The Inflation Reduction Act (IRA), enacted 16 August, imposes a corporate alternative minimum tax (CAMT) based on adjusted financial statement income of ‘applicable corporations.’ The CAMT is effective for tax years beginning after 31 December 2022 (CAMT year).
Notice 2023-7 (Notice) provides interim guidance pending publication of proposed regulations on how the CAMT applies to corporations, certain partnerships, troubled corporations, and affiliated groups of corporations that file consolidated tax returns. The interim rules also address determining CAMT adjustments for depreciation and the treatment of federal income tax credits and provide a safe-harbor method for determining whether a corporation is an applicable corporation subject to the CAMT.
PwC professionals discussed the Notice and issues related to the CAMT on a Tax Readiness webcast on 11 January 2023. Watch the replay.