26 U.S.C. § 56 : US Code - Section 56: Adjustments in computing alternative minimum taxable income

    (a) Adjustments applicable to all taxpayers
      In determining the amount of the alternative minimum taxable
    income for any taxable year the following treatment shall apply (in
    lieu of the treatment applicable for purposes of computing the
    regular tax):
      (1) Depreciation
        (A) In general
          (i) Property other than certain personal property
            Except as provided in clause (ii), the depreciation
          deduction allowable under section 167 with respect to any
          tangible property placed in service after December 31, 1986,
          shall be determined under the alternative system of section
          168(g). In the case of property placed in service after
          December 31, 1998, the preceding sentence shall not apply but
          clause (ii) shall continue to apply.
          (ii) 150-percent declining balance method for certain
            property
            The method of depreciation used shall be - 
              (I) the 150 percent declining balance method,
              (II) switching to the straight line method for the 1st
            taxable year for which using the straight line method with
            respect to the adjusted basis as of the beginning of the
            year will yield a higher allowance.

          The preceding sentence shall not apply to any section 1250
          property (as defined in section 1250(c)) (and the straight
          line method shall be used for such section 1250 property) or
          to any other property if the depreciation deduction
          determined under section 168 with respect to such other
          property for purposes of the regular tax is determined by
          using the straight line method.
        (B) Exception for certain property
          This paragraph shall not apply to property described in
        paragraph (1), (2), (3), or (4) of section 168(f), or in
        section 168(e)(3)(C)(iv).
        (C) Coordination with transitional rules
          (i) In general
            This paragraph shall not apply to property placed in
          service after December 31, 1986, to which the amendments made
          by section 201 of the Tax Reform Act of 1986 do not apply by
          reason of section 203, 204, or 251(d) of such Act.
          (ii) Treatment of certain property placed in service before
            1987
            This paragraph shall apply to any property to which the
          amendments made by section 201 of the Tax Reform Act of 1986
          apply by reason of an election under section 203(a)(1)(B) of
          such Act without regard to the requirement of subparagraph
          (A) that the property be placed in service after December 31,
          1986.
        (D) Normalization rules
          With respect to public utility property described in section
        168(i)(10), the Secretary shall prescribe the requirements of a
        normalization method of accounting for this section.
      (2) Mining exploration and development costs
        (A) In general
          With respect to each mine or other natural deposit (other
        than an oil, gas, or geothermal well) of the taxpayer, the
        amount allowable as a deduction under section 616(a) or 617(a)
        (determined without regard to section 291(b)) in computing the
        regular tax for costs paid or incurred after December 31, 1986,
        shall be capitalized and amortized ratably over the 10-year
        period beginning with the taxable year in which the
        expenditures were made.
        (B) Loss allowed
          If a loss is sustained with respect to any property described
        in subparagraph (A), a deduction shall be allowed for the
        expenditures described in subparagraph (A) for the taxable year
        in which such loss is sustained in an amount equal to the
        lesser of - 
            (i) the amount allowable under section 165(a) for the
          expenditures if they had remained capitalized, or
            (ii) the amount of such expenditures which have not
          previously been amortized under subparagraph (A).
      (3) Treatment of certain long-term contracts
        In the case of any long-term contract entered into by the
      taxpayer on or after March 1, 1986, the taxable income from such
      contract shall be determined under the percentage of completion
      method of accounting (as modified by section 460(b)). For
      purposes of the preceding sentence, in the case of a contract
      described in section 460(e)(1), the percentage of the contract
      completed shall be determined under section 460(b)(1) by using
      the simplified procedures for allocation of costs prescribed
      under section 460(b)(3). The first sentence of this paragraph
      shall not apply to any home construction contract (as defined in
      section 460(e)(6)).
      (4) Alternative tax net operating loss deduction
        The alternative tax net operating loss deduction shall be
      allowed in lieu of the net operating loss deduction allowed under
      section 172.
      (5) Pollution control facilities
        In the case of any certified pollution control facility placed
      in service after December 31, 1986, the deduction allowable under
      section 169 (without regard to section 291) shall be determined
      under the alternative system of section 168(g). In the case of
      such a facility placed in service after December 31, 1998, such
      deduction shall be determined under section 168 using the
      straight line method.
      (6) Adjusted basis
        The adjusted basis of any property to which paragraph (1) or
      (5) applies (or with respect to which there are any expenditures
      to which paragraph (2) or subsection (b)(2) applies) shall be
      determined on the basis of the treatment prescribed in paragraph
      (1), (2), or (5), or subsection (b)(2), whichever applies.
      (7) Section 87 not applicable
        Section 87 (relating to alcohol fuel credit) shall not apply.
    (b) Adjustments applicable to individuals
      In determining the amount of the alternative minimum taxable
    income of any taxpayer (other than a corporation), the following
    treatment shall apply (in lieu of the treatment applicable for
    purposes of computing the regular tax):
      (1) Limitation on deductions
        (A) In general
          No deduction shall be allowed - 
            (i) for any miscellaneous itemized deduction (as defined in
          section 67(b)), or
            (ii) for any taxes described in paragraph (1), (2), or (3)
          of section 164(a) or clause (ii) of section 164(b)(5)(A).

