission, and
26 USC 45Q(b)(1)(B)is measured at the source of capture and verified at the point of disposal.
26 USC 45Q(b)(2)Such term includes initial deposit of captured CO2 used as a tertiary injectant.
26 USC 45Q(c)For §45Q, a "qualified facility" is any industrial facility—
26 USC 45Q(c)(1)which is owned by the taxpayer,
26 USC 45Q(c)(2)at which carbon capture equipment is placed in service, and
26 USC 45Q(c)(3)which captures at least 500K metric tons of carbon dioxide during the TY.
26 USC 45Q(d)This subsection sets other special rules and definitions for purposes of §45Q.
26 USC 45Q(d)(1)Credit under §45Q applies only regarding the use of CO2 by (b) within—
26 USC 45Q(d)(1)(A)the United States (as by §638(1)), or
26 USC 45Q(d)(1)(B)a possession of the United States (as by §638(2)).
26 USC 45Q(d)(2)Sec. and EPA sets regulations for storage of CO2 under (1)(B) or (2)(C) of (a).
26 USC 45Q(d)(3)A "tertiary injectant" is by §193(b)(1).
26 USC 45Q(d)(4)A "qualified project" is by §43(c)(2) as if such (A)(i) includes natural gas.
26 USC 45Q(d)(5)§45Q credit is attributed to the person who ensures the use or disposal of CO2.
26 USC 45Q(d)(6)Sec. sets recapture of credit by (a) if CO2 use doesn't meet §45Q.
26 USC 45Q(d)(7)For TYs after 2009, dollar amounts in (a) are substituted by the product of—
26 USC 45Q(d)(7)(A)such dollar amount, multiplied by
26 USC 45Q(d)(7)(B)the §43(b)(3)(B) inflation factor for such year; swap "2008" for "1990" therein.
26 USC 45Q(e)Credit applies to years where use of at least 75M metric tons of CO2 meets §45Q.
 
26 USC 45RCredit for employee health insurance expenses of small employers.
26 USC 45R(a)For §38, credit for qualified small employer in credit period is amount by (b).
26 USC 45R(b)Credit to (d) employer is 50% (35% if tax-exempt) of total (e)(3) contributions—
26 USC 45R(b)(1)which such employer makes under (d)(4), or, if lesser
26 USC 45R(b)(2)made as if all employees were in a qualified health plan with certain premium.
26 USC 45R(c)Amount of credit by (b) is reduced (not below 0) by the sum of the following:
26 USC 45R(c)(1)Such (b) multiplied by excess of (d)(2)(A) over 10 divided by 15.
26 USC 45R(c)(2)Such (b) multiplied by excess of (d)(3)(A) over (d)(3)(B) divided by (d)(3)(B).
26 USC 45R(d)This subsection defines an "eligible small employer" for purposes of §45R.
26 USC 45R(d)(1)For any TY, an eligible small employer is an employer which has—
26 USC 45R(d)(1)(A)within 25 full-time equivalent employees for the taxable year,
26 USC 45R(d)(1)(B)average annual wages within twice the amount by (3)(B) for such TY, and
26 USC 45R(d)(1)(C)an arrangement by (4) in effect.
26 USC 45R(d)(2)This paragraph defines "full-time equivalent employees".
26 USC 45R(d)(2)(A)Such term is a number of employees equal to the number figured by dividing—
26 USC 45R(d)(2)(A)(i)total number of service hours for which wages were paid by the employer, by
26 USC 45R(d)(2)(A)(ii)2080.
26 USC 45R(d)(2)(B)Employee's service exceeding 2080 hours in a TY isn't accounted under (A).
26 USC 45R(d)(2)(C)Sec. with Sec. of Labor sets rules to determine employee's hours of service.
26 USC 45R(d)(3)This paragraph defines "average annual wages".
26 USC 45R(d)(3)(A)Such wages of an eligible small employer is determined by dividing—
26 USC 45R(d)(3)(A)(i)total wages paid by the employer to employees in the TY, by
26 USC 45R(d)(3)(A)(ii)number of full-time equivalent employees determined under (2) for such TY.
26 USC 45R(d)(3)(B)This subparagraph sets the dollar amount for purposes of (1)(B).
26 USC 45R(d)(3)(B)(i)The amount for TYs beginning between 2011 - 2013 is $25000.
26 USC 45R(d)(3)(B)(ii)The amount for TYs after (i) is $20000, with adjustment as under §1(f)(3).
26 USC 45R(d)(4)Arrangement requires (e)(3) contribution of uniform percentage of premium.
26 USC 45R(d)(5)This paragraph sets a rule to not count seasonal worker hours and wages.
26 USC 45R(d)(5)(A)A seasonal employee must work at least 120 days of the TY to be accounted.
26 USC 45R(d)(5)(B)A "seasonal worker" works on a seasonal basis or meets 29 CFR §500.20(s)(1).
26 USC 45R(e)This subsection sets other rules and definitions for purposes of §45R.
26 USC 45R(e)(1)This paragraph defines an "employee".
26 USC 45R(e)(1)(A)An employee doesn't include any individual who is—
26 USC 45R(e)(1)(A)(i)an employee as by §401(c)(1),
26 USC 45R(e)(1)(A)(ii)a 2% shareholder by §1372(b) of an eligible small business which is an S-Corp,
26 USC 45R(e)(1)(A)(iii)a 5% owner as by §416(i)(1)(B)(i) of an eligible small business, or
26 USC 45R(e)(1)(A)(iv)related to an individual by (i) - (iii) as under (A) - (H) of §152(d)(2).
26 USC 45R(e)(1)(B)An employee includes a leased employee as under §414(n).
26 USC 45R(e)(2)"Credit period" is 2 TYs starting with 1st TY plan is offered through Exchange.
26 USC 45R(e)(3)A "nonelective contribution" is not pursuant to a salary reduction arrangement.
26 USC 45R(e)(4)"Wages" is by §3121(a) (determined without regard to any dollar limit therein).
26 USC 45R(e)(5)Application of aggregation and other rules for purposes of §45R.
26 USC 45R(e)(5)(A)All employers subject to (b), (c), (m), or (o) of §414 are deemed 1 employer.
26 USC 45R(e)(5)(B)Rules similar to that under (c) - (e) of §52 apply.
26 USC 45R(f)Availability of credit made to tax-exempt eligible small employers.
26 USC 45R(f)(1)Employer by (2) is entitled to credit under subpart C equal to the lesser of—
26 USC 45R(f)(1)(A)credit determined under §45R with respect to such employer, or
26 USC 45R(f)(1)(B)the amount of the employer's payroll taxes for the year such TY begins.
26 USC 45R(f)(2)A "tax-exempt eligible small employer" is subject to §501(c) and meets (d).
26 USC 45R(f)(3)This paragraph defines "payroll taxes" for purposes of (f).
26 USC 45R(f)(3)(A)Payroll taxes are—
26 USC 45R(f)(3)(A)(i)amounts required to be withheld from employees of such employer under §3401(a),
26 USC 45R(f)(3)(A)(ii)amounts required to be withheld from such employees under §3101(b), and
26 USC 45R(f)(3)(A)(iii)taxes imposed on such employer under §3111(b).
26 USC 45R(f)(3)(B)Rule similar to that under §24(d)(2)(C) applies for purposes of (A).
26 USC 45R(g)To figure (a) credit, apply the following for TYs starting between 2010 - 2013:
26 USC 45R(g)(1)Figure credit as if TY isn't in a credit period. No period starts after 2013.
26 USC 45R(g)(2)Amount of credit determined under (b) is determined by using—
26 USC 45R(g)(2)(A)"35% (25% if tax-exempt)" in lieu of "50% (35% if tax-exempt)" therein,
26 USC 45R(g)(2)(B)employer's nonelective contributions for premiums for coverage by §9832(b)(1), &
26 USC 45R(g)(2)(C)average premium figured by Sec. of Health and Human Services for (b)(2).
26 USC 45R(h)Terms used in §45R are defined under PL 78-410 or §§1001 - 1004 of PL 111-148.
26 USC 45R(i)Sec. sets rules for §45R and to prevent avoidance of limit through successors.
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart E.
 
26 USC 46The amount of investment credit figured under §46 for any TY is the sum of—
26 USC 46(1)the rehabilitation credit,
26 USC 46(2)the energy credit,
26 USC 46(3)the qualifying advanced coal project credit,
26 USC 46(4)the qualifying gasification project credit,
26 USC 46(5)the qualifying advanced energy project credit, and
26 USC 46(6)the qualifying therapeutic discovery project credit.
 
26 USC 47This section discusses the rehabilitation credit.
26 USC 47(a)For §46, such credit for any taxable year is the sum of—
26 USC 47(a)(1)10% of qualified expenditures to any building except historic structures, and
26 USC 47(a)(2)20% of qualified rehabilitation expenditures for certified historic structures.
26 USC 47(b)This subsection sets when expenditures are taken into account.
26 USC 47(b)(1)Qualified expenditures for a building apply to the TY when placed in service.
26 USC 47(b)(2)Amounts in (1) are reduced by (d), to extent of amount unrecaptured by §50(a).
26 USC 47(c)This subsection sets definitions for purposes of §47.
26 USC 47(c)(1)This paragraph defines a "qualified rehabilitated building".
26 USC 47(c)(1)(A)Such a building any building and its structural components if—
26 USC 47(c)(1)(A)(i)it has been substantially rehabilitated,
26 USC 47(c)(1)(A)(ii)it was placed in service before the beginning of the rehabilitation,
26 USC 47(c)(1)(A)(iii)the building is not a historic structure and in the rehabilitation process—
26 USC 47(c)(1)(A)(iii)(I)at least 50% of existing external walls remain in place as external walls,
26 USC 47(c)(1)(A)(iii)(II)at least 75% of existing external walls are in place as such or internal, and
26 USC 47(c)(1)(A)(iii)(III)at least 75% of existing structural framework is retained in place, and
26 USC 47(c)(1)(A)(iv)depreciation or amortization is allowable to such building.
26 USC 47(c)(1)(B)Except historic structures, buildings must be placed in service before 1936.
26 USC 47(c)(1)(C)This subparagraph defines the state of being "substantially rehabilitated".
26 USC 47(c)(1)(C)(i)A building is so rehabilitated if costs by (2) during 2-year period exceed—
26 USC 47(c)(1)(C)(i)(I)the adjusted basis of such building, or, if greater
26 USC 47(c)(1)(C)(i)(II)$5000. Basis by (I) is set on 1st day of such 2-year period or holding period.
26 USC 47(c)(1)(C)(ii)For rehabilitation to be completed in specific phases, period by (i) is 5 years.
26 USC 47(c)(1)(C)(iii)The Secretary prescribes regulations for applying (C) to lessees.
26 USC 47(c)(1)(D)Rehabilitation includes reconstruction.
26 USC 47(c)(2)This paragraph defines "qualified rehabilitation expenditures".
26 USC 47(c)(2)(A)Such expenditures are any amounts properly chargeable to a capital account—
26 USC 47(c)(2)(A)(i)for property to which depreciation is allowed by §168 and which is—
26 USC 47(c)(2)(A)(i)(I)nonresidential real property,
26 USC 47(c)(2)(A)(i)(II)residential real property,
26 USC 47(c)(2)(A)(i)(III)real property which has a class life of more than 12.5 years, or
26 USC 47(c)(2)(A)(i)(IV)an addition or improvement to property listed in (I) - (III), and
26 USC 47(c)(2)(A)(ii)in connection with the rehabilitation of a qualified rehabilitated building.
26 USC 47(c)(2)(B)Such expenditures do not include any of the following:
26 USC 47(c)(2)(B)(i)Expenditures not subject to (c) or (g) of §168, except (B) or (C) of §168(g)(1).
26 USC 47(c)(2)(B)(ii)The cost of acquiring any building or interest therein.
26 USC 47(c)(2)(B)(iii)Expenditures attributable to the enlargement of an existing building.
26 USC 47(c)(2)(B)(iv)Rehabilitation of a historic building, unless certified by (C) or if—
26 USC 47(c)(2)(B)(iv)(I)such building was not a certified historic structure,
26 USC 47(c)(2)(B)(iv)(II)it is certified that such building is not historically significant, and
26 USC 47(c)(2)(B)(iv)(III)taxpayer shows he wasn't aware of (II) if work begins after such certification.
26 USC 47(c)(2)(B)(v)This clause sets rules for tax-exempt use property.
26 USC 47(c)(2)(B)(v)(I)Rehabilitation expenditures attributable to tax-exempt use property (§168(h)).
26 USC 47(c)(2)(B)(v)(II)(1)(C) doesn't account (v) for determining substantial rehabilitation.
26 USC 47(c)(2)(B)(vi)Lessee's costs if term remainder is less than recovery period by §168(c).
26 USC 47(c)(2)(C)"Certified rehabilitation" is of a structure within historic character.
26 USC 47(c)(2)(D)Terms used in (I) - (III) of (A)(i) have respective meanings as under §168.
26 USC 47(c)(3)This paragraph defines a "certified historic structure".
26 USC 47(c)(3)(A)Such a structure is any building and its structural components which—
26 USC 47(c)(3)(A)(i)is listed in the National Register, or
26 USC 47(c)(3)(A)(ii)is located in a historic district and is certified as being significant.
26 USC 47(c)(3)(B)A "registered historic district" is—
26 USC 47(c)(3)(B)(i)any district listed in the National Register, and
26 USC 47(c)(3)(B)(ii)any district which is—
26 USC 47(c)(3)(B)(ii)(I)designated under a statute of State or local government, if certified, and
26 USC 47(c)(3)(B)(ii)(II)certified as meeting substantially all requirements for listing of districts.
26 USC 47(d)This subsection sets rules for progress expenditures.
26 USC 47(d)(1)Except by (3), for buildings subject to (d), account costs by (c)(3) in TY—
26 USC 47(d)(1)(A)when chargeable to capital account, if building is self-rehabilitated, and
26 USC 47(d)(1)(B)when such costs are paid, if building is not self-rehabilitated property.
26 USC 47(d)(2)This paragraph sets property to which (d) applies.
26 USC 47(d)(2)(A)(d) applies to any building being rehabilitated by or for the taxpayer if—
26 USC 47(d)(2)(A)(i)normal rehabilitation period for such building is 2 years or more, and
26 USC 47(d)(2)(A)(ii)the building is expected to be qualified once it is placed in service.
26 USC 47(d)(2)(B)"Normal rehabilitation period" is time reasonably expected to be required which—
26 USC 47(d)(2)(B)(i)starts when physical rehabilitation work began (or 1st day of TY if elected), &
26 USC 47(d)(2)(B)(ii)ends when it's expected for the property to be ready for placement in service.
26 USC 47(d)(3)This paragraph sets special rules for applying (1).
26 USC 47(d)(3)(A)Property which is a component of any applicable building is taken into account—
26 USC 47(d)(3)(A)(i)no earlier than when it becomes irrevocably devoted to building use, and
26 USC 47(d)(3)(A)(ii)as if the component's cost was paid which is chargeable to a capital account.
26 USC 47(d)(3)(B)Amounts loaned from a rehabilitator do not count as expenses.
26 USC 47(d)(3)(C)A limitation for buildings which are not self-rehabilitated.
26 USC 47(d)(3)(C)(i)(1)(B) amount is limited to completed portion costs if not self-rehabilitated.
26 USC 47(d)(3)(C)(ii)For buildings which are not self-rehabilitated—
26 USC 47(d)(3)(C)(ii)(I)excess of (1)(B) over amount by clause (i) is accounted for next TY, or
26 USC 47(d)(3)(C)(ii)(II)excess of (i) over (1)(B) is added to (i) limitation amount for next TY.
26 USC 47(d)(3)(D)Figure (C)(i) on the basis of engineering, architectural, or accounting records.
26 USC 47(d)(3)(E)No expenditures are accounted before 1st day of 1st TY of election under (5).
26 USC 47(d)(3)(F)No expenditures are accounted for the earlier of—
26 USC 47(d)(3)(F)(i)the taxable year in which the building is placed in service, or
26 USC 47(d)(3)(F)(ii)the first TY in which recapture is required by §50(a)(2), or any TY afterwards.
26 USC 47(d)(4)A "self-rehabilitated building" has more than half of costs paid by taxpayer.
26 USC 47(d)(5)(d) only applies if elected; only the Sec. may revoke the election.
 
