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credit is the sum of the following credits determined
for the taxable year:
* * * * * * *
(2) the targeted jobs credit determined
under section 51(a);
* * * * * * *
(c) Limitation Based on Amount of Tax.--
(1) In general.--The credit allowed
under subsection (a) for any taxable year
shall not exceed the excess (if any) of the
taxpayer’s net income tax over the greater
of--
(A) the tentative minimum tax
for the taxable year, or
(B) 25 percent of so much of
the taxpayer’s net regular tax
liability as exceeds $25,000.
For purposes of the preceding sentence, the
term “net income tax” means the sum of the
regular tax liability and the tax imposed by
section 55, reduced by the credits allowable
under subparts A and B of this part, and the
term “net regular tax liability” means the
regular tax liability reduced by the sum of
the credits allowable under subparts A and B
of this part.
For purposes of section 38(b)(2), the TJC generally entitles
a taxpayer such as Foods (and, by virtue of the passthrough
nature of Foods, each petitioner) to a credit equal to a
percentage of the salaries or wages (collectively, wages) which
it incurs in employing individuals described in one or more of
the targeted groups enumerated in section 51(d)(1). If the
taxpayer cannot use the full amount of a TJC on account of the
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Last modified: May 25, 2011