        Clause (ii) shall not apply to any amount allowable in
        computing adjusted gross income.
        (B) Medical expenses
          In determining the amount allowable as a deduction under
        section 213, subsection (a) of section 213 shall be applied by
        substituting "10 percent" for "7.5 percent".
        (C) Interest
          In determining the amount allowable as a deduction for
        interest, subsections (d) and (h) of section 163 shall apply,
        except that - 
            (i) in lieu of the exception under section 163(h)(2)(D),
          the term "personal interest" shall not include any qualified
          housing interest (as defined in subsection (e)),
            (ii) sections 163(d)(6) and 163(h)(5) (relating to phase-
          ins) shall not apply,
            (iii) interest on any specified private activity bond (and
          any amount treated as interest on a specified private
          activity bond under section 57(a)(5)(B)), and any deduction
          referred to in section 57(a)(5)(A), shall be treated as
          includible in gross income (or as deductible) for purposes of
          applying section 163(d),
            (iv) in lieu of the exception under section
          163(d)(3)(B)(i), the term "investment interest" shall not
          include any qualified housing interest (as defined in
          subsection (e)), and
            (v) the adjustments of this section and sections 57 and 58
          shall apply in determining net investment income under
          section 163(d).
        (D) Treatment of certain recoveries
          No recovery of any tax to which subparagraph (A)(ii) applied
        shall be included in gross income for purposes of determining
        alternative minimum taxable income.
        (E) Standard deduction and deduction for personal exemptions
          not allowed
          The standard deduction under section 63(c), the deduction for
        personal exemptions under section 151, and the deduction under
        section 642(b) shall not be allowed. The preceding sentence
        shall not apply to so much of the standard deduction as is
        determined under subparagraphs (D) and (E) of section 63(c)(1).
        (F) Section 68 not applicable
          Section 68 shall not apply.
      (2) Circulation and research and experimental expenditures
        (A) In general
          The amount allowable as a deduction under section 173 or
        174(a) in computing the regular tax for amounts paid or
        incurred after December 31, 1986, shall be capitalized and - 
            (i) in the case of circulation expenditures described in
          section 173, shall be amortized ratably over the 3-year
          period beginning with the taxable year in which the
          expenditures were made, or
            (ii) in the case of research and experimental expenditures
          described in section 174(a), shall be amortized ratably over
          the 10-year period beginning with the taxable year in which
          the expenditures were made.
        (B) Loss allowed
          If a loss is sustained with respect to any property described
        in subparagraph (A), a deduction shall be allowed for the
        expenditures described in subparagraph (A) for the taxable year
        in which such loss is sustained in an amount equal to the
        lesser of - 
            (i) the amount allowable under section 165(a) for the
          expenditures if they had remained capitalized, or
            (ii) the amount of such expenditures which have not
          previously been amortized under subparagraph (A).
        (C) Special rule for personal holding companies
          In the case of circulation expenditures described in section
        173, the adjustments provided in this paragraph shall apply
        also to a personal holding company (as defined in section 542).
        (D) Exception for certain research and experimental
          expenditures
          If the taxpayer materially participates (within the meaning
        of section 469(h)) in an activity, this paragraph shall not
        apply to any amount allowable as a deduction under section
        174(a) for expenditures paid or incurred in connection with
        such activity.
      (3) Treatment of incentive stock options
        Section 421 shall not apply to the transfer of stock acquired
      pursuant to the exercise of an incentive stock option (as defined
      in section 422). Section 422(c)(2) shall apply in any case where
      the disposition and the inclusion for purposes of this part are
      within the same taxable year and such section shall not apply in
      any other case. The adjusted basis of any stock so acquired shall
      be determined on the basis of the treatment prescribed by this
      paragraph.
    (c) Adjustments applicable to corporations
      In determining the amount of the alternative minimum taxable
    income of a corporation, the following treatment shall apply:
      (1) Adjustment for adjusted current earnings
        Alternative minimum taxable income shall be adjusted as
      provided in subsection (g).
      (2) Merchant marine capital construction funds
        In the case of a capital construction fund established under
      chapter 535 of title 46, United States Code - 
          (A) subparagraphs (A), (B), and (C) of section 7518(c)(1)
        (and the corresponding provisions of such chapter 535) shall
        not apply to - 
            (i) any amount deposited in such fund after December 31,
          1986, or
            (ii) any earnings (including gains and losses) after
          December 31, 1986, on amounts in such fund, and