26 USC 48This section discusses the energy credit.
26 USC 48(a)This subsection establishes the energy credit.
26 USC 48(a)(1)Credit is energy percentage of basis of energy properties placed in service.
26 USC 48(a)(2)This paragraph defines the "energy percentage".
26 USC 48(a)(2)(A)In general, the energy percentage is—
26 USC 48(a)(2)(A)(i)30% in the case of—
26 USC 48(a)(2)(A)(i)(I)qualified fuel cell property,
26 USC 48(a)(2)(A)(i)(II)energy property by (3)(A)(i), for periods ending before 20170101,
26 USC 48(a)(2)(A)(i)(III)energy property by (3)(A)(ii), and
26 USC 48(a)(2)(A)(i)(IV)qualified small wind energy property, and
26 USC 48(a)(2)(A)(iii)if clause (i) does not apply to the energy property, 10%.
26 USC 48(a)(2)(B)Such rate does not apply to any basis attributable to rehabilitation expenses.
26 USC 48(a)(3)For purposes of subpart E, "energy property" means any property—
26 USC 48(a)(3)(A)which—
26 USC 48(a)(3)(A)(i)uses solar energy to generate electricity, heating or cooling a structure, &c.,
26 USC 48(a)(3)(A)(ii)uses solar energy for illumination through fiber-optics (until 20170101),
26 USC 48(a)(3)(A)(iii)uses energy from a geothermal deposit (§613(e)(2)) up to transmission stage,
26 USC 48(a)(3)(A)(iv)is qualified fuel cell or microturbine property,
26 USC 48(a)(3)(A)(v)is combined heat and power system property,
26 USC 48(a)(3)(A)(vi)is qualified small wind energy property, or
26 USC 48(a)(3)(A)(vii)uses ground water as thermal energy for a structure (until 20170101),
26 USC 48(a)(3)(B)which—
26 USC 48(a)(3)(B)(i)the taxpayer completes its construction, reconstruction, erection, or
26 USC 48(a)(3)(B)(ii)is acquired by the taxpayer if he commences the property's original use,
26 USC 48(a)(3)(C)with respect to which depreciation or amortization is allowed, and
26 USC 48(a)(3)(D)which meets any performance and quality standards which—
26 USC 48(a)(3)(D)(i)were prescribed by the Secretary (after consultation with Sec. of Energy), and
26 USC 48(a)(3)(D)(ii)are in effect when acquired. Property subject to §45 is excluded.
26 USC 48(a)(4)A special rule for property financed by subsidized energy financing, &c.
26 USC 48(a)(4)(A)Account basis multiplied by (B) to figure percentage of property financed by—
26 USC 48(a)(4)(A)(i)subsidized energy financing, or
26 USC 48(a)(4)(A)(ii)private activity bonds (§141) with tax exempt interest as by §103.
26 USC 48(a)(4)(B)For (A), such fraction is 1 reduced by a fraction with—
26 USC 48(a)(4)(B)(i)a numerator which is the property's basis allocable to items by (A), and
26 USC 48(a)(4)(B)(ii)a denominator of the property's basis.
26 USC 48(a)(4)(C)"Subsidized energy financing" is State, &c., funds used for energy projects.
26 USC 48(a)(4)(D)(4) doesn't apply after 20081231, as by rules under §48(m) (as of 19901104).
26 USC 48(a)(5)An election to treat qualified facilities as energy property.
26 USC 48(a)(5)(A)For property by (D) which is part of a qualified investment credit facility—
26 USC 48(a)(5)(A)(i)such property is treated as energy property for purposes of §48, and
26 USC 48(a)(5)(A)(ii)the energy percentage with respect to such property is 30%.
26 USC 48(a)(5)(B)No credit by §45 is allowed regarding any qualified investment credit facility.
26 USC 48(a)(5)(C)For (5), "qualified investment credit facility" is a facility—
26 USC 48(a)(5)(C)(i)which is a qualified facility described in (1) - (7), (9), or (11) of §45(d),
26 USC 48(a)(5)(C)(ii)which is in service after 2008 and construction begins before 20140101, and
26 USC 48(a)(5)(C)(iii)with respect to which—
26 USC 48(a)(5)(C)(iii)(I)no credit has been allowed under §45, and
26 USC 48(a)(5)(C)(iii)(II)the taxpayer makes an irrevocable election to have (5) apply.
26 USC 48(a)(5)(D)For (5), "qualified property" is property—
26 USC 48(a)(5)(D)(i)which is—
26 USC 48(a)(5)(D)(i)(I)tangible personal property, or
26 USC 48(a)(5)(D)(i)(II)other tangible property which is an integral part of the facility by (C),
26 USC 48(a)(5)(D)(ii)for which depreciation (or amortization in lieu of depreciation) is allowable,
26 USC 48(a)(5)(D)(iii)constructed, reconstructed, erected, or acquired by the taxpayer, and
26 USC 48(a)(5)(D)(iv)the original use of which is commenced by with the taxpayer.
26 USC 48(b)Rules by (c)(4) and (d) of §46 (as of 19901105) apply for purposes of (a).
26 USC 48(c)This subsection sets definitions for purposes of §48.
26 USC 48(c)(1)This paragraph defines "qualified fuel cell property".
26 USC 48(c)(1)(A)Qualified fuel cell property is a fuel cell power plant which has—
26 USC 48(c)(1)(A)(i)nameplate electric capacity of 0.5 kilowatt or more by electrothermal process, &
26 USC 48(c)(1)(A)(ii)an electricity-only generation efficiency greater than 30%.
26 USC 48(c)(1)(B)Credit by (a) is limited to $1500 per ½ kilowatt of capacity for such property.
26 USC 48(c)(1)(C)A fuel cell power plant is an integrated system for electrochemical conversion.
26 USC 48(c)(1)(D)"Qualified fuel cell property" doesn't include any period after 20161231.
26 USC 48(c)(2)This paragraph defines "qualified microturbine property".
26 USC 48(c)(2)(A)Such property is a stationary microturbine power plant which has—
26 USC 48(c)(2)(A)(i)a nameplate capacity of less than 2000 kilowatts, and
26 USC 48(c)(2)(A)(ii)an electricity-only generation efficiency of at least 26% at ISO conditions.
26 USC 48(c)(2)(B)Credit by (a) is limited to $200 per kilowatt of property's capacity.
26 USC 48(c)(2)(C)Stationary microturbine power plants are integrated systems for fuel conversion.
26 USC 48(c)(2)(D)"Qualified microturbine property" doesn't include any period after 20161231.
26 USC 48(c)(3)This paragraph defines "combined heat and power system property".
26 USC 48(c)(3)(A)Such property is property comprising of a system—
26 USC 48(c)(3)(A)(i)which uses the same energy source to generate electric power and thermal energy,
26 USC 48(c)(3)(A)(ii)which produces at least 20% of its total useful energy as—
26 USC 48(c)(3)(A)(ii)(I)thermal energy which is not used to produce electrical power, as well as
26 USC 48(c)(3)(A)(ii)(II)energy in the form of electrical or mechanical power (or combination thereof).
26 USC 48(c)(3)(A)(iii)the energy efficiency percentage of which exceeds 60%, and
26 USC 48(c)(3)(A)(iv)which is placed in service before 20170101.
26 USC 48(c)(3)(B)This subparagraph sets a limitation of the credit amount under (a)(1).
26 USC 48(c)(3)(B)(i)Credit is proportion of capacity by (ii) bearing to property's capacity.
26 USC 48(c)(3)(B)(ii)Applicable capacity is 15 MW or a mechanical energy of more than 20K horsepower.
26 USC 48(c)(3)(B)(iii)Property which exceeds 50 MW or 67K horsepower capacity is excluded.
26 USC 48(c)(3)(C)This subparagraph sets special rules.
26 USC 48(c)(3)(C)(i)For (3), the energy efficiency of a system is a fraction figured by dividing—
26 USC 48(c)(3)(C)(i)(I)the total power produced and consumed by the system at normal rates, by
26 USC 48(c)(3)(C)(i)(II)the lower heating value of the fuel sources for the system.
26 USC 48(c)(3)(C)(ii)The percentages determined under (C) and (A)(ii) are figured on Btu basis.
26 USC 48(c)(3)(C)(iii)Property used to transport or distribute energy from a facility are excluded.
26 USC 48(c)(3)(D)For systems which meet (2) & (3) of §45(c) for at least 90% of energy source—
26 USC 48(c)(3)(D)(i)(A)(iii) doesn't apply, but
26 USC 48(c)(3)(D)(ii)(a) credit is proportion of energy efficiency percentage bearing to 60%.
26 USC 48(c)(4)This paragraph defines "qualified small wind energy property".
26 USC 48(c)(4)(A)Such property uses a qualifying small wind turbine to generate electricity.
26 USC 48(c)(4)(B)A "qualifying small wind turbine" has a nameplate capacity within 100 kilowatts.
26 USC 48(c)(4)(C)Such property doesn't include any property for any period after 20161231.
26 USC 48(d)Rules for property subject to grant by the Secretary under §1603 of PL 111-5.
26 USC 48(d)(1)No credit by §45 or §48 is allowed to such property in any TY if grant is made.
26 USC 48(d)(2)If §48 credit is determined for such property for any TY before grant is made—
26 USC 48(d)(2)(A)subtitle A tax for TY of grant is increased by credit allowed under §38,
26 USC 48(d)(2)(B)carryforwards by §39 are adjusted for the credit which is disallowed, and
26 USC 48(d)(2)(C)figure the grant amount without regard to any basis reduction from such credit.
26 USC 48(d)(3)Any such grant—
26 USC 48(d)(3)(A)is not included in the gross income of the taxpayer, but
26 USC 48(d)(3)(B)is accounted to figure basis of property, but §50(c) applies as if under (a).
 
