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TITLE 26-INTERNAL REVENUE CODE PAYMENT OF TAX SURCHARGE FOR TAXABLE YEARS ENDING BEFORE JUNE 28, 1968 Section 104(b) of Pub. L. 90-364 provided that in the case of a taxable year ending before June 28, 1968, the time prescribed for payment of tax imposed by section 51 of this title was not to expire before Sept. 15, 1968. PART VI-MINIMUM TAX FOR TAX PREFERENCES Sec. 56. Imposition of tax. 57. Items of tax preference. 58. Rules for application of this part. AMENDMENTS 1969-Pub. L. 91-172, title III, § 301(a), Dec. 30, 1969, 83 Stat. 580, added Part VI and items 56 to 58. § 56. Imposition of tax (a) General rule In addition to the other taxes imposed by this chapter, there is hereby imposed for each tax- able year, with respect to the income of every person, a tax equal to 15 percent of the amount by which the sum of the items of tax prefer- ence exceeds the greater of- (1) $10,000, or (2) the regular tax deduction for the tax- able year (as determined under subsection (c)). (b) Deferral of tax liability in case of certain net op. erating losses (1) In general If for any taxable year a person- (A) has a net operating loss any portion of which (under section 172) remains as a net operating loss carryover to a succeeding taxable year, and (B) has items of tax preference in excess of $10,000, then an amount equal to the lesser of the tax imposed by subsection (a) or 15 percent of the amount of the net operating loss carryover described in subparagraph (A) shall be treat- ed as tax liability not imposed for the taxable year, but as imposed for the succeeding tax- able year or years pursuant to paragraph (2). (2) Year of liability In any taxable year in which any portion of the net operating loss carryover attributable to the excess described in paragraph (1)(B) reduces taxable income, the amount of tax li- ability described in paragraph (1) shall be treated as tax liability imposed in such tax- able year In an amount equal to 15 percent of such reduction. (3) Priority of application For purposes of paragraph (2), if any por- tion of the net operating loss carryover de- scribed in paragraph (1)(A) is not attributable to the excess described in paragraph (1)(B), such portion shall be considered as being ap- plied in reducing taxable income before such other portion. (c) Regular tax deduction defined For purposes of this section, the term "regu- lar tax deduction" means an amount equal to one-half of (or in the case of a corporation, an amount equal to) the taxes imposed by this chapter for the taxable year (computed with- out regard to this part and without regard to the taxes Imposed by sections 72(m)(5)(B), 402(e), 408(f), 531, and 541), reduced by the sum of the credits allowable under- (1) section 33 (relating to foreign tax credit), (2) section 37 (relating to credit for the el- derly), (3) section 38 (relating to investment credit), (4) section 40 (relating to expenses of work incentive program), (5) section 41 (relating to contributions to candidates for public office), (6) section 42 (relating to general tax credit), (7) section 44 (relating to purchase of new principal residence), and (8) section 44A (relating to expenses for household and dependent care services neces- sary for gainful employment). (d) Regular tax deduction adjustment for timber In the case of a corporation, the regular tax deduction (as determined under subsection (c)) shall be reduced by an amount equal to the lesser of- (l) one-third of the amount determined under subsection (c) without regard to this subsection, or (2) the preference reduction for timber de- termined under section 57(a)(9)(C). (e) Tax carryover for timber (I) In general In the case of a corporation, if for any tax- able year, including a taxable year beginning before January 1, 1976- (A) the taxes imposed by this chapter (computed without regard to this part and without regard to the tax imposed by sec- tion 531) which, under regulations pre- scribed by the Secretary, are attributable to income from timber, reduced by the sum of the credits allowable under- (i) section 33 (relating to foreign tax credit), (ii) section 38 (relating to investment credit), and (iii) section 40 (relating to expenses of work incentive programs), exceed (B) the items of tax preference (as deter- mined under section 57), then the excess of the taxes described in subparagraph CA) over the items of tax preference shall be a tax carryover to each of the 7 taxable years following such year. The entire amount of the excess shall be carried to the first of such 7 taxable years, and then to each of the other such taxable years to the extent that such excess is not used to reduce the amount subject to tax under subsection Ca) for a prior taxable year to which such excess may be carried. (2) Limitation The amount of any carryover under para-. graph (1) which may be deducted in a taxable year shall be limited to- (A) the excess of- (i) the amount of timber preference income for the taxable year (as defined in section 57(e)), over Page 88