91 STAT. 146 26 USC 53. Ante, p. 141.
Ante, p. 132.
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PUBLIC LAW 95-30—MAY 23, 1977 "SEC, 53. LIMITATION BASED ON AMOUNT OF TAX. " (a) GENERAL RULE.—Notwithstanding section 51, the amount of the credit allowed by section 44B for the taxable year shall not exceed the amount of the tax imposed by this chapter for the taxable year, reduced by the sum of the credits allowable under— " (1) section -33 (relating to foreif^n tax c r e d i t),
" (2) section 37 (relating to credit for the elderly), " (3) section 38 (relating to investment in certain depreciable - property), • " (4) section 40 (relating to expenses of work incentive programs), " " (5) section 41 (relating to contributions to candidates for public office), ' " (6) section 42 (relating to general tax c r e d i t), and " (7) section 44A (relating to expenses for household and dependent care services necessary for gainful employment). For purposes of this subsection, any tax imposed for the taxable year by section 56 (relating to minimum tax for tax preferences), section 72(m)(5)(B) (relating to 10 percent tax on premature distributions to owner-employees), section 408(f) (relating to additional tax on income from certain retirement accounts), section 402(e) (relating to tax on lump-sum distributions), section 531 (relating to accumulated earnings tax), section 541 (relating to personal holding company tax), or section 1378 (relating to tax on certain capital gains of subchapter S corporations), and any additional tax imposed for the taxable year by section 1351(d)(1) (relating to recoveries of foreign expropriation losses), shall not be considered tax imposed by this chapter for such year. "(b)
Ante, p. 135.
SPECIAL RULE FOR P A S S - T H R U OF C R E D I T. — I n the
a
part n e r in a partnership, a beneficiary of an estate or trust, and a shareholder in a subchapter S corporation, the limitation provided by subsection (a) for the taxable year shall not exceed a limitation separately computed with respect to such person's interest in such entity by taking an amount which bears the same relationship to such limitation as— " (1) that portion of the person's taxable income which is allocable or apportionable to the person's interest in such entity, bears to " (2) the person's taxable income for such year reduced by his zero bracket amount (determined under section 6 3 (d)), if any. "(c)
CARRYBACK AND CARRYOVER OF U N U S E D CREDIT.—
"(1)
Ante, p. 141.
case of
ALLOWANCE OF CREDIT.—If the amount of the
credit
determined under section 51 for any taxable year exceeds the limitation provided by subsection (a) for such taxable year (hereinafter in this subsection referred to as the 'unused credit year '), such excess shall be— " (A) a new employee credit carryback to each of the 3 taxable years preceding the unused credit year, and ->; "(I^) ^ ^6w employee credit carryover to each of the 7 taxable years following the unused credit year, and shall be added to the amount allowable as a credit by section 44B for such years. I f any portion of such excess is a carryback to a taxable year beginning before January 1, 1977, section 44B shall be deemed to have been in effect for such taxable year for purposes
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