26 USC 48AThis section discusses the qualified advanced coal project credit.
26 USC 48A(a)For §46, such credit for any taxable year is equal to—
26 USC 48A(a)(1)20% of qualified investment for such TY of projects by (d)(3)(B)(i), and
26 USC 48A(a)(2)15% of qualified investment for such TY of projects by (d)(3)(B)(ii).
26 USC 48A(b)This subsection defines "qualified investment".
26 USC 48A(b)(1)Such investment for any TY is basis of eligible property placed in service—
26 USC 48A(b)(1)(A)which is part of a qualifying advanced coal project and is—
26 USC 48A(b)(1)(A)(i)constructed, reconstructed, or erected by the taxpayer, or
26 USC 48A(b)(1)(A)(ii)acquired by the taxpayer if such person initiates property's use, and
26 USC 48A(b)(1)(B)for which depreciation or amortization is allowable.
26 USC 48A(b)(2)Rules similar to those of §48(a)(4) (except such (D)) apply for §48A.
26 USC 48A(b)(3)Rules similar to those of (c)(4) and (d) of §46 (as of 19901105) apply for §48A.
26 USC 48A(c)This subsection sets definitions.
26 USC 48A(c)(1)A "qualifying advanced coal project" meets the requirements of (e).
26 USC 48A(c)(2)An "advanced coal-based generation technology" meets the requirements of (f).
26 USC 48A(c)(3)"Eligible property" is property which is a part of—
26 USC 48A(c)(3)(A)a project by (e) using an integrated gasification combined cycle, and
26 USC 48A(c)(3)(B)any other qualifying advanced coal project.
26 USC 48A(c)(4)"Coal" is anthracite, bituminous coal, subbituminous coal, and peat.
26 USC 48A(c)(5)"Greenhouse gas capture capability" are facilities which remove, &c., such gas.
26 USC 48A(c)(6)"Electric generation units" have at least 50% net annual electric power output.
26 USC 48A(c)(7)"Integrated gasification combined cycle" units convert coal to fuel turbines.
26 USC 48A(d)This subsection sets rules for qualifying coal project programs.
26 USC 48A(d)(1)Sec. establishes a qualifying program for deployment of advanced technologies.
26 USC 48A(d)(2)This paragraph sets rules for certification.
26 USC 48A(d)(2)(A)Application meeting (B) must be submitted within 3 years after (1) occurs.
26 USC 48A(d)(2)(B)Application must have information necessary for Sec. to find it to meet (e)(1).
26 USC 48A(d)(2)(C)Such determination is made within 60 days following application's submission.
26 USC 48A(d)(2)(D)Applicant provides evidence of meeting (e)(2) within 2 years of approval by (B).
26 USC 48A(d)(2)(E)Applicant must place certified project in service within 5 years of issue.
26 USC 48A(d)(3)This paragraph sets aggregate credit limits.
26 USC 48A(d)(3)(A)Aggregate of credits by (a) for projects certified by (2) is limited to $1.3B.
26 USC 48A(d)(3)(B)Of dollar amount by (A), Secretary is authorized to certify—
26 USC 48A(d)(3)(B)(i)$800M for integrated gasification combined cycle projects, and
26 USC 48A(d)(3)(B)(ii)$500M for projects which use other advanced coal-based technologies.
26 USC 48A(d)(4)This paragraph sets rules for review and redistribution.
26 USC 48A(d)(4)(A)Sec. reviews credits allocated by §45A as of 20110808 no later than 20110808.
26 USC 48A(d)(4)(B)Sec. may reallocate credits under (i) and (ii) of (3)(B) if—
26 USC 48A(d)(4)(B)(i)there is insufficient quantity of pending applications at time of review, or
26 USC 48A(d)(4)(B)(ii)any certifications were revoked by (2)(D) due to litigation with the project.
26 USC 48A(d)(4)(C)Sec. may conduct an additional application program if credit is reallocated.
26 USC 48A(e)This subsection sets rules for qualifying advanced coal projects.
26 USC 48A(e)(1)For (c)(1), project qualifies which Sec. may certify by (d)(2) if at a minimum—
26 USC 48A(e)(1)(A)the project uses an advanced coal-based generation technology—
26 USC 48A(e)(1)(A)(i)to power a new electric generation unit, or
26 USC 48A(e)(1)(A)(ii)to retrofit or repower an existing generation unit,
26 USC 48A(e)(1)(B)the fuel input of the completed project is at least 75% coal,
26 USC 48A(e)(1)(C)the project's nameplate generating capacity is at least 400 megawatts,
26 USC 48A(e)(1)(D)the applicant provides evidence that most of project's output will be utilized,
26 USC 48A(e)(1)(E)the applicant provides evidence of site control for long-term project basis, and
26 USC 48A(e)(1)(F)the project is located in the United States.
26 USC 48A(e)(2)For (d)(2)(D), project may be certified if Sec. determines that the applicant—
26 USC 48A(e)(2)(A)has received all Federal and State environmental authorizations, &c., and
26 USC 48A(e)(2)(B)has entered into a binding contract for purchase of turbines. Exceptions apply.
26 USC 48A(e)(3)For determining certification of (d)(2), the Secretary must—
26 USC 48A(e)(3)(A)certify capacity, by procedures of (d), in relatively equal amounts to—
26 USC 48A(e)(3)(A)(i)projects using bituminous coal as a primary feedstock,
26 USC 48A(e)(3)(A)(ii)projects using subbituminous coal as a primary feedstock, and
26 USC 48A(e)(3)(A)(iii)projects using lignite as a primary feedstock, and
26 USC 48A(e)(3)(B)give high priority to projects which include, as determined by Secretary—
26 USC 48A(e)(3)(B)(i)greenhouse gas capture capability,
26 USC 48A(e)(3)(B)(ii)increased by-product utilization, and
26 USC 48A(e)(3)(B)(iii)other benefits.
26 USC 48A(f)This subsection sets rules for advanced coal-based generation technology.
26 USC 48A(f)(1)An electric generation unit uses such technology if—
26 USC 48A(f)(1)(A)the unit—
26 USC 48A(f)(1)(A)(i)uses integrated gasification combined cycle technology, or
26 USC 48A(f)(1)(A)(ii)ignoring (3), has design net heat rate of 8530 BTU/KWH (40% efficiency), &
26 USC 48A(f)(1)(B)### is designed to meet the emission removal performance requirements of ###.
26 USC 48A(f)(2)For (f), design net heat rate for an electric generation unit is—
26 USC 48A(f)(2)(A)measured in BTU per kilowatt hour (higher heating value),
26 USC 48A(f)(2)(B)based on design annual heat input and rated net power, &c., output of the unit,
26 USC 48A(f)(2)(C)adjusted for coal's heat content ("X"); multiply the unit net heat rate by—
26 USC 48A(f)(2)(C)(i)1 - (((13500 - X)/1000)* 0.013), if X is between 7000 to 13500 BTU per pound, &
26 USC 48A(f)(2)(C)(ii)1 - (((13500 - X)/1000)* 0.018), if X is no more than 7000 BTU per pound, and
26 USC 48A(f)(2)(D)be corrected for the site reference conditions of—
26 USC 48A(f)(2)(D)(i)elevation above seal level of 500 feet,
26 USC 48A(f)(2)(D)(ii)air pressure of 14.4 pounds per square inch absolute,
26 USC 48A(f)(2)(D)(iii)temperature, dry bulb of 63°F,
26 USC 48A(f)(2)(D)(iv)temperature, wet bulb of 54°F, and
26 USC 48A(f)(2)(D)(v)relative humidity of 55%.
26 USC 48A(f)(3)For existing units, required minimum efficiency is 35% and improvement of—
26 USC 48A(f)(3)(A)thermal design efficiency at 7%-points for coal exceeding 9000 BTU,
26 USC 48A(f)(3)(B)thermal design efficiency at 6%-points for coal between 7000 to 9000 BTU, and
26 USC 48A(f)(3)(C)thermal design efficiency at 4%-points for coal less than 7000 BTU.
26 USC 48A(g)Credit for any technology or emission reduction does not indicate that it is—
26 USC 48A(g)(1)adequately demonstrated for purposes of §111 of PL 84-159,
26 USC 48A(g)(2)achievable for purposes of §169 of such PL, or
26 USC 48A(g)(3)achievable in practice for purposes of §171 of such PL.
 
26 USC 48BThis section discusses the qualifying gasification project credit.
26 USC 48B(a)For §46, such credit for any TY is equal to 20% of qualified investment.
26 USC 48B(b)This subsection defines "qualified investment".
26 USC 48B(b)(1)Such investment is basis of (3) property put in service by taxpayer in such TY—
26 USC 48B(b)(1)(A)which is part of a qualifying gasification project and is—
26 USC 48B(b)(1)(A)(i)constructed, reconstructed, or erected by the taxpayer, or
26 USC 48B(b)(1)(A)(ii)which is acquired by the taxpayer who initiates property's use, and
26 USC 48B(b)(1)(B)for which depreciation or amortization is allowed.
26 USC 48B(b)(2)Rules similar to those of §48(a)(4) (except such (D)) apply for §48B.
26 USC 48B(b)(3)Rules similar to those of (c)(4) and (d) of §46 (as of 19901105) apply for §48B.
26 USC 48B(c)This subsection sets definitions.
26 USC 48B(c)(1)A "qualifying gasification project" is any project which—
26 USC 48B(c)(1)(A)employs gasification technology,
26 USC 48B(c)(1)(B)is carried out by an eligible entity, and
26 USC 48B(c)(1)(C)is determined by Sec. as eligible for credit (within $650M) under §48B.
26 USC 48B(c)(2)"Gasification technology" is any process which converts products from coal, &c.
26 USC 48B(c)(3)"Eligible property" is that which is a necessary part of a qualifying project.
26 USC 48B(c)(4)This paragraph defines "biomass".
26 USC 48B(c)(4)(A)Biomass is any—
26 USC 48B(c)(4)(A)(i)agricultural or plant waste,
26 USC 48B(c)(4)(A)(ii)byproduct of wood or paper mill operations, including certain lining, and
26 USC 48B(c)(4)(A)(iii)other products of forestry maintenance.
26 USC 48B(c)(4)(B)"Biomass" does not include paper which is commonly recycled.
26 USC 48B(c)(5)"Carbon capture capability" is equipment designed to capture of carbon dioxide.
26 USC 48B(c)(6)"Coal" is anthracite, bituminous coal, subbituminous coal, lignite, and peat.
26 USC 48B(c)(7)"Eligible entity" is any person seeking certification for a project related to—
26 USC 48B(c)(7)(A)chemicals,
26 USC 48B(c)(7)(B)fertilizers,
26 USC 48B(c)(7)(C)glass,
26 USC 48B(c)(7)(D)steel,
26 USC 48B(c)(7)(E)petroleum residues,
26 USC 48B(c)(7)(F)forest products, and
26 USC 48B(c)(7)(G)agriculture, including feedlots and dairy operations.
26 USC 48B(c)(8)"Petroleum residue" is carbonized hydrocarbon fractions product from processing.
26 USC 48B(d)This subsection sets rules for qualifying gasification project programs.
26 USC 48B(d)(1)Within 20060204, Sec. establishes a program to award certification.
26 USC 48B(d)(2)Certificate of eligibility by (1) is issued in 10 FY period starting 20051001.
26 USC 48B(d)(3)For certification, recipient must document to Sec.'s satisfaction that—
26 USC 48B(d)(3)(A)the recipient is financially viable without receipt of more Federal funding,
26 USC 48B(d)(3)(B)the recipient will provide information to ensure investment is used efficiently,
26 USC 48B(d)(3)(C)a market exists for the products of the proposed projects (from contracts, &c.),
26 USC 48B(d)(3)(D)related fuels are at least 90% of that required for feedstock production, &c.,
26 USC 48B(d)(3)(E)recipient's project team is competent in technology's construction, and
26 USC 48B(d)(3)(F)the recipient has met any other criteria established by the Secretary.
26 USC 48B(e)No credit is allowed by §48B for investments which received credit by §48A.
 
26 USC 48CThis section discusses the qualifying advanced energy project credit.
26 USC 48C(a)Such credit is 30% of the amount of investment by (b) regarding (c)(1) projects.
26 USC 48C(b)This subsection defines a qualified investment.
26 USC 48C(b)(1)Investment is basis of eligible property put in service for (c)(1) projects.
26 USC 48C(b)(2)Rules by (c)(4) and (d) of §46 (as of 19901105) apply for purposes of §48C.
26 USC 48C(b)(3)Sec. sets amount eligible to be designated as qualified investment for all TYs.
26 USC 48C(c)This subsection sets definitions.
26 USC 48C(c)(1)This paragraph defines a "qualifying advanced energy project".
26 USC 48C(c)(1)(A)A qualifying advanced energy project is a project—
26 USC 48C(c)(1)(A)(i)which re-equips, expands, or establishes a manufacturing facility to produce—
26 USC 48C(c)(1)(A)(i)(I)property to produce energy from the sun, wind, deposits by §613(e)(2), &c.,
26 USC 48C(c)(1)(A)(i)(II)fuel cells, microturbines, or energy systems for use by electric vehicles,
26 USC 48C(c)(1)(A)(i)(III)electric grids to transmit and store intermittent sources of renewable energy,
26 USC 48C(c)(1)(A)(i)(IV)property designed to capture and sequester carbon dioxide emissions,
26 USC 48C(c)(1)(A)(i)(V)property to refine renewable fuels or make energy conservation technology,
26 USC 48C(c)(1)(A)(i)(VI)new qualified vehicles as by §30D or §30(d), or components used therein, or
26 USC 48C(c)(1)(A)(i)(VII)other advanced energy property designed reduced greenhouse emissions, and
26 USC 48C(c)(1)(A)(ii)any portion of qualified investment certified by the Sec. under (d).
26 USC 48C(c)(1)(B)Such term doesn't apply to production of property to refine transportation fuel.
26 USC 48C(c)(2)"Eligible property" is any property—
26 USC 48C(c)(2)(A)which is necessary for the production of property by (1)(A)(i),
26 USC 48C(c)(2)(B)which is—
26 USC 48C(c)(2)(B)(i)tangible personal property, or
26 USC 48C(c)(2)(B)(ii)property used as a main part of the qualified investment credit facility, and
26 USC 48C(c)(2)(C)with respect to which depreciation or amortization is allowable.
26 USC 48C(d)Rules for the Qualifying Advanced Energy Project Program.
26 USC 48C(d)(1)This paragraph sets the establishment of such program.
26 USC 48C(d)(1)(A)By 20090816, Sec. sets such program to certify eligible qualified investments.
26 USC 48C(d)(1)(B)Total amount of credit to be allocated under such program is limited to $2.3B.
26 USC 48C(d)(2)This paragraph sets rules for certification.
26 USC 48C(d)(2)(A)Applications may be submitted within 2 years after establishment by (1) occurs.
26 USC 48C(d)(2)(B)Applicant has 1 year within Sec.'s acceptance to prove certification compliance.
26 USC 48C(d)(2)(C)Applicant has 3 years within Sec.'s acceptance to place such project in service.
26 USC 48C(d)(3)To determine certification of projects by (c)(1) under §48C, the Secretary—
26 USC 48C(d)(3)(A)will consider only those projects which are reasonably commercially viable, and
26 USC 48C(d)(3)(B)will consider which projects—
26 USC 48C(d)(3)(B)(i)will provide the greatest domestic job creation during the credit period,
26 USC 48C(d)(3)(B)(ii)will provide the greatest net impact in reducing pollution or greenhouse gas,
26 USC 48C(d)(3)(B)(iii)have the greatest potential for technological innovation and commercial use,
26 USC 48C(d)(3)(B)(iv)have the lowest levelized cost of energy, or reduces energy consumption, and
26 USC 48C(d)(3)(B)(v)have the shortest project time from certification to completion.
26 USC 48C(d)(4)This paragraph sets rules for review and redistribution.
26 USC 48C(d)(4)(A)By 20130217, Sec. will review credits allocated under §48C as of such date.
26 USC 48C(d)(4)(B)Sec. may reallocate credits awarded under §48C if it is determined that—
26 USC 48C(d)(4)(B)(i)there are too few qualifying applications at the time of the review, or
26 USC 48C(d)(4)(B)(ii)any certification by (2) has been revoked under (2)(B) due to litigation.
26 USC 48C(d)(4)(C)Sec. may conduct an additional program if credit is available to be reallocated.
26 USC 48C(d)(5)Sec. discloses the identity of certified applicants and amounts allocated.
26 USC 48C(e)Credit under §48C isn't allowed for any investment credited under §§48 - 48B.
 