          (B) no reduction in basis shall be made under section 7518(f)
        (or the corresponding provisions of such chapter 535) with
        respect to the withdrawal from the fund of any amount to which
        subparagraph (A) applies.

      For purposes of this paragraph, any withdrawal of deposits or
      earnings from the fund shall be treated as allocable first to
      deposits made before (and earnings received or accrued before)
      January 1, 1987.
      (3) Special deduction for certain organizations not allowed
        The deduction determined under section 833(b) shall not be
      allowed.
    (d) Alternative tax net operating loss deduction defined
      (1) In general
        For purposes of subsection (a)(4), the term "alternative tax
      net operating loss deduction" means the net operating loss
      deduction allowable for the taxable year under section 172,
      except that - 
          (A) the amount of such deduction shall not exceed the sum of -
         
            (i) the lesser of - 
              (I) the amount of such deduction attributable to net
            operating losses (other than the deduction described in
            clause (ii)(I)), or
              (II) 90 percent of alternative minimum taxable income
            determined without regard to such deduction and the
            deduction under section 199, plus

            (ii) the lesser of - 
              (I) the amount of such deduction attributable to an
            applicable net operating loss with respect to which an
            election is made under section 172(b)(1)(H), or
              (II) alternative minimum taxable income determined
            without regard to such deduction and the deduction under
            section 199 reduced by the amount determined under clause
            (i), and

          (B) in determining the amount of such deduction - 
            (i) the net operating loss (within the meaning of section
          172(c)) for any loss year shall be adjusted as provided in
          paragraph (2), and
            (ii) appropriate adjustments in the application of section
          172(b)(2) shall be made to take into account the limitation
          of subparagraph (A).
      (2) Adjustments to net operating loss computation
        (A) Post-1986 loss years
          In the case of a loss year beginning after December 31, 1986,
        the net operating loss for such year under section 172(c) shall
        - 
            (i) be determined with the adjustments provided in this
          section and section 58, and
            (ii) be reduced by the items of tax preference determined
          under section 57 for such year.

        An item of tax preference shall be taken into account under
        clause (ii) only to the extent such item increased the amount
        of the net operating loss for the taxable year under section
        172(c).
        (B) Pre-1987 years
          In the case of loss years beginning before January 1, 1987,
        the amount of the net operating loss which may be carried over
        to taxable years beginning after December 31, 1986, for
        purposes of paragraph (2), shall be equal to the amount which
        may be carried from the loss year to the first taxable year of
        the taxpayer beginning after December 31, 1986.
      (3) Net operating loss attributable to federally declared
        disasters
        In the case of a taxpayer which has a qualified disaster loss
      (as defined by section 172(b)(1)(J)) for the taxable year,
      paragraph (1) shall be applied by increasing the amount
      determined under subparagraph (A)(ii)(I) thereof by the sum of
      the carrybacks and carryovers of such loss.
    (e) Qualified housing interest
      For purposes of this part - 
      (1) In general
        The term "qualified housing interest" means interest which is
      qualified residence interest (as defined in section 163(h)(3))
      and is paid or accrued during the taxable year on indebtedness
      which is incurred in acquiring, constructing, or substantially
      improving any property which - 
          (A) is the principal residence (within the meaning of section
        121) of the taxpayer at the time such interest accrues, or
          (B) is a qualified dwelling which is a qualified residence
        (within the meaning of section 163(h)(4)).

