S 796 — Book Minimum Tax Repeal Act

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.

Bill Text

• Introduced Introduced in Senate Current html February 27, 2025

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill repeals the corporate alternative minimum tax under the Internal Revenue Code.

• Section 55

  There → In the case of a taxpayer other than a corporation, there

  Clarifies that the provision applies differently for corporate taxpayers.

• Section 55(a)(2)

  plus, in the case of an applicable corporation, the tax imposed by section 59A

  Removes the reference to the tax imposed by section 59A for applicable corporations.

• Section 55(b)

  subsection (b)

  Repeals the corporate alternative minimum tax computation method.

• Section 38(c)(6)(E)

  this subsection shall be applied by treating the corporation as having a tentative minimum tax of zero. → this subsection shall be applied by treating the corporation as having a tentative minimum tax of zero.

  Specifies that corporations will have a tentative minimum tax of zero, effectively removing the corporate alternative minimum taxation.

• Section 11(d)

  the taxes imposed by subsection (a) and section 55 → the tax imposed by subsection (a)

  Eliminates references to section 55 taxes, further aligning with the repeal of the corporate alternative minimum tax.

• Section 12

  paragraph (5)

  Removes a paragraph related to the corporate alternative minimum tax.

• Section 53

  subsection (e)

  Removes a subsection relating to the alternative minimum tax.

• Part VI of subchapter A of chapter 1

  section 56A (and the item related to such section in the table of sections for such part)

  Repeals an entire section and its references pertaining to the alternative minimum tax.

• Section 59

  subsections (k) and (l)

  Removes additional subsections associated with the corporate alternative minimum tax.

• Section 860E(a)(4)

  section 55(b)(1)(D) → section 55(b)(2)

  Updates references in relation to the repealed taxation structure.

• Section 882(a)(1)

  , 55,

  Removes the reference to section 55, eliminating the alternative minimum tax component.

• Section 897(a)(2)(A)(i)

  section 55(b)(1)(D) → section 55(b)(2)

  Updates the reference due to the repeal of section 55.

• Section 6425(c)(1)(A)

  clause (ii)

  Removes a clause related to the corporate alternative minimum tax.

• Section 6655(e)(2)

  , adjusted financial statement income (as defined in section 56A)

  Eliminates references to adjusted financial statement income from the alternative minimum tax.

• Section 6655(g)(1)(A)

  clause (ii)

  Removes a clause that dealt with the corporate alternative minimum tax.

Action History

1. February 27, 2025

   Introduced in Senate

2. February 27, 2025

   Read twice and referred to the Committee on Finance. (text: CR S1431)

Sponsors

• John Barrasso · Primary
• Mike Crapo · Cosponsor
• James Lankford · Cosponsor
• Bill Cassidy · Cosponsor
• Steve Daines · Cosponsor
• Marsha Blackburn · Cosponsor
• Pete Ricketts · Cosponsor
• James E. Risch · Cosponsor
• Cynthia M. Lummis · Cosponsor

Subjects