26 USC 48DThis section discusses the qualifying therapeutic discovery project credit.
26 USC 48D(a)For §46, such credit is 50% of qualified investment for any project by (c)(1).
26 USC 48D(b)This subsection defines a "qualified investment".
26 USC 48D(b)(1)Such investment is total costs paid for the conduct of a project by (c)(1).
26 USC 48D(b)(2)Qualified investment amount is limited to amount certified by Sec. as eligible.
26 USC 48D(b)(3)Qualified investment of a qualifying project by (c)(1) doesn't include any cost—
26 USC 48D(b)(3)(A)for remuneration for an employee described in §162(m)(3),
26 USC 48D(b)(3)(B)for interest expenses,
26 USC 48D(b)(3)(C)for facility maintenance expenses as by (c)(3),
26 USC 48D(b)(3)(D)identified as a service cost under 26 CFR §1.263A-1(e)(4), or
26 USC 48D(b)(3)(E)for any other expense Sec. determines as appropriate for purposes of §48D.
26 USC 48D(b)(4)Depreciable cost by (1) are subject to (c)(4) & (d) of §46 (as before 19901105).
26 USC 48D(b)(5)Investment is qualified only if made in a TY beginning in 2009 or 2010.
26 USC 48D(c)This subsection sets definitions.
26 USC 48D(c)(1)A "qualifying therapeutic discovery project" is a project which is designed—
26 USC 48D(c)(1)(A)to treat disease through clinical trials or for approval by PL 75-717, &c.,
26 USC 48D(c)(1)(B)to diagnose diseases or develop molecular diagnostics to guide therapy, or
26 USC 48D(c)(1)(C)to deploy a product, &c., to further the administration of therapeutics.
26 USC 48D(c)(2)This paragraph defines an "eligible taxpayer".
26 USC 48D(c)(2)(A)Such taxpayer employs within 250 employees when (d)(2) application is submitted.
26 USC 48D(c)(2)(B)All persons subject to (a) or (b) of §52 or (m) or (o) of §414 are 1 employer.
26 USC 48D(c)(3)"Facility maintenance expenses" are costs paid to maintain a facility, such as—
26 USC 48D(c)(3)(A)mortgage or rent payments,
26 USC 48D(c)(3)(B)insurance payments,
26 USC 48D(c)(3)(C)utility and maintenance costs, and
26 USC 48D(c)(3)(D)costs of employment of maintenance personnel.
26 USC 48D(d)Rules for the qualifying therapeutic discovery project program.
26 USC 48D(d)(1)This paragraph establishes the qualifying therapeutic discovery project program.
26 USC 48D(d)(1)(A)By 20100522, Sec. forms a program to certify investments eligible for (a).
26 USC 48D(d)(1)(B)For 2009 & 2010, total credits allocated under such program is limited to $1B.
26 USC 48D(d)(2)This paragraph sets rules for certification.
26 USC 48D(d)(2)(A)Applicant submits application per Sec.'s rules after (1) program is established.
26 USC 48D(d)(2)(B)Sec. will approve or deny any application by (A) within 30 days of submission.
26 USC 48D(d)(2)(C)Application by (A) may request to allocate credits for more than one year.
26 USC 48D(d)(3)To figure qualifying projects with certified investments, the Sec. will—
26 USC 48D(d)(3)(A)consider only those projects that show reasonable potential—
26 USC 48D(d)(3)(A)(i)to result in new therapies—
26 USC 48D(d)(3)(A)(i)(I)to treat areas of unmet medical need, or
26 USC 48D(d)(3)(A)(i)(II)to prevent, detect, or treat chronic or acute diseases and conditions,
26 USC 48D(d)(3)(A)(ii)to reduce long-term health care costs in the United States, or
26 USC 48D(d)(3)(A)(iii)to advance the cure of cancer within 30 years after (1) program is formed, and
26 USC 48D(d)(3)(B)consider which projects have the greatest potential—
26 USC 48D(d)(3)(B)(i)to create and sustain United States jobs with high quality and pay, and
26 USC 48D(d)(3)(B)(ii)to advance the competitiveness of the US in the fields of medical science, &c.
26 USC 48D(d)(4)Recipient of certification under (d) and allocated credit is publicly disclosed.
26 USC 48D(e)This subsection sets special rules.
26 USC 48D(e)(1)Basis of depreciable property is reduced by any credit allowed under §48D.
26 USC 48D(e)(2)This paragraph sets a denial of double benefit.
26 USC 48D(e)(2)(A)§48D credit isn't given if §§168(k), 1400L(b)(1), or 1400N(d)(1) applies.
26 USC 48D(e)(2)(B)No deduction is allowed for any portion of expenses given credit under §48D.
26 USC 48D(e)(2)(C)This subparagraph sets coordination with credit for research activities.
26 USC 48D(e)(2)(C)(i)Except by (ii), expenses accounted by §48D aren't accounted under §41 or §45C.
26 USC 48D(e)(2)(C)(ii)Expenses by §41(b) are accounted to figure base period research expenses.
26 USC 48D(f)Coordination for investments subject to grant under §9023(e) of PL 111-148.
26 USC 48D(f)(1)(a) is disallowed for such investment when grant is made and all TYs thereafter.
26 USC 48D(f)(2)If (a) was allowed for such investment in a TY ending before grant is made—
26 USC 48D(f)(2)(A)subtitle A tax for TY when grant is made is increased by amount of such credit,
26 USC 48D(f)(2)(B)business carryforwards under §39 are adjusted to recapture disallowed credit, &
26 USC 48D(f)(2)(C)grant amount is figured without any reduction of basis due to credit allowance.
26 USC 48D(f)(3)Any such grant is not included in the gross income of the taxpayer.
 
26 USC 49This section discusses at-risk rules.
26 USC 49(a)This subsection sets the general rule.
26 USC 49(a)(1)Rules for exclusion of certain nonrecourse financing from credit base.
26 USC 49(a)(1)(A)Reduce credit base of applicable property by nonqualified nonrecourse financing.
26 USC 49(a)(1)(B)(1) applies to any property which—
26 USC 49(a)(1)(B)(i)is placed in service during the TY by a taxpayer subject to §465(a)(1), and
26 USC 49(a)(1)(B)(ii)is used for an activity for which any loss is limited by §465.
26 USC 49(a)(1)(C)For (1), the "credit base" is—
26 USC 49(a)(1)(C)(i)portion of basis of any rehabilitated building attributable to expenditures,
26 USC 49(a)(1)(C)(ii)the basis of any energy property,
26 USC 49(a)(1)(C)(iii)the basis of property part of a qualifying coal project under §48A,
26 USC 49(a)(1)(C)(iv)the basis of property part of a qualifying gasification project under §48B,
26 USC 49(a)(1)(C)(v)the basis of property part of a qualifying advanced energy project under §48C, &
26 USC 49(a)(1)(C)(vi)basis of property part of a qualifying therapeutic discovery project under §48D.
26 USC 49(a)(1)(D)This subparagraph defines "nonqualified nonrecourse financing".
26 USC 49(a)(1)(D)(i)For (1) and (2), such financing is not qualified commercial financing.
26 USC 49(a)(1)(D)(ii)For (1), "qualified commercial financing" is any financing for property if—
26 USC 49(a)(1)(D)(ii)(I)such property is acquired from someone who is not related,
26 USC 49(a)(1)(D)(ii)(II)such amount does not exceed 80% of the property's credit base, and
26 USC 49(a)(1)(D)(ii)(III)such financing is from a qualified person, State, &c. & isn't convertible debt.
26 USC 49(a)(1)(D)(iii)For (D), "nonrecourse financing" includes—
26 USC 49(a)(1)(D)(iii)(I)amounts which the taxpayer is protected against loss through arrangements, and
26 USC 49(a)(1)(D)(iii)(II)loans from anyone (including relatives) who has interest in related activity.
26 USC 49(a)(1)(D)(iv)A "qualified person" regularly lends money for a business and is not—
26 USC 49(a)(1)(D)(iv)(I)related to the taxpayer,
26 USC 49(a)(1)(D)(iv)(II)a person (including relatives) from which the taxpayer acquired the property,
26 USC 49(a)(1)(D)(iv)(III)a recipient (including relatives) of fees from taxpayer's property investment.
26 USC 49(a)(1)(D)(v)A "related person" is defined by §465(b)(3)(C) and is determined at end of TY.
26 USC 49(a)(1)(E)This subparagraph sets application of (1) to partnerships and S-Corps.
26 USC 49(a)(1)(E)(i)Determination of allocable share is at partnership or shareholder level.
26 USC 49(a)(1)(E)(ii)A S-Corp shareholder is liable for his share of any corporation financing if—
26 USC 49(a)(1)(E)(ii)(I)it is recourse financing (determined at corporate level), and
26 USC 49(a)(1)(E)(ii)(II)it is provided with respect to qualified business property of such S-Corp.
26 USC 49(a)(1)(E)(iii)"Qualified business property" means any property if such corporation—
26 USC 49(a)(1)(E)(iii)(I)uses such property in the active conduct of its trade or business,
26 USC 49(a)(1)(E)(iii)(II)had 3 full-time employees performing services for 12 months ending at TY end, &
26 USC 49(a)(1)(E)(iii)(III)had 1 full-time employee performing management for 12 months ending at TY end.
26 USC 49(a)(1)(E)(iv)Determination of allocable share is made in same manner as by credit by §38.
26 USC 49(a)(1)(F)Rules by §46(c)(8)(F) as in effect on 19901105 apply for (1).
26 USC 49(a)(2)Subsequent decreases in nonqualified nonrecourse financing for property.
26 USC 49(a)(2)(A)A reduction of such financing increases property's credit base as by (C).
26 USC 49(a)(2)(B)Such financing is not decreased by surrender or other use of such property.
26 USC 49(a)(2)(C)This subparagraph sets the manner in which credit is taken into account.
26 USC 49(a)(2)(C)(i)For §38 and §58(a)(1), the increase occurs in TY it was 1st placed in service.
26 USC 49(a)(2)(C)(ii)Any credit allowed for such increase is earned during TY of financing decrease.
26 USC 49(b)This subsection sets rules for increases in nonqualified nonrecourse financing.
26 USC 49(b)(1)In such case, tax is increased by reduction of credit by §38 for all prior TYs.
26 USC 49(b)(2)A transfer of evidence of debt is inapplicable if after 1 year from issue.
26 USC 49(b)(3)Rules similar to those under §47(d)(3) (as of 19901105) apply to (b).
26 USC 49(b)(4)Any tax increase is not considered a chapter 1 tax to figure chapter 1 credit.
 
26 USC 50This section discusses other special rules.
26 USC 50(a)This subsection sets rules for recapture in case of dispositions, &c.
26 USC 50(a)(1)This paragraph sets rules for early disposition, &c.
26 USC 50(a)(1)(A)In such event, increase tax by recapture percentage of all credits in prior TYs.
26 USC 50(a)(1)(B)For (A), such percentage is set by this table:
26 USC 50(a)(1)(B)(i)100% for cessation of credit property within first year after service placement,
26 USC 50(a)(1)(B)(ii)80% for cessation of credit property within one year after (i),
26 USC 50(a)(1)(B)(iii)60% for cessation of credit property within one year after (ii),
26 USC 50(a)(1)(B)(iv)40% for cessation of credit property within one year after (iii),
26 USC 50(a)(1)(B)(v)20% for cessation of credit property within one year after (iv).
26 USC 50(a)(2)Rules for property ceasing to qualify for progress expenditures.
26 USC 50(a)(2)(A)Increase tax by aggregate decrease of credit by §38 if §47(d) no longer applies.
26 USC 50(a)(2)(B)Amounts which reduce §47(b)(2) below zero are recaptured by (A).
26 USC 50(a)(2)(C)(A) doesn't apply to amount within §47(d) cost for lessee of leaseback.
26 USC 50(a)(2)(D)(1) applies to credit by §47(d) if property is disposed after service placement.
26 USC 50(a)(2)(E)(2) applies in cases where progress expenditures were accounted by §48(b).
26 USC 50(a)(3)Carrybacks and carryforwards of §39 are adjusted by cessations of (1) and (2).
26 USC 50(a)(4)(1) and (2) does not apply to—
26 USC 50(a)(4)(A)a transfer by reason of death, or
26 USC 50(a)(4)(B)a transaction to which §381(a) applies. Change of business is not cessation.
26 USC 50(a)(5)This paragraph sets definitions and special rules.
26 USC 50(a)(5)(A)"Investment credit property" is eligible for credit determined by subpart E.
26 USC 50(a)(5)(B)For transfers described by §1041(a)—
26 USC 50(a)(5)(B)(i)the foregoing provisions of (a) do not apply, and
26 USC 50(a)(5)(B)(ii)the tax treatment of transferred property applies to recipient.
26 USC 50(a)(5)(C)Any tax increase by (1) or (2) is not considered imposed by chapter 1.
26 USC 50(b)No credit is determined under subpart E with respect to the following:
26 USC 50(b)(1)This paragraph sets rules for property used outside the United States.
26 USC 50(b)(1)(A)Except as by (B), no credit is determined for property outside the US.
26 USC 50(b)(1)(B)(A) does not apply to property described by §168(g)(4).
26 USC 50(b)(2)No credit is given for property mainly used for lodging, except for—
26 USC 50(b)(2)(A)nonlodging commercial facilities equally available to users and non-users,
26 USC 50(b)(2)(B)property used by a hotel for the business of accommodating transients,
26 USC 50(b)(2)(C)the basis of a certified historic structure for rehabilitation costs, and
26 USC 50(b)(2)(D)any energy property.
26 USC 50(b)(3)Property used by a tax exempt organization (not by §521). Exceptions apply.
26 USC 50(b)(4)Property used by governmental units, foreign persons, or entities.
26 USC 50(b)(4)(A)No credit is determined under subpart E for any property used by—
26 USC 50(b)(4)(A)(i)the US, any State or subdivision thereof, any US possession, &c., or
26 USC 50(b)(4)(A)(ii)any foreign person or entity (§168(h)(2)(C)) where §168(h)(2)(A)(iii) applies.
26 USC 50(b)(4)(B)(3) and (4) don't apply to property under leases with terms under 6 months.
26 USC 50(b)(4)(C)Don't apply (4) to figure credit of rehabilitated building leased to gov't unit.
26 USC 50(b)(4)(D)For (3) and (4), rules similar to those of (5) and (6) of §168(h) apply.
26 USC 50(b)(4)(E)See §168(h) for special rules in applying (3) and (4).
26 USC 50(c)This subsection sets rules to adjust basis of investment credit property.
26 USC 50(c)(1)Basis of property subject to credit is reduced by any such determined credit.
26 USC 50(c)(2)For any recapture amount, basis of subject property is increased by such amount.
26 USC 50(c)(3)For any energy credit—
26 USC 50(c)(3)(A)only 50% of such credit is taken into account for (1), and
26 USC 50(c)(3)(B)only 50% of any attributable recapture amount is accounted for (2).
26 USC 50(c)(4)This paragraph sets rules for the recapture of reductions.
26 USC 50(c)(4)(A)For §1245 and §1250, any reduction is treated as a deduction for depreciation.
26 USC 50(c)(4)(B)For §1250(b), determine SL adjustments by ignoring reductions under §50.
26 USC 50(c)(5)Adjustments are made to account adjustments by (c) for the adjusted basis of—
26 USC 50(c)(5)(A)a partner's interest in a partnership, and
26 USC 50(c)(5)(B)stock in a S corporation.
26 USC 50(d)For subpart E, apply rules similar to the following (as in effect on 19901105):
26 USC 50(d)(1)§46(e) (limitations with respect to certain persons (for certain TYs)).
26 USC 50(d)(2)§46(f) (limitation in case of certain regulated companies).
26 USC 50(d)(3)§46(h) (special rules for cooperatives).
26 USC 50(d)(4)(2) and (3) of §48(b) (special rule for sale-leasebacks).
26 USC 50(d)(5)§48(d) (certain leased property).
26 USC 50(d)(6)§48(f) (estates and trusts).
26 USC 50(d)(7)§48(r) (certain §501(d) organizations).
 