      Such term also includes interest on any indebtedness resulting
      from the refinancing of indebtedness meeting the requirements of
      the preceding sentence; but only to the extent that the amount of
      the indebtedness resulting from such refinancing does not exceed
      the amount of the refinanced indebtedness immediately before the
      refinancing.
      (2) Qualified dwelling
        The term "qualified dwelling" means any - 
          (A) house,
          (B) apartment,
          (C) condominium, or
          (D) mobile home not used on a transient basis (within the
        meaning of section 7701(a)(19)(C)(v)),

      including all structures or other property appurtenant thereto.
      (3) Special rule for indebtedness incurred before July 1, 1982
        The term "qualified housing interest" includes interest which
      is qualified residence interest (as defined in section 163(h)(3))
      and is paid or accrued on indebtedness which - 
          (A) was incurred by the taxpayer before July 1, 1982, and
          (B) is secured by property which, at the time such
        indebtedness was incurred, was - 
            (i) the principal residence (within the meaning of section
          121) of the taxpayer, or
            (ii) a qualified dwelling used by the taxpayer (or any
          member of his family (within the meaning of section
          267(c)(4))).
    [(f) Repealed. Pub. L. 101-508, title XI, Sec. 11801(a)(3), Nov. 5,
      1990, 104 Stat. 1388-520]
    (g) Adjustments based on adjusted current earnings
      (1) In general
        The alternative minimum taxable income of any corporation for
      any taxable year shall be increased by 75 percent of the excess
      (if any) of - 
          (A) the adjusted current earnings of the corporation, over
          (B) the alternative minimum taxable income (determined
        without regard to this subsection and the alternative tax net
        operating loss deduction).
      (2) Allowance of negative adjustments
        (A) In general
          The alternative minimum taxable income for any corporation of
        any taxable year, shall be reduced by 75 percent of the excess
        (if any) of - 
            (i) the amount referred to in subparagraph (B) of paragraph
          (1), over
            (ii) the amount referred to in subparagraph (A) of
          paragraph (1).
        (B) Limitation
          The reduction under subparagraph (A) for any taxable year
        shall not exceed the excess (if any) of - 
            (i) the aggregate increases in alternative minimum taxable
          income under paragraph (1) for prior taxable years, over
            (ii) the aggregate reductions under subparagraph (A) of
          this paragraph for prior taxable years.
      (3) Adjusted current earnings
        For purposes of this subsection, the term "adjusted current
      earnings" means the alternative minimum taxable income for the
      taxable year - 
          (A) determined with the adjustments provided in paragraph
        (4), and
          (B) determined without regard to this subsection and the
        alternative tax net operating loss deduction.
      (4) Adjustments
        In determining adjusted current earnings, the following
      adjustments shall apply:
        (A) Depreciation
          (i) Property placed in service after 1989
            The depreciation deduction with respect to any property
          placed in service in a taxable year beginning after 1989
          shall be determined under the alternative system of section
          168(g). The preceding sentence shall not apply to any
          property placed in service after December 31, 1993, and the
          depreciation deduction with respect to such property shall be
          determined under the rules of subsection (a)(1)(A).
          (ii) Property to which new ACRS system applies
            In the case of any property to which the amendments made by
          section 201 of the Tax Reform Act of 1986 apply and which is
          placed in service in a taxable year beginning before 1990,
          the depreciation deduction shall be determined - 
              (I) by taking into account the adjusted basis of such
            property (as determined for purposes of computing
            alternative minimum taxable income) as of the close of the
            last taxable year beginning before January 1, 1990, and
              (II) by using the straight-line method over the remainder
            of the recovery period applicable to such property under
            the alternative system of section 168(g).
          (iii) Property to which original ACRS system applies
            In the case of any property to which section 168 (as in
          effect on the day before the date of the enactment of the Tax
          Reform Act of 1986 and without regard to subsection
          (d)(1)(A)(ii) thereof) applies and which is placed in service
          in a taxable year beginning before 1990, the depreciation
          deduction shall be determined - 
              (I) by taking into account the adjusted basis of such
            property (as determined for purposes of computing the
            regular tax) as of the close of the last taxable year
            beginning before January 1, 1990, and
              (II) by using the straight line method over the remainder
            of the recovery period which would apply to such property
            under the alternative system of section 168(g).
          (iv) Property placed in service before 1981
            In the case of any property not described in clause (i),
          (ii), or (iii), the amount allowable as depreciation or
          amortization with respect to such property shall be
          determined in the same manner as for purposes of computing
          taxable income.
          (v) Special rule for certain property
            In the case of any property described in paragraph (1),
          (2), (3), or (4) of section 168(f), the amount of
          depreciation allowable for purposes of the regular tax shall
          be treated as the amount allowable under the alternative
          system of section 168(g).
        (B) Inclusion of items included for purposes of computing
          earnings and profits
          (i) In general
            In the case of any amount which is excluded from gross
          income for purposes of computing alternative minimum taxable
          income but is taken into account in determining the amount of
          earnings and profits - 
              (I) such amount shall be included in income in the same
            manner as if such amount were includible in gross income
            for purposes of computing alternative minimum taxable
            income, and
              (II) the amount of such income shall be reduced by any
            deduction which would have been allowable in computing
            alternative minimum taxable income if such amount were
            includible in gross income.

