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the alternative minimum tax. Unfortunately for the Holloways,
this section wasn’t added to the Code in its present form until
2004, and applies only to tax years ending after October 22,
2004.8 Even if it were effective for the 2002 tax year, it
applies to only certain tax credits, and neither the section 29
nor 43 credit is among them. Sec. 38(c)(4)(B) (2006).
Section 55(e)(1). This section eliminates alternative
minimum tax liability for corporations with gross receipts under
$7.5 million. But it applies only to corporations subject to
taxation. Holloway, Inc. is an S Corporation, and so doesn’t pay
taxes itself. Its taxable income is also generally calculated as
if it were an individual, not a regular corporation. Sec.
1363(a) and (b). This special rule just doesn’t apply to it.
We therefore hold that the Commissioner was correct in
allowing the Holloways to take only a portion of their credit,
and so
Decision will be entered
for respondent.
8 American Jobs Creation Act of 2004, Pub. L. 108-357, sec.
711(a), (c), 118 Stat. 1418, 1557-1558.
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