PUBLIC LAW 96-223—APR. 2, 1980
94 STAT. 275
"(4) VOLUME OF ALCOHOL.—For purposes of determining— "(A) under subsection (a) the number of gallons of alcohol with respect to which a credit is allowable under subsection (a), or "(B) under section 4041(k) or 4081(c) the percentage of any ^«<e. P- 273. mixture which consists of alcohol, the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas approved by the Secretary to the extent that such denaturants do not exceed 5 percent of the volume of such alcohol (including denaturants). "(5) PASS-THROUGH IN THE CASE OF SUBCHAPTER S CORPORATIONS, 26 USC i37i. ETC.—Under regulations prescribed by the Secretary, rules similar to the rules of subsections (d) and (e) of section 52 shall apply. 26 USC 52. '(e) LIMITATION BASED ON AMOUNT OF TAX.—
"(1) IN GENERAL.—The amount of the credit allowed by this section for the taxable year shall not exceed the tax imposed by this chapter for the taxable year, reduced by the sum of the credits allowed under a section of this subpart having a lower number designation than this section, other than credits allowable by sections 31, 39, and 43. For purposes of the preceding 26 USC 31,39,43. sentence, the term 'tax imposed by this chapter' shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a). 26 USC 53. "(2) CARRYOVER OF UNUSED CREDIT.—
"(A) IN GENERAL.—If the amount of the credit determined under subsection (a) for any taxable year exceeds the limitation provided by paragraph (1) for such taxable year (hereinafter in this paragraph referred to as the 'unused credit year'), such excess shall be an alcohol fuel credit carryover to each of the 7 taxable years following the unused credit year, and shall be added to the amount allowable as credit under subsection (a) for such years. The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 7 taxable years to which (by reason of the preceding sentence) such credit may be carried, and then to each of the other 6 taxable years to the extent that, because of the limitation contained in subparagraph (B), such unused credit may not be added for a prior taxable year to which such unused credit may be carried. "(B) LIMITATION.—The amount of the unused credit which may be added under subparagraph (A) for any succeeding taxable year shall not exceed the amount by which the limitation provided by paragraph (1) for such succeeding taxable year exceeds the sum of— "(i) the credit allowable under subsection (a) for such taxable year, and "(ii) the amounts which, by reason of this paragraph, are added to the amount allowable for such taxable year and which are attributable to taxable years preceding the unused credit year. '(f) TERMINATION.—
"(1) IN GENERAL.—This section shall not apply to any sale or use after December 31, 1992. "(2) No CARRYOVERS TO YEARS AFTER 1994.—No amount may be carried under subsection (e)(2) to any taxable year beginning after December 31, 1994."
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