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adjustments that we need not detail here, and former section
59(a)(2)(A), the predecessor of the provision at issue in this
case, limited the credit to 90 percent of the precredit tentative
minimum tax liability. Therefore, no more than 90 percent of the
alternative minimum tax could be offset under former section
59(a)(1).
With changes that are not material to this case, the
alternative minimum tax provisions, as amended by the Tax Reform
Act of 1986, apply to the taxable year in issue. The current
version of section 59(a)(2)(A), the provision at issue, states as
follows:
(2) Limitation to 90 Percent of Tax.--
(A) In General.–-The alternative minimum tax
foreign tax credit for any taxable year shall not
exceed the excess (if any) of--
(i) the pre-credit tentative minimum tax for the
taxable year, over
(ii) 10 percent of the amount which would be the
pre-credit tentative minimum tax without regard to
the alterative tax net operating loss deduction
and section 57(a)(2)(E).
In 1988, during its consideration of the Technical and
Miscellaneous Revenue Act of 1988 (TAMRA), Pub. L. 100-647, 102
Stat. 3342, Congress reviewed the relationship of the Internal
Revenue Code and treaties and section 7852(d). As originally
enacted in 1954, former section 7852(d) had provided that no
provision of the Internal Revenue Code was to apply in any case
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