### Question
How is the "applicable tax limit" defined?


### Answer
The term **applicable tax limit** is defined in *26 U.S.C. § 25* as follows -

> the limitation imposed by section 26(a) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 25D, and 1400C)

#### Citation:
  - *26 U.S.C. § 25*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart A-Nonrefundable Personal Credits**

