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not to apply the plain meaning of section 55 and to adopt the de
novo computation of AMTI advanced by petitioners. Respondent
asserts that the Commissioner has “generally” set forth in his
rulings the rationale that the AMT regime is “separate from but
parallel to” the regular tax regime. Respondent observes that
the phrase “separate from but parallel to” does not appear in the
explanation section of any of the committee reports underlying
the Tax Reform Act of 1986 (1986 Act), Pub. L. 99-514, 100 Stat.
2085, but that it does appear twice in the “present law” sections
of the conference report. The conferees used the phrase to
explain the pre-1986 treatment of the carryover of AMT net
operating losses (NOLs) and AMT foreign tax credits (FTCs). The
conferees stated that the present law applicable to individuals
applied the AMT provisions on NOLs and FTCs in the following
manner:
Present Law
NOLs are allowed against alternative minimum
taxable income. For years after 1982, minimum tax NOLs
are reduced by the items of tax preference. Minimum
tax NOLs are carried over under a system separate from
but parallel to that applying for regular tax purposes.
[H. Conf. Rept. 99-841 (Vol. II), at II-262 (1986),
1986-3 C.B. (Vol. 4) 250, 262.]
Present Law
Foreign tax credits are allowed against the
minimum tax, under limits similar to those applying
under the regular tax. Credits that cannot be used in
the current taxable year because of these limits are
carried over under a system separate from but parallel
to that applying for regular tax purposes. [H. Conf.
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