[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.56A-1]

[Page 471-472]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.56A-1  Imposition of tax.

    (a) In general. Section 56(a) imposes an income tax on the items of 
tax preference (as defined in Sec. 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

[[Page 472]]

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 
Sec. 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 
Sec. 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]