The 15% corporate alternative minimum tax on book income is expanded and clarified. The threshold is lowered from $1 billion in average annual adjusted financial statement income to $500 million.
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Book vs. Tax Income Reconciliation
The fundamental tension the CAMT creates is between financial accounting (GAAP) and tax accounting. Companies with large depreciation deductions, stock-based compensation, or acquisition-related amortization often show high book income and low taxable income.
Core Takeaway
Companies with adjusted financial statement income between $500 million and $1 billion need to model their CAMT exposure for 2027. Industries with capital-intensive operations — utilities, REITs, transportation — are disproportionately exposed.