26 C.F.R. § 1.56A-1 Imposition of tax.
Title 26 - Internal Revenue
(a) In general. Section 56(a) imposes an income tax on the items of tax preference (as defined in §1.57–1) of all persons other than persons specifically exempt from the taxes imposed by chapter 1. The items of tax preference represent income of a person which either is not subject to current taxation by reason of temporary exclusion (such as stock options) or by reason of an acceleration of deductions (such as accelerated depreciation) or is sheltered from full taxation by reason of certain deductions (such as percentage depletion) or by reason of a special rate of tax (such as the rate of tax on corporate capital gains). The tax imposed by section 56 is in addition to the other taxes imposed by chapter 1. (b) Computation of tax. The amount of such tax is 10 percent of the excess (referred to herein as “the minimum tax base”) of— (1) The sum of the taxpayer's items of tax preference for such year in excess of the taxpayer's minimum tax exemption (determined under §1.58–1) for such year, over (2) The sum of: (i) The taxes imposed for such year under chapter 1 other than the taxes imposed by section 56 (relating to minimum tax for tax preferences), by section 531 (relating to accumulated earnings tax), or by section 541 (relating to personal holding company tax), reduced by the sum of the credits allowable under— (a) Section 33 (relating to taxes of foreign countries and possessions of the United States), (b) Section 37 (relating to retirement income), (c) Section 38 (relating to investment credit), (d) Section 40 (relating to expenses of work incentive programs), and (e) Section 41 (relating to contributions to candidates for public office, and (ii) The tax carryovers to such taxable year (as described in §1.56A–5). (c) Special rule. For purposes of paragraph (b) of this section where for any taxable year in which a tax is imposed under section 667 (relating to treatment of amounts deemed distributed by a trust in preceding years), that portion of the section 667 tax representing an increase in an earlier year's chapter 1 taxes (as recomputed), which taxes are allowed as a reduction in any such earlier year's minimum tax base, is not allowable as a reduction in the minimum tax base for the current taxable year. The remaining portion of the section 667 tax, representing the taxes imposed by section 56, section 531, and section 541, is not allowable as a reduction in the minimum tax base for any taxable year. Similarly, taxes imposed under section 614(c)(4) (relating to increase in tax with respect to aggregation of certain mineral interests) or under section 1351(d) (relating to recoveries of foreign expropriation losses) for any taxable year are not allowed as a reduction in the minimum tax base for such taxable year to the extent they represent chapter 1 taxes which are allowed as a reduction in a minimum tax base for an earlier taxable year for purposes of the computations under section 614(c)(4) or section 1351(d) or to the extent they represent an increase in the tax imposed by section 56, section 531, or section 541 in an earlier taxable year. [T.D. 7564, 43 FR 40466, Sept. 12, 1978. Redesignated and amended by T.D. 8138, 52 FR 15309, Apr. 28, 1987]
Title 26: Internal Revenue
PART 1—INCOME TAXES
Regulations Applicable to Taxable Years Beginning in 1969 and Ending in 1970
§ 1.56A-1 Imposition of tax.
