Credit for Prior Year Minimum Tax

Credit for Prior Year Minimum Tax means:
a credit or other debt instrument against regular income tax liability allowed for alternative minimum tax paid in a previous year. The credit is generally the amount of tax paid, reduced by the portion that was generated by the following exclusion items:

• standard deduction.

• medical expense deduction.

• taxes-paid deduction.

• interest expense deduction.

• appreciated property charitable deduction (before July 1992).

• miscellaneous itemized deductions.

• tax-exempt interest income from private activity bonds.

• depletion.

The credit is increased by an unallowed credit for fuel from a nonconventional source and orphan drugs credit.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.