26 USC 50ARepealed.
 
26 USC 50BRepealed.
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart F.
 
26 USC 51This section discusses the amount of the work opportunity credit.
26 USC 51(a)For §38, credit amount for TY is 40% of qualified first-year wages for such TY.
26 USC 51(b)This subsection defines "qualified wages" for subpart F.
26 USC 51(b)(1)Such wages are paid by employers to individual members of a targeted group.
26 USC 51(b)(2)"Qualified first-year wages" are within 1-year period starting on 1st work day.
26 USC 51(b)(3)Accountable first-year wages for any individual is limited to certain amount.
26 USC 51(c)This subsection defines wages.
26 USC 51(c)(1)Except by (h)(2), "wages" are defined by §3306(b), ignoring limitations therein.
26 USC 51(c)(2)Rules for on-the-job training and work supplementation payments.
26 USC 51(c)(2)(A)"Wages" do not include federally funded payments for on-the-job training.
26 USC 51(c)(2)(B)Wages are reduced by payments from a program under §482(e) of SSA.
26 USC 51(c)(3)"Wages" do not include payments for substantially similar service if—
26 USC 51(c)(3)(A)the principal place of employment of an individual is a plant or facility, and
26 USC 51(c)(3)(B)there is a strike or lockout involving employees at such location.
26 USC 51(c)(4)"Wages" do not include amounts paid to an individual who starts work—
26 USC 51(c)(4)(A)after 19941231 and before 19961001, or
26 USC 51(c)(4)(B)after 20131231.
26 USC 51(d)This subsection defines members of targeted groups for purposes of subpart F.
26 USC 51(d)(1)An individual is a member of a targeted group if such person is—
26 USC 51(d)(1)(A)a qualified IV-A recipient,
26 USC 51(d)(1)(B)a qualified veteran,
26 USC 51(d)(1)(C)a qualified ex-felon,
26 USC 51(d)(1)(D)a designated community resident,
26 USC 51(d)(1)(E)a vocational rehabilitational referral,
26 USC 51(d)(1)(F)a qualified summer youth employee,
26 USC 51(d)(1)(G)a qualified food stamp recipient,
26 USC 51(d)(1)(H)a qualified SSI recipient, or
26 USC 51(d)(1)(I)a long-term family assistance recipient.
26 USC 51(d)(2)This paragraph defines a "qualified IV-A recipient".
26 USC 51(d)(2)(A)They are under a IV-A program for any 9 months in 1.5 years before hiring date.
26 USC 51(d)(2)(B)A "IV-A program" is State assistance funded by part A of title IV of SSA.
26 USC 51(d)(3)This paragraph defines a "qualified veteran".
26 USC 51(d)(3)(A)Such a veteran is certified by the designated local agency as—
26 USC 51(d)(3)(A)(i)a member of a family receiving certain assistance by a program by PL 88-525,
26 USC 51(d)(3)(A)(ii)entitled to compensation for service-connected disability, and having—
26 USC 51(d)(3)(A)(ii)(I)a hiring date within 1 year after discharge or release from USAF duty, or
26 USC 51(d)(3)(A)(ii)(II)a total of at least 6 months of unemployment in 1 year before hiring date, or
26 USC 51(d)(3)(A)(iii)a total of at least 4 weeks of unemployment in 1 year before hiring date, or
26 USC 51(d)(3)(A)(iv)a total of at least 6 months of unemployment in 1 year before hiring date.
26 USC 51(d)(3)(B)For (A), a "veteran" is any individual certified by designated local agency as—
26 USC 51(d)(3)(B)(i)
26 USC 51(d)(3)(B)(i)(I)having served on active duty in USAF for more than 180 days, or
26 USC 51(d)(3)(B)(i)(II)having been discharged from active duty in USAF by disability, and
26 USC 51(d)(3)(B)(ii)was not in extended active duty within 60 days before hiring date.
26 USC 51(d)(3)(C)For (A), "compensation" and "service-connected" are defined by 38 USC §101.
26 USC 51(d)(4)A "qualified ex-felon" is certified by the designated local agency as—
26 USC 51(d)(4)(A)having been convicted of a felony under any statute of the US or any State, and
26 USC 51(d)(4)(B)having a hiring date within 1 year after being released from prison.
26 USC 51(d)(5)This paragraph defines "designated community residents".
26 USC 51(d)(5)(A)Such a resident is certified by the designated local agency as—
26 USC 51(d)(5)(A)(i)having attained age 18 but not age 40 on the hiring date, and
26 USC 51(d)(5)(A)(ii)having his principal place of abode within an EZ, EC, RC, or area by (C).
26 USC 51(d)(5)(B)Qualified wages don't include payments when such abode is outside of such areas.
26 USC 51(d)(5)(C)For (5), a "rural renewal county" is any county which—
26 USC 51(d)(5)(C)(i)is outside a metropolitan statistical area (as defined by the OMB), and
26 USC 51(d)(5)(C)(ii)had a net population loss in the periods between 1990 - 1994 and 1995 - 1999.
26 USC 51(d)(6)"Vocational rehabilitation referral" are individuals certified by agency as—
26 USC 51(d)(6)(A)having a physical or mental disability resulting in handicap to employment, and
26 USC 51(d)(6)(B)being referred to the employer upon receipt of rehabilitative services by—
26 USC 51(d)(6)(B)(i)an employment plan under a State rehabilitation plan approved under PL 93-112,
26 USC 51(d)(6)(B)(ii)a program of vocational rehabilitation under chapter 31 of 38 USC, or
26 USC 51(d)(6)(B)(iii)a work plan implemented by an employment network as under §1148(g) of SSA.
26 USC 51(d)(7)This paragraph defines a "qualified summer youth employee".
26 USC 51(d)(7)(A)Such an employee means any individual who—
26 USC 51(d)(7)(A)(i)performs services between May 1 and September 15,
26 USC 51(d)(7)(A)(ii)is certified by agency as having attained age 16 but not 18 on hiring date,
26 USC 51(d)(7)(A)(iii)has not been an employee at any time prior to 90-day period of (B)(i), and
26 USC 51(d)(7)(A)(iv)is certified as having principal abode within an EZ, EC, or RC.
26 USC 51(d)(7)(B)For applying subpart F to wages paid to a qualified summer youth employee—
26 USC 51(d)(7)(B)(i)apply (b)(2) by using the 90 day period set under (A)(i), and
26 USC 51(d)(7)(B)(ii)swap "$3000" for "$6000" in (b)(3), unless member of another targeted group.
26 USC 51(d)(7)(C)(5)(B) applies for purposes of (A)(iv).
26 USC 51(d)(8)This paragraph defines a "qualified food stamp recipient".
26 USC 51(d)(8)(A)Such recipient is an individual certified by the designated local agency—
26 USC 51(d)(8)(A)(i)as having attained age 18 but not age 40 on the hiring date, and
26 USC 51(d)(8)(A)(ii)as being a member of a family receiving assistance under a program by PL 88-525—
26 USC 51(d)(8)(A)(ii)(I)for the 6-month period ending on the hiring date, or
26 USC 51(d)(8)(A)(ii)(II)for at least 3 months of 5 months ending on hiring date, if assistance ends.
26 USC 51(d)(8)(B)Sec. of Treasury & of Agriculture informs agencies of food stamp participation.
26 USC 51(d)(9)A "qualified SSI recipient" receives income by title XVI of SSA.
26 USC 51(d)(10)A "long-term family assistance recipient" is certified by the agency by (12)—
26 USC 51(d)(10)(A)as being a member of family under a program by (2)(B) within a certain period,
26 USC 51(d)(10)(B)
26 USC 51(d)(10)(B)(i)as being such a member for 18 months beginning after 19970805, and
26 USC 51(d)(10)(B)(ii)as having a hiring date within 2 years after period by (i) or (A) ends, or
26 USC 51(d)(10)(C)
26 USC 51(d)(10)(C)(i)as being a member of family which ceases to receive assistance under law, and
26 USC 51(d)(10)(C)(ii)as having a hiring date within 2 years after the date of such cessation.
26 USC 51(d)(11)The "hiring date" is the day the individual is hired by the employer.
26 USC 51(d)(12)A "designated local agency" is a State employment security agency by PL 73-30.
26 USC 51(d)(13)This paragraph sets some special rules for certifications.
26 USC 51(d)(13)(A)An individual is not a member of a targeted group unless—
26 USC 51(d)(13)(A)(i)as of first day of work, employer receives notification of group membership, or
26 USC 51(d)(13)(A)(ii)
26 USC 51(d)(13)(A)(ii)(I)as of first day of work, a pre-screening notice is completed by employer, and
26 USC 51(d)(13)(A)(ii)(II)by 21st day of work, employer submits such notice to designated agency.
26 USC 51(d)(13)(B)Certification will be revoked & wages paid after revocation do not qualify if—
26 USC 51(d)(13)(B)(i)an individual has been certified by a designated local agency as a member, and
26 USC 51(d)(13)(B)(ii)such certification is wrong due to false information.
26 USC 51(d)(13)(C)Agency will provide written explanation for denial of certification.
26 USC 51(d)(13)(D)This subparagraph sets a credit for unemployed veterans.
26 USC 51(d)(13)(D)(i)Within 1 year of hiring date, in respect of (3)(A), a veteran meets such—
26 USC 51(d)(13)(D)(i)(I)(ii)(IV) or (iv) if he received unemployment pay for up to 6 months, and
26 USC 51(d)(13)(D)(i)(II)(iii) if he received unemployment pay for up to 4 weeks.
26 USC 51(d)(13)(D)(ii)Sec. may set alternate rules to meet (ii)(IV), (iii), or (iv) of (3)(A).
26 USC 51(d)(14)A credit for unemployed veterans and disconnected youths hired in 2009 or 2010.
26 USC 51(d)(14)(A)For subpart F, such a veteran or youth is a targeted group member.
26 USC 51(d)(14)(B)This subparagraph sets definitions for purposes of (14).
26 USC 51(d)(14)(B)(i)An "unemployed veteran" is a veteran by (3)(B) (ignore such (ii)) certified as—
26 USC 51(d)(14)(B)(i)(I)having been discharged from the Armed Forces in 5 years before hiring date, and
26 USC 51(d)(14)(B)(i)(II)having received unemployment for at least 4 weeks in 1 year before such date.
26 USC 51(d)(14)(B)(ii)A "disconnected youth" is certified by the designated local agency—
26 USC 51(d)(14)(B)(ii)(I)as having attained age of 16 but not age 25 on the hiring date,
26 USC 51(d)(14)(B)(ii)(II)as attending any secondary, &c., school within 6 months before such date,
26 USC 51(d)(14)(B)(ii)(III)as not regularly employed during such 6 month period, and
26 USC 51(d)(14)(B)(ii)(IV)as not readily employable by reason of insufficient basic skills.
26 USC 51(e)Rules for credit for second-year wages for employment of recipients by (d)(10).
26 USC 51(e)(1)Regarding the employment of a long-term family assistance recipient—
26 USC 51(e)(1)(A)credit under §51 includes 50% of qualified second-year wages for the TY, and
26 USC 51(e)(1)(B)for (b)(3), wages accounted by (b)(2) and (2) is limited to $10K per year.
26 USC 51(e)(2)For (e), the "qualified second-year wages" are qualified wages which are—
26 USC 51(e)(2)(A)paid to a long-term family assistance recipient, and
26 USC 51(e)(2)(B)related to service rendered in 1 year after period by (b)(2) ends.
26 USC 51(e)(3)If (A) or (B) of (h)(1) applies, substitute—
26 USC 51(e)(3)(A)"$10000" for "$6000" in such (A), and
26 USC 51(e)(3)(B)"$833.33" for "$500" in such (B).
26 USC 51(f)A requirement for remuneration to be for trade or business employment.
26 USC 51(f)(1)Amounts paid are accounted only if more than half are for services in trade.
26 USC 51(f)(2)Ignore (a) and (b) of §52 to figure application of (1) & (A) or (B) of (h)(1).
26 USC 51(g)US Employment Service informs employers of availability of §51 credit.
26 USC 51(h)This subsection sets special rules for agricultural labor and railway labor.
26 USC 51(h)(1)This paragraph sets rules for unemployment insurance wages.
26 USC 51(h)(1)(A)Contribution & benefit bases are $6000 in applying "wages" for §3121(a).
26 USC 51(h)(1)(B)Contribution limit is $500 in applying "wages" to 45 USC §358(a).
26 USC 51(h)(2)For (1), "wages" are unemployment insurance wages (ignoring limitations).
26 USC 51(i)This subsection sets ineligibility of certain individuals.
26 USC 51(i)(1)No wages are accounted for (a) with respect to an individual who—
26 USC 51(i)(1)(A)bears any relationship described by (A) - (G) of §152(d)(2), &c.,
26 USC 51(i)(1)(B)if taxpayer is a trust, &c., bears any such relationship to another trust, or
26 USC 51(i)(1)(C)is a dependent (§152(d)(2)(H)) of the taxpayer, or other applicable entities.
26 USC 51(i)(2)Wages are not accounted if employee was previously employed by same employer.
26 USC 51(i)(3)Rules for individuals not meeting minimum employment periods.
26 USC 51(i)(3)(A)Apply (a) by swapping "25%" for "40%" if service is between 120 and 400 hours.
26 USC 51(i)(3)(B)No wages are accounted if individual performs less than 120 hours of service.
26 USC 51(j)Rules to elect the work opportunity credit to not apply.
26 USC 51(j)(1)A taxpayer may elect to have §51 not apply for any taxable year.
26 USC 51(j)(2)Such election can be made before end of 3-year period after return's due date.
26 USC 51(j)(3)Such election is made in manner as Secretary may prescribe by regulations.
26 USC 51(k)Treatment of successor employers & of employees performing services for others.
26 USC 51(k)(1)Apply §51 to successor employer (§3306(b)(1)) in same manner as predecessor.
26 USC 51(k)(2)Only excess of remuneration from another person to employee may apply to §51.
 
