Roy E. and Linda Day - Page 8

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            55(c)(1).  If TMT is greater than the RIT, the TMT is the final                              
            tax liability for the taxable year.  Sec. 55(a).  If, on the                                 
            other hand, RIT exceeds the TMT, nonrefundable credits (including                            
            the section 29(a) nonconventional fuel source credit) are applied                            
            in a set order to reduce the RIT, but not below the TMT for the                              
            taxable year.  See, e.g., sec. 29(b)(5).                                                     
                  Finally, the section 53 minimum tax credit is applied                                  
            against the RIT, but again only to the extent that the RIT                                   
            exceeds the TMT.  Sec. 53(c).  Pursuant to section                                           
            53(d)(1)(B)(iii), the amount available for the minimum tax credit                            
            is increased by any section 29 credits not allowed solely by                                 
            reason of the limitation of section 29(b)(5).  The section 53                                
            minimum tax credit can be carried forward indefinitely to                                    
            subsequent taxable years and utilized to reduce regular tax to                               
            the extent it exceeds TMT in those years.  Sec. 53(a), (c).                                  
                  B.  The Tax Benefit Rule                                                               
                  Presumably since Congress recognized that it could not                                 
            envision all of the possible inequities of the minimum tax, it                               
            incorporated section 58(h), which provided a so-called Tax                                   
            Benefit Rule, as part of the add-on minimum tax system in 1976.                              
            Tax Reform Act of 1976, Pub. L. 94-455, 90 Stat. 1553.  The                                  
            section 58(h) tax benefit rule mandated that the Secretary of the                            
                  prescribe regulations under which items of tax                                         
                  preference shall be properly adjusted where the tax                                    
                  treatment giving rise to such items will not result in                                 

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