Repeals the 15% corporate alternative minimum tax (CAMT) that currently applies to corporations reporting more than $1 billion in average annual financial-statement income. Created by the 2022 Inflation Reduction Act, the CAMT was designed to ensure very large companies pay at least some federal tax even when deductions zero out their regular liability. Removing it would let those firms return to using the standard corporate tax calculation, and effectively narrows the alternative minimum tax to non-corporate filers only. The change would take effect for tax years beginning after December 31, 2024.
Corporate Benefits
- Largest corporations — 15% book-income minimum tax repealed
Average Household Impact
- Federal tax revenue from billion-dollar firms — Reduced going forward
Congressional Summary
Book Minimum Tax Repeal Act This bill repeals the corporate alternative minimum tax (CAMT) and makes related modifications to the general business tax credit.Under current law, a 15% CAMT is imposed on a corporation with adjusted financial statement income (also known as book income) exceeding an average of $1 billion for a consecutive three-year period (or an average of $100 million for a U.S. corporation that is part of a foreign parent multinational group if the adjusted financial statement income of such group exceeds an average of $1 billion for a consecutive three-year period). Adjusted financial statement income generally is the net income or loss reported on the corporation’s applicable financial statement for a tax year, with adjustments for specific items.The bill repeals the CAMT and modifies a related limit on the amount of general business tax credits allowed for a corporation.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-02-27
- Date Added
- 2026-05-21
- Source
- Congress.gov →
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