Sponsors (9)
The bill reduces taxes and compliance complexity for corporations and may increase usable tax credits, but it lowers federal revenue and creates transitional uncertainty that could push costs onto households or require future fiscal offsets.
C corporations (including many large and some mid-sized firms) will no longer be subject to the corporate alternative minimum tax, reducing their minimum federal tax liability starting in tax years after 2024.
Simplifies corporate tax compliance by removing corporate AMT computations and related adjusted financial statement income rules, lowering IRS and corporate recordkeeping and filing complexity.
May allow corporations to use more general business tax credits (by treating tentative minimum tax as zero for credit application), increasing the usable value of some credits and improving corporate tax planning flexibility.
The repeal of the corporate AMT will reduce federal corporate tax revenues, likely increasing the budget deficit unless offset by other revenue or cuts.
Lost corporate revenue may lead to future tax increases or spending cuts that shift fiscal burdens onto households, middle-class families, or beneficiaries of federal services.
Corporate taxpayers who previously paid AMT and carried credits may face altered credit treatment or timing, creating uncertainty for corporate tax planning and potentially uneven outcomes for affected firms.
Based on analysis of 2 sections of legislative text.
Eliminates the corporate alternative minimum tax and makes conforming changes so AMT applies only to noncorporate taxpayers.
Repeals the corporate alternative minimum tax (AMT) by amending multiple sections of the Internal Revenue Code so the AMT applies only to noncorporate taxpayers. The bill removes corporate AMT calculations, deletes related cross-references and special AMT provisions for corporations, and makes technical conforming changes to other code sections. The changes take effect for taxable years beginning after December 31, 2024. The repeal affects corporate tax computations, corporate interactions with the general business credit and estimated tax penalty rules, and several cross-referenced code provisions; it requires IRS and taxpayer adjustments to reflect the elimination of the corporate AMT framework.
Official title: Amend the Internal Revenue Code of 1986 to repeal the corporate alternative minimum tax.
Introduced February 27, 2025 by John A. Barrasso · Last progress February 27, 2025