26 USC 51ARepealed.
 
26 USC 52This section discusses special rules for subpart F.
26 USC 52(a)All corporations of a controlled group are 1 employer, as by §1563(a), except—
26 USC 52(a)(1)substitute "more than 50%" for "at least 80%" in §1563(a)(1), and
26 USC 52(a)(2)determination is made without applying (a)(4) and (e)(3)(C) of §1563.
26 USC 52(b)Per regulations prescribed by Secretary—
26 USC 52(b)(1)treat all employees of trades under common control as employed by 1 employer, &
26 USC 52(b)(2)credit by §51(a) for each trade is its proportionate share of related wages.
26 USC 52(c)This subsection sets a disallowance of credit to tax exempt organizations.
26 USC 52(c)(1)No credit under §38 from subpart F is allowed to tax exempt organizations.
26 USC 52(c)(2)See §3111(e) for payroll tax credit for employment of qualified veterans.
26 USC 52(d)For estates and trusts—
26 USC 52(d)(1)apportion subpart F credit between beneficiaries on allocable basis, and
26 USC 52(d)(2)any portion of credit by (1) is allowed credit under §38(a), subject to §38(c).
26 USC 52(e)Rules by (e) and (h) of §46 apply to figure subpart F credit in the case of—
26 USC 52(e)(1)regulated investment companies or REITs subject to taxation by subchapter M, and
26 USC 52(e)(2)a cooperative organization described in §1381(a).
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart G.
 
26 USC 53This section discusses the credit for prior year minimum tax liability.
26 USC 53(a)Credit against chapter 1 tax is equal to minimum tax credit for such TY.
26 USC 53(b)For (a), minimum tax credit for any TY is any excess of—
26 USC 53(b)(1)adjusted net minimum tax imposed for all prior TYs after 1986, over
26 USC 53(b)(2)aggregate credit of (a) for all such prior TYs.
26 USC 53(c)Credit by (a) is limited to any excess of—
26 USC 53(c)(1)regular tax liability reduced by sum of credits by subparts A, B, & D - F, over
26 USC 53(c)(2)the tentative minimum tax for the TY.
26 USC 53(d)This subsection sets definitions for purposes of §53.
26 USC 53(d)(1)This paragraph defines "net minimum tax".
26 USC 53(d)(1)(A)Net minimum tax is the tax imposed by §55.
26 USC 53(d)(1)(B)This subparagraph sets A disallowance of credit for exclusion preferences.
26 USC 53(d)(1)(B)(i)The adjusted net minimum tax for any TY is—
26 USC 53(d)(1)(B)(i)(I)amount of net minimum tax for such TY, reduced by
26 USC 53(d)(1)(B)(i)(II)amount which would be net minimum tax if only (ii) was accounted.
26 USC 53(d)(1)(B)(ii)The following are specified in this clause—
26 USC 53(d)(1)(B)(ii)(I)adjustments provided for by §56(b)(1), and
26 USC 53(d)(1)(B)(ii)(II)items of tax preference by (1), (5), and (7) of §57(a).
26 USC 53(d)(1)(B)(iii)For corporations—
26 USC 53(d)(1)(B)(iii)(I)the preceding provisions of (B) do not apply, and
26 USC 53(d)(1)(B)(iii)(II)the adjusted net minimum tax is the amount of net minimum tax for such year.
26 USC 53(d)(2)"Tentative minimum tax" is defined by §55(b).
26 USC 53(e)A special rule for individuals with long-term unused credits.
26 USC 53(e)(1)Amount by (c) for TY before 2013 with credits by (3) is at least amount by (2).
26 USC 53(e)(2)This paragraph defines the "AMT refundable credit amount" for purposes of (1).
26 USC 53(e)(2)(A)Such amount is, for any taxable year, the greater of—
26 USC 53(e)(2)(A)(i)$5000,
26 USC 53(e)(2)(A)(ii)20% of the long-term unused minimum tax credit for such taxable year, or
26 USC 53(e)(2)(A)(iii)any AMT refundable credit amount under (2) for the preceding TY (before (B)).
26 USC 53(e)(2)(B)This subparagraph sets a phaseout of AMT refundable credit amount.
26 USC 53(e)(2)(B)(i)(A) amount is subject to (B) of §151(d)(3) if AGI exceeds threshold by such (C).
26 USC 53(e)(2)(B)(ii)For (i), AGI is determined without regard to §§911, 931, and 933.
26 USC 53(e)(3)This paragraph defines "long-term unused minimum tax credit".
26 USC 53(e)(3)(A)Such credit is portion of amount by (b) for TYs before 3rd TY before the TY.
26 USC 53(e)(3)(B)For (A), credits are allowed under (a) on first-in, first-out basis.
26 USC 53(e)(4)For 26 USC, credit allowed under (e) is treated as if allowed under subpart C.
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart H.
 
26 USC 54This section discusses the credit to holders of clean renewable energy bonds.
26 USC 54(a)If such a bond is held on credit allowance dates, credit is determined by (b).
26 USC 54(b)This subsection sets the amount of credit.
26 USC 54(b)(1)Credit is 25% of annual credit determined with respect to such bond.
26 USC 54(b)(2)The annual credit for any clean renewable energy bond is the product of—
26 USC 54(b)(2)(A)credit rate by (3) for the day which such bond was sold, multiplied by
26 USC 54(b)(2)(B)the outstanding face amount of the bond.
26 USC 54(b)(3)Sec. determines applicable credit rate for bond sale contracts daily.
26 USC 54(b)(4)The "credit allowance date" is—
26 USC 54(b)(4)(A)March 15,
26 USC 54(b)(4)(B)June 15,
26 USC 54(b)(4)(C)September 15, and
26 USC 54(b)(4)(D)December 15. Such date also includes last day which bond is outstanding.
26 USC 54(b)(5)Credit is ratable portion for issues in 3-month period ending on a credit date.
26 USC 54(c)Credit by (a) for any TY is limited to any excess of—
26 USC 54(c)(1)sum of regular tax liability (§26(b)), plus tax imposed by §55, over
26 USC 54(c)(2)sum of credits under §§21 - 54AA (except §§31-36, 54A - 54F, 54AA, & §1400N(l)).
26 USC 54(d)This subsection defines a "clean renewable energy bond".
26 USC 54(d)(1)Such a bond is any bond issued as part of an issue if—
26 USC 54(d)(1)(A)bond is issued by a qualified issuer pursuant to allocation by (f)(2),
26 USC 54(d)(1)(B)at least 95% of proceeds will be used for expenditures for qualified projects,
26 USC 54(d)(1)(C)the qualified issuer designates such bond for purposes of this section, and
26 USC 54(d)(1)(D)the issue meets the requirements of (h).
26 USC 54(d)(2)This paragraph defines a "qualified project" and sets special use rules.
26 USC 54(d)(2)(A)Such project is a facility by §45(d) (except (10)) owned by qualified borrower.
26 USC 54(d)(2)(B)For (1)(B), projects may be refinanced only if debt was made after 20050808.
26 USC 54(d)(2)(C)For (1)(B), such bond may reimburse a qualified borrower after enactment, if—
26 USC 54(d)(2)(C)(i)before payment of original expense, borrower declares use of such bond,
26 USC 54(d)(2)(C)(ii)by 60 days after such payment, issuer adopts official reimbursement intent, &
26 USC 54(d)(2)(C)(iii)the reimbursement is made within 1½ years after expense is paid.
26 USC 54(d)(2)(D)For (1)(B), issued proceeds must not be used for other projects.
26 USC 54(e)This subsection sets maturity limitations.
26 USC 54(e)(1)Maturity shall not exceed maximum term determined by Secretary under (2).
26 USC 54(e)(2)Each month, Secretary sets maximum term permitted for bonds issued therein.
26 USC 54(f)This subsection sets a limitation on amount of bonds designated.
26 USC 54(f)(1)The national limit of clean renewable energy bonds is $1.2B.
26 USC 54(f)(2)Sec. allocates amount of (1), limited to $750 million for governmental bodies.
26 USC 54(g)Gross income includes §54 credit (ignoring (c)), treated as interest income.
26 USC 54(h)This subsection sets special rules relating to expenditures.
26 USC 54(h)(1)Issue meets requirements of (h) if, as of issue date, issuer expects—
26 USC 54(h)(1)(A)at least 95% of proceeds will be spent for qualified projects in next 5 years,
26 USC 54(h)(1)(B)a commitment with a third party to spend 10% of proceeds within 6 months, and
26 USC 54(h)(1)(C)the use of such proceeds and project completion will come with due diligence.
26 USC 54(h)(2)Upon expiration of (1)(A) period, Sec. may extend period with reasonable cause.
26 USC 54(h)(3)Issuer redeems nonqualified bonds within 90 days after (1)(A) period ends.
26 USC 54(i)Clean renewable energy bond issuers must satisfy arbitrage requirements of §148.
26 USC 54(j)Definition of "cooperative electric company", "qualified borrower", &c.
26 USC 54(j)(1)A "cooperative electric company" has a loan guarantee under PL 74-605.
26 USC 54(j)(2)A "clean renewable energy bond lender" is owned by 100 or more companies by (1).
26 USC 54(j)(3)A "governmental body" is any State, US possession, &c., and subdivision thereof.
26 USC 54(j)(4)A "qualified issuer" is—
26 USC 54(j)(4)(A)a clean renewable energy bond lender,
26 USC 54(j)(4)(B)a cooperative electric company, or
26 USC 54(j)(4)(C)a governmental body.
26 USC 54(j)(5)A "qualified borrower" is—
26 USC 54(j)(5)(A)a mutual or cooperative electric company as by §501(c)(12) or §1381(a)(2)(C), or
26 USC 54(j)(5)(B)a governmental body.
26 USC 54(k)Allocation of pooled financing bond to any loan requires written commitment.
26 USC 54(l)This subsection sets other definitions and special rules.
26 USC 54(l)(1)"Bond" includes any obligation.
26 USC 54(l)(2)"Pooled financing bond" has the same meaning given by §149(f)(6)(A).
26 USC 54(l)(3)Rules for partnerships, S-Corps, and other pass-thru entities.
26 USC 54(l)(3)(A)Rules similar to those of §41(g) shall apply to such entities for credit by (a).
26 USC 54(l)(3)(B)For bonds held by partnership or S-Corp, rules as under §1397E(i) apply.
26 USC 54(l)(4)Issuer of bond by (d) must make equal principal payment each outstanding year.
26 USC 54(l)(5)Issuers of such bonds submit reports similar to those required by §149(e).
26 USC 54(l)(6)Issuers of such bonds submit reports similar to those required by §149(e).
26 USC 54(m)§54 does not apply to any bond issued after 20091231.
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart I.
 
26 USC 54AThis section discusses the credit to holders of qualified tax credit bonds.
26 USC 54A(a)For holders of bonds on (e)(1) dates, Sum of (b) amount is chapter 1 tax credit.
26 USC 54A(b)This subsection sets the amount of credit.
26 USC 54A(b)(1)Credit given by (b) is 25% of (2) amount regarding a qualified tax credit bond.
26 USC 54A(b)(2)The annual credit for any qualified tax credit bond is the product of—
26 USC 54A(b)(2)(A)the applicable credit rate by (3), multiplied by
26 USC 54A(b)(2)(B)the outstanding face amount of the bond.
26 USC 54A(b)(3)Sec. sets applicable rate for issue of bond without discount and interest cost.
26 USC 54A(b)(4)Credit's reduced for bonds issued or redeemed within 3 months before (e)(1) day.
26 USC 54A(c)This subsection sets a limitation based on amount of tax.
26 USC 54A(c)(1)Credit by (a) for any taxable year is limited to the excess of—
26 USC 54A(c)(1)(A)sum of regular tax liability (as by §26(b)) plus tax imposed by §55, over
26 USC 54A(c)(1)(B)sum of credits allowed under §§21 - 54AA (except §§31 - 36, 54A - 54F, & 54AA).
26 USC 54A(c)(2)Excess of (a) credit over (1) limit is carried to next TY & added to (a) amount.
26 USC 54A(d)This subsection defines a "qualified tax credit bond".
26 USC 54A(d)(1)A qualified tax credit bond is part of an issue which meets (2) - (6) and is—
26 USC 54A(d)(1)(A)a qualified forestry conservation bond,
26 USC 54A(d)(1)(B)a new clean renewable energy bond,
26 USC 54A(d)(1)(C)a qualified energy conservation bond,
26 USC 54A(d)(1)(D)a qualified zone academy bond, or
26 USC 54A(d)(1)(E)a qualified school construction bond.
26 USC 54A(d)(2)This paragraph sets special rules relating to expenditures.
26 USC 54A(d)(2)(A)Issue meets (2) if, as of issue date, issuer reasonably expects that—
26 USC 54A(d)(2)(A)(i)100% or more of (e)(4) amount will be used for purposes by (C) within 3 years, &
26 USC 54A(d)(2)(A)(ii)at least 10% of such amount will be incurred by a third party within 6 months.
26 USC 54A(d)(2)(B)Rules for failure to spend 100% of proceeds by (e)(4) within 3 years.
26 USC 54A(d)(2)(B)(i)Proceeds unused for (C) purposes are redeemed within 90 days after (ii) period.
26 USC 54A(d)(2)(B)(ii)The "expenditure period" the 3 year period beginning with the date of issue.
26 USC 54A(d)(2)(B)(iii)Sec. may extend period by (ii) if failure to make expenditure is reasonable.
26 USC 54A(d)(2)(C)For (2), a "qualified purpose" is a purpose by—
26 USC 54A(d)(2)(C)(i)§54B(e), in the case of a qualified forestry conservation bond,
26 USC 54A(d)(2)(C)(ii)§54C(a)(1), in the case of a new clean renewable energy bond,
26 USC 54A(d)(2)(C)(iii)§54D(a)(1), in the case of a qualified energy conservation bond,
26 USC 54A(d)(2)(C)(iv)§54E(a)(1), in the case of a qualified zone academy bond, and
26 USC 54A(d)(2)(C)(v)§54F(a)(1), in the case of a qualified school construction bond.
26 USC 54A(d)(2)(D)(e)(4) amount is spent for purposes by (C) if proceeds reimburse issuer only if—
26 USC 54A(d)(2)(D)(i)before payment of original expenditure, issuer states intent of reimbursement,
26 USC 54A(d)(2)(D)(ii)within 60 days after such payment, issuer adopts intent of reimbursement, and
26 USC 54A(d)(2)(D)(iii)the reimbursement is made within 18 months after original expenditure is paid.
26 USC 54A(d)(3)Issuers of (d)(1) bonds submit reports similar to those required by §149(e).
26 USC 54A(d)(4)This paragraph sets special rules relating to arbitrage.
26 USC 54A(d)(4)(A)Issue meets (4) if issuer meets requirements of §148 regarding issue's proceeds.
26 USC 54A(d)(4)(B)(A) may be met despite investment of (e)(4) proceeds during (2)(B)(ii) period.
26 USC 54A(d)(4)(C)(A) may be met despite use of any fund to repay such issue if such fund—
26 USC 54A(d)(4)(C)(i)is funded at a rate not more rapid than equal annual installments,
26 USC 54A(d)(4)(C)(ii)is funded in a manner expected to result in amount needed to repay the issue, &
26 USC 54A(d)(4)(C)(iii)has a yield within the discount rate determined by (5)(B) regarding such issue.
26 USC 54A(d)(5)This paragraph sets a maturity limitation.
26 USC 54A(d)(5)(A)Issue meets (5) if maturity of any bond is limited to maximum term by (B).
26 USC 54A(d)(5)(B)Each month, Sec. sets maximum term under (5) for bonds issued in prior month.
26 USC 54A(d)(6)Issue meets (6) if the issuer certifies that such issue meets any—
26 USC 54A(d)(6)(A)applicable State and local laws governing conflicts of interest, and
26 USC 54A(d)(6)(B)any additional rules set by Sec. regarding interests by Members of Congress, &c.
26 USC 54A(e)This subsection sets other definitions for purposes of subchapter A.
26 USC 54A(e)(1)"Credit allowance date" includes the last day when bond is outstanding and is—
26 USC 54A(e)(1)(A)March 15,
26 USC 54A(e)(1)(B)June 15,
26 USC 54A(e)(1)(C)September 15, and
26 USC 54A(e)(1)(D)December 15.
26 USC 54A(e)(2)A "bond" includes any obligation.
26 USC 54A(e)(3)A "State" includes the District of Columbia and any US possession.
26 USC 54A(e)(4)"Available project proceeds" are—
26 USC 54A(e)(4)(A)the excess of—
26 USC 54A(e)(4)(A)(i)the proceeds from the sale of an issue, over
26 USC 54A(e)(4)(A)(ii)the issuance costs financed by the issue (within 2% of proceeds), and
26 USC 54A(e)(4)(B)the proceeds from any investment of the excess described in (A).
26 USC 54A(f)For subtitle A, credit under (a) is interest which is included in gross income.
26 USC 54A(g)Treat allocation of §54A credit to S-Corp shareholders as a distribution.
26 USC 54A(h)Sec. sets rules for distribution of (a) and (f) to beneficiaries of a REIT.
26 USC 54A(i)Rules for when credits may be stripped, per Sec.'s regulations.
26 USC 54A(i)(1)If bond ownership is separated, holder of entitled instrument gets §54A credit.
26 USC 54A(i)(2)If (1) applies, §1286 applies to (d)(1) bond; §54A credit is §1286(e)(3) coupon.
 