          The preceding sentence shall not apply in the case of any
          amount excluded from gross income under section 108 (or the
          corresponding provisions of prior law) or under section 139A
          or 1357. In the case of any insurance company taxable under
          section 831(b), this clause shall not apply to any amount not
          described in section 834(b).
          (ii) Inclusion of buildup in life insurance contracts
            In the case of any life insurance contract - 
              (I) the income on such contract (as determined under
            section 7702(g)) for any taxable year shall be treated as
            includible in gross income for such year, and
              (II) there shall be allowed as a deduction that portion
            of any premium which is attributable to insurance coverage.
          (iii) Tax exempt interest on certain housing bonds
            Clause (i) shall not apply in the case of any interest on a
          bond to which section 57(a)(5)(C)(iii) applies.
          (iv) Tax exempt interest on bonds issued in 2009 and 2010
            (I) In general
              Clause (i) shall not apply in the case of any interest on
            a bond issued after December 31, 2008, and before January
            1, 2011.
            (II) Treatment of refunding bonds
              For purposes of subclause (I), a refunding bond (whether
            a current or advance refunding) shall be treated as issued
            on the date of the issuance of the refunded bond (or in the
            case of a series of refundings, the original bond).
            (III) Exception for certain refunding bonds
              Subclause (II) shall not apply to any refunding bond
            which is issued to refund any bond which was issued after
            December 31, 2003, and before January 1, 2009.
        (C) Disallowance of items not deductible in computing earnings
          and profits
          (i) In general
            A deduction shall not be allowed for any item if such item
          would not be deductible for any taxable year for purposes of
          computing earnings and profits.
          (ii) Special rule for certain dividends
            (I) In general
              Clause (i) shall not apply to any deduction allowable
            under section 243 or 245 for any dividend which is a 100-
            percent dividend or which is received from a 20-percent
            owned corporation (as defined in section 243(c)(2)), but
            only to the extent such dividend is attributable to income
            of the paying corporation which is subject to tax under
            this chapter (determined after the application of sections
            30A, 936 (including subsections (a)(4), (i), and (j)
            thereof) and 921 (as in effect before its repeal by the FSC
            Repeal and Extraterritorial Income Exclusion Act of 2000)).
            (II) 100-percent dividend
              For purposes of subclause (I), the term "100 percent
            dividend" means any dividend if the percentage used for
            purposes of determining the amount allowable as a deduction
            under section 243 or 245 with respect to such dividend is
            100 percent.
          (iii) Treatment of taxes on dividends from 936 corporations
            (I) In general
              For purposes of determining the alternative minimum
            foreign tax credit, 75 percent of any withholding or income
            tax paid to a possession of the United States with respect
            to dividends received from a corporation eligible for the
            credit provided by section 936 shall be treated as a tax
            paid to a foreign country by the corporation receiving the
            dividend.
            (II) Limitation
              If the aggregate amount of the dividends referred to in
            subclause (I) for any taxable year exceeds the excess
            referred to in paragraph (1), the amount treated as tax
            paid to a foreign country under subclause (I) shall not
            exceed the amount which would be so treated without regard
            to this subclause multiplied by a fraction the numerator of
            which is the excess referred to in paragraph (1) and the
            denominator of which is the aggregate amount of such
            dividends.
            (III) Treatment of taxes imposed on 936 corporation
              For purposes of this clause, taxes paid by any
            corporation eligible for the credit provided by section 936
            to a possession of the United States shall be treated as a
            withholding tax paid with respect to any dividend paid by
            such corporation to the extent such taxes would be treated
            as paid by the corporation receiving the dividend under
            rules similar to the rules of section 902 (and the amount
            of any such dividend shall be increased by the amount so
            treated).
            (IV) Separate application of foreign tax credit limitations
              In determining the alternative minimum foreign tax
            credit, section 904(d) shall be applied as if dividends
            from a corporation eligible for the credit provided by
            section 936 were a separate category of income referred to
            in a subparagraph of section 904(d)(1).
            (V) Coordination with limitation on 936 credit
