Minimum Tax Credit

Minimum Tax Credit means:
a credit or other debt instrument allowed for the adjusted net minimum tax paid in a prior year, against the regular tax liability for the current year.

For individuals, the adjusted net minimum tax is the alternative minimum tax reduced by the tax on exclusion-type preferences and adjustments. Exclusion-type preferences include depletion, and tax-exempt interest on private activity bonds. Exclusion-type adjustments include the standard deduction, itemized deductions, and personal exemptions.

For both corporations and individuals, the minimum tax credit is increased by the credit for fuel from a nonconventional source and the orphan drugs credit, previously disallowed because of alternative minimum tax limitations.

See Tax exemption and Tax exemption.