### Question
How is the "net income tax" means the sum of the regular tax liability and the tax imposed by section 55, reduced by the credits allowable under subparts A and B of this part, and the term "net regular tax liability" defined?


### Answer
The term **net income tax" means the sum of the regular tax liability and the tax imposed by section 55, reduced by the credits allowable under subparts A and B of this part, and the term "net regular tax liability** is defined in *26 U.S.C. § 38* as follows -

> the regular tax liability reduced by the sum of the credits allowable under subparts A and B of this part

#### Citation:
  - *26 U.S.C. § 38*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