              Any reference in this clause to a dividend received from
            a corporation eligible for the credit provided by section
            936 shall be treated as a reference to the portion of any
            such dividend for which the dividends received deduction is
            disallowed under clause (i) after the application of clause
            (ii)(I).
            (VI) Application to section 30A corporations
              References in this clause to section 936 shall be treated
            as including references to section 30A.
          (iv) Special rule for certain dividends received by certain
            cooperatives
            In the case of an organization to which part I of
          subchapter T (relating to tax treatment of cooperatives)
          applies which is engaged in the marketing of agricultural or
          horticultural products, clause (i) shall not apply to any
          amount allowable as a deduction under section 245(c).
          (v) Deduction for domestic production
            Clause (i) shall not apply to any amount allowable as a
          deduction under section 199.
          (vi) Special rule for certain distributions from controlled
            foreign corporations
            Clause (i) shall not apply to any deduction allowable under
          section 965.
        (D) Certain other earnings and profits adjustments
          (i) Intangible drilling costs
            The adjustments provided in section 312(n)(2)(A) shall
          apply in the case of amounts paid or incurred in taxable
          years beginning after December 31, 1989. In the case of a
          taxpayer other than an integrated oil company (as defined in
          section 291(b)(4)), in the case of any oil or gas well, this
          clause shall not apply in the case of amounts paid or
          incurred in taxable years beginning after December 31, 1992.
          (ii) Certain amortization provisions not to apply
            Sections 173 and 248 shall not apply to expenditures paid
          or incurred in taxable years beginning after December 31,
          1989.
          (iii) LIFO inventory adjustments
            The adjustments provided in section 312(n)(4) shall apply,
          but only with respect to taxable years beginning after
          December 31, 1989.
          (iv) Installment sales
            In the case of any installment sale in a taxable year
          beginning after December 31, 1989, adjusted current earnings
          shall be computed as if the corporation did not use the
          installment method. The preceding sentence shall not apply to
          the applicable percentage (as determined under section 453A)
          of the gain from any installment sale with respect to which
          section 453A(a)(1) applies.
        (E) Disallowance of loss on exchange of debt pools
          No loss shall be recognized on the exchange of any pool of
        debt obligations for another pool of debt obligations having
        substantially the same effective interest rates and maturities.
        (F) Depletion
          (i) In general
            The allowance for depletion with respect to any property
          placed in service in a taxable year beginning after December
          31, 1989, shall be cost depletion determined under section
          611.
          (ii) Exception for independent oil and gas producers and
            royalty owners
            In the case of any taxable year beginning after December
          31, 1992, clause (i) (and subparagraph (C)(i)) shall not
          apply to any deduction for depletion computed in accordance
          with section 613A(c).
        (G) Treatment of certain ownership changes
          If - 
            (i) there is an ownership change (within the meaning of
          section 382) in a taxable year beginning after 1989 with
          respect to any corporation, and
            (ii) there is a net unrealized built-in loss (within the
          meaning of section 382(h)) with respect to such corporation,

        then the adjusted basis of each asset of such corporation
        (immediately after the ownership change) shall be its
        proportionate share (determined on the basis of respective fair
        market values) of the fair market value of the assets of such
        corporation (determined under section 382(h)) immediately
        before the ownership change.
        (H) Adjusted basis
          The adjusted basis of any property with respect to which an
        adjustment under this paragraph applies shall be determined by
        applying the treatment prescribed in this paragraph.
        (I) Treatment of charitable contributions
          Notwithstanding subparagraphs (B) and (C), no adjustment
        related to the earnings and profits effects of any charitable
        contribution shall be made in computing adjusted current
        earnings.
      (5) Other definitions
        For purposes of paragraph (4) - 
        (A) Earnings and profits
          The term "earnings and profits" means earnings and profits
        computed for purposes of subchapter C.
        (B) Treatment of alternative minimum taxable income
          The treatment of any item for purposes of computing
        alternative minimum taxable income shall be determined without
        regard to this subsection.
      (6) Exception for certain corporations
        This subsection shall not apply to any S corporation, regulated
      investment company, real estate investment trust, or REMIC.