### Question
How is the term net income tax defined?


### Answer
The term **net income tax** is defined in *26 U.S.C. § 965* as the following:

> the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A

#### Citation:
  - *26 U.S.C. § 965*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart F-Controlled Foreign Corporations**

