### 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 section 23)

#### 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**