26 USC 54BThis section discusses qualified forestry conservation bonds.
26 USC 54B(a)A "qualified forestry conservation bond" is any bond as part of an issue if—
26 USC 54B(a)(1)100% of issue's project proceeds are used for any purpose by (e),
26 USC 54B(a)(2)the bond is issued by a qualified issuer, and
26 USC 54B(a)(3)the issuer designates such bond for purposes of §54B.
26 USC 54B(b)Total amount of bonds designated under (a) is limited to amount under (d).
26 USC 54B(c)The national qualified forestry conservation bond limitation is $500M.
26 USC 54B(d)This subsection sets allocations.
26 USC 54B(d)(1)Sec. allocates entire limitation by (c) for purposes by (e) before 20100618.
26 USC 54B(d)(2)Sec. solicits for allocation of limitation by (c) until 20080916.
26 USC 54B(e)An acquisition of forest land is a "qualified forestry conservation purpose" if:
26 USC 54B(e)(1)Some portion of the acquired land must be adjacent to US Forest Service land.
26 USC 54B(e)(2)At least ½ of land acquired must be transferred to US Forest Service at no cost.
26 USC 54B(e)(3)All land must be subject to a plan approved by the US Fish and Wildlife Service.
26 USC 54B(e)(4)The amount of acreage acquired must be at least 40000 acres.
26 USC 54B(f)A "qualified issuer" is a State, &c., or an organization by §150(a)(4).
26 USC 54B(g)§54A(d)(4)(C)(i) doesn't apply to issues with bonds by (a).
26 USC 54B(h)An election to treat 50% of bond allocation as payment of tax.
26 USC 54B(h)(1)A qualified issuer is considered to pay 50% of (A) amount for chapter 1 tax if—
26 USC 54B(h)(1)(A)such issuer receives an allocation of any portion of limitation by (c), and
26 USC 54B(h)(1)(B)such issuer elects the application of (h) with respect to such allocation.
26 USC 54B(h)(2)This paragraph sets the treatment of deemed payment under (1).
26 USC 54B(h)(2)(A)Sec. refunds such payment; such payment is not an offset or credit.
26 USC 54B(h)(2)(B)Except by (3)(A), such payment is not accounted to figure interest under 26 USC.
26 USC 54B(h)(3)This paragraph sets the requirements for election and effects of election.
26 USC 54B(h)(3)(A)Qualified issuer must certify that (1) payment will be used for purposes by (e).
26 USC 54B(h)(3)(B)If a qualified issuer makes the election under (h) regarding any allocation—
26 USC 54B(h)(3)(B)(i)the issuer may issue no bonds pursuant to the allocation, and
26 USC 54B(h)(3)(B)(ii)the Secretary may not reallocate such allocation for any other purpose.
 
26 USC 54CThis section discusses new clean renewable energy bonds.
26 USC 54C(a)A "new clean renewable energy bond" is any bond as part of an issue if—
26 USC 54C(a)(1)100% of issue's project proceeds are used for a facility by (d)(1),
26 USC 54C(a)(2)the bond is issued by a qualified issuer, and
26 USC 54C(a)(3)the issuer designates such bond for purposes of §54C.
26 USC 54C(b)Credit by §54A(b) regarding such bond is 70% of amount determined therein.
26 USC 54C(c)This subsection sets a limitation on amount of bonds designated.
26 USC 54C(c)(1)Total amount of bonds designated under (a) is limited to amount under (c).
26 USC 54C(c)(2)Sec. allocates national limitation of $800M under (3), except that—
26 USC 54C(c)(2)(A)no more than 33.3% thereof may be allocated to public power providers,
26 USC 54C(c)(2)(B)no more than 33.3% thereof may be allocated to gov't bodies, and
26 USC 54C(c)(2)(C)no more than 33.3% thereof may be allocated to cooperative electric companies.
26 USC 54C(c)(3)This paragraph sets the method of allocation.
26 USC 54C(c)(3)(A)Sec. allocates limitation as (2)(A) limit bears to total cost of projects.
26 USC 54C(c)(3)(B)Sec. sets allocation under (2)(B) and (2)(C) for qualified projects.
26 USC 54C(c)(4)Such limitation is increased by $1.6B and is allocated as under (2) and (3).
26 USC 54C(d)This subsection sets definitions for purposes of §54C.
26 USC 54C(d)(1)"Qualified renewable energy facility" is by §45(d) & owned by (2) - (4) person.
26 USC 54C(d)(2)"Public power provider" is a State utility as by §217 of title II of PL 74-333.
26 USC 54C(d)(3)A "gov't body" is any State or Indian tribal gov't or subdivision thereof.
26 USC 54C(d)(4)A "cooperative electric company" is by §501(c)(12) or §1381(a)(2)(C).
26 USC 54C(d)(5)"Clean renewable energy bond lender" is owned by 100 or more electric companies.
26 USC 54C(d)(6)A "qualified issuer" is by (2) - (5), &c., & recipient of loan by PL 74-605.
 
26 USC 54DThis section discusses qualified energy conservation bonds.
26 USC 54D(a)A "qualified energy conservation bond" is any bond as part of an issue if—
26 USC 54D(a)(1)100% of issue's project proceeds are used for any purpose by (f)(1),
26 USC 54D(a)(2)the bond is issued by a State or local government, and
26 USC 54D(a)(3)the issuer designates such bond for purposes of §54D.
26 USC 54D(b)Credit by §54A(b) regarding such bond is 70% of amount determined therein.
26 USC 54D(c)Total face amount of bonds designated under (a) is limited to amount by (e).
26 USC 54D(d)The national qualified energy conservation bond limitation is $2.3B.
26 USC 54D(e)This subsection sets allocations.
26 USC 54D(e)(1)Sec. allocates limitation by (d) in proportion to state population.
26 USC 54D(e)(2)This paragraph sets rules for allocations to largest local governments.
26 USC 54D(e)(2)(A)Gov't by (C) receives part of State allocation in proportion of population.
26 USC 54D(e)(2)(B)Such gov't may reallocate such allocation to the applicable State.
26 USC 54D(e)(2)(C)A "large local gov't" is any municipality or county with over 100K population.
26 USC 54D(e)(3)Allocation by (e) must be used for no more than 30% of private activity bonds.
26 USC 54D(e)(4)Bonds issued for loans by (f)(1)(A)(ii) are not deemed private activity bonds.
26 USC 54D(f)This subsection defines a "qualified conservation purpose" for purposes of §54D.
26 USC 54D(f)(1)A qualified conservation purpose is any of the following:
26 USC 54D(f)(1)(A)Capital expenditures incurred for the purposes of—
26 USC 54D(f)(1)(A)(i)reducing energy consumption in publicly-owned buildings by at least 20%,
26 USC 54D(f)(1)(A)(ii)implementing green community programs (and the use of loans, &c., therefor),
26 USC 54D(f)(1)(A)(iii)rural development for the production of electricity from renewable resources, or
26 USC 54D(f)(1)(A)(iv)any qualified facility by §45(d) (ignore such (8) and (10)).
26 USC 54D(f)(1)(B)Expenditures regarding research facilities and research grants for research in—
26 USC 54D(f)(1)(B)(i)development of cellulosic ethanol or other nonfossil fuels,
26 USC 54D(f)(1)(B)(ii)the capture and sequestration of carbon dioxide made from fossil fuels,
26 USC 54D(f)(1)(B)(iii)increasing the efficiency of existing technologies to produce nonfossil fuels,
26 USC 54D(f)(1)(B)(iv)technology to reduce fossil fuel consumption in automobiles, or
26 USC 54D(f)(1)(B)(v)technology to reduce energy use in buildings.
26 USC 54D(f)(1)(C)For the reduction of energy consumption and pollution regarding mass commuting.
26 USC 54D(f)(1)(D)Demonstration projects designed to promote the commercialization of—
26 USC 54D(f)(1)(D)(i)green building technology,
26 USC 54D(f)(1)(D)(ii)conversion of agricultural waste for use in production (of fuel, &c.),
26 USC 54D(f)(1)(D)(iii)advanced battery manufacturing technologies,
26 USC 54D(f)(1)(D)(iv)technologies to reduce peak use of electricity, or
26 USC 54D(f)(1)(D)(v)technologies to capture carbon dioxide from fossil fuel burned for electricity.
26 USC 54D(f)(1)(E)Public education campaigns to promote energy efficiency.
26 USC 54D(f)(2)For private activity bonds, such term doesn't apply to non-capital expenditures.
26 USC 54D(g)This subsection sets rules for determining population.
26 USC 54D(g)(1)The population of a State or local gov't is determined under §146(j) for 2008.
26 USC 54D(g)(2)Population of a large local gov't isn't accounted to figure county population.
26 USC 54D(h)For §54D, an Indian tribal gov't is considered a large local gov't, except that—
26 USC 54D(h)(1)for (e), such gov't is located in a State in proportion of population therein, &
26 USC 54D(h)(2)to meet (a), proceeds of bonds issued by such gov't must meet §103(a).
 
26 USC 54EThis section discusses qualified zone academy bonds.
26 USC 54E(a)A "qualified zone academy bond" is a bond issued as part of an issue if—
26 USC 54E(a)(1)use of 100% of issue's proceeds meets (d)(3) regarding academy by (d)(1),
26 USC 54E(a)(2)the bond is issued by the person presiding over where such academy is located, &
26 USC 54E(a)(3)such issuing State or local government—
26 USC 54E(a)(3)(A)designates such bond for the purposes of §54E,
26 USC 54E(a)(3)(B)certifies that it has written assurances that (b) will be met, and
26 USC 54E(a)(3)(C)certifies that it has written approval of agency by (d)(2) for such issue.
26 USC 54E(b)Academy by (d)(1) has at least 10% of proceeds committed from private entities.
26 USC 54E(c)A limitation on amount of national zone academy bonds to be designated per year.
26 USC 54E(c)(1)Limit is $400M for 2008, $1.4B for 2009 & 2010, $400M for 2011 - 2013.
26 USC 54E(c)(2)Sec. allocates limitation among States based on population below poverty line.
26 USC 54E(c)(3)Aggregate face amount of bonds subject to (a) is limited to limitation by (2).
26 USC 54E(c)(4)This paragraph sets a carryover of unused limitation.
26 USC 54E(c)(4)(A)Limitation amount for a State for any year is increased by any excess if—
26 USC 54E(c)(4)(A)(i)the limitation amount for any State in the preceding year exceeds
26 USC 54E(c)(4)(A)(ii)the amount of bonds issued in such year which are designated under (a).
26 USC 54E(c)(4)(B)Any carryforward of limitation may apply only to two subsequent years.
26 USC 54E(c)(4)(C)Any carryover by §1397E(e)(4) is accounted by (A) and subject to (B).
26 USC 54E(d)This subsection sets definitions for purposes of §54E.
26 USC 54E(d)(1)A "qualified zone academy" is a school or program under agency by (2) where—
26 USC 54E(d)(1)(A)such academy is formed in cooperation with business to enhance curriculum, &c.,
26 USC 54E(d)(1)(B)such agency's standards equally apply to all students under such agency,
26 USC 54E(d)(1)(C)the education plan of such academy is approved by such agency, and
26 USC 54E(d)(1)(D)
26 USC 54E(d)(1)(D)(i)such academy is located in an empowerment zone or enterprise community, or
26 USC 54E(d)(1)(D)(ii)at least 35% of such academy's students may participate under PL 79-396.
26 USC 54E(d)(2)An "eligible local education agency" is by §9101 of PL 89-10.
26 USC 54E(d)(3)A "qualified purpose" is, in respect of any qualified zone academy—
26 USC 54E(d)(3)(A)rehabilitating the public school facility in which the academy is established,
26 USC 54E(d)(3)(B)providing equipment for use at such academy,
26 USC 54E(d)(3)(C)developing course materials for education provided at such academy, and
26 USC 54E(d)(3)(D)training teachers and other school personnel in such academy.
26 USC 54E(d)(4)A "qualified contribution" (which is accepted by agency by (2)) is of—
26 USC 54E(d)(4)(A)equipment used in the qualified zone academy (including vocational equipment),
26 USC 54E(d)(4)(B)assistance to develop training to promote appropriate technology in class,
26 USC 54E(d)(4)(C)services of employees as volunteer mentors,
26 USC 54E(d)(4)(D)certain educational opportunities for students outside of the academy, or
26 USC 54E(d)(4)(E)any other property or service specified by such eligible local education agency.
 
