Official Summaries

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.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 796 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 796

  To amend the Internal Revenue Code of 1986 to repeal the corporate 
                        alternative minimum tax.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2025

 Mr. Barrasso (for himself, Mr. Crapo, Mr. Lankford, Mr. Cassidy, Mr. 
   Daines, Mrs. Blackburn, Mr. Ricketts, Mr. Risch, and Ms. Lummis) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to repeal the corporate 
                        alternative minimum tax.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Book Minimum Tax Repeal Act''.

SEC. 2. REPEAL OF CORPORATE ALTERNATIVE MINIMUM TAX.

    (a) In General.--Section 55 of the Internal Revenue Code of 1986 is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``There'' and inserting ``In the 
                case of a taxpayer other than a corporation, there'', 
                and
                    (B) by striking ``plus, in the case of an 
                applicable corporation, the tax imposed by section 
                59A'' in paragraph (2), and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Tentative Minimum Tax.--
            ``(1) Amount of tentative minimum tax.--
                    ``(A) In general.--The tentative minimum tax for 
                the taxable year is the sum of--
                            ``(i) 26 percent of so much of the taxable 
                        excess as does not exceed $175,000, plus
                            ``(ii) 28 percent of so much of the taxable 
                        excess as exceeds $175,000.
                The amount determined under the preceding sentence 
                shall be reduced by the alternative minimum tax foreign 
                tax credit for the taxable year.
                    ``(B) Taxable excess.--For purposes of this 
                subsection, the term `taxable excess' means so much of 
                the alternative minimum taxable income for the taxable 
                year as exceeds the exemption amount.
                    ``(C) Married individual filing separate return.--
                In the case of a married individual filing a separate 
                return, subparagraph (A) shall be applied by 
                substituting 50 percent of the dollar amount otherwise 
                applicable under clause (i) and clause (ii) thereof. 
                For purposes of the preceding sentence, marital status 
                shall be determined under section 7703.
            ``(2) Alternative minimum taxable income.--The term 
        `alternative minimum taxable income' means the taxable income 
        of the taxpayer for the taxable year--
                    ``(A) determined with the adjustments provided in 
                section 56 and section 58, and
                    ``(B) increased by the amount of the items of tax 
                preference described in section 57.
        If a taxpayer is subject to the regular tax, such taxpayer 
        shall be subject to the tax imposed by this section (and, if 
        the regular tax is determined by reference to an amount other 
        than taxable income, such amount shall be treated as the 
        taxable income of such taxpayer for purposes of the preceding 
        sentence).''.
    (b) Application to General Business Credit.--Section 38(c)(6)(E) of 
the Internal Revenue Code of 1986 is amended to read as follows:
                    ``(E) Corporations.--In the case of a corporation, 
                this subsection shall be applied by treating the 
                corporation as having a tentative minimum tax of 
                zero.''.
    (c) Conforming Amendments.--
            (1) Section 11(d) of the Internal Revenue Code of 1986 is 
        amended by striking ``the taxes imposed by subsection (a) and 
        section 55'' and inserting ``the tax imposed by subsection 
        (a)''.
            (2) Section 12 of such Code is amended by striking 
        paragraph (5).
            (3) Section 53 of such Code is amended by striking 
        subsection (e).
            (4) Part VI of subchapter A of chapter 1 of such Code is 
        amended by striking section 56A (and the item related to such 
        section in the table of sections for such part).
            (5) Section 59 of such Code is amended by striking 
        subsections (k) and (l).
            (6) Section 860E(a)(4) of such Code is amended by striking 
        ``section 55(b)(1)(D)'' and inserting ``section 55(b)(2)''.
            (7) Section 882(a)(1) of such Code is amended by ``, 55,''.
            (8) Section 897(a)(2)(A)(i) of such Code is amended by 
        striking ``section 55(b)(1)(D)'' and inserting ``section 
        55(b)(2)''.
            (9) Section 6425(c)(1)(A) of such Code is amended by 
        striking clause (ii) and by redesignating clause (iii) as 
        clause (ii).
            (10) Section 6655(e)(2) of such Code is amended by striking 
        ``, adjusted financial statement income (as defined in section 
        56A)'' each place it appears in subparagraphs (A)(i) and 
        (B)(i).
            (11) Section 6655(g)(1)(A) of such Code is amended by 
        striking clause (ii) and by redesignating clauses (iii) and 
        (iv) as clauses (ii) and (iii), respectively.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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