Sponsors (9)
The bill eliminates the corporate AMT to lower taxes and simplify compliance for C corporations and increase credit usability, but it reduces federal revenue and creates potential distributional effects, planning uncertainty, and short‑term administrative burdens.
C corporations will no longer be subject to the corporate alternative minimum tax (AMT), lowering their minimum federal tax liability beginning in tax years after 2024.
Corporations may be able to use more general business tax credits because the tentative minimum tax is treated as zero for credit application, potentially increasing usable credits and improving after‑tax returns.
Removal of the corporate AMT and related adjusted financial statement income rules simplifies corporate tax compliance and reduces recordkeeping and filing complexity for firms and the IRS.
Lower corporate tax liabilities will reduce federal revenue and likely increase the federal budget deficit compared with current law.
Lost corporate revenue could lead to higher taxes on other taxpayers or cuts to government services in the future, shifting the tax burden onto households and middle‑class families.
Corporations that previously paid AMT and carried credits may face altered credit treatment or timing, creating uncertainty for corporate tax planning and financial forecasting.
Based on analysis of 2 sections of legislative text.
Eliminates the corporate alternative minimum tax and removes related corporate AMT computations and cross-references in the tax code.
Introduced February 27, 2025 by John A. Barrasso · Last progress February 27, 2025
Repeals the corporate alternative minimum tax (AMT) by removing corporate AMT rules and related references from the Internal Revenue Code and by changing several tax-code cross-references and credit calculations. The legislation treats corporations as having a tentative minimum tax of zero for purposes of the general business credit and removes provisions tied to corporate AMT, with changes effective for taxable years beginning after December 31, 2024. The repeal alters how corporations compute certain credits and penalties, deletes the separate corporate AMT computations and the adjusted financial statement income rules tied to AMT, and updates multiple code sections to conform to the removal of corporate AMT. The IRS and corporate tax filers will need to apply the modified statutory references and new tentative-minimum-tax treatment starting in the first taxable year after 2024.