On 16 August 2022, the President of the United States (US), Joe Biden, signed the Inflation Reduction Act (the Act) into law providing a 15% corporate alternative minimum tax (CAMT) based on book income. The Corporate Alternative Minimum Tax (CAMT) applies to any corporation (other than an S corporation, regulated investment entity, or real estate investment trust) whose average annual average annual adjusted financial statement income (AFSI) exceeds $1 billion for three consecutive tax years prior to the tax year. In determining the AFSI for the $1 billion qualifying test, the law generally treats as the AFSI of all individuals who qualify as a single employer with a corporation under Section 52(a) or (b) as AFSI of the corporation.
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