Author: Jeff Hoopes

Another year with the corporate alternative minimum tax (CAMT) has passed and we have another year of data with which to answer the question: does CAMT generate much revenue, especially compared to the amount the Joint Committee on Taxation (JCT) projected it would generate?

The corporate alternative minimum tax, enacted in 2022 as part of the Inflation Reduction Act, imposes a 15% minimum tax on “adjusted financial statement income” for certain large corporations and has multiple shortcomings. CAMT is conceptually flawed, involves very high compliance costs, does not meaningfully change corporations’ incentives, and raises little revenue.

Our analysis examines CAMT’s impact on corporate tax planning and estimated tax revenue, demonstrating that despite imposing substantial new compliance and planning costs, CAMT appears to have done little to change who pays corporate income tax or how much they pay.