26 USC 54FThis section discusses qualified school construction bonds.
26 USC 54F(a)Such a bond is any bond issued as part of an issue if such bond—
26 USC 54F(a)(1)is only used to support the construction, repair, &c., a public school facility,
26 USC 54F(a)(2)is issued by a State or local government wherein such school is located, and
26 USC 54F(a)(3)is designated by the issuer as such a bond for purposes of §54F.
26 USC 54F(b)Sum bonds designated under (a) is limited to allocation under (d) for the year.
26 USC 54F(c)The national qualified school construction bond limitation for each year is—
26 USC 54F(c)(1)$11B for 2009,
26 USC 54F(c)(2)$11B for 2010, and
26 USC 54F(c)(3)except as provided in (e), $0 after 2010.
26 USC 54F(d)This subsection sets the allocation of limitation.
26 USC 54F(d)(1)Allocate (c) to States in proportion to amounts received by §1124 of PL 89-10.
26 USC 54F(d)(2)An allocation of 40% of limitation among largest school districts.
26 USC 54F(d)(2)(A)40% of (c) limitation is allocated by Sec. to large local educational agencies.
26 USC 54F(d)(2)(B)Allocate (A) in proportion to amounts received by such agencies by such §1124.
26 USC 54F(d)(2)(C)Allocation to State by (1) is reduced by allocations under (2) to such agencies.
26 USC 54F(d)(2)(D)Allocation under (2) may be reallocated to State where such agency is located.
26 USC 54F(d)(2)(E)For (2), a "large local educational agency" is any educational agency which is—
26 USC 54F(d)(2)(E)(i)among the 100 agencies with largest number of children living below poverty, or
26 USC 54F(d)(2)(E)(ii)1 of up to 25 agencies determined by Sec. as in particular need of assistance.
26 USC 54F(d)(3)(1) allocation to certain US possessions is based on population below poverty.
26 USC 54F(d)(4)$200M is additionally allocated for schools funded by Bureau of Indian Affairs.
26 USC 54F(e)Limitation for the next year is increased by any amount which, for any year—
26 USC 54F(e)(1)the amount allocated under (d) to any State exceeds
26 USC 54F(e)(2)the amount of bonds issued which are designated under (a) for allocation.
 
Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart J.
 
26 USC 54AAThis section discusses build America bonds.
26 USC 54AA(a)Holder of build America bond at (e) date is allowed (b) amount as credit.
26 USC 54AA(b)Chapter 1 tax credit is 35% of interest payable by issuer at any date by (e).
26 USC 54AA(c)This subsection sets a limitation based on amount of tax.
26 USC 54AA(c)(1)Credit allowed under (a) for any TY is limited to any excess of—
26 USC 54AA(c)(1)(A)sum of regular tax liability by §26(b) plus any tax imposed by §55, over
26 USC 54AA(c)(1)(B)sum of credits under §§21 - 54 (except §§31 - 36 and §54AA).
26 USC 54AA(c)(2)Excess of (a) over limit by (1) is added to (a) amount for the subsequent TY.
26 USC 54AA(d)This subsection defines a "build America bond".
26 USC 54AA(d)(1)For §54AA, such bond is any obligation (which isn't a private activity bond) if—
26 USC 54AA(d)(1)(A)the interest on such note would be excluded from gross income under §103,
26 USC 54AA(d)(1)(B)such obligation is issued before 20110101, and
26 USC 54AA(d)(1)(C)the issuer makes an irrevocable election to have §54AA to apply.
26 USC 54AA(d)(2)For purposes of applying (1), in respect of a build America bond—
26 USC 54AA(d)(2)(A)for §149(b), such bond isn't guaranteed by reason of credit under §6431(a),
26 USC 54AA(d)(2)(B)for §148, yield on such bond is figured without regard to credit under (a), and
26 USC 54AA(d)(2)(C)any premium over principal amount of such bond is limited to §1273(a)(3) amount.
26 USC 54AA(e)"Interest payment date" is when holder of record is to receive interest payment.
26 USC 54AA(f)This subsection sets special rules.
26 USC 54AA(f)(1)For 26 USC, interest on any build America bond is included in gross income.
26 USC 54AA(f)(2)Rules similar to (f) - (i) of §54A apply for purposes of credit under (a).
26 USC 54AA(g)For qualified bonds issued before 20110101—
26 USC 54AA(g)(1)In lieu of (a), issuer of such bond is allowed credit under §6431.
26 USC 54AA(g)(2)For (g), a "qualified bond" is any build America bond if such issue—
26 USC 54AA(g)(2)(A)has 100% of any excess used only for capital expenditures from which—
26 USC 54AA(g)(2)(A)(i)the available project proceeds (§54A) of such issue exceeds
26 USC 54AA(g)(2)(A)(ii)the amounts in a reserve by §150(a)(3) with respect to such issue, and
26 USC 54AA(g)(2)(B)is subject to an irrevocable election by its issuer for (g) to apply.
26 USC 54AA(h)The Secretary sets regulations as necessary to carry out §54AA and §6431.
 
Subtitle A, Chapter 1, Subchapter A, Part V.
 
 "> Repealed.
 
Subtitle A, Chapter 1, Subchapter A, Part VI.
 
26 USC 55This section sets the imposition of alternative minimum tax.
26 USC 55(a)Tax (in addition to any other by subtitle A) is imposed equal to excess of—
26 USC 55(a)(1)the tentative minimum tax for the taxable year, over
26 USC 55(a)(2)the regular tax for the taxable year.
26 USC 55(b)This subsection defines the tentative minimum tax for purposes of part VI.
26 USC 55(b)(1)This paragraph sets the amount of tentative tax.
26 USC 55(b)(1)(A)This subparagraph sets rules for noncorporate taxpayers.
26 USC 55(b)(1)(A)(i)For such taxpayers, the tentative minimum tax for TY is sum of—
26 USC 55(b)(1)(A)(i)(I)26% of taxable excess within $175000, plus
26 USC 55(b)(1)(A)(i)(II)28% of taxable excess over $175000; reduced by AMT foreign tax credit.
26 USC 55(b)(1)(A)(ii)"Taxable excess" is excess of alternative minimum income over exemption amount.
26 USC 55(b)(1)(A)(iii)For MFS individuals, substitute 50% of amounts under (I) and (II) of (i).
26 USC 55(b)(1)(B)For corporations, the tentative minimum tax for the taxable year is—
26 USC 55(b)(1)(B)(i)20% of alternative minimum taxable income exceeding exemption amount, reduced by
26 USC 55(b)(1)(B)(ii)the alternative minimum foreign tax credit for the taxable year.
26 USC 55(b)(2)"Alternative minimum taxable income" is taxpayer's taxable income for the TY—
26 USC 55(b)(2)(A)determined with adjustments by §56 and §58, and
26 USC 55(b)(2)(B)increased by the amount of tax preference items in §57.
26 USC 55(b)(3)Amount determined by (1)(A)(i) is limited to the sum of—
26 USC 55(b)(3)(A)such amount as if (3) weren't enacted on taxable excess reduced by—
26 USC 55(b)(3)(A)(i)the net capital gain; or, if lesser
26 USC 55(b)(3)(A)(ii)the sum of—
26 USC 55(b)(3)(A)(ii)(I)the adjusted net capital gain, plus
26 USC 55(b)(3)(A)(ii)(II)the unrecaptured §1250 gain, plus
26 USC 55(b)(3)(B)0% of adjusted net capital gain limited to excess by §1(h)(1)(B), plus
26 USC 55(b)(3)(C)15% of the lesser of—
26 USC 55(b)(3)(C)(i)adjusted net capital gain (or taxable excess) exceeding amount by (B), or
26 USC 55(b)(3)(C)(ii)the excess described in §1(h)(1)(C)(ii), plus
26 USC 55(b)(3)(D)20% of capital gain (or taxable excess) exceeding total of (B) & (C) amounts, &
26 USC 55(b)(3)(E)25% of taxable income exceeding the sum of amounts in (A) - (C).
26 USC 55(c)This subsection sets rules for regular tax.
26 USC 55(c)(1)Such tax is regular tax liability (§26(b)) less foreign credits, &c.
26 USC 55(c)(2)Only for §55, §1301 does not apply in computing regular tax liability.
26 USC 55(c)(3)See §30C(d)(2) and §38(c) for disallowance of certain credits against tax.
26 USC 55(d)This subsection sets the exemption amount.
26 USC 55(d)(1)For noncorporation taxpayers, such amount is—
26 USC 55(d)(1)(A)$78750 for—
26 USC 55(d)(1)(A)(i)a joint return, or
26 USC 55(d)(1)(A)(ii)a surviving spouse,
26 USC 55(d)(1)(B)$50600 in the case of an individual who—
26 USC 55(d)(1)(B)(i)is not a married individual (as by §7703), and
26 USC 55(d)(1)(B)(ii)is not a surviving spouse (as by §2(a)),
26 USC 55(d)(1)(C)50% of applicable amount by (A) for a married person filing separately, and
26 USC 55(d)(1)(D)$22500 in the case of an estate or trust.
26 USC 55(d)(2)For corporations, exemption amount is $40000.
26 USC 55(d)(3)Exemption is reduced by 25% of amount which alternative taxable income exceeds—
26 USC 55(d)(3)(A)$150000 for a taxpayer by (1)(A),
26 USC 55(d)(3)(B)$112500 for a taxpayer by (1)(B),
26 USC 55(d)(3)(C)50% of amount under (A) in the case of a taxpayer by (C) or (D) of (1), and
26 USC 55(d)(3)(D)$150000 for a taxpayer by (2).
26 USC 55(d)(4)This paragraph sets an adjustment for inflation.
26 USC 55(d)(4)(A)For TYs after 1998, amounts by (B) are increased by product of—
26 USC 55(d)(4)(A)(i)such dollar amounts, and
26 USC 55(d)(4)(A)(ii)the cost-of-living adjustment by §1(f)(3); swap "2011" for "1992" in such (B).
26 USC 55(d)(4)(B)The amounts described in this subparagraph are each amount contained in—
26 USC 55(d)(4)(B)(i)(b)(1)(A)(i),
26 USC 55(d)(4)(B)(ii)(1), and
26 USC 55(d)(4)(B)(iii)(A) and (B) of (3).
26 USC 55(d)(4)(C)Increase figured under (A) is rounded to nearest multiple of $100.
26 USC 55(e)This subsection sets an exemption for small corporations.
26 USC 55(e)(1)This paragraph sets the general rule.
26 USC 55(e)(1)(A)Tentative tax is 0 if average annual receipts for 3 prior TYs is within $7½M.
26 USC 55(e)(1)(B)Apply (A) by reducing such dollar amount to $5M for 1st 3 TY period.
26 USC 55(e)(1)(C)If TY is first TY that such corporation exists, tentative minimum tax is 0.
26 USC 55(e)(1)(D)For (1), rules by (2) and (3) of §448(c) apply.
26 USC 55(e)(2)If corporation's tentative minimum tax is 0 by (1), use these modifications:
26 USC 55(e)(2)(A)(1) & (5) of §56(a) only apply to property placed in service after change date.
26 USC 55(e)(2)(B)§56(a)(2) only apply to costs paid or incurred on or after the change date.
26 USC 55(e)(2)(C)§56(a)(3) only apply to contracts entered into on or after the change date.
26 USC 55(e)(2)(D)For §56(a)(4), swap change date & day before it for "19870101" & "19861231".
26 USC 55(e)(2)(E)§56(g)(2)(B) applies to prior TYs beginning on or after the change date.
26 USC 55(e)(2)(F)§56(g)(4)(A) does not apply.
26 USC 55(e)(2)(G)For (D) and (F) of §56(g)(4), swap change date for "19891231" therein.
26 USC 55(e)(3)Modifications of (2) do not apply to—
26 USC 55(e)(3)(A)items acquired by the corporation in a transaction under §381, and
26 USC 55(e)(3)(B)the basis of property determined by reference, if transferor was subject to (2).
26 USC 55(e)(4)For (2), the "change date" is 1st day of TY which (1) no longer applies.
26 USC 55(e)(5)If (e)(2) applies, reduce §53(c)(1) by 25% of such amount exceeding $25K.
 
26 USC 56This section sets adjustments in computing alternative minimum taxable income.
26 USC 56(a)For determination of such income for any TY, the following treatment applies:
26 USC 56(a)(1)This paragraph sets rules for depreciation.
26 USC 56(a)(1)(A)This subparagraph sets the general rule.
26 USC 56(a)(1)(A)(i)For property in service after 19861231, deduction by §167 is given by §168(g).
26 USC 56(a)(1)(A)(ii)Otherwise (except for §1250 property), the method of depreciation used—
26 USC 56(a)(1)(A)(ii)(I)is the 150% declining balance method,
26 USC 56(a)(1)(A)(ii)(II)switches to straight line method for 1st TY which yields higher allowance.
26 USC 56(a)(1)(B)(1) doesn't apply to property by (1) - (4) of §168(f) or §168(e)(3)(C)(iv).
26 USC 56(a)(1)(C)This subparagraph sets coordination with transitional rules.
26 USC 56(a)(1)(C)(i)(1) doesn't apply to certain property placed in service after 19861231.
26 USC 56(a)(1)(C)(ii)Apply (1) to property subject to election by §201(a)(1)(B) of PL 99-514.
26 USC 56(a)(1)(D)For public utility properties (§168(i)(10)), Sec. sets normalization method.
26 USC 56(a)(2)This paragraph sets rules for mining exploration and development costs.
26 USC 56(a)(2)(A)Deduction by §616(a) or §617(a) is ratably capitalized over 10-year period.
26 USC 56(a)(2)(B)If loss is incurred for property of (A), deductio