### Question
What does applicable tax limit mean?


### Answer
**Applicable tax limit** has the following meaning 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 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**

