The general business credit may not exceed the net income tax minus the greater of the tentative minimum tax or
A)20% of the net regular tax liability above $20,000.
B)25% of the net regular tax liability above $20,000.
C)20% of the net regular tax liability above $25,000.
D)25% of the net regular tax liability above $25,000.

Question

Quizplus · Accepted Answer

The general business credit limitation is calculated as the net income tax minus the greater of the tentative minimum tax or 25% of the net regular tax liability above $25,000.

The General Business Credit May Not Exceed the Net Income