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Repeals the corporate alternative minimum tax (AMT) and restructures the AMT so it applies only to non‑corporate taxpayers. The bill sets new AMT rate brackets of 26% and 28% for non‑corporate taxpayers, defines key AMT terms and adjustments, treats corporations as having a tentative minimum tax of zero for certain credit calculations, makes multiple conforming amendments across the tax code, and takes effect for taxable years beginning after December 31, 2024.
The bill simplifies AMT rules and substantially reduces corporate AMT burdens—improving predictability and corporate cash flow—while risking lower federal revenue and shifting some tax benefits toward C corporations, which could raise taxes for some non‑corporate taxpayers and disadvantage certain small pass‑through businesses.
Many individual taxpayers and pass-through entities (partnerships, S corporations) get a clearer AMT structure with defined 26%/28% brackets, making liability calculations more predictable and reducing long‑run compliance uncertainty.
The corporate AMT is eliminated and corporations are treated as having zero tentative minimum tax for general business credit purposes, lowering corporate tax burdens, improving corporate cash flow, and simplifying corporate tax compliance.
Conforming amendments and removal of cross‑references reduce complexity in the Code, lowering compliance costs over time for taxpayers and preparers.
Eliminating the corporate AMT could reduce federal revenues, increasing deficits or necessitating spending cuts or other tax increases that would affect all Americans.
Some non‑corporate taxpayers (individuals, partnerships, S corporations) may face higher AMT liability under the new taxable excess definition and adjusted preference rules, increasing their tax bills.
Treating corporations as having zero tentative minimum tax for credit purposes may shift tax benefits toward C corporations and away from smaller pass‑through businesses, disadvantaging some small-business owners.
Introduced February 27, 2025 by John A. Barrasso · Last progress February 27, 2025