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limitation set forth in section 38(c), the taxpayer may carry the
unused portion either back or forward in accordance with section
39. In the case of an individual taxpayer, the taxpayer may
deduct any portion of a TJC that has not been used as of the time
that: (1) The carryforward period of section 39(a) expires or
(2) the taxpayer dies. See sec. 196.
The right to apply a TJC, however, does not come without
limitation. As relevant herein, section 280C(a) provides that
“No deduction shall be allowed for that portion of the wages or
salaries paid or incurred for the taxable year which is equal to
the sum of the credits determined for the taxable year under
sections 45A(a), 51(a) and 1396(a).” Thus, under section
280C(a), a taxpayer may not deduct the portion of wages incurred
for the taxable year equal to the TJC determined for that year.
A taxpayer, however, may forgo the disallowed deduction by
electing not to determine a TJC for that year. Sec. 51(j).
Petitioners concede that they are subject to section 280C(a)
for purposes of their regular tax liability. They assert,
however, that section 280C(a) is inapplicable in the calculation
of AMTI. We disagree. We read nothing in section 38, 51, or
280C that would lead us to conclude that section 280C(a) does not
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