### Question
Can you define what applicable tax limit means?


### Answer
**Applicable tax limit** is defined as the following in *26 U.S.C. § 25*:

> 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)

#### 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**

