The moment it was signed into law, the Inflation Reduction Act sent big company corporate tax and finance departments into overtime calculating the effects it would have on their bottom lines. One group in particular is still hunting for answers: those whose companies may have touched the $1 billion mark once but won’t likely do it again anytime soon.
The Inflation Reduction Act generally requires companies that annually report over $1 billion in book income, averaged over a three-year period, to pay a 15 percent minimum tax rate on that income, called the corporate alternative minimum tax (CAMT). Some firms may already be meeting that requirement, but corporations that have certain credits or deductions that lower their tax rate below 15 percent of their book income may be subject to additional tax liability to make up the difference.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.