Part III Credits That Reduce Tax

Business Credit Limitation – For taxable years beginning on or after January 1, 2024, and before January 1, 2027, there is a $5,000,000 limitation on the application of business credits. The total of all business credits including the carryover of any credit for the taxable year may not reduce the “net tax” by more than $5,000,000.

The credit for prior year AMT is not subject to the credit limitation.